Newcrest to Cut Mine Value by $5.6 Billion After Gold FallsElisabeth Behrmann
Newcrest Mining Ltd., Australia’s largest gold producer, will write down the value of its assets, which the company flagged in June, by about A$6.2 billion ($5.6 billion), after a slump in prices.
The writedown charge for four mines in Australia, Papua New Guinea and Africa and its stake in Evolution Mining Ltd. is approximate and is subject to audit, Melbourne-based Newcrest said today in a statement.The company, which will report full-year earnings next week, has a market value of A$8.6 billion.
Newcrest’s June estimate of a writedown of between A$5 billion and A$6 billion didn’t include the A$273 million Evolution writedown and A$360 million for other assets. Newcrest joins rivals including Newmont Mining Corp., the second-largest producer, in making writedowns after gold prices fell into a bear market in April.
Newcrest is cutting spending, suspending high-cost operations and closing its Brisbane office, which has about 100 staff, it said in June.
Newcrest declined 0.5 percent to A$11.22 at 4:10 p.m. in Sydney trading. Its shares have fallen 49 percent this year, making the it the worst performer among Australia’s 50 biggest publicly traded companies.