Newcrest has results of drilling at Red Chris and Havieron which reinforce the emerging value in these projects. UBS is of the view that the results from Havieron increase the likelihood it will be mined, which could change the economics of Telfer.
The broker suggests the potential is not well understood and not priced in, but this could change over the next 12 months as a maiden resource is declared. Buy rating and $35 target maintained.
Sector: Materials.
Target price is $35.00.Current Price is $30.04. Difference: $4.96 – (brackets indicate current price is over target). If NCM meets the UBS target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
