On May 6th, we posted a report on the blog which suggested that both Spot Gold and shares of NCM were in oversold territory.
At that time, the prices were at $1225.00 and $20.10, respectively. Now, Gold is back over $1250 and looking firm on the internal momentum indicators. We expect the yellow metal to test April 17th high on $1290.00 in the medium-term.
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In this sense, shares of NCM have lagged behind the spot gold price and have gained just over $1.00 during the same period.
We still consider NCM undervalued at current prices and suggest buying outright shares, or call options out to July, for a medium-term price target of $25.50.
Newcrest Mi
