NCM reports in-line FY14 figures

"Cash flow positive" is certainly what NCM wants the market to take out of its results.

Source: Bloomberg

Key findings

- Output guidance upped and FY14 output beats expectations
- Cash cost and net debt falling versus an average gold price also falling
- Cash flow positive, profit and margins still stranded

The $1 billion in free cash flow saw net debt falling substantially and beating estimates by 23%. This is an encouraging sign that NCM could be finding a floor in the structural nightmare that has been the Lihir takeover. The restructure at its problem mines has also seen all-in cash cost falling year-on-year to $976 per ounce from $1283 per ounce a year before. This is pleasing, however the average gold price fell 9% over the year to $1250 an ounce showing margins remain under pressure from a falling gold price which is likely to increase over the coming period.

Read Evan Lucas' exlusive breakdown of NCM's results using his Equity Matrix.


Net profit







Keep up-to-date with key Australian stocks this reporting season with our market schedule here.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.