Newcrest denies breaching disclosure rules
PERTH (miningweekly.com) – Australian gold major Newcrest Mining on Wednesday denied breaching disclosure rules, as the ASX queried why the miner’s share price had dropped sharply over the past week.
Newcrest on Friday announced the outcome of a strategic review, which included a potential asset impairment of A$6-billion. The review also identified a number of key actions to cut overall costs, including reducing capital expenditure.
The miner’s share prices plunged 8.3% on the news, but speculation arose as to why prices had fallen for two consecutive days prior to the announcement, shedding nearly 13% between Tuesday and Thursday last week.
In response to a query from the ASX, Newcrest said that its board had only made the capital cost and impairment decisions at a meeting on Friday, with news of the outcome delivered to the market on the same day.
“Newcrest treats its disclosure obligations seriously and engages with the investment community in a manner consistent with these obligations,” the firm said.
At the end of last week, the Australian Securities and Investment Commission confirmed that it was looking into the matter, but said that it was part of its “usual procedure” when faced with share price movements of that magnitude.
The gold miner’s shares continued its tumble on Wednesday, dropping a further 1.37% after a 2.59% fall on Tuesday, to trade at a low of A$11.81 a share.
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