Newcrest Posts $2.2B Full-Year Loss on Writedown

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Aug. 18 (Bloomberg) -- Bloomberg’s Dan Petrie reports that Newcrest Mining posted a full-year loss of $2.2 billion as the company was forced to writedown the value of four mines. He speaks on “First Up.”

Including a full-year loss of more than $2 billion aussie.

R bloomberg news reporter, dan, bringing us the background -- our bloomberg news reporter, dan petrie, ringing us the background on this.

-- bringing us the background on this.

Shares are down starting trading, newcrest mining down close to 9/10 of 1%. they should be savaged.

What we saw many years ago was the likes of newcrest expanded aggressively when the gold price was $2000 per ounce.

Remember that?

That was crazy.

Those were crazy days.

They were crazy days.

Why did they think it was sustainable and expand on a price premise of $2000 per ounce?

I suppose -- hindsight is a wonderful thing.

Gold used to be a wonderful proxy.

We thought the world would never recover.

Inevitably, it does recover.

They were building and expanding significantly.

What this does is $4 billion of revenue, which were the estimates -- the write-down had to happen.

The good news is the write-down is passed.

The fundamentals of business are relatively strong.

A loss is a loss.

Terrible reading.

No dividend.

Not a great day for newcrest investors.

They will be breathing a sigh of relief that the past is the past and they can look forward to a brighter future.

In the mining cycle, it doesn't matter who they are, miners think they can roll on.

Let's talk about the wider picture.

$600 billion worth of deals.

Apparently australian miners are now reconsidering all of that.

I used the word "savage." miners are starting to get hammered.

There is a classic case -- the poster child.

They expanded aggressively.

They rape they rode off that mozambique investment -- they wrote off that mozambique investment.

It went with a whimper.

The likes of bhp are concentrating on commodities, which would give them the bang for the buck.

Bhp is an oil and gas producer.

That's where the money is.

Things like copper concentrate -- they are not bad, but in terms of scale and size, you need to be -- [indiscernible] this is what we are seeing, all this m&a starting to flow out.

The miners will have a tough time coming forward.

We all thought the good times would roll forever.

They didn't. a country like australia, after mining, it's hard to see what they do.

Hopefully they can sell a few more cappuccinos.

What's that old aesop's fable where the ant is working away while the cricket is playing?

I don't know much about aesop's fables.

There are many more ants in australia at the moment.

6.4% unemployment is a terrible read.

You look at the economics and it is shocking.

They may need to get the engine cranking.

Both sides of politics have been

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