Newcrest Mining (NCM) will go ex dividend on 24/9/2012. The current dividend payment is 23 cents and it is 15% franked. The record date is 28/9/2012 and the dividend will be paid on 19/10/2012. Based on the full year payment the dividend yield is 1.3%.
*Current Yield: 0.9% Franking: 15% DRP Discount: 0%
*Yield has been calculated on the closing price on the 13/9/2012. Current yield is based on the current dividend payment only.
GR Engineering Services Limited (GNG) announced it had been awarded an engineering, procurement and construction (EPC) lump sum contract by Newcrest Mining Limited (NCM) for the refurbishment and commissioning of the LP237 dump leaching facility at Newcrest’s Telfer mine in Western Australia. The revenue contribution to GR Engineering from the Contract is approximately $18 million, with the Contract works being due for completion in November 2012. The works under the Telfer LP237 Contract include engineering design and documentation, procurement of materials and equipment, fabrication, construction, commissioning and project management.
Joe Ricciardo, Managing Director, said: “This Contract is GR Engineering’s third brownfields EPC engagement at Telfer in the past year, all of which have been awarded following our delivery of front end engineering studies. We look forward to continuing our strong working relationship with Newcrest and demonstrating GR Engineering’s ability to unlock value for clients through the delivery of incremental project enhancements.”
GR Engineering Services Limited (ASX:GNG) is an engineering, consulting and contracting company specialising in fixed price engineering design and construction services to the resources and mineral processing industry. Founded in Perth, Western Australia in 2006, GR Engineering has rapidly grown through the completion of design and construction projects for a diverse range of clients, including global mining houses, mid-tier miners and junior developers undertaking their first project. GR Engineering has undertaken feasibility studies for projects in over 20 countries. These studies play a key role in delivering organic growth opportunities through their conversion into design and construction projects.
Newcrest Mining Limited (NCM) and Frontier Resources Ltd (FNT) are pleased to announce the signing of a Heads of Agreement (Agreement) by Frontier and a wholly‐owned subsidiary of Newcrest, pursuant to which Newcrest has agreed to subscribe for A$750,000 of Frontier shares (Share Subscription); and Newcrest and Frontier have agreed to negotiate the terms of a proposed farm‐in by Newcrest into Frontier’s gold porphyry Mt Andewa exploration project (Project) on the island of New Britain, Papua New Guinea, on an exclusive basis until 30 April 2012. Under the Share Subscription, Newcrest will subscribe for A$750,000 of Frontier ordinary shares, comprising 7,026,429 million shares at A$0.1067 per share (approximately 2.3% of Frontier). The share placement will be undertaken immediately and it is Frontier’s intention to use the proceeds to fund exploration of its various tenements.
Frontier Chairman and Managing Director, Peter McNeil commented “We are excited to have a company of Newcrest’s calibre as a shareholder and potential joint venture partner at the Andewa Project, and consider this announcement as endorsement of the potential of the Andewa Project. Frontier will benefit from Newcrest’s expertise and capability in the ongoing efforts to unlock this potential.” Newcrest Executive General Manager Minerals, Colin Moorhead said “Newcrest is pleased to establish this relationship with Frontier in accord with our strategy of seeking opportunities for early stage entry into high‐ quality gold projects in the Asia‐Pacific region”.
Newcrest Mining (NCM) will go ex dividend on 19/3/2012. The current dividend payment is 12 cents and it is 0% franked. The record date is 23/3/2012 and the dividend will be paid on 17/4/2012. Based on the full year payment the dividend yield is 1.0%.
*Current Yield: 0.4% Franking: 0% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 3/3/2012. Current yield is based on the current dividend payment only.
Coretrack Limited (CKK) is pleased to announce that it has executed a formal Rig Services Contract with Newcrest Mining Ltd for its GT3000 drill rig. The project is a significant mineral coring program for the purpose of bulk metallurgical samples at Newcrest’s Telfer Operations. The job scope involves pre-collar drilling a number of mineral holes to more than 300 metres followed by 40 metres of coring.
