Newcrest Mining — H1 FY2022 Earnings Presentation
26 slides from Newcrest Mining's earnings presentation, Feb 17, 2022
Slide 1: FY22 Half Year Results
FY22 Half Year Results Sandeep Biswas Managing Director and Chief Executive Officer Kim Kerr Acting Chief Financial Officer
Slide 2: Disclaimer: Forward Looking Statements
Disclaimer Forward Looking Statements This document includes forward looking statements and forward looking information within the meaning of securities laws of applicable jurisdictions. Forward looking statements can generally be identified by the use of words such as “may”, “will”, “expect”, “inte
Slide 3: Disclaimer: Ore Reserves and Mineral Resources Reporting Requirements
Disclaimer Ore Reserves, Mineral Reserves and Mineral Resources Reporting Requirements As an Australian Company with securities listed on the Australian Securities Exchange (ASX), Newcrest is subject to Australian disclosure requirements and standards, including the requirements of the Corporations
Slide 4: Disclaimer: Competent Person Statement
Disclaimer Competent Person Statement In accordance with ASX Listing Rule 5.12.2 to 5.12.7, Competent Person Ms Jillian Terry FAusIMM, Head of Mineral Resource Management is a full time employee of Newcrest Mining Limited and confirms that the information presented is an accurate representation of a
Slide 5: FY22 Half Year highlights
FY22 Half Year highlights Sandeep Biswas Managing Director and Chief Executive Officer
Slide 6: Delivering profitable growth
Delivering profitable growth Newcrest is well positioned to deliver organic growth and superior returns to shareholders • Statutory & Underlying profit of $298m Well positioned • AISC margin of $502/oz1 for a strong • Cadia SAG mill motor successfully replaced and upgraded second half • On track to
Slide 7: Safety and culture remain a key focus across the business
Safety and culture remain a key focus across the business Dedicated to the safety and wellbeing of our workforce to ensure everyone goes home safe and healthy each day • Newcrest is now more than six years fatality free Total Recordable Injury Frequency Rate (per million hours worked) • Increase in
Slide 8: Newcrest is progressing its sustainability commitments
Newcrest is progressing its sustainability commitments Caring for the Strong relationships with Transparent and environment communities & governments ethical business • ‘Group Net Zero Emissions Roadmap’ • Newcrest continues to focus on building • Mandatory Cultural Heritage Competency being develop
Slide 9: Advancing our global growth portfolio
Advancing our global growth portfolio Sandeep Biswas Managing Director and Chief Executive Officer 9
Slide 10: Advancing Newcrest's global organic growth portfolio with attractive economics
Advancing Newcrest’s global organic growth portfolio with attractive economics7,8,9,10,11 Compelling rates of return with material growth in operating margin and cash flow projected over the next decade +50% +16% Increases to +22% Projected reduction IRR for all four IRR for all four in Newcrest’s A
Slide 11: Cadia on track for a strong second half and bright future
Cadia on track for a strong second half and bright future2 Cadia is well positioned to deliver a strong second half with several expansion activities at or near completion SAG mill motor Processing capacity to 35Mtpa Moly Plant • SAG mill motor successfully • Regulatory approval received to • Filter
Slide 12: Accelerating aspiration for Lihir to deliver +1Moz per annum
Accelerating aspiration for Lihir to deliver +1Moz per annum15 Newcrest has made significant progress on Phase 14A during the period Phase 14A activities progressing on site Phase 14A • Increased Lihir’s Ore Reserves and will bring forward higher grades to improve gold production and operational fle
Slide 13: Potential for further upside at Red Chris
Potential for further upside at Red Chris Drilling continues to expand the footprint and continuity of the higher grade mineralisation at East Ridge • Initial Probable Ore Reserve: 480Mt @ 0.52g/t Au and Schematic Long Section of Red Chris 0.45% Cu for 8.1Moz Au and 2.2Mt Cu16 • East Ridge: Signific
