Newcrest shares fall by 4.58 per cent on first trading day since wall collapse

SUBSTANTIAL DAMAGE: The slump in the tailings dam wall that has led to operations being suspended at Cadia Valley Operations. Photo: NEWCREST
SUBSTANTIAL DAMAGE: The slump in the tailings dam wall that has led to operations being suspended at Cadia Valley Operations. Photo: NEWCREST

Newcrest has confirmed the partial collapse of a dam wall at its Cadia Valley Operations would likely affect its financial situation.

In a statement, the company said it was too early to determine the extent of the financial consequences of having to suspend operations at the mine.

“This event will adversely impact guidance for FY18 given the contribution of Cadia to the overall outcomes of Newcrest,” it said.

By 4.20pm on Monday, the first trading day since the damage, Newcrest shares had fallen by 4.58 per cent to $20.60.

VIDEO: Cadia Valley Operations general manager Peter Sharpe addresses the media:

The company said updates would be provided to the financial market.

Managing director and chief executive officer Sandeep Biswas said safety was a company priority.

“The safety of our people and the community, together with the highest standards of environmental compliances, are paramount and remain our focus as we investigate this event and enact our forward work plan,” he said.

Australian Workers’ Union national secretary Daniel Walton said the company had asked for a meeting after the union raised workers’ safety concerns.

The safety of our people and the community, together with the highest standards of environmental compliances, are paramount and remain our focus.

Newcrest's managing director Sandeep Biswas

“People are a little bit nervous about it,” he said.

Mr Walton said the company needed to be more transparent about safety incidents.

“They [workers] are saying they only find out about it when they read media reports,” he said.

“The company reached out [Monday] morning, we are preparing to sit down with them.”

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