By Peter Ker
Troubled gold miner Newcrest has failed to meet expectations yet again, reporting an underlying profit today that missed analyst consensus.
A swathe of asset writedowns was always going to deliver Newcrest a net loss at the end of the 2013 financial year, and that came through as expected today in the shape of a $5.77 billion loss.
The company's underlying earnings - before accounting for the $6.22 billion in writedowns - was estimated to hit $485 million, according to a consensus of analysts.
Newcrest shares finished the day up 7.9 per cent to $12.39, on the back of a broad rally from gold miners who enjoyed a rally in the gold price.
Copper Operation at Orange run by Newcrest Mining.Credit: Rob Homer
Newcrest missed that by more than 5 per cent, announcing underlying earnings of $451 million. Blamed on poor performance and a slumping gold price, the results are a far cry from last year's $1.08 billion underlying profit, and $1.11 billion net profit.
Not surprisingly, Newcrest shareholders will go without a dividend this year.
The company has responded to the gold price slump by curtailing gold production at its high cost mines, and it expects all its mines will be profitable in the 2014 financial year at a gold price of $A1450 per ounce.
Newcrest also released its production guidance for 2014 today, predicting gold production would rest between 2 million onuces and 2.3 million ounces.
The company also announced it under review by tax offices in both Indonesia and Australia for various issues.
The Australian investigation is into six years of financial reports - between 2005 and 2011 - and is analysing research and development claims made by the company.
There was no sign today of a report by Dr Maurice Newman into Newcrest's financial disclosure performance, which was initiated by the company after investors appeared to anticipate a major corporate restructure on June 7.
The same incident has sparked an ASIC inquiry, but so far today there has been no update on either process.