MELBOURNE, Australia, June 18, 2014 /CNW/ - Newcrest Mining Limited (ASX: NCM) - Newcrest has reached a settlement with the Australian Securities and Investments Commission (ASIC) following the conclusion of ASIC's investigation into Newcrest's conduct leading up to its ASX announcement of 7 June 2013.1
ASIC this morning applied to the Federal Court seeking a declaration of two contraventions of the continuous disclosure provisions of the Corporations Act and aggregate civil penalties of $1.2 million. Under the settlement, Newcrest will agree to the two civil contraventions and the proposed penalties.
The contraventions arose from a loss of confidentiality in relation to Newcrest management's expectations concerning Financial Year 2014 (FY 14) gold production and capital expenditure following disclosure of that information to investors and analysts between 28 May and 5 June 20132, and a failure by Newcrest immediately to make disclosure of that information to ASX following that loss of confidentiality.
It is not alleged by ASIC that Newcrest knowingly or intentionally contravened its continuous disclosure obligations.
The settlement with ASIC does not involve any action being taken by ASIC against individual officers or employees of Newcrest.
Newcrest Chairman, Peter Hay said:
"Newcrest takes its disclosure obligations very seriously and sincerely regrets the contraventions. Newcrest has cooperated fully with ASIC in its investigation of these matters. In addition, Newcrest commissioned an independent review of the Company's disclosure and investor relations practices. The full results of the review were released to the ASX in September last year and Newcrest has since made changes to enhance its investor relations policies and procedures following the recommendations of the review."
A copy of the Settlement Deed with ASIC (schedules omitted) and the Agreed Statement of Facts and Admissions and the Joint Submissions by the parties for the purposes of the Court proceedings has been filed and is available electronically on SEDAR at www.sedar.com.
The matter is due to come before the Federal Court shortly.
1Newcrest's 7th June 2013 announcement related to the completion by Newcrest of a business and budget review and included, among other things, production and capital expenditure guidance in relation to Newcrest's 2014 financial year.
2 With respect to the FY14 production information, the contravention occurred on and from 12.05 p.m. on 28 May until 9:19 a.m. on 7 June 2013. With respect to the FY14 capital expenditure information, the contravention occurred on and from 5 June until 9:19 a.m. on 7 June 2013.
SOURCE Newcrest Mining Limited
For further information:
Enquiries
Kerrina Watson
T: +61 3 9522 5593
E: kerrina.watson@newcrest.com.au
