Newcrest — one of the world’s largest gold mining companies — has reached a settlement with the Australian Securities and Investments Commission (ASIC), following the conclusion of the commission’s investigation into Newcrest’s conduct for failing to disclose certain information to the ASX prior to 7 June 2013.
ASIC applied to the Federal Court on Wednesday seeking a declaration of two contraventions of the continuous disclosure provisions of the Corporations Act and aggregate civil penalties of $1.2 million. Under the settlement, Newcrest will agree to the two civil contraventions and the proposed penalties, which amount to $800,000 in relation to the first contravention, and $400,000 in relation to the second contravention.
According to the press release by Newcrest, the contraventions arose when from a loss of confidentiality in relation to Newcrest management’s expectations concerning Financial Year 2014 (FY 14) gold production and capital expenditure, following disclosure of that information to investors and analysts between 28 May and 5 June 2013 and a failure by Newcrest immediately to make disclosure of that information to ASX following that loss of confidentiality.
“Newcrest takes its disclosure obligations very seriously and sincerely regrets the contraventions. Newcrest has cooperated fully with ASIC in its investigation of these matters. In addition, Newcrest commissioned an independent review of the Company’s disclosure and investor relations practices. The full results of the review were released to the ASX in September last year and Newcrest has since made changes to enhance its investor relations policies and procedures following the recommendations of the review,” said Peter Hay, Newcrest’s Chairman.
The settlement with ASIC does not involve any action being taken by ASIC against individual officers or employees of Newcrest.
