Newcrest Mining – The Golden Child Returns
The rise in gold, and falling Australian dollar has definitely given the troubled miner some breathing room. After reaching a low of $6.96 back in December, the company’s shares closed today at $11.45.
A remarkable 64% return for those ballsy enough to invest in the company when it had hit rock bottom.
The road to recovery was not easy. Waves of redundancies were made across the board, as the company struggled to cut cost to compensate for the falling gold price, and lower than expected production values. Peter Hay has since replaced Don Mercer as chairman, and Sandeep Biswas is expected to succeed Greg Robinson as the new CEO in the second half of 2014.
These changes, along with a positive quarterly report is instilling some confidence back in the miner. Still trading at below its book value of $12-13 per share, the company is a bargain for those that believe the company can continue to deliver.