Newcrest's battle to win back trust after delivering big loss Managing Director and CEO of Newcrest Mining Greg Robinson. Picture: Stuart Mcevoy Source: Herald Sun NEWCREST chief Greg Robinson has pledged to win back the confidence of investors after delivering the group's deepest loss. And the company, Australia's biggest gold miner, has scrapped its final dividend and warned it may close high-cost mines if the gold price does not recover. Newcrest yesterday posted a loss of $5.8 billion for the year to June as a plunge in the gold price, lower production and billions in asset writedowns dragged the company into the red. It compares with a profit of $1.12 billion a year earlier. The loss came as the company took $6.2 billion in previously flagged impairments - one of the biggest in Australian corporate history. The embattled miner reported an underlying profit - a measure that strips out one off items of $451 million - below analysts' broad forecast and some 68 per cent lower than the $1.08 billion posted last financial year. Newcrest has fallen out of favour with investors after being hit with a 20 per cent slump in the price of gold since the start of the year and repeatedly failing to meet production forecasts. It has also been accused of selectively briefing analysts in the lead up to flagging billions in write-downs early in June - claims that have sparked an investigation by the corporate watchdog and threats of two class actions. Newcrest, which denies any wrongdoing, has launched an internal review. Yesterday Mr Robinson said that review was ongoing and regaining the trust of investors was his prime goal over the coming year. He said the most immediate action he could take to win back investors was to ensure the company hit its production forecasts and business goals. "People feel that we haven't delivered against those objectives and again from the board and senior management we are very conscious that we are going to do that going forward," he said. There is nothing more important for us within this next 12 months. The company warned it could close high-cost mines such as the Hidden Valley operation in Papua New Guinea if the gold price failed to recover to $1450 an ounce. Newcrest's average realised gold price was $1550 an ounce. Newcrest shares surged 7.9 per cent yesterday to $12.93, a rise analysts attributed to a rebound in the gold sector broadly. The spot price of gold last night was $US1326.56.