Newcrest Mining: Indonesia output at previous year's level
Apr 23.04.2012, XNUMX Melbourne - Investors should have mixed feelings about the latest news from Australian gold producer Newcrest Mining. After all, gold production in Indonesia this year should be almost at the previous year's level.
For example, in the Indonesian Gosowong deposit this year, the company expects a roughly constant gold output of about 400.000 to 450.000 troy ounces. Among other things, however, society is likely to burden the changed legal situation in the state. Foreign companies will only be allowed to hold Indonesian mine holdings in the amount of 49 percent. However, Newcrest Mining holds shares of 82,5 percent in the said deposit. The remaining stake is held by the Indonesian company PT Aneka Tabang. However, the Australians are confident that the existing contracts will be unaffected.
Total gold production nevertheless declined
Although the production rate in Indonesia is expected to remain constant, the Group recently reduced its production forecasts for the current fiscal year. If the gold output 2011 was still 2,7 million troy ounces, the 2012 output should amount to only 2,43 to 2,55 million troy ounces of gold.
Whether or not Newcrest Mining in Indonesia actually enjoys its grandfathering needs to be proven. However, investors have been seeing a rather difficult year for the Group for some time now. For after all, the stock has been in free fall since the end of February and fell within eight weeks by more than a clear 25 percent. However, the paper could eventually form a bottom in the near future and thus possibly become interesting again for courageous investors.
(Www.emfis.com)
