Newcrest Posts Huge Loss

The embattled gold mining company Newcrest is, once again, in for another challenge as its latest report showed that it has missed its projected profit for this year.

The company’s loss, as it was revealed today, amounted to $5.77 billion, when analysts estimated its earnings for the current financial year, to be at around $485 million, with the writedowns still unaccounted for.

The projection was missed by more than 5%, as the company announced it has $451 million in underlying earnings.

Analysts say, because gold prices are currently down, and the company has been performing poorly overall, it has not been a good year for Newcrest.

Previous profits for the company fell between $1.08 to $1.11 billion.

As a result of this, its shareholders should expect no dividend for this year.

The company, however, is optimistic that it will bounce back for the next financial year. It has also came out with its production guide for the next year, with an estimate that its production will reach 2 to 2.3 million ounces of gold for 2014.

Meanwhile, Newcrest also announced that it is currently being reviewed by tax offices in Australia and Indonesia.

The Australian Tax Office is, in fact, reviewing the company’s reports from 2005 to 2011, particularly with its research and development claims.