Newcrest hits 9-year low

Newcrest Mining Ltd shares have fallen to a nine-year low as the fallout from investigations into potential breaches of continuous disclosure relating to a $6 billion writedown continues.

Newcrest Mining Ltd shares have fallen to a nine-year low as the fallout from investigations into potential breaches of continuous disclosure relating to a $6 billion writedown continues.

At 1130 AEST, Newcrest shares were 6.5% lower at $10.05 against a benchmark index fall of 1.36%.

In earlier trade Newcrest shares fell as low as $9.96, their lowest point since May 10, 2004, when the stock traded at $9.7657.

Six investment banks downgraded their production forecasts and Newcrest stock recommendations ahead of the June 7 announcement. The resulting sharp decline in Newcrest's share price caught the attention of authorities, who are investigating the cast.  

Newcrest has turned to its former head of investor relations in Australia, Steve Warner, to help it manage with its growing continuous disclosure scandal, according to The Australian Financial Review.

Mr Warner, who had been in the United States serving as the primary contact for North American investors since Newcrest listed on the Toronto Stock Exchange in 2012, has reportedly been working alongside Newcrest's Melbourne-based investor relations manager Spencer Cole.

Mr Cole has emerged as a key player in the scandal surrounding allegations Newcrest selectively briefed analysts in the lead-up to its June 7 disclosure of massive write-downs and production cuts, with reports alleging Mr Cole was involved in the selective briefings.

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