PERTH (miningweekly.com) – Gold miner Newcrest Mining on Wednesday admitted to breaching continuous disclosure laws, after an investigation by the Australian Securities and Investment Commission (Asic).

The company could now be fined A$1.2-million for briefing analysts on market-sensitive information ahead of it being disclosed to the market.

Asic, which started Federal Court action against Newcrest, alleges that in a series of briefings to analysts, from May 28, 2013, the gold mining company disclosed information regarding the company’s expected gold production for the 2013/14 financial year and on June 5, 2013, disclosed information regarding its expected capital expenditure (capex) for the 2013/14 financial year.

The watchdog stated that, as the information was market-sensitive and as it was selectively disclosed to analysts, Newcrest was obliged to disclose this information to the ASX.

Furthermore, the Asic accused Newcrest of continuing its contraventions until June 7 that year, when it made an announcement to the ASX which included its 2013/14 expected gold production, capex and other matters including write-downs.

Newcrest on Wednesday admitted the contraventions and the parties have filed a joint application for civil penalties to be imposed.

“Newcrest takes its disclosure obligations very seriously and sincerely regrets the contraventions,” said Newcrest chairperson Peter Hay.

He noted that the company had commissioned an independent review of its disclosure and investor relations practices.

“The full results of the review were released to the ASX in September last year, and Newcrest has since made changes to enhance its investor relations policies and procedures following the recommendations of the review,” Hay said.

The Federal Court would now hear a joint submission from Asic and Newcrest as to the appropriate penalties.

The parties will jointly propose a penalty of A$800 000 for the first contravention and A$400 000 for the second contravention. The court will determine the final amount of the penalties.