Coretrack Chairman Mr Matt Birney said “We are looking forward to working with an ASX Top 20 Company and one of Australia’s biggest gold producers. We anticipate the contract value to be in excess of $2 million and we expect that this will keep the GT3000 rig busy right up until the previously announced Whicher Range oil and gas contract commences towards the end of the year.”
“The signing of this contract with Newcrest is yet a further endorsement of the rig’s unique capabilities” said Mr Birney. Newcrest Group Manager of Minerals and Technology Dean Collett said “We have been looking forward to getting the GT3000 up to our Telfer Operations as we believe that it has diverse and unique capabilities which are in some cases outside the scope of a standard drill rig.” “These holes are to be cased and cored and we feel that the Coretrack GT3000 is best suited to undertake this work” said Mr Collett.
Coretrack Limited is an ASX listed company that provides technical solutions to the energy industry in the form of down hole tools, products and services. Since the company’s conception, Coretrack has focused primarily on building its highly anticipated integrated core tracking tool, the Core Level Recorder System (CLRS), and introducing the tool into the commercial market. The company has accelerated its operations and growth plan by acquiring one of Australia’s leading drill rig manufacturing/drilling services companies, Globe Drill Pty Ltd. The Globe Drill acquisition has brought together two world class companies, both at the forefront of producing superior products and services for the global energy sector.
http://www.traderdealer.com.au/fundamentals/ckk
The Covered Call Collar is an options trading strategy that traders can use to protect an existing position that has recently surged into a key resistance level. Rather than simply taking profits on the share position and potentially missing out on future upside, the trader enters into a Covered Call Collar. This options trading strategy seeks to protect your existing share position while still participating in some of the upside for a minimal or no outlay.
The Covered Call Collar allows you to participate in some of the future gains up to the sold strike price, while being protected by the put position.
If you are of the opinion that the stock is likely to sell-off with little chance of breaking the key resistance level, but you still want to hold on to it, you could use a Covered Call Collar options strategy. The Covered Call Collar strategy is similar to the protective put options strategy in that you also buy put options as protection. The difference is that you will now finance the purchase of those put options with the proceeds from writing an equal number of out of the money call options.
The position will still protect you from losses below the strike price of the put options at minimal to no cost to yourself, but it will also stop the position from profiting beyond the strike price of the short call options should the stock stage a rally. That is, you would miss out on a strong rally in exchange for putting on the protection of the put options for next to no cost (apart from commissions, of course).
Use a Covered Call Collar when you expect the share price to move modestly higher or pull back significantly from current levels.
A recent trade which is yet to pay off was Newcrest Mining. We initially entered the share position when the stock price broke above its 50 and 200 day moving averages, around $38.50. It shot up soon after we entered the trade and has now been trading sideways for the past few weeks. We considered a covered collar was appropriate for this position. Based on technical analysis you can see from the chart that the $42.50 resistance level has held for over a year.
So we bought protection at $39.00 by buying 3900 SEP11 Put for $0.645 and then wrote the $42.50 SEP11 Calls for $0.775. We received a credit for this trade and the position remains open. We are protected until September expiry down to $39.00 and profits will be capped at $42.50.
Chart 1: Newcrest Mining Covered Call Collar Trade
You can plan and analyse your trade as shown above, using the Derivative Profiler option in the Market Analyser software.
MarketAnalyser also provides a payoff diagram for further trade analysis as follows:
Chart 2: The payoff diagram for the Newcrest Covered Call Collar trade.
Newcrest (NCM) is still trading between the $39.00 and $42.50 option strike levels and only time will tell whether the share price will end up at expiry, but we are protected until September expiry down to $39.00 and profits will be capped at $42.50.
