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Posts tagged ‘Newcrest Mining Ltd (NM)’

Newcrest “independent” review finds no conclusive evidence of tipping

September 5th, 2013

by Cecilia Jamasmie | September 5, 2013 | Reprinted by permission of

After 10 weeks of in-house investigations, Australia’s No. 1 gold producer Newcrest Mining TSX:NM has mostly cleared itself of any wrong-doing related to market disclosure rules.

The awaited “independent” review commissioned to former ASX chairman Maurice Newman, published on Thursday, was swiftly labelled by global media as restricted and lacking scope.

Astoundingly, Mr. Newman writes in his report that he was unable to interview any of the analysts involved as well as the majority of broker firms whose analysts attended analyst meetings. Without their views, it seems that Mr. Newman may not have had the full picture and perhaps it’s no wonder that Newcrest was cleared in his ‘independent’ report.—Mike King, the Motley Fool

But the Australian Securities & Investments Commission continues to investigate the market disclosure scandal that surrounded Newcrest’s June 7 corporate restructure and sent its shares down to nine-year lows.

That day Newcrest’s shares sank 12% before it disclosed plans to cut up to AU$6 billion in asset values, reduce costs and shelve planned expansions and exploration activities.

According to Aussie laws, tipping falls under insider trading and carries fines or as much as 10 years in jail.

Newman’s report concludes there is no conclusive evidence of malpractices at Newcrest and he recommends the company scale back communications with the investment community.

He goes on to blame analysts for having “missed the signals” presented in the company announcements previous to June 7.

“Despite the fact that the investor relations function understands well its obligations under the law, it seems some analysts fail to fully understand the relevance of company releases,” he said.

As most gold miners, the Melbourne-based company has been hit hard by current bullion prices, which have forced the company to cut costs, fire hundreds of employees and close one of its Australian offices, among other belt-tightening measures.

Earlier this month, the miner reported its largest annual loss ever, with write-downs totalling $5.73 billion.

Newcrest “independent” review finds no conclusive evidence of tipping

Reprinted by permission of

Investors pour into gold stocks: Barrick gains $7bn in 7 weeks

August 23rd, 2013

by Frik Els | August 23, 2013 | Reprinted by permission of

The gold price made a serious attempt to scale the psychologically important $1,400 level on Friday, sending investors scurrying for gold mining stocks.

Bullion bulls are celebrating an 18% jump in the price of gold since the metal hit multi-year lows below $1,200 at the end of June.

Barrick Gold TSX:ABX gained 3% to $21.20 on Friday, up an astounding 49% in just seven weeks.

The Toronto-based global No. 1 gold miner continues to recover from 21-year lows of $14.22 struck on July 5, following a string of setbacks at the company.

Barrick is now worth $21 billion on the TSX, gaining $7 billion in market value in as many weeks. The company, which has written down the value of its assets by some $13 billion this year, peaked at a market capitalization in January 2011 of more than $54 billion.

Gains for Newmont Mining NYE:NEM have been more modest, but the $16.4-billion Denver-based company, which hopes to mine around five million ounces this year, is still up nearly 20% since gold’s June 28 low.

Goldcorp is the best performer of the gold majors, keeping its 2013 market value losses to 10% despite the 16% drop in the gold price this year.

The world’s third-largest gold producer in terms of ounces mined, AngloGold Ashanti NYE:AU gained 3.3% on Friday, but the Johannesburg-based company has made few strides on the back of the resurgent gold price.

Shares of the company are still down 45% year-to-date as it struggles with unrest in its home country’s mining sector and falling gold output. In dollar terms AngloGold’s JSE-listed shares have performed even worse, down 10% as the rand continues to slide against the U.S. and Canadian dollar.

Fellow South African miner Gold Fields NYE:GFI was the lone counter in the red on Friday as the company suffered a second day of losses in reaction to its purchase of three Barrick gold mines.

Gold Fields’ acquisitions in Australia will add more than 400,000 to its annual output, putting it within range of the mined ounces of Canada’s Goldcorp TSX:G, which expects to produce between 2.5 million and 2.8 million ounces in 2013.

Vancouver-based Goldcorp, the world’s most valuable listed gold company, added 2.4% on Friday, pushing its market value to $26.6 billion.

Goldcorp is the best performer of the gold majors, keeping its 2013 market value losses to 10% despite the 16% drop in the gold price this year.

Canadian peer Kinross Gold TSX:K—which this year expects to produce between 2.4 million to 2.6 million ounces—traded up more than 3%.

Australia’s Newcrest Mining TSX:NM jumped more than 5% on the Sydney bourse.

The 2-million to 2.3-million-ounce producer is still 43% cheaper than at the start of the year after suffering $6 billion in writedowns, a dividend cut and an investigation by Australian market regulators prompted by suspicious price movements.

See also: Friday rally sets up gold price breakout.

Reprinted by permission of