Newcrest Mining Ltd. (NCM), Australia’s largest gold producer, fell to a four-year low in Sydney trading after cutting its annual output forecast by about 10 percent.
Newcrest fell 7.8 percent to A$20.16 at 2:42 p.m. local time, the lowest since November 20, 2008. Shares of the Melbourne-based company declined as much as 8.2 percent.
Gold production is forecast at between 2 million ounces and 2.15 million ounces in the year ending June 30, the company said today in a statement. Last month the company estimated output at the low end of a range between 2.3 million ounces and 2.5 million ounces. The estimate was cut because of restricted production at the Lihir mine in Papua New Guinea and poor ground conditions at the Gosowong mine in Indonesia.
Lihir will produce 620,000 ounces to 680,000 ounces of gold during fiscal 2013, while Gosowong output will be in the range of 300,000 ounces to 325,000 ounces, Newcrest said.
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