Newcrest Australia’s Biggest Gold Producer Loss $5.7 Billion

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(Bloomberg) – Newcrest Mining Ltd. (NCM), Australia’s biggest gold manufacturer, will make additional cost slashes should charges down turn further after booking a record full-year loss on a A$6.2 billion ($5.7 billion) write-down.

The net decrease was A$5.78 billion in the 12 months ended June 30, from net income of A$1.18 billion a year earlier, the Melbourne-based business said today in a statement. The outcome missed the A$4.87 billion decrease mean of 7 analyst approximates. (According to Bloomberg)

Gerard Bond head economic agent notified reporters conference call Monday “If the gold cost was to fall dramatically, we would extend to cut charges, extend to cut capital expenditure and there are other levers we can pull,”

Gold manufacturers have broadcast at least $26 billion of write-downs in the past two months after gold’s steepest quarterly fall in London in more than nine decades. Newcrest, which will trim expending on capital projects in fiscal 2014 by nearly half to A$1 billion, first flagged the write-down in June and verified the figures last week.

Analyst Vince Pisani at Shaw Stockbroking Ltd. said on phone. “They have got everything on the table now,” also added “The write-downs were made pretty clear last week.”

Newcrest, the worst performer this year amidst Australia’s 50 large-scale publicly traded companies, increased 7.9% to A$12.39 in Sydney selling, the most since July 12. It has declined 44% this year. The standard S&P/ASX 200 Index increased 1.1%.