Newcrest Shares Have Fallen 9% After It Announced Job Cuts And A $6b Writedown

Shares in Newcrest Mining have fallen 8.68% to $12.20 at noon, wiping $888 million off its market value in the hours since it updated investors on its business plan and 2014 budget.

Newcrest this morning said it expected to write down its assets by $5-$6 billion for the 2012-13 financial year.

It revealed plans to shave 20% off corporate costs by closing its Brisbane office and “rationalising” head office and support functions.

The company has yet to respond to a query on how many jobs would be lost as a result.

Newcrest has lost nearly three quarters of its value since November 2010, with market capitalisation more than halving since the beginning of the year as the gold price drops.

Newcrest shares fell 5.28% on Wednesday and 6.9% yesterday. They opened 13.7% lower today, after the ASX announcement, at $11.52.

Now read: Australia’s Mining Boom State Has Slipped Into Recession – And Analysts Are Sounding Really Worried

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