Not surprising - NCM is as blue chip of a goldie as you get. When you are cranking out c 2.5m oz pa with AISC of 770/oz in a rising gold price environment you are set up as a cash cow. The debt situation is improving Quarter by Quarter (net debt reduced by $194 in H1) and you have a 27 year mine life on current reserves. Dividend leaves a bit to be desired but that aside NCM offers great relatively low risk exposure to gold with a decent side line in copper.
AISC of 770/oz at gold price of 1,220 / oz gives 58% margin, that's good bread. And if you want to park a decent amount of cash NCM has the liquidity to facilitate ease of entry and exit. Lots to like.
NCM Price at posting:
$22.99 Sentiment: Hold Disclosure: Not Held
