Newcrest Mining — BMO Global Metals & Mining Conference 2019
22 slides from Newcrest Mining's conference presentation, February 2019
Slide 1: Driving value through technology
NEWCREST Driving value through technology Sandeep Biswas Managing Director and Chief Executive 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, Financials
Our Vision Safety & Sustainability Our Assets Technology & Innovation Financials 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: Our Vision, Safety & Sustainability, Our Assets, Technology, Financials
Our Vision Safety & Sustainability Our Assets Technology & Innovation Financials Summary
Slide 7: Safety & Sustainability
Safety & Improving safety performance Sustainability TRIFR (per million hours worked) 3.7 3.3 2.4 2.3 FY16 FY17 FY18 H1 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 Counci
Slide 8: Our Vision, Safety & Sustainability, Our Assets, Technology, Financials
Our Vision Safety & Sustainability Our Assets Technology & Innovation Financials Summary
Slide 9: Our operations and major advanced projects
Cadia Lihir Our operations FY19 Prod. Guidance: 800-880koz Au, ~90kt Cu FY19 Prod. Guidance: H1 FY19 AISC: 950-1,050koz Au $925/oz H1 FY19 AISC: $131/oz and major Ore Reserves: 22moz gold & 4.3mt copper Ore Reserves: Mineral Resources: 24moz gold 50moz gold Mineral Resources: 38moz gold & 8.3mt copp
Slide 10: Large orebodies are rare
Large Resource & Reserve base of global majors’ operating assets (moz) orebodies 60.00 are rare Solid bars = ore reserve Transparent bars = mineral resource 50.00 Only Cadia and Lihir have an ore reserve 40.00 base in excess of 15 moz moz 30.00 20.00 10.00 Based on producing assets held by Barrick,
Slide 11: Lowest cost major gold producer
Lowest cost AISC/oz for the most recently reported six months1 ($/oz) major gold producer 996 936 872 872 850 792 747 Newcrest Barrick Gold Agnico Eagle Newmont Goldcorp Anglogold Gold Fields Mining Mines 2 Mining Ashanti 1 AISC/oz calculated for the 6 months ending 31 December 2018 using gold sold
Slide 12: Our Vision, Safety & Sustainability, Our Assets, Technology, Financials
Our Vision Safety & Sustainability Our Assets Technology & Innovation Financials Summary
Slide 13: 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 14: Ore sorting & mass sensing
Ore Step change potential for Telfer sorting & X-ray ore scat sorting trials: mass sensing ▪ Upgraded grade from 0.18g/t to 0.56g/t Telfer Scat ore sorting Mass sensing & sorting at Cadia ▪ 12 month testing and calibration of mass sensor ▪ Aim to divert waste material away from mill Cadia mass sensi
Slide 15: Undercut-less Caving
Next generation of caving Undercut-less Caving ▪ Telfer to construct 4 undercut-less drawbells starting second half FY19 Potential to be ▪ Cadia to construct ~6 undercut-less faster, safer and drawbells in first half FY20 lower cost ▪ Aim to reduce construction cost of macro blocks by ~30% ▪ Advance
Slide 16: Our Vision, Safety & Sustainability, Our Assets, Technology, Financials
Our Vision Safety & Sustainability Our Assets Technology & Innovation Financials Summary
Slide 17: FY19 Half Year Highlights
TRIFR Gold Production Copper Production FY19 (per million hours worked) (koz) (kt) Half Year 2.6 6% 1,203 52 Highlights1 12% 1,136 33% 39 2.3 H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY19 AISC2 Free Cash Flow2 Adjusted EPS2 ($/oz) ($m) ($/share) 176 0.31 860 104% 31% 13% 134 0.15 747 H1 FY18 H1 FY
Slide 18: $3.5bn of free cash flow since 1 January 2014
Cumulative free cash flow ($m) $3.5bn of $3,539 million free cash flow since 1 January 2014 Comfortably within all H2 Free Cash Flow H1 Free Cash Flow financial policy targets Leverage Ratio (Net Debt / EBITDA) Gearing Ratio Target less Target less than 2.0x (for than 25% trailing 12 months) 16.6% 1
Slide 19: Focused on returns to shareholders
Focused on 0.20 25% 0.18 returns to 0.16 20% shareholders 0.14 % of Free Cash Flow 0.12 15% Strong dividend US$ per share 0.10 policy 0.08 10% 0.06 0.04 5% 0.02 0.00 0% FY16 FY17 FY18 Dividend % Free Cash Flow ▪ H19 Interim Dividend of US 7.5 cents per share ▪ Dividend increased 23% FY17 to FY18 ▪ T
Slide 20: Our Vision, Safety & Sustainability, Our Assets, Technology, Financials
Our Vision Safety & Sustainability Our Assets Technology & Innovation Financials Summary
Slide 21: Driving value through technology
Driving value through technology 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 22: Find out more
Find out more: www.newcrest.com.au Engage with us +1 (647) 255 3139 +613 9522 5717
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