From The Business Spectator:ASIC probes Newcrest disclosure10...

From The Business Spectator:

ASIC probes Newcrest disclosure
10 hours ago

Industries
Resources and Energy
Economy
Commodities

The Australian Securities and Investments Commission (ASIC) and the Australian Securities Exchange (ASX) are investigating accusations that Newcrest Mining Ltd selectively briefed analysts ahead of large-scale writedowns being revealed to the market, according to The Australian Financial Review.

The miner announced $6 billion worth of writedowns on Friday, sending its shares down eight per cent.

Newcrest also announced it would cancel its final dividend, cut back production, layoff staff and close its Brisbane office amid tumbling gold prices.

The miner's shares also fell leading up to the announcement, down seven per cent on Thursday and five per cent on Wednesday.

Bell Potter Securities director Charlie Aitken expressed concerns about the issue Friday morning, noting in particular that five analysts downgraded Newcrest's target share price before the writedown announcement was made.

“I believe any mum and dad investors who bought Newcrest shares in the last two days have grounds for genuine concerns,” Mr Aitkens said, according to the AFR.

“I think for the credibility of the ASX, the events leading into the confirmation of very bad news today by Newcrest should be fully investigated by ASIC.”

ASIC confirmed it has launched an investigation into the issue, along with the ASX.

“We are in discussions with ASX regarding the price move, which is in accordance with our usual procedures where there have been large moves in share prices,” an ASIC spokesman told the AFR.