Newcrest Mining — H1 FY2018 Earnings Presentation
22 slides from Newcrest Mining's earnings presentation, February 2018
Slide 1: FY18 Half Year Results
NEWCREST FY18 Half Year Results Sandeep Biswas / Gerard Bond Managing Director and Chief Executive Officer / Finance Director and Chief Financial Officer
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: Newcrest Mining Limited
Newcrest Mining Limited Placeholder image
Slide 4: Safety & Sustainability Overview of HY18
Safety & Overview of Sustainability HY18 Site Results Financials Five Pillars Summary
Slide 5: Safety
Ongoing reduction in TRIFR Safety 3.6 3.7 3.3 2.6 FY15 FY16 FY17 H1 FY18 Safety Next version of Baseline audits Transformation NewSafe completed against Maintaining launched updated HSE relentless focus Supporting the Management ongoing safety Systems Standard leadership and Action plans developed c
Slide 6: Sustainability Report
2017 Newcrest is committed to: Sustainability Report Good relationships with host communities and other stakeholders Health and diversity of our people Minimise our impact on the environment Central to our pursuit to be the Miner of Choice
Slide 7: Safety & Sustainability Overview of HY18
Safety & Overview of Sustainability HY18 Site Results Financials Five Pillars Summary
Slide 8: Half Year Highlights
Half Year Highlights Gold production of 1.14 million ounces at a Group All-In Sustaining Cost of $860 per ounce Free Cash Flow of $134 million enabling a 4% reduction in net debt to $1.4 billion Interim dividend of US 7.5 cents per share, fully franked
Slide 9: Safety & Sustainability Overview of HY18
Safety & Overview of Sustainability HY18 Site Results Financials Five Pillars Summary
Slide 10: Half year production by operation
Group Half year Lower Group production and higher AISC reflects 1,204 1,235 1,230 1,151 1,136 production by the lower production from 770 753 770 805 860 Cadia due to the seismic operation event and AISC also H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 impacted by higher FY16 FY17 FY18 FY16 FY17 FY18 stripping co
Slide 11: Half year production by operation
Telfer Half year Higher milling volumes 243 1,391 largely offset lower grade. 219 222 216 1,227 production by Increase in production 164 955 979 1,026 operation helped lower unit costs H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 FY16 FY17 FY18 FY16 FY17 FY18 Gosowong Adversely impacted by 173 1,494 lower head gra
Slide 12: Safety & Sustainability Overview of HY18
Safety & Overview of Sustainability HY18 Site Results Financials Five Pillars Summary
Slide 13: Delivering on financial commitments
Delivering on financial On track to achieve guidance commitments Increase shareholder returns •Production •Costs •US 7.5 cents per share, •Capital Expenditure fully franked Within Financial Policy Metrics Low Cost Position •Well within all four policy •AISC $860/oz metrics Reduce Net Debt Generate F
Slide 14: Underlying profit movement H1 FY17 to H1 FY18
Profit ($m) Underlying Movement in H1 FY17 273 Gold price 21 Copper price 59 Gold sales volumes (114) Revenue $(90) million Copper sales volumes (53) Silver revenue (3) Operating costs (17) FX on operating costs (15) $(32) million Operating Costs Depreciation (69) FX on depreciation (6) $(75) millio
Slide 15: Free cash flow reconciliation H1 FY17 to H1 FY18
Decrease in operating Working Operating Free cash flow cashflow Volume Price Income tax capital Interest paid costs & other reconciliation H1 FY17 to H1 FY18 ($m) 79 31 6 (49) (148) (46) (169) 41 258 38 (148) (14) 134 (41) H1 FY17 Decrease in Production stripping Major projects Exploration Sale of s
Slide 16: Comfortably within all four financial policy targets
Leverage Ratio (Net Debt / EBITDA) Gearing Ratio Comfortably Target less than 2.0x (for trailing 23% Target less than 25% within all four 1.6x 12 months) 21% 17% financial policy 1.3x 1.1x 1.2x 16% targets 30 Jun 2016 31 Dec 2016 30 Jun 2017 31 Dec 2017 30 Jun 2016 31 Dec 2016 30 Jun 2017 31 Dec 201
Slide 17: Safety & Sustainability Overview of HY18
Safety & Overview of Sustainability HY18 Site Results Financials Five Pillars Summary
Slide 18: Our Five Pillars and 2020 aspirations
Safety & Sustainability Everybody going home safe and healthy every day; we care for communities and Our Five the environment Pillars – and Zero fatalities and industry-leading TRIFR by 2020 2020 People aspirations Capable and engaged people delivering superior returns First quartile Organisational
Slide 19: Key milestones
Key milestones 1 Golpu Feasibility Study Update by 1 end March 2018 Cadia East Mine Prefeasibility Study 2 in August 2018 Cadia Plant Expansion Prefeasibility 3 Study in August 2018 Cadia at 30mtpa annualised production rate 4 by end June 2018 2 Lihir at 15mtpa sustainable annualised mill throughput
Slide 20: Safety & Sustainability Overview of HY18
Safety & Overview of Sustainability HY18 Site Results Financials Five Pillars Summary
Slide 21: What makes Newcrest different
What makes Newcrest Long Low cost different reserve life production Organic growth Do what options we say (at Cadia, Lihir and Wafi Golpu) Strong exploration & technical Financially robust capabilities
Slide 22: Find out more / Engage with us
Find out more: www.newcrest.com.au Engage with us +613 9522 5717