Ann: Newcrest Board approves Cadia East Developme, page-5

re: Ann: Newcrest Board approves Cadia East D... Syd - in the annoucement they state that they expect the Cadia east project to be funded from internal cash flows. I took it as a big positive that NCM are be able to take on this scale of development, without cap raising.

If the takeover of LGL was to proceed then the majority of the cost is in NCM shares - so not major new $ to be raised. The message is clear (IMO) - they have again said LGL is not "vital" and also dropped a hint with "Cadia East development demonstates the strength of Newcrest's organic pipeline and the growth options available to the company, whether or not the Lihir proposal proceeds".

My view is that NCM won't hesitate to drop the LGL takeover proposal if it doesn't stack up against their next best organic growth option.