23-7-2020: Newcrest Quarterly Report - June 2020
Newcrest (NCM) is Australia's largest ASX-listed pure-play gold miner, but I don't hold NCM shares. They've underperformed NST, EVN & SAR (the 2nd, 3rd and 4th largest) for good reason. The others have better management, and better gold mines. The exception is Newcrest's Cadia mine, 25km from the town of Orange in NSW, which is a brilliant gold mine. Unfortunately, NCM are pulled down by Lihir (in PNG) and especially Telfer (in a remote area of northern WA), which is one of the worst gold mines in Australia, with some of the worst working conditions.
What MAY cause NCM to perform better over the next couple of years is their growth pipeline, mostly new projects rather than extending their existing mines. However, all things considered, I am happy to continue to stay on the sidelines with NCM and hold the others. The others have provided superior total shareholder returns (TSRs) in recent years and I believe that there are good reasons to think they will continue to do so.