Newcrest shares near 10-year low
Newcrest Mining Ltd shares are nearing a 10-year low on media reports the group is planning hundreds of job cuts in Papua New Guinea.
Separately, former chairman of the Australian Securities Exchange Dr Maurice Newman has been appointed to conduct an independent review of the company’s disclosure and investor relations practices.
At 1220 AEST, Newcrest shares were 2.41% lower at $9.30, against a benchmark index fall of 0.22%.
In earlier trade, Newcrest shares dropped as low as $9.07, the group's lowest point since September 9, 2003 when they were worth $9.0744.
Newman to head independent review
In a statement to the Australian Securities Exchange, Newcrest chairman Don Mercer said the gold miner's board was deeply concerned about the media criticism of the company regarding its interaction with the market and disclosure prior to a market release on June 7.
"Newcrest takes its disclosure obligations extremely seriously. Whilst the Board is already reviewing events leading up to June 7, 2013, we have decided to obtain an independent perspective," Mr Mercer said.
Dr Newman's review will examine Newcrest's continuous disclosure and investor relations processes and practices; review compliance with relevant internal company policies and procedures; and make recommendations in relation to any improvements or changes that might be required to address any issues.
Newcrest said Dr Newman will have the full resources of the company available to him, so he is able to conduct a full and thorough review.
Newcrest chief executive officer Greg Robinson confirmed that the group will continue to co-operate fully with any and all information requests and queries from the responsible regulators, including the ASX and the Australian Securities & Investments Commission.
Job cuts reported in PNG
The Australian reports the cuts will affect about 150 workers at Newcrest's Lihir gold mine, which employs nearly 3,000 direct employees and an additional 2,000 contractors.
Newcrest's Papua New Guinea operations represent about half of its overall mine assets and the cuts will affect local and expatriate jobs.
“We have gone to great lengths since the end of April to explain to our employees and contractors as well as landowners, local government and provincial and national government about the external conditions – the significant fall in the gold price, the biggest in the last 30 years – and what that means in terms of Lihir and its workforce,” a Newcrest spokeswoman told The Australian.
Newcrest is facing investigations over potential early disclosures of cost and production downgrades that saw half a dozen analysts downgrade their view of Newcrest before the downgrades were announced.