Newcrest Mining — H1 FY2020 Earnings Presentation
77 slides from Newcrest Mining's earnings presentation, February 2020
Slide 1: Newcrest Briefing Book
Newcrest Briefing Book February 2020 0
Slide 2: Disclaimer
Disclaimer Forward Looking Statements This presentation includes forward looking statements. Forward looking statements can generally be identified by the use of words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, “outlook” and “guidance”, or other similar
Slide 3: Disclaimer – Competent Person's Statement
Disclaimer Competent Person’s Statement The information in this presentation that relates to Mineral Resources or Ore Reserves (other than Red Chris and Havieron) has been extracted from the release titled “Annual Mineral Resources and Ore Reserves Statement –31 December 2019” dated 13 February 2020
Slide 4: Safety update
Safety update FY16-FY20 YTD TRIFR1 Critical Control Management Verifications 3.7 3.3 6502 2.4 2.3 2.3 FY20 YTD 157k3 FY20 YTD FY16 FY17 FY18 FY19 H1 FY20 Integrated Safety System Highlights with existing systems • Newcrest’s three safety pillars continue to deliver improvement Process Safety • ~4.5
Slide 5: Sustainability
Sustainability High international and industry performance standards International Council on Mining & Metals members – bound by the Sustainability Framework • Must be independently assured annually against the 10 Principles and position statements Minerals Council of Australia members – Enduring Va
Slide 6: Sustainability - New policies, new targets
Sustainability - New policies, new targets Water Sustainability Stewardship Aspire to be an industry Catchment-based leader assessments Climate Biodiversity Change No net loss of Applying phased biodiversity values approach to TCFD for new projects reporting Emissions Carbon Price Intensity $25/t-$5
Slide 7: Climate Change, Shadow Carbon Price, TCFD
Climate Change, Shadow Carbon Price, TCFD Climate Change Policy and 2030 emissions target • Sustainability is core to our business • A sustainable business is a successful business • Target of 30% reduction in emissions intensity by 2030 (from 2018). Based on CO2-e per tonne of ore treated. Shadow c
Slide 8: Investment Proposition
Investment Proposition Long Low cost reserve life production Organic growth Do what options we say (at Cadia, Lihir, Wafi Golpu & Red Chris) Strong exploration & technical Financially robust capabilities 7
Slide 9: An aligned executive remuneration structure
An aligned executive remuneration structure 1 Short Term Incentive Criteria Long Term Incentive Criteria 1 Each of the CEO, CFO and other Executives have different specific personal measures under the 5 categories listed. 8
Slide 10: Preparing for the next phase of growth
Preparing for the next phase of growth Chief Executive Officer Sandeep Biswas Chief Operating Officer Chief Operating Officer Chief Development Officer Chief Financial Officer (Australia, Indonesia & (PNG) Seil Song1 Americas) Gerard Bond Philip Stephenson Craig Jones Chief People & Chief Technical
Slide 11: Our operating assets and advanced projects
Our operating assets and advanced projects Cadia (100%) Lihir (100%) Telfer (100%) H1 FY20 Production: 411koz Au, 45kt Cu H1 FY20 Production: 381koz Au H1 FY20 Production: 182koz Au, 7kt Cu H1 FY20 AISC: $167/oz H1 FY20 AISC: $1,154/oz H1 FY20 AISC: $1,380/oz Ore Reserves: 21moz Au & 4.3mt Cu Ore Re
Slide 12: Newcrest retains long reserve life advantage
Newcrest retains long reserve life advantage Note: Width of bubble size represents relative size of gold reserves, indicative AISC margin based on $1,200 gold price Indicative AISC Margin - Interest Exp US$ per ounce1 600 500 Evolution Newcrest 400 Newmont 300 Barrick Northern Star 200 100 0 5 7 9 1
Slide 13: Newcrest retains long reserve life advantage
Newcrest retains long reserve life advantage Note: Width of bubble size represents relative size of gold reserves, indicative AISC margin based on $1,200 gold price Indicative AISC Margin - Interest Exp US$ per ounce1 600 Evolution 500 Newcrest 400 300 Northern Star Newmont 200 Barrick 100 0 5 7 9 1
