Newcrest loss tipped as season's biggest
A consensus of analyst forecasts suggests the nation's biggest listed goldminer will report an underlying profit of $485 million, which will convert to a loss of more than $5 billion once a swath of asset write-downs is included.
The write-downs will top $6.2 billion after poor performance and a gold price slump forced the company to impair several assets.
Write-downs aside, Newcrest's underlying profits are also tipped to be their lowest since 2008 and 2009, after a savaging by the gold price slump.
That slump forced the company to curtail much of its planned gold production in coming years, meaning it is unlikely Newcrest will return to profits in the billions any time soon.
Investors will also watch the Newcrest results for guidance on Maurice Newman's review of the company's disclosure performance.
Newcrest made headlines for all the wrong reasons in June when a series of analysts and investors correctly anticipated a big corporate restructure.
The saga prompted claims that market-sensitive information had been released inappropriately and, ultimately, an ASIC investigation.
Newcrest separately appointed Dr Newman to conduct his own investigation of Newcrest's disclosure performance, due within weeks, raising speculation it could be released on Monday with the results.
Newcrest shares last traded at $11.48.
Frequently Asked Questions about this Article…
Analyst consensus suggests Newcrest could report an underlying profit of about $485 million that converts into a statutory loss of more than $5 billion once a large package of asset write-downs is included.
The article says the write-downs will top $6.2 billion after a combination of poor asset performance and a slump in the gold price forced the company to impair several assets.
The gold price slump has pushed Newcrest’s underlying profits to their lowest levels since 2008–2009, and it forced the company to curtail much of its planned gold production in coming years, making a return to multi‑billion dollar profits unlikely anytime soon.
Investors are watching for guidance on Maurice Newman’s review of Newcrest’s disclosure performance. Newcrest appointed Dr Newman to investigate disclosure issues, and his findings are due within weeks — they could be released alongside the full‑year results and may clarify how the company handles market‑sensitive information.
Yes. The article says a saga around anticipated corporate restructuring in June prompted claims that market‑sensitive information had been released inappropriately and ultimately led to an ASIC investigation.
In June a string of analysts and investors correctly anticipated a major corporate restructure, which made headlines for the wrong reasons and led to questions about whether market‑sensitive information had been released inappropriately.
According to the article, investors will closely watch the full‑year results for details on the size of the write‑downs, underlying profit numbers and guidance from Maurice Newman’s disclosure review — all of which may influence investor sentiment.
The article notes Newcrest shares last traded at $11.48.
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