The share price of Newcrest Mining falls to an all-time low in 30 years resulting in a $780 million loss for the company. Newcrest Mining blames the drop in gold prices on the company's decision to reduce spending by 20 percent.

The company has been struggling with cash flow issues. The high costs and the strong Australian dollar became the deciding factors to shut down operations in its Brisbane office. Stock prices went down by 7.6 per cent or $1.01. Shares closed at the price of $12.35 as mining investors did not focus on cost-cutting measures but write downs between $5 to $6 billion.

Newcrest Mining decided to let go of 150 workers last March from its Melbourne and Brisbane offices. The recent job cuts made by the company brings the total number of lost jobs to 250.

A representative of the company announced that Newcrest Mining's offices in Brisbane will be closed in September. No further details were given about the reason why Brisbane was chosen for shutdown. However, the representative said the 100 jobs in Brisbane will be transferred to Melbourne offices.

Newcrest Mining has no immediate plans of its Perth office having the same fate. The company's corporate hub in Perth is the smallest among the three branches in Australia.

The company's budget in 2014 has been altered to include market outlook and the biggest gold price drop in 30 years. The price of gold per ounce is just slightly above $US1,400. Last August 2011, the price was as high as $US1,888.

After the gold prices fell, many brokers reduced the forecasted figures for Newcrest Mining. Aside from cutting costs, the company also plans to limit its exploration projects. The production of gold this year is expected to be between 2 to 2.3 million ounces.

According to analysts' statements, the company's move to close offices to reduce costs does not guarantee a different investor outlook. Newcrest Mining has not announced any plans to address the downward gold price issue. If gold prices continue to drop in the future, this could be seen as a threat to the entire company's operations.