Gold stocks generally and Newcrest specifically have been in the naughty corner for what feels like an eternity as Gold failed to make any sustained headway over the past 6 months. As discussed earlier in the week, we are now bullish on Gold and feel like our patience will be rewarded in NCM. Mining stocks trade on a multiple of their net present value (NPV), a bullish multiple would be say 1.5x with IGO currently an example of this, while stocks that trade below NPV are generally considered cheap. Newcrest trades on 0.90x NPV which is on the cheaper side of fair value.
MM is bullish NCM targeting a further ~10% upside
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