Slide 14: Significant opportunities for growth at Havieron and Telfer
Significant opportunities for growth at Havieron and Telfer Newcrest is actively advancing multiple options to extend the Telfer mine life and grow the Havieron resource Geology Plan View of the Havieron Deposit Havieron • Initial Probable Ore Reserve: 14Mt @ 3.7g/t Au and 0.54% Cu for 1.6Moz Au and
Slide 15: Acquisition of Pretium Resources nearing completion
Acquisition of Pretium Resources nearing completion3 Addition of Brucejack will drive a material increase in Mineral Resources, Ore Reserves, production and cash flows • Addition of a Tier 1 large scale, long life, low cost mine to Newcrest’s unrivalled portfolio of BRITISH COLUMBIA assets Red Chris
Slide 16: Delivering on Newcrest's profitable growth targets
Delivering on Newcrest’s profitable growth targets20,21 Dec 2021 Q3 FY22 Q4 FY22 H1 FY23 H2 FY23 H2 FY24 FY27 Lihir Cadia Lihir Cadia Red Chris Havieron Red Chris Phase 14A Moly plant Phase 14A PC1-2 FS Block Cave First First early works first FS to be to be FS to be Production Production commence p
Slide 17: Newcrest has an unrivalled portfolio of assets
Newcrest has an unrivalled portfolio of assets Newcrest is in an enviable position with exposure to six Tier 1 orebodies and a growing presence in Tier 1 regions Red Chris (70%) Brucejack3 Wafi-Golpu (50%) Lihir Fruta del Norte (32%)22 Namosi (72.74%) Telfer Havieron (70%)12 Cadia Operating asset No
Slide 18: Financial results & shareholder returns
Financial results & shareholder returns Kim Kerr Acting Chief Financial Officer 18
Slide 19: FY22 half year results & shareholder returns
FY22 half year results & shareholder returns Newcrest is set to deliver a strong second half and progress its Forging an Even Stronger Newcrest plan First half in line Strong Balance Sheet & Investing in the future with expectations Shareholder Returns • Underlying profit of $298m • Pretium Resource
Slide 20: Newcrest has an excellent debt structure for growth phase
Newcrest has an excellent debt structure for growth phase Newcrest is in an ideal position to support growth with net debt of $469m, significant liquidity of $3.2bn and more than 8 years until the next Corporate Bond repayment is due6 Net debt position as at 31 December 2021 Corporate Bonds maturity
Slide 21: Newcrest maintains its strong financial position
Newcrest maintains its strong financial position Comfortably within all financial policy targets as at 31 December 20216 Leverage ratio (Net Debt / EBITDA) Gearing ratio 2.1 Target less than 2.0 times 29.3% (for trailing 12 months) 22.8% Target less than 25% 1.6 16.6% 1.1 12.2% 0.7 6.8% 4.9% 4.5% 0.
Slide 22: Newcrest has a track record of delivering returns to shareholders
Newcrest has a track record of delivering returns to shareholders Newcrest has determined a US 7.5 cent fully franked dividend per share which will be paid in March 2022 Increasing dividends (US / share)24 FY22 interim dividend 40.0 7.5 14.5 17.5 US cents per share 11.0 7.5 15.0 7.5 7.5 7.5 7.5 7.5
Slide 23: Newcrest is a unique investment in the gold industry
Newcrest is a unique investment in the gold industry Cu Low-cost Outstanding Material Long Strong Financially production organic growth copper reserve life exploration & robust portfolio exposure technical capabilities 23
Slide 24: Find out more: www.newcrest.com
Find out more: www.newcrest.com Engage with us +61 (3) 9522 5570 +1 (866) 396 0242 24
Slide 25: Endnotes
Endnotes 1. Newcrest’s AISC margin has been determined by deducting the All-In Sustaining Cost attributable to Newcrest’s operations from Newcrest’s realised gold price. For further details refer to the Company’s “ASX Appendix 4D and Financial Report” released on 17 February 2022, and Section 6.6 of
Slide 26: Endnotes
Endnotes 9. The Pre-Feasibility Studies are each subject to an accuracy range of ±25%. The findings in the studies and the implementation of each Project are subject to all the necessary approvals, permits, internal and regulatory requirements and further works. The estimates are indicative only and