Slide 14: Lihir and Cadia are in a class of their own
Lihir and Cadia are in a class of their own Resource & Reserve base of global majors’ operating assets (moz)1,2 60 Solid bars = ore reserve 50 Transparent bars = mineral resource 40 30 moz 20 10 0 1 Based on producing assets held by Barrick, Newmont and Newcrest with an attributable reserve >4moz (w
Slide 15: Strong total shareholder returns
Strong total shareholder returns Total Shareholder Return – 1 July 2015 to 4 February 2020 (%)1 250 200 Cumulative Total Shareholder Return (%) 150 NCM AUD +136% NCM USD +105% 100 Gold Index +83% 50 - (50) (100) 30/06/2015 31/12/2015 30/06/2016 31/12/2016 30/06/2017 31/12/2017 30/06/2018 31/12/2018
Slide 16: A unique suite of technical capabilities
A unique suite of technical capabilities Lihir, Telfer Telfer Gosowong Telfer Cadia Open pit Selective Reef Underground Narrow Vein Bulk Sublevel Caving Block/Panel Underground Caving Large scale comminution Pressure oxidation Processing Copper-gold flotation Cyanide & carbon in leach 15
Slide 17: Value breakthrough strategies
Value breakthrough strategies targeting five breakthroughs by end of calendar 2020 Breakthrough Levers Operating Adopting now Evaluating Developing future Next Gen High draw, Cave process Single pass Remote Post caving Caving deep caving control caving production leaching Next Gen Selective Low cost
Slide 18: High draw, deep caving expertise
High draw, deep caving expertise Bubble size represents production rate. Data source: International caving benchmarking study stage 2, University of Queensland (2003). 17
Slide 19: 75% of Undercutless drawbell firings complete at Telfer
75% of Undercutless drawbell firings complete at Telfer Key objectives of the Undercutless Block Cave Trial are being met: Design height functionally verified Connection between the first two Undercutless drawbells achieved The trial is on track for completion in March 2020. 18
Slide 20: NextGen Caving
NextGen Caving deeper, more productive Breakthrough challenge: Materially reduce cave establishment costs and improve the productivity of caving as grades decline Remove personnel from hazardous environments High draw, deep caving Cave process control Hydrofracturing equipment, Cadia Elexon cave mon
Slide 21: NextGen HydroMet
NextGen HydroMet processing at lower cost Breakthrough challenge: Selective treatment based on improved understanding of orebody mineralogy, experimentation and ore type process customisation Selective oxidation Low cost complex ores Pyrite end members, Lihir Kapit North stockpile, Lihir Value captu
Slide 22: Selective processing
Selective processing focus on processing ore at all scales Breakthrough challenge: Rejection of unprofitable material as early as possible in the mining and refining process Improve plant performance and mineral recoveries Coarse flotation Screening & sorting Coarse ore flotation, Cadia Screening de
Slide 23: Robotic mining
Robotic mining remote, safe, productive mining Breakthrough challenge: Creating a long term vision of the future mine system and collaborating with developers and manufacturers to make this an operational reality In mine sensing Robotic mining Proximity detection system, Telfer Remote mobile equipme
Slide 24: Sustainable mines
Sustainable mines reducing footprint and costs Breakthrough challenge: Improve the environmental and social impact of our operations and projects through technology and innovation Energy efficiencies Renewable energy growth Selective oxidation, Lihir Geothermal power infrastructure, Lihir Value capt
Slide 25: Cadia – Reduced costs & increased cash flow
Cadia Cadia – Reduced costs & increased cash flow Site Process Key Statistics 1 Element Description Gold Reserve Life: ~24 years Mining Panel Cave mining from Cadia Gold Ore Reserves: 21moz East (Panel Cave 1 and 2), Gold Mineral Resources: 37moz with underground crushing and Copper Ore Reserves: 4.
