NCM +0.08%: NCM reported June quarter production numbers this morning that were on the weaker side, the bid from Newmont (NEM US) looks to be somewhat of a get-out-of-jail-free card here. They produced 556koz gold in the period, ~4% below expectations which put upward pressure on costs, with an AISC of US$1,196/oz up ~US$200/oz q/q. The numbers mean they just scrapped into the low end of their FY23 gold production guidance while they just missed on copper. Importantly, the NEM deal is on track for completion before Christmas with the bid worth $27.85 per NCM as of today’s close. Continuing to hold NCM requires a view of NEM – to that end, NEM retained CY23 guidance of 5.7-6.3moz despite the June Quarter being disappointing. NCM will report FY23 results on Aug-11 and they provide FY24 guidance at that time.
MM remains long NCM
Add To Hit List
