Newcrest Mining: Raising FY15 eps

Newcrest Mining (NCM) released its June quarter production and cost results reporting group production of 674koz (up 9% on the March quarter). As expected, Lihir continued to perform well and a surge in gold production at Gosowong helped push NCM to the mid-range of its FY15 forecast… NCM was plagued with inefficiencies over much of 2014, but much of this has been mitigated in the past six months, particularly at Lihir. NCM said margins for the June quarter averaged A$554/oz, which should improve further as Cadia continues its ramp up into 1QFY16. We raise FY15 earnings per share by 10% and make incremental changes to FY16-17 to account for improved output from Lihir and Gosowing. More detail on the Morgans blog: (VIEW LINK)