Newcrest Mining’s (ASE: NCM, OTC: NCMGY) principal product is gold, which it mines mainly in Western Australia through its Telfer and Boddington projects. It also has projects in New Guinea, New South Wales, Ivory Coast and Indonesia that are expected to add considerable volume to future output.

The massive floods that struck Australia in recent months have taken their toll on production. Output for the fiscal third quarter ended March 31 fell by 16.3 percent from the second quarter to just 604,791 ounces. That was below most estimates. But output was still 45 percent more than last year’s tally, thanks to the successful acquisition of Lihir Gold, which holds massive reserves in New Guinea.

The shortfall in third-quarter output has triggered similar reductions in full-fiscal year projections (end June 30). But assuming some return to normalcy in coming months, that should quickly become a bad memory on the way to surging earnings–and a much higher stock price.

The stock has handed US investors a total return of roughly 45 percent over the last 12 months, nearly half of which was provided by the Aussie dollar’s gains against the greenback. Five-year gains are more than 200 percent.

Newcrest Mining, the latest addition to the Metals and Mining Portfolio, is a buy up to AUD45, or USD48 if you buy the American Depositary Receipt.

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