Newcrest to ditch dividend, axe 100 jobs as gold price slides Managing Director and CEO of Newcrest Mining Greg Robinson. Picture: Stuart Mcevoy Source: Herald Sun NEWCREST has told investors to prepare for $6 billion in writedowns and no dividend in the wake of the biggest gold price slide in three decades. Australia's largest listed gold miner will also cut capital spending by one-third next financial year and close its Brisbane office in a bid to reduce corporate overheads by 20 per cent. Up to 100 office workers are expected to lose their jobs. Chief executive Greg Robinson said he was acting following a plunge in the gold price, continuing relative strength of the Australian dollar and higher costs. The gold price has fallen about 16 per cent since the start of the year to less than $US1400. The dramatic cuts unveiled by Newcrest also followed a head-spinning slump in the miner's share price, which wiped $1.4 billion from its market capitalisation in the two days prior to the announcement. Investors continued to dump the stock, with the share price tumbling another 7.5 per cent. It has lost 18 per cent over the past three days. Market regulators confirmed they were looking into the share price slump before the announcement, which came after many brokers cut their ratings on the company. Newcrest said it expected to realise asset writedowns of $5 billion to $6 billion for the financial year ending this month. This includes $3.6 billion of goodwill on its trouble-plagued Lihir operation in Papua New Guinea. Newcrest bought Lihir in 2010 under former chief executive Mike Smith for $US9.5 billion ($10 billion). It will also write down the value of higher-cost operations including its Telfer, Hidden Valley and Bonikro mines - in Western Australia, Papua New Guinea and western Africa respectively - by $2.2 billion. Capital expenditure for next financial year has been cut from $1.5 billion to about $1 billion. The company will also cut its exploration budget from $160 million to $85 million. Newcrest maintained its production forecast of 2-2.3 million ounces of gold this financial year. Mr Robinson said although the actions were "painful" they left the company in a stronger position. He said demand for gold remained strong in the longer term, saying its price was being suppressed by speculators. "That group is controlling the psychology of gold at the moment and forcing the price down for whatever reason," he told BusinessDaily. Newcrest employs 19,000 people in Australia and through the Asia Pacific region. The company is headquartered in Melbourne but also runs smaller offices in Brisbane and Perth. It expects to close its Brisbane office by September. Newcrest shares fell $1.01 yesterday to close at $7.56.