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Newcrest Mining inside information case puts spotlight on analysts

By: Jamie Freed
19 June, 2014

"I suggest you look a bit harder at [the] Lihir [mine]…and then you would just make some small tweaks at the other sites to get to your final range."

So went the wink-and-nudge from then-Newcrest Mining investor relations manager Spencer Cole to Credit Suisse analyst Sam Webb after viewing a draft table before it was sent to clients, according to a statement of facts released by the corporate regulator and the goldminer on Wednesday.
 
Production numbers are crucial to a mining company's earnings. Cole, therefore, was not-so-subtly telling Webb that his financial year 2013-14 estimate remained too high, despite the broker having slashed it by 15 per cent to 2.41 million ounces of gold.
 
Source: Australian Financial Review