Good quarterly update from NCM.
Firstly, given that many gold miners had production difficulties, including NCM, there was an expectation that production challenges might persist – that appears not be the case based on the outlook commentary.
Secondly, because of good cost control, leading to a still-strong AISC margin.
We like NCM as a modest hedge against copper-prices-going-to-the-moon (if you believe in the multi-year flagged shortages), as well as a modest inflation hedge (we aren’t that sure how bankable gold is, as an inflation hedge, but accept that others accept it), trading at a low multiples, with good free cashflows.
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