Newcrest Mining Limited (ASX:NCM) HEFFX Highlights

Newcrest Mining Limited (ASX:NCM) HEFFX Highlights

Newcrest Mining Limited (ASX:NCM) HEFFX Highlights

  • The gold miner announced that it has increased its stake in the highly sought after Brisbane-based gold mining company SolGold plc.
  • Newcrest has invested a further US$40 million in the London AIM-listed company and now holds 14.5% of the issued equity in SolGold.
  • Late last year mining giant BHP Billiton Limited (ASX: BHP) unsuccessfully attempted to snare SolGold from under the noses of Newcrest.
  • BHP made a conditional, non-binding offer to acquire a 10% stake in Brisbane-based SolGold for US$30 million. But SolGold’s management rebuffed the proposal.
  • Newcrest Mining has confirmed PNG Air as their Fixed Wing Aviation supplier for all services to Lihir Island from 13 August following a tender process for those services.
  • “PNG Air has been providing Newcrest Mining with scheduled passenger services to Lihir Island since October 2014, including transporting Newcrest staff to and from site. We’re very pleased to announce that following the recent tender PNG Air will also provide Newcrest with charter services from Cairns and Port Moresby” said Muralee Siva, PNG Air’s CEO.
  • Newcrest Mining has restarted operations in one section of its Cadia East mine in NSW after authorities lifted a prohibition notice.
  • The gold miner (NCM) says all remediation work has been completed at Panel Cave 2 and ore extraction is in a testing phase, while operations at Panel Cave 1 are likely to restart in the September quarter.

Newcrest Mining Limited is a gold mining company. The Company is engaged in exploration, mine development, mine operations, and the sale of gold and gold/copper concentrate. It owns and operates a portfolio of mines and a pipeline of brownfield and greenfield exploration projects. Its operating segments include Cadia, Australia; Telfer, Australia; Lihir, Papua New Guinea; Gosowong, Indonesia; Hidden Valley JV, Papua New Guinea; Bonikro, Cote d’Ivoire, and Exploration and Other. Its mines are located in Australia, Papua New Guinea, Indonesia, and in Cote d’Ivoire, West Africa. Cadia Valley Operation is located approximately 30 kilometers from the city of Orange in central west New South Wales and is over 250 kilometers west of Sydney. The Lihir operation is on Niolam Island in the New Ireland Province of Papua New Guinea. The Telfer gold-copper mines are located in the Great Sandy Desert in the East Pilbara region. Hidden Valley is located in the Morobe province in Papua New Guinea.

Overall, the bias in prices is: Downwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 21.23.

The projected upper bound is: 20.81.

The projected lower bound is: 18.57.

The projected closing price is: 19.69.

NEWCREST FPO closed down -0.080 at 19.770. Volume was 32% below average (neutral) and Bollinger Bands were 15% narrower than normal.

Open         High         Low           Close        Volume
19.960      19.970      19.700      19.770      2,482,392

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period        50-period      200-period
Close:                       20.53               20.95             21.45
Volatility:                27                     34                    42
Volume:                   3,437,886      4,058,547      3,726,688

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

NEWCREST FPO is currently 7.8% below its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect volume flowing into and out of NCM.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on NCM.AX and have had this outlook for the last 3 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 16.3044. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 8 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 33.17. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 38 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -139.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 8 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 11 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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