This week, the Investing News Network looks at ASX-listed Newcrest Mining and Fortescue Metals Group.
For investors focused on the resource space, a good way to track companies listed in Australia is to look at the S&P/ASX 300 (INDEXASX:XKO). The index includes all S&P/ASX 200 (INDEXASX:XJO) companies as well as about 100 smaller-cap companies, and as of April 2015 accounted for 74 percent of the Australian equities market. Specifically, the S&P/ASX 300 Metal & Mining (INDEXASX:XMM) division is a great source for companies to watch.
The Investing News Network is thus profiling companies on the S&P/ASX 300 Metal & Mining index. This week’s companies are Newcrest Mining (ASX:NCM) and Fortescue Metals Group (ASX:FMG).
Operating mines in four countries, Newcrest Mining is one of the world’s largest gold companies. Newcrest is focused on creating long-term value with an emphasis on maintaining low costs, growing its reserves and production and using capital efficiently.
The company runs the Cadia Valley operations, located roughly 250 kilometers west of Sydney in New South Wales. The operations encompass three large-scale mines: the Cadia Hill open-pit mine, and the Cadia East and Ridgeway underground mines. At the end of its most recent financial year, which closed on June 30, 2015, Newcrest reported production of 667,418 ounces of gold and 73,697 tonnes of copper.
Newcrest also operates mines in Western Australia, Papua New Guinea, Côte d’Ivoire and Indonesia.
Located in Australia’s prolific Pilbara region, Fortescue is the world’s fourth-largest iron ore producer. Given the recent weakness in the iron ore market, which has been spurred on by China’s economic instability, Fortescue is currently trading at just $1.73 per share.
Recently, the company accepted offers to repay US$750 million of principal of its 2019 8.25-percent and 2022 6.875-percent senior unsecured notes via a tender. CEO Nev Power commented that Fortescue “continue[s] to focus on activities which strengthen Fortescue’s competitive position in the global iron ore market. [Its] operational performance and ongoing commitment to savings has enabled Fortescue to continue its debt repayment program whilst maintaining strong cash balances.”
Securities Disclosure: I, Vivien Diniz, hold no direct investment interest in any company mentioned in this article.
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