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.


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