Slide 26: Stages of Cadia Expansion Project
Stage 1 of Cadia Expansion Project Approved1,2 Stage 1 (in Execution) Stage 2 (in Feasibility Study) • Estimated capital cost - $685m • Estimated capital cost - $180m •PC2-3 mine development • further plant expansion to 35mtpa •materials handling system upgrades • recovery improvements •associated i
Slide 27: Cadia Expansion Stage FS Findings
Cadia Expansion Stage 1 FS Findings1,2 Cadia - uniquely long life Expected results from implementation of Stage 1 and Stage 2 PC2-3 Capital (stage 1): $ 595m IRR: 21.5% Expansion to 33mtpa (stage 1): $ 90m Payback (years): 7.6 Expansion to 35mtpa (stage 2): $ 180m NPV: $1,170m Total Project Capital:
Slide 28: Estimated Cadia Gold Equivalent production
Estimated Cadia Gold Equivalent production1,2,3 40 1500 35 Gold Equivalent production (koz) 1250 30 Ore Milled (mt) 1000 25 20 750 15 500 10 250 5 0 0 Ore milled Ore milled (actual) Au eq Au eq (actual) 1 Stage 1 of the Cadia Expansion Feasibility Study has been prepared with the objective that its
Slide 29: Cadia's indicative cave production schedule
Cadia’s indicative cave production schedule1,2,3 Start First Panel Cave Ore (mt) Construction production PC2-3 (approved to execution) FY19 FY23 142 PC1-2 FY22 FY25 408 PC3-1 FY33 FY36 149 PC2-4 FY42 FY44 113 PC5001 FY44 FY47 96 PC1-4 FY48 FY50 175 PC2-5 FY51 FY54 35 1 Stage 1 of the Cadia Expansion
Slide 30: Cadia Expansion Project - Indicative mine plan
Cadia Expansion Project - Indicative mine plan1,2,3,4 Timing (Years) Total material movement (mt) Plant Feed (mt) Average Gold grade (g/t) Average Copper grade (%) FY20 - 22 ~92 ~87 1.0 0.4 FY23 - 25 ~99 ~99 0.5 0.3 FY26 - 28 ~101 ~101 0.4 0.3 FY29 - 31 ~102 ~102 0.4 0.3 FY32 - 34 ~102 ~102 0.4 0.3
Slide 31: Cadia Life of Mine recovery improvement
Cadia Life of Mine recovery improvement1,2 Expected LOM gold recovery rates of around 80% and copper recovery rates of around 85% Stage 2 Feasibility Study – Estimated capital of $180m The Study will investigate: Concentrator 1 • additional coarse ore flotation capacity Concentrator 2 • replacing se
Slide 32: Selective Processing – Coarse Ore Flotation
Selective Processing 1 Coarse Ore Flotation • Coarse Ore Flotation is an aerated fluidized-bed separator that has demonstrated increased recovery of coarse particles compared to conventional flotation technology • The Coarse Ore Flotation circuit treats the full flotation tailings stream from Train
Slide 33: NextGen HydroMet – Molybdenum Plant Update
NextGen HydroMet Molybdenum Plant Update Feasibility Study completed: • Design of a molybdenum separation plant expected to generate ~6,500tpa of 52% molybdenum concentrate with a 92% recovery • Shipping and logistics parameters confirmed • Full load Commissioning expected to be completed in FY221 1
Slide 34: Block caving fundamentals
Block caving fundamentals Subsidence zone Cadia Panel Cave 1 • ~1,200 metres deep, 114 drawbells Cadia Panel Cave 2 • ~1,400 metres deep, 165 drawbells Caving levels Comparative surface impact Cadia hill open pit Cadia East subsidence zone Waste rock dumps 33
Slide 35: Lihir – Strong cash flow generation
Lihir Lihir – Strong cash flow generation Site Process Key Statistics 1 Element Description Gold Reserve Life: ~26 years Gold Ore Reserves: 23moz Mining Open pit drill, blast, load and haul mining, currently in Gold Mineral Resources: 49moz Phases 14 & 15 in Lienitz. Substantial stockpiles FY20 Prod
Slide 36: Lihir's increased throughput lowers AISC per oz
