Newcrest to review disclosure practices

Gold producer Newcrest Mining Ltd appointed former Australian Securities Exchange (ASX) chairman Maurice Newman to carry out an independent review of the company’s disclosure and investor relations practices.

This follows criticism of the ASX listed miner’s conduct in the lead up to an announcement on June 7 that it would take a A$5 billion –A$6 billion (US$4.6 billion-US$5.6 billion) write-down in its 2013 financial year.

“Newcrest takes its disclosure obligations extremely seriously. Whilst the board is already reviewing events leading up to June 7, we have decided to obtain an independent perspective,” Newcrest chairman Don Mercer said.

Earlier this month Newcrest received and responded to queries form the ASX about the timing of its write-down disclosure after questions were raised about a possible “selective briefing of analysts in recent weeks” ahead of the announcement.

A number of banks, including UBS, Citi Research and Credit Suisse, downgraded Newcrest to ‘underperform’ from ‘out­perform’ in the days leading up to the company’s disclosure with the gold producer’s share price falling 12% between June 4 and June 6.

Newcrest said the independent review will look at Newcrest’s continuous disclosure and investor relations processes and practices, analyse compliance with relevant internal company policies and procedures and make recommendations for improvements or changes that may be required. 

“If steps are required to be taken as a result of the review of these matters, the board will ensure that this occurs without delay,” Mercer said.