... the economy1. Newcrest is one of the leading gold produces in Australia and with the contribution of Telfer in 2004-2005 will become the biggest gold producer in Australia. The NCM strategy is simple and prominent in the 2002 annual report, "create low cost long life mines". This is reinforced by their strategy to divest the New Celebration mine. NCM reported a loss of $53m for year 2002. Caused in part by two significant items that we will discuss in detail in this report. It does highlight the dangers of management hedging both gold and currency fluctuation. Analysis of the important ratios demonstrates a highly geared company with capital funded 50-50 between equity and debt. This leaves NCM exposed to interest rate fluctuations. The current ratio is also very concerning at 69%. Compared to global competitors analysed in this report, NCM are in the medium range of margins at $77.75 USD and ...

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