Newcrest bosses disappointed

MINING bosses tell shareholders they acknowledge how disappointed they are with the company's performance and are taking action.

Newcrest Mining CEO Greg Robinson at his office in Melbourne, Victoria.

NEWCREST Mining's chairman and chief executive have told shareholders they acknowledge how disappointed they are with the company's performance and are taking action.

The company's leaders told investors at the group's AGM that they too were disappointed that the miner consistently failed to hit its gold production targets.

However, they defended it's performance in other areas, saying the $9.5 billion acquisition of Lihir Gold would ultimately prove valuable despite it being unreliable so far and contributing the bulk of this year's $6.2 billion in writedowns.

Newcrest posted a $5.8 billion full year loss this year and chairman Don Mercer and chief executive Greg Robinson have announced looming departure dates in the wake of this year's poor performance.

However, this year's heavy $US600 an ounce gold price falls - the worst in 30 years - came as the company delivered $3.5 billion in projects at its major Lihir and Cadia projects, which was cruel timing, Mr Robinson said.

Mr Robinson predicted the gold price would rebound from current levels when speculation ended about when the US Federal Reserve will taper its expansive monetary actions.

"I think the gold market will again focus on gold's primary purpose as a risk diversification asset to currency, interest rates, inflation and political risk," he said.

"With strong physical demand for gold, supply restrained and economic drivers remaining vulnerable, I think the external conditions remain positive for the gold price outlook."

The recommendations by proxy advisers to vote against the re-election of three Newcrest directors that were members of its audit and risk committee is not expected to succeed at the AGM.

Those recommendations to block Rick Lee, Tim Poole and John Spark came following action by ASIC and class action by lawyers, with Newcrest accused of breaching disclosure laws and selectively briefing analysts before it's heavy writedowns.

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