Newcrest Mining Takes A Bullet On Gold, Writes Down Mine Value

Newcrest Mining Limited (OTCMKTS:NCMGY) (ASX:NCM)'s decision to write down the value of its mines by as much as A$6 billion ($5.5 billion) will lead to the biggest one-time charge in gold mining history. It also heralds pain for competitors.

Australia's largest gold producer by market value said it was reviewing the carrying value of its assets after the steep price drop, at a time when costs have also risen and the domestic currency was trading near historic highs. It said it expected to report impairments of between A$5 billion and A$6 billion on the value of its assets.

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