Newcrest Mining Ltd. (ASX:NCM, Financial) announced in a press release on its website that a seismic event occurred in the region around its Cadia operations early in the morning of April 14.Ă‚
The Australian gold producer said that after a preliminary assessment of the site, there were no injuries among mine employees as they were promptly and safely transferred from the ground to the surface. The damage to the mine seems to be minimal.
As a result, mining operations are temporarily suspended and the company is closely working with local inspectors to ensure the mine is safe.Ă‚
Sandeep Biswas, Newcrest Mining's managing director and CEO, said, “The safety of our people involved in the assessment of damage and remediation activity is paramount, as is the safety of our workforce generally, as we decide when and how mining operations recommence.”
The company says “it is too early to be definitive about the impact on the Group’s production guidance for the 2017 financial year.” A revised version will be published after mine operations start up again.
The Autralian miner also said “the preliminary assessment is that the seismic event is not anticipated to significantly impact Cadia’s production beyond the 2017 financial year.”
The operations at Cadia produce approximately 30% of the company's total gold production and 75% to 78% of its copper production.Ă‚
Newcrest Mining is trading around 23.98 Australian dollars ($18.20) per share, down AU$1.15 or -4.58% from the previous trading day, with a price-book (P/B) ratio of 2.55 and a price-sales (P/S) ratio of 5.16.
The company has a market capitalization of AU$18.37 billion and an enterprise value of AU$20.63 billion.
The company has 765.85 million shares outstanding, of which 761 million is float.
As of the most recent quarter, the company had $248 million in cash on hand and total debt of $2.12 billion.
The average analyst target price is AU$17.86 per share, which ranges between a low of AU$11.27 and a high of AU$25.
A majority of analysts recommend holding shares of Newcrest Mining with a recommendation rating of 2.9. The recommendation rating ranges between 1.0 (Strong Buy) and 5.0 (Sell).
Disclosure: I have no positions in Newcrest Mining Ltd.
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