newcrest to slash telfer gold mine jobs, page-4

Lol,,,,,,another round of slashing,,,,,,,,,,,,a good response"?!,,,,,,,,thought it was all done in june????,,,,,,,,,thought the slashing and write offs were over, thought it was all a one off ,,,,,,,,ignore it,,,,,,,happy days right,,,,,,lets crank the share price up 50 pc from 907,,all the trouble behind the company.....right?!

WRONG

Slashing ( again) means more costs

This is Australia,, you dont slash and terminate people without paying them....


so June was estimated at 75 m from memory,,,,,,what is this round going to costs........who knows,,,,,but its going to be at the costs of shareholders

Then consider,,,,,,,,,why?,,,,,thats easy,,,cashflow remains very weak because of falling pog aud price this qtr, margins remain weak and falling,,,they are slashing the employment inputs to maintain short term margin,,,why? Because they have a mountain of debt on which interest just keeps on coming, like a terminator,,,,it will not stop accuring until its killed by either sustained margin expansion and production or a captial raising imo

So last QTR it was a 120 000 000, tax adjustment

Now it will be more termination costs,,,,,,,,,,,,,but its a second one off right,,lets crank the share price,,,all bad news behind the company,,,,,,,,more will get sucked in i suppose allowing those that got suckered in june to get out

More mining of stockpiles i suppose ????? in the short term to cover the fact the business is sinking and trying to make as much margin as it can.......this company is doing what it can to survive imo,,

its,,,,,"Yaaarrrrrr, sail on mateys, that scurvy wont harm anyone,,,,,"

If they are slashing, they probably are not having meetings to discuss how big a div to pay,,,more probability like the banks are putting pressure on to ensure they reduce costs further ,,,,,,,to ensure they ( the lenders) continue to get paid

Costs of normal production are too high,,,,,,,slashing sustaining capex, exploration and jobs,,, mining stockpiles isnt a good sign for the next year,,,,,,,just forget a div unless there is a dramatic and sustained move in the gold market prices
Imo

So what would happen if the pog aud price fell another 25 or 50 dollars??????,,,,,,,more slashing next half, more costs??????..........a further fall in gold cant be ruled out, its not impossible

Gold market can stay lower longer than newcrest can bluff expecting stronger, higher gold prices, they are simply doing what is required each month to survive this margin pressure to manage its debt pile and hoping , praying the gold price explodes,,,,,,,,,,,,,,i don't invest in hope at 8.5, 9.06, 10 or 20, ill continue to wait

They have had so many opportunities to sort it out but they have resisted, saying time and time again, she'll be right', gold will go up,,,,,,production will go up,,,but the market isnt stupid, you,cant mine stockpiles forever, you,cant slash costs forever, those sugar hits to Try and sustain margin are not sustainable over the long term, and the extra margin from cost cutting is going to pay interest, bonuses, termination costs and tax adjustments well before the say " lets pay a div"

When you buy a share,,,,,,you really want these guys managing your capital? You think newcrest can simply ramp up production significantly to absorb the lower gold prices

Price taker with flat production after borrowing billions to increase production
Rising debt
High cost producer slashing sustaining capex
Slashing production costs by mining stockpiles and slashing it workforce( again)
Major long term shareholder still selling
Major new shareholder sitting on massive mounting losses

Would have thought at some stage there would be further write downs, and lower production from all the slashing..........



Trade was orderly on friday with a small pc fall,,,,,,if it gets anything like the other gold miners in the last month, epic moves lower aren't too far away

Enjoy, refuse to use stops at your peril



The crowd that racked up the debt it didn't need, the crowd that couldn't control costs or deliver the production are still in charge of now restructuring and managing the same assets in a market it has failed to correctly forecast for years

Its rated just above JUNK for a reason........