Friday, 26 July 2013

Newcrest horror show

The plummeting gold price has really hit Newcrest Mining right where it hurts.

The company released a business review the market today which suggests that it will need to take a monster asset impairment, with a potential write-down of up to $6 billion.

Before today the company had a market cap of $11 billion but a significant chunk of that will be eroded by the end of trade.

In a bid to cut corporate costs the Brisbane office will close and jobs will go. The share price fell another 14% this morning to just $11.50 before bouncing to $12 - a horrific performance since mid-2011.


Source: ASX

Not a happy 9 months for gold bugs...



Source: kitco

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