Newcrest Has $2 Billion Full-Year Loss After Writedowns

Newcrest Mining Ltd., Australia’s largest gold producer, posted a full-year loss after a A$2.35 billion ($2.2 billion) writedown on the value of four mines.

The net loss was A$2.2 billion in the 12 months ended June 30, from a net loss of A$5.78 billion a year earlier, the Melbourne-based company said today in a statement. It reported a A$6.2 billion writedown last year.

“The most significant component of the write downs related to Lihir” mine in Papua New Guinea, Chief Executive Officer Sandeep Biswas said in the statement. “While we have realized some initial operating improvements, I am not satisfied with either the current operating performance or the cash generation of the business.”

Barrick Gold Corp., the world’s biggest gold miner, Newcrest and rivals racked up at least $26 billion in writedowns last year, the aftermath of a mergers and acquisitions spree and the metal’s steepest annual slump in at least a quarter of a century.

Gold output in the 12 months through June 2015 is forecast to be between 2.2 million ounces and 2.4 million ounces, the producer said in its statement.