At Altair we marry top down macro views with bottom up micro research and try to find good quality companies assisted by tailwinds rather than those pressured by headwinds. Newcrest is a stock that fits this bill and here’s why with we think the tailwinds should last longer than some previous cycles. It wasn’t long ago Newcrest (NCM) was in the sin bin for almost every reason imaginable – gold prices almost halved, the US dollar wouldn’t stop running, the company had to write off a huge chunk of the Lihir Island acquisition nor could they meet guidance, they had huge CAPEX bills, the balance sheet was too stretched to pay a dividend and management were on thin ice. However times have changed (just as well!). Each of these headwinds had begun to abate over the past two or three years but it wasn’t until a year or so ago we saw value in the mix of where the company was at.