Newcrest Mining (NCM)
Analyst: James Brennan-Chong, UBS
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,...