Newcrest Mining — BAML 2020 Metals, Mining and Steel Conference
17 slides from Newcrest Mining's conference presentation, May 2020
Slide 1: What Makes Newcrest Different
BAML 2020 METALS, MINING AND STEEL CONFERENCE What Makes Newcrest Different Sandeep Biswas Managing Director and Chief Executive Officer
Slide 2: Disclaimer: Forward Looking Statements
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 202
Slide 4: COVID-19 update
Employees & People Operations Local Communities Contractors COVID-19 Telfer: FIFO rosters have been No confirmed COVID-19 cases to Newcrest: Established a A$20 update date temporarily amended following the suspension of interstate FIFO million Community Support Fund, with an initial focus of i
Slide 5: Continued Focus on Safety
Total Recordable Injury Frequency Rate1 (per million hours worked) Continued Focus on 3.7 3.3 Safety 2.4 2.3 2.6 FY16 FY17 FY18 FY19 Mar-20 YTD Safety Transformation Red Chris integration is progressing well but injury rates are much higher than YTD TRIFR & improvements at most operations the Newcre
Slide 6: Sustainability commitments
Greenhouse gas (GHG) intensity target Sustainability A 30% reduction in GHG emissions per tonne of ore treated by 2030 against commitments the 2018 baseline Shadow carbon price Acquisitions and key capital investment decisions will include carbon price Top quartile scenarios between $25 and $50 a to
Slide 7: Operating assets, advanced projects and investments
Cadia (100%) Lihir (100%) Telfer (100%) Operating Mar-20 YTD Production: 607koz Au, 68kt Cu Mar-20 YTD Production: 569koz Au Mar-20 YTD Production: 279koz Au, 12kt Cu Mar-20 YTD AISC: $156/oz assets, Ore Reserves: 21moz Au & 4.3mt Cu Mar-20 YTD AISC: Ore Reserves: $1,156/oz 23moz Au Mar-20 YTD AISC:
Slide 8: FY20 guidance not impacted by COVID-19
FY20 Newcrest’s FY20 guidance1 guidance not Cadia Lihir Telfer Red Goso- Fruta del Wafi- Corp / Group Chris4 wong Golpu Other impacted by Norte5 COVID-191 Gold production (koz) 800-840 775-825 360-400 35-45 103 ~20 - - 2,100-2,200 Copper production (kt) ~100 - ~15 25-30 - - - - 140-145 AISC ($m)2 40
Slide 9: Increased economic exposure to Fruta del Norte gold production
Fruta del Norte Financing Facilities acquired for $460 milllion1 Increased Gold pre-pay term credit facility of US$150 million: economic ‒ Principal and interest paid over 19 quarters equivalent to 11,500 oz of gold exposure to based on spot at the time of payment, starting in December 2020 and en
Slide 10: Strong financial position
Leverage Ratio (Net Debt / EBITDA) Gearing Ratio Strong Target less than 2.0x Target less than 25% financial (for trailing 12 months) position 12.2% 11.5% 15.1% 0.8x 0.7x 0.6x 4.9% 0.2x Comfortably within our financial policy 30 Jun 2018 31 Dec 2018 30 Jun 2019 31 Dec 2019 30 Jun 2018 31 Dec 2018 30
Slide 11: Good debt structure and clean balance sheet
Good debt Indicative maturity profile as at 8 May 20201,3,4,5 structure and clean balance sheet ($m) 1 Newcrest’s corporate bonds and bilateral facilities are denominated in USD 2 Relative to other major gold peers. Provision (discounted) of $373m at 31 December 2019, reflecting an estimate of $374m
Slide 12: Cadia and Lihir reserves larger than mines of major gold peers
Cadia and Reserve base of operating assets1 (moz) 25 Lihir reserves larger than mines of 20 major gold peers 15 10 5 0 1 Based on producing assets held by Barrick, Newmont and Newcrest with an attributable reserve >4moz. Source: Company reports as at 21 February 2020. Reserves reflect proven and pro
Slide 13: Lowest cost major gold producer
Lowest cost AISC/oz for calendar year 20191 ($/oz) major gold producer 992 966 938 894 897 795 2 1 AISC/oz from company reports based on data available as at Newcrest Barrick Goldfields Agnico Eagle Newmont AngloGold 5:00pm EST, 21 February 2020. 2 Agnico Eagle report AISC/oz produced 13
Slide 14: A unique suite of technical capabilities
A unique Lihir, Telfer Telfer Gosowong Telfer Cadia suite of technical capabilities OPEN PIT SELECTIVE Reef Narrow Vein UNDERGROUND BULK Sublevel Caving Block/Panel UNDERGROUND Caving Large scale comminution Pressure oxidation PROCESSING Copper-gold flotation Cyanide & carbon in leach 14
Slide 15: What makes Newcrest different
What makes Newcrest Long Low cost different reserve life production Organic growth Do what options we say (at Cadia, Lihir, Wafi Golpu, Havieron and Red Chris) Strong exploration & technical Financially robust capabilities 15
Slide 16: Find out more: www.newcrest.com.au
Find out more: www.newcrest.com.au Engage with us +613 9522 5717 +1 (647) 255 3139 16
Slide 17: Appendix A: Transaction overview
Increased economic exposure to Fruta del Norte gold production Appendix A: through acquisition of Lundin Gold’s finance facilities Transaction Transaction Newcrest has acquired the prepay and stream facilities and an offtake agreement in respect of Lundin Gold’s Fruta del Norte mine (the Facilitie
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