Lihir’s increased throughput lowers AISC per oz 12mtpa 13mtpa 14mtpa 15mtpa By December 2015 By December 2016 By December 2017 By end June 2019 Achieved with 12.4mtpa Achieved with 13mtpa in × Achieved with 15mtpa Achieved with 16mtpa in in December 2015 December 2016 quarter in March 2018 qua
Slide 37: Lihir - Indicative mine plan
Lihir - Indicative mine plan1,2,3,4,5 Timing Total Material Tonnes to Ex-pit Tonnes Stockpile Tonnes Average Feed Sources Waste (Mt) Plant Feed (Mt)4 (Years) Moved (Mt)3 Stockpiles (Mt) Fed (Mt) Fed (Mt) Grade (g/t) Lienetz, medium grade stockpiles, and FY20-24 310-330 130-140 25-35 20-30 45-55 70-8
Slide 38: Lihir Deep Sea Tailings Placement
Lihir Deep Sea Tailings Placement • Rigorous baseline studies prior to approval • DSTP approved as the preferred tailings management option from an environmental and social point of view for Lihir which has limited space for terrestrial tailings storage and is a seismically active region • Governmen
Slide 39: Lihir DSTP monitoring
Lihir DSTP monitoring No significant operational, compliance, environmental or social issues related to the operation of the DSTP system since Newcrest’s acquisition of Lihir in 2010. ~20 years of operation & scientific monitoring in accordance with the comprehensive Environmental Management and Mon
Slide 40: Telfer – Seeking to maximise value
Telfer Telfer – Seeking to maximise value Site Process Key Statistics 1 Element Description Gold Reserve Life: ~3 years Mining Open pit mining contracted Gold Ore Reserves: 1.4moz to Macmahon Gold Mineral Resources: 5.4moz Underground sub-level cave Copper Ore Reserves: 0.18mt and stope mining contr
Slide 41: Telfer – Indicative mine plan
Telfer – Indicative mine plan Mineral Resource & Ore Reserves1 Cutback Timetable Gold Copper FY20 onwards2,3,5 Dry Tonnes Grade Insitu Gold Dry Tonnes Insitu Timing Indicative Grade (%) Pit Cutback Stage (Million) (g/t) (Moz) (Million) Copper (Mt) (years) Cost Ore Reserves Main Dome Open Pit 7.0 0.4
Slide 42: Technology & Innovation at Telfer
Technology & Innovation at Telfer Breakthrough challenge: Extend Telfer’s life through step change technologies that materially improve cost base and product quality Particle sorting & screening Pebbles as grinding media Value capture levers being Trials nearing completion Partial replacement of ste
Slide 43: Telfer hedge profile
Telfer hedge profile Financial Year Ending Gold Ounces Hedged Average Price A$/oz 30 June 2020 (Jan – Jun 2020) 99,026 1,752 30 June 2021 216,639 1,864 30 June 2022 204,615 1,902 30 June 2023 137,919 1,942 Total 658,199 1,875 *During H1 FY20 Newcrest realised 105,768 ounces of Telfer gold sales hedg
Slide 44: Havieron – Opportunity for Telfer
Havieron – Opportunity for Telfer • Farm-in agreement on the Havieron tenement Drill results as at 31 December 2019 with potential to deliver high grade ore feed to Telfer • Newcrest manages the exploration programme • $5m minimum commitment over initial 12 months, with potential to earn 70% JV inte
Slide 45: Gosowong – held for sale
Gosowong Gosowong – held for sale Site Process Key Statistics1 2 Element Description Gold Reserve Life: ~2 years Gold Ore Reserves: 0.30moz Mining Underground mining using predominantly underhand Gold Mineral Resources: 1.0moz cut-and-fill (Kencana) and long hole stopes with paste FY20 Prod. Guidanc
Slide 46: Newcrest agrees to divest Gosowong for $90m
Newcrest agrees to divest Gosowong for $90m • On 31 January 2020, Newcrest signed an Gosowong divestment - $90m agreement to sell 100% of Newcrest • $5m cash deposit paid on execution of the Singapore Holdings Pte Ltd (NSH) which sale and purchase agreement owns a 75% interest in PT Nusa Halmahera M
