Newscrest Mining announce first loss in over a decade: gold's in trouble

Net loss of US$5.77 bn

The largest gold miner in Australia has reported a net loss of US$5.77 bn for the 2013 financial year, thanks to a massive $6.22 billion writedown in the value of its assets. Gold prices have fallen by nearly 30 per cent since January to a low in June of $1,180 per troy ounce, forcing Newscrest to curtail gold production at its most expensive mines and reassess the value of its assets.

Without the writedowns, underlying earnings stood at $451m, down from $1.11 bn last year, showing just what trouble gold miners are in globally. Adding to the company’s woes, Moody’s ratings agency downgraded Newscrest to Baa3, the lowest investment grade, and said the company could yet be in line for a further cut.

Production stood at 2.1m ounces for the year to June, 8 per cent lower than last year, thanks in part to the tumbling gold price, and to a series of disruptions at its mines in Australia, Indonesia, Ivory Coast and Papua New Guinea. The company is forecasting only a marginal increase to 2.3m ounces for 2014 and refused to forecast production beyond next year, citing market volatility.

Although the wheels have now clearly come off the wagon for Newscrest, the company’s financial health may not have been as good as it has appeared in the past either, with critics accusing the company of selectively briefing analysts as a number of investigations into its financial reporting have been launched.

Indonesian and Australian tax authorities have both placed the company under review, with the Australian investigation looking at six years of financial reports between 2005 and 2011. The Australian Securities and Investments Commission have also begun an investigation after investors appeared to anticipate a major corporate restructure on 7th June.

Newscrest’s trials and tribulations reflect the troubles the global mining industry currently finds itself in, with Barrick Gold last week announcing a second-quarter net loss of $8.56 bn, thanks to $8.7 bn in after-tax impairment charges driven by the declining gold price. The largest slice of the charge came from the Pascua-Lama project on the border of Chile and Argentina, which accounted for $5.1 bn. President and CEO Jamie Sokalsky said: “We are disappointed with the impairment charges for Pascua-Lama and other assets, but we are confident that these assets, some with mine lives in excess of 25 years, will generate substantially more economic benefits over time.”

It appears the market shares his optimism with the gold price rallying by $17 to $1,330 an ounce yesterday. This helped gold miners’ share prices to post a modest recovery, with Newscrest ending the day 7.2 per cent up. Whether this gain is a temporary blip or a long term recovery in the lustre of the gold market remains to be seen.

The largest gold miner in Australia has reported a net loss of US$5.77 bn. Photograph: Getty Images

Mark Brierley is a group editor at Global Trade Media

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Harmful gender stereotypes in ads have real impact – so we're challenging them

The ASA must make sure future generations don't recoil at our commercials.

July’s been quite the month for gender in the news. From Jodie Whittaker’s casting in Doctor Who, to trains “so simple even women can drive them”, to how much the Beeb pays its female talent, gender issues have dominated. 

You might think it was an appropriate time for the Advertising Standards Authority (ASA) to launch our own contribution to the debate, Depictions, Perceptions and Harm: a report on gender stereotypes in advertising, the result of more than a year’s careful scrutiny of the evidence base.

Our report makes the case that, while most ads (and the businesses behind them) are getting it right when it comes to avoiding damaging gender stereotypes, the evidence suggests that some could do with reigning it in a little. Specifically, it argues that some ads can contribute to real world harms in the way they portray gender roles and characteristics.

We’re not talking here about ads that show a woman doing the cleaning or a man the DIY. It would be most odd if advertisers couldn’t depict a woman doing the family shop or a man mowing the lawn. Ads cannot be divorced from reality.

What we’re talking about is ads that go significantly further by, for example, suggesting through their content and context that it’s a mum’s sole duty to tidy up after her family, who’ve just trashed the house. Or that an activity or career is inappropriate for a girl because it’s the preserve of men. Or that boys are not “proper” boys if they’re not strong and stoical. Or that men are hopeless at simple parental or household tasks because they’re, well...men.

Advertising is only a small contributor to gender stereotyping, but a contributor it is. And there’s ever greater recognition of the harms that can result from gender stereotyping. Put simply, gender stereotypes can lead us to have a narrower sense of ourselves – how we can behave, who we can be, the opportunities we can take, the decisions we can make. And they can lead other people to have a narrower sense of us too. 

That can affect individuals, whatever their gender. It can affect the economy: we have a shortage of engineers in this country, in part, says the UK’s National Academy of Engineering, because many women don’t see it as a career for them. And it can affect our society as a whole.

Many businesses get this already. A few weeks ago, UN Women and Unilever announced the global launch of Unstereotype Alliance, with some of the world’s biggest companies, including Proctor & Gamble, Mars, Diageo, Facebook and Google signing up. Advertising agencies like JWT and UM have very recently published their own research, further shining the spotlight on gender stereotyping in advertising. 

At the ASA, we see our UK work as a complement to an increasingly global response to the issue. And we’re doing it with broad support from the UK advertising industry: the Committees of Advertising Practice (CAP) – the industry bodies which author the UK Advertising Codes that we administer – have been very closely involved in our work and will now flesh out the standards we need to help advertisers stay on the right side of the line.

Needless to say, our report has attracted a fair amount of comment. And commentators have made some interesting and important arguments. Take my “ads cannot be divorced from reality” point above. Clearly we – the UK advertising regulator - must take into account the way things are, but what should we do if, for example, an ad is reflecting a part of society as it is now, but that part is not fair and equal? 

The ad might simply be mirroring the way things are, but at a time when many people in our society, including through public policy and equality laws, are trying to mould it into something different. If we reign in the more extreme examples, are we being social engineers? Or are we simply taking a small step in redressing the imbalance in a society where the drip, drip, drip of gender stereotyping over many years has, itself, been social engineering. And social engineering which, ironically, has left us with too few engineers.

Read more: Why new rules on gender stereotyping in ads benefit men, too

The report gave news outlets a chance to run plenty of well-known ads from yesteryear. Fairy Liquid, Shake 'n' Vac and some real “even a woman can open it”-type horrors from decades ago. For some, that was an opportunity to make the point that ads really were sexist back then, but everything’s fine on the gender stereotyping front today. That argument shows a real lack of imagination. 

History has not stopped. If we’re looking back at ads of 50 years ago and marvelling at how we thought they were OK back then, despite knowing they were products of their time, won’t our children and grandchildren be doing exactly the same thing in 50 years’ time? What “norms” now will seem antiquated and unpleasant in the future? We think the evidence points to some portrayals of gender roles and characteristics being precisely such norms, excused by some today on the basis that that’s just the way it is.

Our report signals that change is coming. CAP will now work on the standards so we can pin down the rules and official guidance. We don’t want to catch advertisers out, so we and CAP will work hard to provide as much advice and training as we can, so they can get their ads right in the first place. And from next year, we at the ASA will make sure those standards are followed, taking care that our regulation is balanced and wholly respectful of the public’s desire to continue to see creative ads that are relevant, entertaining and informative. 

You won’t see a sea-change in the ads that appear, but we hope to smooth some of the rougher edges. This is a small but important step in making sure modern society is better represented in ads.

Guy Parker is CEO of the ASA