NCM +0.84%: Posted quarterly production numbers today that confirmed a soft start to FY22, albeit well flagged while they reiterated full year guidance. Gold production was 27% lower than the prior period, a bunch of factors to blame and it was foreshadowed in the June 2021 quarterly report, however as would be expected, lower production impacted financial metrics with costs up 59% to US$1,270/oz and margins down – leverage and economies of scale work both ways in commodity companies and that was clearly on show today from NCM.. All in all, an okay update, they just need gold prices to break out of their funk.
MM is long & bullish NCM
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