 Good day, fellow investors. Now, Newcrest Mining is a very interesting copper gold miner and very interesting exposure to debt for your portfolio. So let's make a valuation, let's give an overview of the company, a valuation of the mines and then see what is the actual fair value of such a company. This is Newcrest Cadiali here, Gold Pugosa Wong and Telfer. So a little bit easier to analyze than the previous video that I made on Gold Corp. They also own 14% of Solgold, which is a very interesting project in Ecuador, and 27.7% of Lundin Gold, another Ecuadorian project. Newcrest has an extremely long reserve life advantage compared to others, so if you are a long-term investor, Newcrest is the company for you. Plus, they have a lot of exploration, they are really investing in exploration, as I said, Ecuador, Solgold, Lundin in the Ivory Coast, etc., so a lot of optionality for the future. Their guidance is to produce 2.5 million ounces per year, which makes them one of the biggest gold producer users in the world, plus there is always the copper production. So let's start with the mine, Scadia, which is an amazing mine because the cost is just $171 per ounce, so it's a cash producing mine printing out 880 million ounces of gold per year and 90,000 tons of copper. The company is in Australia at very, very low cost, so very good jurisdiction. When I put all the details into my model and I take into account something that perhaps the market isn't seeing, but the production of gold will decline over the next few years. So that's something to keep in mind and that's why you need a long-term model. When you are analyzing these companies, I have used their all-in-sustaining costs from the last technical report, put in how much ore are they going to process per year, and then came out with the result that Scadia is worth 2.7 billion at a 15% discount rate, copper 1200 and copper, gold 1200 and copper at current prices. If I lower the discount rate to 8% then the value of the mine is almost 5 billion. Lee here, production is expected to be 1 million ounces in 2019 with all-in-sustaining costs a bit higher than Scadia at around 900 million and 65 million for non-sustaining capex. When I put everything in the model, the value of Lee here is 1.5 billion. If I lower the discount rate to 0.8, I get to 2.2 billion as the value. Telfer at current gold prices, Telfer is not profitable because it's a high-cost production, so if there will be any free cash flows, it's 24-5 million, so that's just an optionality on higher gold prices and the life of mine is also not that long, so I'll put a zero to this mine due to my conservative approach. Gossa Wong also near end of mine life with probably another 200 million in cash flows coming. Then they own 45% of the Vafi Goldpup project, which is a very interesting copper gold project, so the maximum investment here should be 2.8 billion. The government can exercise its option to own 40% of the company, the life of mine is very, very long, and the net present value is 2.6 billion at a 5% discount rate. However, the cash flows look very, very positive, and the money that Newcrest should get when this is in operation should be around 500 million per year over the life of mine, which is very, very good. However, the net present value at 5% is actually 1.6 billion at current copper prices, which changes things a bit. If copper prices explode, then of course the net present value goes to 4.5 billion. I will give Vafi Goldpup a value of 1 billion at the current moment because they still need to get their permitting straight. And just one note on the sustainability, the tailings, the waste that passes through the mine is expected to be dumped into the deep ocean. So if you're an environmentalist, you love the ocean, you will not like this dumping of the tailings that are usually, they can be treated, they can be anything, but they are usually toxic. We'll go into the ocean and unfortunately that's not something nice, but that is the negative side of mining. So if I put everything together, my total value is 5.8 billion at an 8% discount rate, my total value is 8.5 billion. I prefer my 15% discount rate. Newcrest's market cap is 11.5 billion on the current free cash flow of 600 million, so not really something that I will dig deeper. I will keep it as an option if the stock price maybe falls or goes cheaper, but a lot of buts and a little bit expensive for the high quality it offers. So Newcrest, yes, it is a high quality business, good mines, low cost production, very long term production, very strong cash flow, very strong balance sheet. So very, very good business, but it's a little bit pricey for me, that's it. If you like the returns of 7% at current copper prices with optionality on higher gold and higher copper prices, then this might fit your portfolio. But at current prices don't expect more than a 6, 5, 6, 7% return over the very long term if things go well and there is no seismic impact at Cadia as it has been the case in two years ago, or the environmentalists don't stop the Vafi Goldpup project, etc. So for the risk reward I prefer a 15% discount rate which leads me to a value of 5.5 billion, which is half of what the current market capitalization is. Thank you for watching, look forward to the comments, check my stock market research platform for the full detailed analysis of these miners and many more that I'm currently doing to search for portfolio exposure or to just see miners to watch to buy them at the right time. See you in the next video.