Newcrest will review the Lihir operations that have plunged the gold miner into the red for a second straight year, but says the project will not be sold.
Australia's largest gold miner suffered a $2.2 billion loss in the 2013/14 year, due to $2.4 billion in asset impairments, the bulk of which relate to the Lihir operations in Papua New Guinea.
The result was an improvement on a $5.8 billion loss in the previous year, also caused by asset value writedowns.
Managing director Sandeep Biswas flagged more job losses and said the company will focus on addressing Lihir's overall performance.
"Although we have realised some initial improvements, I'm not satisfied with either the current operating performance or cash generation of the business," Mr Biswas said.
"Lihir's first and only business is to get its tonnes up and costs down."
Newcrest has launched a program to improve the operating and financial performance of Lihir, which now has significantly reduced carrying value of $5.4 billion after several writedowns.
Mr Biswas said the review was around operations, and investors should not interpret the move as a precursor to a sale of Lihir.
"Lihir is very much a long-term and more material contributor to our bottom line well into the future," he said.
No time frame has been placed on the review, but Mr Biswas said he wanted it done as rapidly as possible.
Newcrest has cut 950 jobs at Lihir in the past year, and shed 22 per cent of its overall workforce.
The company will also focus on reducing costs at Cadia East in central west NSW, and Telfer in Western Australia, in the current year.
Newcrest is predicting an improved financial performance in 2014/15 due to cost reductions and productivity improvements.
It expects to be cash flow positive at an average realised gold price of $US1,250 an ounce.
Morningstar analyst Matthew Hodge said some analysts were worried about the company's long-term debt repayment strategy if the gold price weakened further.
"If the gold price falls another $US100 or $US200 then everything's going to be under pressure, but it's probably reasonable to say the gold price has already fallen a lot," Mr Hodge said.
Newcrest shares dropped nine cents, or 0.8 per cent, to $11.11.
LIHIR CONTINUES TO WEIGH ON NEWCREST
* Full year net loss of $2.2b, up 62 pct from $5.78b loss in 2012/13
* Revenue of $4.04b, up seven pct from $3.78b
* No dividend
Share
