Newcrest Mining — H1 FY2021 Earnings Presentation
81 slides from Newcrest Mining's earnings presentation, February 2021
Slide 1: Newcrest Briefing Book
Newcrest Briefing Book February 2021 0
Slide 2: Disclaimer
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
Disclaimer Technical and Scientific Information The technical and scientific information contained in this document relating to Wafi-Golpu and Lihir was reviewed and approved by Craig Jones, Newcrest’s Chief Operating Officer PNG, FAusIMM and a Qualified Person as defined in National Instrument 43-1
Slide 4: Forging an even stronger Newcrest
Forging an even stronger Newcrest Our aspirations 2021-2025 We grow profitably We have an industry leading portfolio that delivers superior returns and growth 3
Slide 5: COVID-19 Update
COVID-19 Update “The health and safety of our workforce and host communities continues to be our primary concern” Committed workforce adapting to new ways of working. People A number of positive cases are currently being managed at Red Chris and Lihir Extensive program of preventative measures
Slide 6: Safety update
Safety update FY17 – 1H FY21 TRIFR1 Critical Control Management Verifications 3.3 2.6 2.4 2.3 2.2 2742 FY21 YTD 124k3 FY21 YTD FY17 FY18 FY19 FY20 H1 FY21 Safety Transformation Integrated with existing systems • More than 5 years fatality free, zero life changing injuries • Industry leading TRIFR ra
Slide 7: Sustainability – Key affiliations and reporting
Sustainability – Key affiliations and reporting High international and industry performance standards International Council on Mining & Metals member – Sustainability Framework • Independently assured annually against the 10 Principles and Position Statements, including GRI • Alignment to Global Ind
Slide 8: Sustainability – Aspiring to be an industry leader
Sustainability – Aspiring to be an industry leader Health & Safety Water Stewardship Zero fatalities & LCIs, lower TRIFR, new health Catchment-based, site programs efficiency assessments Climate Biodiversity Change No net loss for new Phased reporting to projects TCFD recommendations GHG Emissions S
Slide 9: Sustainability – Aspiring to be an industry leader
Sustainability – Aspiring to be an industry leader Community Diversity & Inclusion Expenditure Refreshed targets: % Annual expenditure ≥1% gender, Indigenous, Group revenue; cultural local employees heritage governance Supply Chain Modern Slavery Due diligence of Statement: December suppliers for ES
Slide 10: Progress reflected in improved ESG scores
Progress reflected in improved ESG scores S&P Global Corporate Sustainability Assessment for the Dow Jones Sustainability Indexes (DJSI) 2020: First quartile in DJSI Australia Metals & Mining Index (82nd percentile, Performance Score of 63) Promoted into the Dow Jones Sustainability Index Asia P
Slide 11: Climate Change, Shadow Carbon Price, TCFD
Climate Change, Shadow Carbon Price, TCFD Climate Change Policy and 2030 emissions target • Target of 30% reduction in emissions intensity by 20301 • In December 2020, Newcrest entered into a renewable energy Power Purchase Agreement at Cadia which is expected to help deliver a ~20% reduction in New
Slide 12: Investment Proposition
Investment Proposition Long Low cost reserve life production Organic growth options Do what (at Cadia, Lihir, Wafi-Golpu, we say Red Chris & Havieron) Strong exploration & technical Financially robust capabilities 11
Slide 13: Capital allocation framework
Capital allocation framework Newcrest’s Capital Allocation Framework Newcrest’s financial objectives are to: Cash flow from operations • meet all financial obligations • maintain a strong balance sheet to withstand cash flow Sustaining capital / Growth investment Exploration Maintain a strong Minimu
Slide 14: Dividends - delivering increased cash returns to shareholders
Dividends - delivering increased cash returns to shareholders Newcrest Dividend Policy1 “Newcrest looks to pay ordinary dividends that are sustainable over time having regard to its cash flow generation, its reinvestment options in the business and external growth opportunities, its financial policy
Slide 15: An aligned executive remuneration structure
An aligned executive remuneration structure Short Term Incentive Criteria1 Long Term Incentive Criteria 1 Each of the CEO, CFO and other Executives have different specific personal measures under the 5 categories listed. 14
Slide 16: An experienced management team
An experienced management team Sandeep Biswas Gerard Bond Craig Jones Philip Stephenson Managing Director and Finance Director and Chief Operating Officer Chief Operating Officer Chief Executive Officer Chief Financial Officer (Papua New Guinea) (Australia and Americas) Lisa Ali Maria Sanz Perez Sei
Slide 17: Our operating assets, advanced projects and investments
Our operating assets, advanced projects and investments1 Cadia (100%) Lihir (100%) Telfer (100%) H1 FY21 Production: 391koz Au, 52kt Cu H1 FY21 Production: 378koz Au H1 FY21 Production: 185koz Au, 5kt Cu H1 FY21 AISC: $54/oz H1 FY21 AISC: $1,352/oz H1 FY21 AISC: $1,676/oz Ore Reserves: 20moz Au & 4.
