Newmont: Sitting At Trough Multiple Ahead Of Margin Recovery - Seeking Alpha

[CanisLycaon]

The latest well researched updated piece from Taylor Dart at Seeking Alpha today, which looks further into the Newmont/Newcrest deal, where he mentions Havieron and it's positive medium/long term benefits:

"....Red Chris is a money-losing asset currently, but it's a future ~300,000 ounce gold producer at negative ~$200/oz AISC from 2029-2035, and Havieron will also come online later this decade, a high-grade asset whose ore will be trucked to Telfer, with AISC expected to come in below $800/oz.

Hence, this will be a very different looking group of assets from a free cash flow standpoint later this decade when Havieron and Red Chris Block Cave are online, Brucejack is further optimized and Lihir's production profile is above 1.0 million ounces per annum...."

"...So, while the price paid may look steep, it's hard to put a price on multiple assets with what look to be at least 25 year mine lives (Cadia, Havieron, Red Chris, Wafi Golpu) with all-in sustaining costs coming in between [-] $100/oz and ~$800/oz, miles below the current industry average. ..."

"...Importantly, these are entirely separate from world-class intercepts coming from other assets in the portfolio like at Havieron (~150 meters at 3.7 grams per tonne of gold and 0.15% copper) and Red Chris (~248 meters at 1.6 grams per tonne of gold and 1.4% copper, or ~3.5 grams per tonne gold-equivalent)...."

"...So, while we will see lower costs immediately for Newmont if the Newcrest deal is approved, the medium-term and long-term benefits are also significant, with low-cost projects like Havieron (70%) and Red Chris Block Cave (70%) paving a path towards sub $1,000/oz AISC and the potential for even lower AISC if Wafi-Golpu (50%) is developed (another asset that's expected to have negative AISC)..."

https://seekingalpha.com/article/463456 ... n-recovery