Newcrest Mining Ltd., Australia’s largest gold producer, fell to a four-year low in Sydney trading after cutting its annual output forecast by about 10 percent.
Newcrest fell 8.3 percent to A$20.05 at the close of trading in Sydney, the lowest since Nov. 20, 2008. Shares of the Melbourne-based company have dropped 33 percent in the past year.
Gold production is forecast at 2 million ounces to 2.15 million ounces in the year ending June 30, the company said today in a statement. Last month the company estimated output at the low end of a range of 2.3 million ounces to 2.5 million ounces. The estimate was cut because of restricted production at the Lihir mine in Papua New Guinea and poor ground conditions at the Gosowong mine in Indonesia.
“It’s another disappointment,” Evan Lucas, a Melbourne-based market strategist with IG Markets Ltd., said by phone. “If you like gold, buy the metal, not Newcrest. It’s been a serial disappointment stock.”
The company last year cut its output target at least twice.
Lihir will produce 620,000 ounces to 680,000 ounces of gold during fiscal 2013, while Gosowong output will be in the range of 300,000 ounces to 325,000 ounces, Newcrest said.