What happened to the Newcrest Mining Ltd share price?
At the time of writing, shares of Newcrest Mining Ltd [ASX:TBH] are trading at $21.70, up 1.24%.
Why did Newcrest Mining shares do this?
On 27 March, Newcrest Mining announced that it would re-commence mining at Cadia East. The share price at the time was around $19.50. On 3 April, processing recommended at eight million tonnes per annum.
Cadia East is a gigantic gold mine with significant potential to deliver massive rewards for shareholders.
What now for Newcrest Mining Ltd?
The market is encouraged by Newcrest Mining’s growth strategy, encompassing low-cost and long mine life. The company’s balance sheet looks strong at the moment as well:
Source: Newcrest Mining
Newcrest is in a strong position to grow. However, it’s a gold company at the end of the day, and it’s leveraged to the gold price. Assuming the gold price breaks out into another bull market, which I expect sometime later in the year, Newcrest shareholders could be handsomely rewarded.
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