Newcrest Mining Ltd. (NCM), the gold producer facing regulatory scrutiny over its disclosure of a possible A$6 billion ($5.5 billion) writedown, appointed a former chairman of the Australian Securities Exchange to review its practices.
Maurice Newman, who stepped down as ASX Ltd. (ASX) chairman in 2008, will act as an independent adviser to examine the company’s disclosure and investor relations, the company said today in a statement. He will report on his findings to the Melbourne-based gold producer’s board as soon as possible, it said.
“The board will consider all findings and recommendations of the review,” Newcrest Chairman Don Mercer said in the statement. “If steps are required to be taken as a result of the review of these matters, the board will ensure that this occurs without delay.”
The Australian Securities and Investments Commission is discussing the fall in Newcrest’s share price ahead of its June 7 announcement that it expected to take a writedown on its assets, cut jobs and trim spending. Newcrest has said it did not selectively brief analysts ahead of the announcement.
The company is cutting about 150 jobs at its Lihir mine in Papua New Guinea as part of its response to the plunge in bullion prices, it said earlier today.
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