Slide 47: Red Chris – Potential Tier 1 orebody
Red Chris Red Chris – Potential Tier 1 orebody2 Site Process Key Statistics1,2 Element Description Gold Mineral Resource: 20moz Copper Mineral Resource: 13blb Mining Open pit mining (currently) Block Cave (potentially)3 FY20 Prod. Guidance: 25-35koz Au, Processing Crushing, grinding, flotation 20-25
Slide 48: Red Chris – Two stage transformation
Red Chris – Two stage transformation Stage 1 - Apply Newcrest’s Edge transformation approach • Process plant optimisation • Mine optimisation • Supply chain cost reduction • Extensional resource and exploration drilling program Stage 2 - Apply Newcrest’s industry leading technology • Block caving •
Slide 49: Achievements in the first 150 days at Red Chris
Achievements in the first 150 days at Red Chris Pit optimisation delivered Two donut launders installed Medical facility upgrade Improved heavy vehicle NewSafe rollout maintenance workshop Coreshack built 48
Slide 50: Significant exploration upside potential
Significant exploration upside potential 49
Slide 51: Wafi-Golpu – Updated Feasibility Study
Wafi-Golpu Wafi-Golpu – Updated Feasibility Study1 Key Statistics – Golpu2 Gold Ore Reserves: 5.5 moz IRR3: ~18.2% (real) Avg. copper grade: 1.27% Gold Mineral Resources: 9.3 moz NPV: ~$2.6bn (real) Avg. gold grade: 0.9 g/t Copper Ore Reserves: 2.5 mt Payback: ~9.5 years from Avg. annual copper comm
Slide 52: Wafi-Golpu – Indicative production
Wafi-Golpu – Indicative production1,2,3 1 Figures above reflect 100% of project, Newcrest owns 50% of the project. These figures are estimates from the updated Feasibility Study (as at 19 March 2018) and as such were prepared with the objective of being subject to an accuracy range of ±15%, with the
Slide 53: Wafi-Golpu – Indicative free cashflow
Wafi-Golpu – Indicative free cashflow1,2 Year post grant of SML 1 2 3 4 5 6 and board approval Undiscounted FCF $(133)m $(374)m $(465)m $(1,003)m $(766)m $(82)m (100% basis) 1 Figures above reflect 100% of project, Newcrest owns 50% of the project. These figures are estimates from the updated Feasib
Slide 54: DSTP the preferred tailings option
DSTP the preferred tailings option Pipe location Huon Gulf Steep sub-sea slopes Deep Canyon Sediment movement towards a 9km deep trench • Extensive scientific studies completed • Western Huon Gulf is a highly suitable environment for DSTP • Environmentally and socially, deep sea tailings placement i
Slide 55: Looking deeper in Australia opens new opportunities
Looking deeper in Australia opens new opportunities 1. Looking Deeper in Outcrop Areas 2. Exploring under Cover Cross Section (Not to Scale) High resolution geophysics NO SURFACE Surface MINERALISED EXPRESION OUTCROP OPEN CUT 100m MINE Newcrest UNDER COVER Search Space Traditional Barren Cover 200m
Slide 56: Leveraging our expertise to look deeper in South America
Leveraging of our expertise to look deeper in South America Satellite Mapping High Resolution Geophysics Ultra trace geochemistry Prospective Hot Crack As Land Surface Alteration Blanket 100m As As Sb Bi Sb 200m Sn Mo Mo Te Epithermal Gold Au Au Shallow Altered Rock 500 Intermediate Sulfidation Depo
Slide 57: Exploration Innovation: Smarter and Faster Exploration
Exploration Innovation Smarter and Faster Exploration Ground Selection • Fertility toolbox • Crustal-scale frameworks • Predictive Technologies Smarter and Faster Geochemistry • Ultra low level geochemistry • Machine learning/clustering High Resolution Core Logging • Real-time assaying • High-resolu
Slide 58: What is a Tier 1 deposit?
