Newcrest's disclosure backed

Miner welcomes independent report finding it tales disclosure obligations seriously

An independent review of Newcrest Mining's (NCM) disclosure and investor relations practices has been unable to find a systemic failure in the miner's interaction with the market.

In a statement to the Australian Securities Exchange, Newcrest said Dr Maurice Newman had finalised his report, concluding the group "takes its continuous disclosure obligations very seriously and, by and large, has in place processes to reinforce this."

Dr Newman said the usual protocol for completing such a review is to look for systemic failure, "tell-tale signs which indicate a repeated lapse in laid-down procedures and protocols."

"Most often there is a "smoking gun" which confirms a lax approach to investor Independent Review Report relations, or, a specific event or events where a breach or breaches, intended or inadvertent, have occurred," he said.

Dr Newman said this was not the conclusion he reached in relation to Newcrest.

He said Newcrest provided ample information regularly, but it seems the it is not always clearly understood by the market.

Among the recommendations made by Dr Newman are: releasing all external presentation materials to the ASX; broadcasting investor relations events; imposing a "blackout" period on investor relations activity in the lead up to significant board meetings or material announcements; and the establishment of key principles for dealing with investment community.

Newcrest chairman Don Mercer said the board supported all of Dr Newman’s recommendations in principle.

"We will now proceed with their implementation, noting that a number are already reflected, fully or in part, in existing Company policies and procedures," he said.

The Australian Securities and Investments Commission is currently investigating Newcrest over a release to the market on June 7.

Newcrest reiterated its intention to continue co-operating with ASIC.

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