Newcrest Mining — Macquarie Conference (October 2019)
27 slides from Newcrest Mining's conference presentation, October 2019
Slide 1: Our approach to value creation
NEWCREST Our approach to value creation Gerard Bond Finance Director and Chief Financial Officer
Slide 2: Disclaimers
Disclaimers 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: Newcrest Mining Limited
Newcrest Mining Limited Placeholder image
Slide 4: Our Vision, Safety & Sustainability, Our Assets, Technology & Innovation, Growth, Summary
Our Vision Safety & Sustainability Our Assets Technology & Innovation Growth Summary
Slide 5: Our Vision: To be the Miner of Choice
Our Vision: To be the Miner of Choice Our Pillars SAFETY & PEOPLE OPERATING TECHNOLOGY PROFITABLE SUSTAINABILITY PERFORMANCE & INNOVATION GROWTH ASPIRATIONS Zero fatalities First quartile First quartile 5 breakthrough Exposure to five tier one orebodies OUR and industry- organisational Group AISC su
Slide 6: Safety & Sustainability
Our Vision Safety & Sustainability Our Assets Technology & Innovation Growth Summary
Slide 7: Safety & Sustainability
Safety & Improving safety performance Sustainability TRIFR (per million hours worked) 3.7 3.3 2.4 2.4 FY16 FY17 FY18 YTD FY19 Committed to Zero Fatalities Lihir Mine Sustainability ~3.5 years fatality Department Newcrest was free Achievement admitted to the 5 years since the last International Counc
Slide 8: Our Assets
Our Vision Safety & Sustainability Our Assets Technology & Innovation Growth Summary
Slide 9: Our operations and major advanced projects
Cadia Lihir Our operations FY19 Prod. Guidance: 800-880koz Au, ~90kt Cu FY19 Prod. Guidance: Q3 FY19 AISC: 950-1,050koz Au $849/oz Q3 FY19 AISC: $147/oz and major Ore Reserves: 22moz gold & 4.3mt copper Ore Reserves: Mineral Resources: 24moz gold 50moz gold Mineral Resources: 38moz gold & 8.3mt copp
Slide 10: Large orebodies are rare
Large Resource & Reserve base of global majors’ operating assets (moz) orebodies 60.00 are rare Solid bars = ore reserve Transparent bars = mineral resource 50.00 Only Cadia and Lihir have an ore reserve 40.00 base in excess of 15 moz moz 30.00 20.00 10.00 Based on producing assets held by Barrick,
Slide 11: Lowest cost major gold producer
Lowest cost AISC/oz for the most recently reported quarter1 ($/oz) major gold producer 963 949 907 836 788 765 738 1 AISC/oz from company reports for 3 months ending 31 March Newcrest Goldcorp Barrick Gold Agnico Eagle Newmont Anglogold Gold Fields 2019, except for Goldcorp, Anglogold and Barrick wh
Slide 12: $3.5 billion of cumulative free cash flow since 1 January 2014
$3.5bn of Cumulative free cash flow ($m) free cash flow since $3.5 Billion 1 January 2014 H2 Free Cash Flow H1 Free Cash Flow
Slide 13: Newcrest has outperformed gold major peers over last 5 years
Newcrest has April 21, 2014 Sept 24, 2018 Jan 14, 2019 outperformed Termination of Newmont-Barrick Barrick and Randgold announce Newmont and Goldcorp announce Discussions combination combination gold major 360 Cumulative Total Shareholder Return (%) 340 Newcrest (AUD): +238% peers over last 320 300
Slide 14: Newcrest has outperformed gold major peers over last 5 years
Newcrest has April 21, 2014 Sept 24, 2018 Jan 14, 2019 outperformed Termination of Newmont-Barrick Barrick and Randgold announce Newmont and Goldcorp announce Discussions combination combination gold major 380 Cumulative Total Shareholder Return (%) 360 Newcrest (AUD): +240% peers over last 340 320
Slide 15: Technology & Innovation
Our Vision Safety & Sustainability Our Assets Technology & Innovation Growth Summary
Slide 16: A unique suite of technical capabilities
A unique Lihir, Telfer Telfer Gosowong Telfer Cadia suite of technical capabilities Open pit Selective Reef Underground Narrow Vein Bulk Sublevel Caving Block Caving Underground Large scale comminution Pressure oxidation Processing Copper-gold flotation Cyanide & carbon in leach
Slide 17: Technology being trialled at Telfer
1 2 3 Technology being trialled at Telfer1,2 Screening & sorting NextGen caving NextGen leaching Potential to enable World leading cave Gold and copper metal processing from single train development production on site by leaching concentrates • Potential for significant • Targeting 30% • Potential t
Slide 18: Optimisation of Cadia
1 2 3 Optimisation of Cadia1,2 Coarse ore flotation Mass sensing & sorting NextGen caving Targeted processing rate Real time metal and World leading cave increases on current rates processing parameter belt development by sustaining recoveries at measurement capabilities coarser grind sizes establis
Slide 19: Growth
Our Vision Safety & Sustainability Our Assets Technology & Innovation Growth Summary
Slide 20: Our approach to growth
Our approach to growth Organic growth Greenfield exploration Early entry partnerships with explorers M&A, when we see the opportunity to create value through application of our strong & unique technical capabilities
Slide 21: Acquisition of interest in Red Chris
Acquisition of • Newcrest to acquire 70% of the Red Chris mine from Imperial Metals for US$806.5 million interest in Red Chris1 • Newcrest to be the operator • The transaction is expected to close before 15 August 2019 A potential Tier 1 orebody in Canada 1 Refer to Market Release dated 11 March 201
Slide 22: Benefits for Newcrest shareholders
1. Supports strategic goals Benefits for • Measured entry into North America Newcrest shareholders • Operating mine with potential to become a Tier 1 asset 2. Immediate asset and geographic diversification 3. Large mineral endowment 4. Significant upside opportunity • Early application of Edge trans
Slide 23: Two stage transformation
Stage 1 - Apply Newcrest’s Edge transformation approach Two stage • Process plant optimisation transformation • Mine optimisation History of Owners Mindset through the • Supply chain cost reduction transformation at Lihir, Cadia, Telfer • Extensional resource and exploration drilling program and Gos
Slide 24: Exploration JV with Greatland Gold brings opportunity to Telfer
Exploration JV • Farm-in agreement on the Havieron tenement with potential to deliver high grade ore feed to Telfer with Greatland Gold brings • Newcrest to manage the exploration program opportunity to • $5m minimum commitment over initial 12 months, with potential to earn Telfer 70% JV interest th
Slide 25: Summary
Our Vision Safety & Sustainability Our Assets Technology & Innovation Financials Summary
Slide 26: What makes Newcrest different
What makes Newcrest different Long Low cost reserve life production Organic growth Do what options we say (at Cadia, Lihir and Wafi Golpu) Strong exploration & technical Financially robust capabilities
Slide 27: Find out more / Engage with us
Find out more: www.newcrest.com.au Engage with us +1 (647) 255 3139 +613 9522 5717
Newcrest Mining — Macquarie Conference (October 2019) on 6ix