What is a Tier 1 deposit? “We aspire to a portfolio within 10 years of 5 x Tier 1 assets, 2 - 4 x Tier 2 assets and a strong pre-production pipeline …”1 Definitions of Tier 1 and Tier 2 assets below used to guide portfolio optimisation decisions: Tier 1 Tier 2 Scale Potential for > 300 kozpa Au Pote
Slide 59: Current exploration footprint
Current exploration footprint Canada • Red Chris JV (70% JV) North America • Jarbidge (O) • Rattlesnake Hills (O & FI) Mexico • Azucar Minerals (EI) Indonesia PNG • Antam Alliance • Wamum project (100%) Ecuador • SolGold (EI) Cote d’Ivoire • Lundin Gold (EI) • Barrick JV (50% JV) • Lundin Gold JV •
Slide 60: Lundin Gold strategic partnership
Lundin Gold strategic partnership Exploration earn-in • JV to explore eight early stage exploration concessions north and south of Fruta del Norte finalised • Up to 50% interest earn-in → $20m over a 5yr period, incl. minimum $4m in first 2 yrs • Newcrest to manage exploration activities • Synergies
Slide 61: Eleven consecutive halves of strong free cash flow
Eleven consecutive halves of strong free cash flow Cumulative free cash flow ($m) $3.4 Billion H2 Free Cash Flow H1 Free Cash Flow 60
Slide 62: Good debt structure and clean balance sheet
Good debt structure and clean balance sheet Maturity profile as at 31 December 20191,3,4 ($m) 1,200 Corporate Bonds 900 600 300 - FY20 FY21 FY22 FY23 FY24 FY25 FY42 • Relatively low level of future mine rehabilitation costs2 1 Newcrest’s corporate bonds are denominated in USD 2 Relative to other maj
Slide 63: Improving financial policy metrics
Improving financial policy metrics Element Target 30 June 2018 30 June 2019 31 December 2019 Leverage ratio Less than 2.0x 0.7x 0.2x 0.8x Financial Metrics (Net Debt / EBITDA) (for trailing 12 months) Gearing Ratio Less than 25% 12.2% 4.9% 15.1% Credit rating Aim to maintain investment grade Investm
Slide 64: Newcrest's long-term metal price assumptions
Newcrest’s long-term metal price assumptions used for Reserves and Resources estimates1 Long Term Metal Price Newcrest, Assumptions MMJV & NJV Mineral Resources Estimates Gold Price US$1,300/oz Copper Price US$3.40/lb2 Silver Price US$21.00/oz Molybdenum Price US$10.00/lb3 Ore Reserves Estimates Gol
Slide 65: Mineral Resources and Ore Reserves – Gold Mineral Resources
Newcrest’s Mineral Resources and Ore Reserves 31 December 2019 Gold Mineral Resources1 Measured Comparison to Dec-18 Dec-19 Mineral Resources Indicated Resource Inferred Resource Dec-19 Total Resource Resource Total Resource Competent Person Dry Gold Dry Gold Dry Gold Dry Gold Insitu Gold Dry Gold I
Slide 66: Mineral Resources and Ore Reserves – Copper Mineral Resources
Newcrest’s Mineral Resources and Ore Reserves 31 December 2019 Copper Mineral Resources1 Comparison to Dec-18 Dec-19 Mineral Resources Measured Resource Indicated Resource Inferred Resource Dec-19 Total Resource Total Resource Competent Person Dry Copper Dry Copper Dry Copper Dry Copper Insitu Coppe
Slide 67: Mineral Resources and Ore Reserves – Gold Ore Reserves
Newcrest’s Mineral Resources and Ore Reserves 31 December 2019 Gold Ore Reserves1 Probable Comparison to Dec-18 Dec-19 Ore Reserves Proved Reserve Dec-19 Total Reserve Reserve Total Reserve Competent Person Dry Gold Dry Gold Dry Gold Insitu Gold Dry Gold Insitu Gold Gold Ore Reserves Tonnes Grade To
Slide 68: Mineral Resources and Ore Reserves – Copper Ore Reserves