Options can be used in order to reduce your risk while still participating in potential profits from a modest move in the underlying stock. Here we’ve explained the Covered Call Collar strategy which allows you to participate in some of the future gains up to the sold strike price, while being protected by the put position.
In future articles we will talk about the High Yield Covered Call strategy and the Stock Repair strategy which is particularly relevant to this market.
Utilise the features in the Market Analyser software to plan your trades for the particular options strategy using your specific trade selection criteria. You will save time and potentially reduce your trading risk. Sign up for a free 14-day software trial here.
By Michael Hevern
Head of Research
See Also:
Options Trading for All Types of Market Environments (Part 1): The Protective Put
Options Trading for All Types of Market Environments (Part 2): The Covered Call
For buy and sell recommendations on ASX listed companies register for a free trial of MDS Financial Research.
MDS Financial Advisory Services offers general advice on trading options to generate consistent steady income on your investment portfolio. Call 1300 610 024 for further information.
Leighton Contractors (LEI) have been awarded 2 new gold mining contracts, one in Western Australia and one in the Northern Territory, totaling $317 million. The first, a $200 million contract awarded by Newcrest Mining Ltd, is for works at Telfer – one of the largest gold mines in Australia. Under the 27-month contract, Leighton Contractors will provide mining equipment, operators, maintenance and supervisory personnel, and infrastructure including workshops and offices to the project.
The second is a 3 yesr, $117 million contract for Crocodile Gold Australia Operations Pty Ltd at the Cosmo Deeps underground gold mine. The contract, commencing in April, will see the provision of complete mining services, including short-term scheduling, diamond drilling, decline and level development, ground support installation and shotcreting, production drilling, blasting and haulage. There is also provision for a contract extension, with the mine life currently estimated at 10 years.
Steven Keyser, Executive General Manager at Leighton Contractors, said the company’s existing surface and underground mining expertise and proven track record in delivering similar projects were key factors in securing the contracts.
Leighton Contractors, a wholly owned subsidiary of Leighton Holdings Limited (LEI), is one of Australia’s leading contracting and project development groups with over $12.3 billion work in hand. The company services clients across a range of industries and sectors including resources, construction, telecommunications, energy, infrastructure and facility management.
www.leightoncontractors.com.au
http://www.traderdealer.com.au/Fundamentals/lei
Newcrest Mining (NCM) will go ex dividend on 21/3/2011. The current dividend payment is 10 cents and it is 0% franked. The record date is 25/3/2011 and the dividend will be paid on 15/4/2011. Based on the full year payment the dividend yield is 0.8%.
*Current Yield: 0.3% Franking: 0% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 14/3/2011. Current yield is based on the current dividend payment only.
Newcrest Mining (NCM) will go ex dividend on 27/9/2010. The current dividend payment is 20 cents and it is 0% franked. The record date is 1/10/2010 and the dividend will be paid on 22/10/2010. Based on the full year payment the dividend yield is 0.6%.
*Current Yield: 0.5% Franking: 0% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 13/9/2010. Current yield is based on the current dividend payment only.
Global diversified engineering services and project management group, Ausenco Limited (AAX) signed a $32 million contract to provide engineering design services for the processing plant upgrade included within Newcrest’s recently announced $1.9 billion Cadia East Project at Cadia Valley near Orange, NSW.
Ausenco CEO Zimi Meka said “The signing of this contract for the Cadia East Project has built on Ausenco’s long association with Newcrest, and work carried out for Newcrest during the study and pre- approval phases of the Cadia East project.” The Cadia East project will be Australia’s largest underground mine and is due to be complete by 2013.
Ausenco sets high global standards for leading edge engineering and project management services in the resources and energy sectors. Across 32 offices in 20 countries, it seeks ingenious solutions for its clients in the Energy, Environment & Sustainability, Minerals & Metals, Process Infrastructure and Program Management sectors.
http://www.traderdealer.com.au/Fundamentals/aax
