The Australian Securities and Investments Commission (ASIC) made an official statement, revealing that the largest gold manufacturer by market value in Australia – Newcrest Mining Ltd agreed to pay 1.2 million Australian dollars (1.1 million dollars) in fines. The company was reported to have confessed that it disclosed market-sensitive information in June last year and by this breached rules. According to ASICs announcement, the final penalties are to be determined by the Federal Court.
The shares of Newcrest Mining Ltd declined by almost 12% in the two days before the company announced its business update. The shares of the company also declined steeply last year, after several investment banks had sharply decreased their forecasts for the companys performance. Few days after that, on June 7th 2013, Newcrest announced a writedown estimated at 6 billion Australian dollars.
Ms. Cathie Armour, who is a Commissioner at ASIC said in the statement, which was cited by Bloomberg: “Companies should have regard to existing guidance in the market about how to conduct briefings to ensure confidential, market-sensitive information is not selectively disclosed.”
The companys actions have been thoroughly examined by the Australian Securities and Investments Commission. Newcrest Mining Ltd confessed that it had revealed data related to the managements projections for future gold production and capital spending to some analysts and investors in the period between May 28th and June 5th 2013.
Newcrest made a separate statement, saying that the agreement does not include any actions taken against its workers by the corporate regulator. Mr. Peter Hay, who occupies the position of a Chairman commented in a stock-exchange filing, which was cited by the Wall Street Journal: “Newcrest takes its disclosure obligations very seriously and sincerely regrets the contraventions.” As reported by Bloomberg, Mr. Hay also added: “Newcrest has cooperated fully with ASIC in its investigation of these matters.”
Newcrest Mining Ltd was 1.81% up to close at 10.15 Australian dollars per share yesterday, marking a one-year change of -8.97%. According to the information published on the Financial Times, the 15 analysts offering 12-month price targets for Newcrest Mining Ltd have a median target of 1,050, with a high estimate of 1,600 and a low estimate of 757.00. The median estimate represents a 2.74% increase from the last price of 1,022.
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