Newcrest’s Mineral Resources and Ore Reserves 31 December 2019 Copper Ore Reserves1 Comparison to Dec-18 Total Dec-19 Ore Reserves Proved Reserve Probable Reserve Dec-19 Total Reserve Reserve Competent Person Dry Copper Dry Copper Dry Copper Insitu Copper Dry Copper Insitu Copper Copper Ore Reserves
Slide 69: Mineral Resources and Ore Reserves – Molybdenum
Newcrest’s Mineral Resources and Ore Reserves 31 December 2019 Molybdenum Mineral Resources1 Comparison to Dec-18 Total Dec-19 Mineral Resources Measured Resource Indicated Resource Inferred Resource Dec-19 Total Resource Resource Competent Person Insitu Insitu Molybdenum Mineral Resources Dry Molyb
Slide 70: Supply & demand data
Supply & demand data Gold demand & supply (tonnes)1 China and India make up Demand 2018 2019 >50% of jewellery Jewellery 2,240.2 51% 2,107.0 48% demand Technology 334.8 8% 326.6 7% Electronics 268.4 6% 262.6 6% Other Industrial 51.2 1% 50.1 1% Dentistry 15.3 0% 13.9 0% Investment 1,169.8 27% 1,271.7
Slide 71: Volatility of gold versus other metals
Volatility of gold versus other metals Gold price 2011 to 2020 (US$/oz)2 High price as % low prices since January 20111 500% 2,000 450% 1,800 400% 1,600 350% 300% 1,400 250% 1,200 200% 150% 1,000 3 year trading range $1,174 - $1,582/oz 100% 800 50% 600 0% Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan 11 1
Slide 72: Gold has acted as investment hedge
Gold has acted as investment hedge Asset class performance following major events 20% 0% -20% -40% -60% Gulf War I 9/11 2002 GFC recession Gold US Equities Commodities Real Estate Private Equity Source: Extract of data from The Strategic Case for Investing in Gold, September 2016, D Mazza. Cites Fac
Slide 73: Operating costs
Operating costs Newcrest is a US dollar reporting entity. Its operating costs will vary in accordance with the movements in its operating currencies where those costs are not denominated in US dollars. The table below shows indicative currency exposures on operating costs for H1 FY20 by site: USD AU
Slide 74: Foreign exchange sensitivities and oil hedges
Foreign exchange sensitivities1 and oil hedges Approximate Half Year Site Parameter Movement EBIT Impact (US$m) Cadia AUD/USD +0.01 AUD (0.72 → 0.73) (4) Telfer AUD/USD +0.01 AUD (0.72 → 0.73) (1) Lihir USD/PGK -0.1 PGK (3.20 → 3.10) (4) Gosowong USD/IDR -1,000 IDR (14,500 → 13,500) (6) Red Chris US
Slide 75: H1 FY20 results summary
H1 FY20 results summary Element Cadia Lihir Telfer Goso- Red Wafi- Corp / Group wong Chris Golpu Other Gold Production (koz) 411 381 182 76 11 - - 1,063 Copper Production (kt) 45 - 7 - 10 - - 62 AISC ($m) 65 419 256 99 25 - 47 911 Capital Expenditure ($m) - Production Stripping1 - 43 18 - 4 - - 65 -
Slide 76: FY20 guidance
FY20 guidance1 Element Cadia Lihir Telfer Red Goso- Wafi- Corp / Group Chris4 wong Golpu Other Gold production (koz) 760-840 930-1,030 400-460 25-35 145-175 - - 2,375-2,535 Copper production (kt) ~100 - ~15 20-25 - - - 130-145 AISC ($m)2 40-130 890-970 485-545 55-85 190-215 - 105-120 1,835-1,965 Cap
Slide 77: Newcrest Mining Limited
NEWCREST MINING LIMITED Board Forward Shareholder Enquiries to Peter Hay Non-Executive Chairman Link Market Services Sandeep Biswas Managing Director and CEO Tower 4, 727 Collins Street Gerard Bond Finance Director and CFO Melbourne, Victoria, 3000 Philip Aiken AM Non-Executive Director Australia Ro