Buy, Sell, Hold: Newcrest, St Barbara and Capricorn

A GOLD-focused edition of Buy, Sell, Hold with a look at Newcrest’s Lundin deal; St Barbara upgraded on results; and coverage initiated on Capricorn.

Buy, Sell, Hold: Newcrest, St Barbara and Capricorn Buy, Sell, Hold: Newcrest, St Barbara and Capricorn Buy, Sell, Hold: Newcrest, St Barbara and Capricorn Buy, Sell, Hold: Newcrest, St Barbara and Capricorn Buy, Sell, Hold: Newcrest, St Barbara and Capricorn

Newcrest Mining (NCM)

Analyst: James Brennan-Chong, UBS

Recommendation: Sell

Price target: A$13.90

Thursday’s close: $21.29

Reason: Expanding the profile in the Americas

Comments: Newcrest has recently announced "aspirational" targets to have exposure to five tier 1 ore bodies by the end of 2020. Today, Newcrest is partnering with Lundin Gold with an investment of US$250 million to acquire a 27.1% interest in Lundin. The deal includes a standstill where NCM will not increase its stake beyond 32% during an eight-year period. We think Fruta del Norte meets NCM's "broad" targets for a tier 1 ore body,...