Slide 18: Newcrest retains long reserve life advantage
Newcrest retains long reserve life advantage Note: Width of bubble size represents relative size of gold reserves, indicative AISC margin based on $1,500 gold price Indicative AISC Margin - Interest Exp US$ per ounce1 800 750 Evolution 700 650 600 550 Northern Star Newcrest 500 450 Newmont 400 Barri
Slide 19: Newcrest retains long reserve life advantage
Newcrest retains long reserve life advantage Note: Width of bubble size represents relative size of gold reserves, indicative AISC margin based on $1,500 gold price Indicative AISC Margin - Interest Exp US$ per ounce1 800 700 Evolution 600 Newcrest Northern Star 500 Newmont 400 Barrick 300 200 8 10
Slide 20: Lihir and Cadia are in a class of their own
Lihir and Cadia are in a class of their own Resource & Reserve base of global majors’ operating assets (moz)1,2 50 Solid bars = ore reserve Transparent bars = mineral resource 40 30 20 10 0 1 Based on producing assets held by Newcrest, Newmont and Barrick with an attributable reserve >4moz (with Tel
Slide 21: A unique suite of technical capabilities
A unique suite of technical capabilities Lihir, Telfer, Telfer Gosowong1 Telfer Cadia Red Chris 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 1.
Slide 22: Value breakthrough strategies
Value breakthrough strategies achieved five breakthroughs by end of calendar 2020 Breakthrough Levers Operating Adopting now Evaluating Developing future Next Gen High draw, Cave process Single pass Remote Post caving Caving deep caving control caving production leaching Next Gen Selective Low cost
Slide 23: Breakthrough #1: High draw, deep caving expertise
Breakthrough #1: High draw, deep caving expertise Bubble size represents production rate. Data source: International caving benchmarking study stage 2, University of Queensland (2003). 22
Slide 24: Breakthrough #2: NextGen HydroMet
Breakthrough #2: NextGen HydroMet partial oxidation strategy – delivering results Microcrystalline Crystalline (blocky) pyrite1 – appears pyrite1 – appears less more reactive and reactive and generally has higher generally has lower gold content. Particle gold content. Gold on Detailed pyrite ore an
Slide 25: Breakthrough #3: Selective Processing
Breakthrough #3 Selective Processing1 Coarse Ore Flotation • Coarse Ore Flotation is an aerated fluidized-bed separator that has demonstrated increased recovery of coarse particles compared to conventional flotation • Currently installed on Train 3 (T3) of the Concentrator 1 (C1) flotation circuit a
Slide 26: Breakthrough #4: Undercutless trial completed at Telfer
Breakthrough #4 Undercutless trial completed at Telfer Key objectives of the Undercutless Block Cave Trial were met: Design height functionally verified Connection between the four Undercutless drawbells achieved The Telfer trial was completed successfully and another trial is being conducted at Cad
Slide 27: Breakthrough #5: Safer mining of Lihir's hot ground zones
Breakthrough #5 New technology enabling safer & productive mining of Lihir’s hot ground zones New electronic detonator and bulk explosive products tested to 150°C and high reactivity Development of a full suite of mining robotics solutions to deliver safer & more productive mining in Lihir’s hot gro
Slide 28: Delivering on our profitable growth targets
Delivering on our profitable growth targets Oct 2020 Dec 2020 Feb 2021 Mar 2021 Q1 FY22 Q1 FY22 Q1 FY23 Front end Initial Pit Initial Seepage Block Cave 35mtpa recovery FS inferred optimisation Newcrest barrier FS PFS process resource study resource capacity Feb 2021 Q1 FY22 Q1 FY22 Late 2021 In FY2
Slide 29: Cadia – Low cost, world class asset
Cadia Cadia – Low cost, world class asset Site Process Key Statistics1 1 Element Description Gold Reserve Life: ~24 years Mining Panel Cave mining from Cadia Gold Ore Reserves: 20moz East (Panel Cave 1 and 2), with Gold M&I Mineral Resources: 35moz underground crushing and Gold Inferred Resources: 0
Slide 30: Cadia Expansion Project
1,2 Cadia Expansion Project Stage 1 (in Execution) Stage 2 (approved to Execution phase) • Estimated capital cost - $685m • Estimated capital cost - $175m •PC2-3 mine development • further plant expansion to 35mtpa •materials handling system upgrades • LOM gold and copper recovery •associated infras
Slide 31: Cadia Expansion FS Findings
Cadia Expansion Stage 1 FS Findings1,2 Cadia - uniquely long life Expected results from implementation of Stage 1 and Stage 2 PC2-3 Capital (stage 1): $ 595m IRR: 21.5% Expansion to 33mtpa (stage 1): $ 90m Payback (years): 7.6 Expansion to 35mtpa (stage 2): $ 180m3 NPV: $1,170m Total Project Capital
Slide 32: Estimated Cadia Gold Equivalent production
Estimated Cadia Gold Equivalent production1,2,3 40 1500 35 Gold Equivalent production (koz) 1250 30 Ore Milled (mt) 1000 25 20 750 15 500 10 250 5 0 0 Ore milled Ore milled (actual) Au eq Au eq (actual) 1 Stage 1 of the Cadia Expansion Feasibility Study has been prepared with the objective that its
Slide 33: Cadia's indicative cave production schedule
Cadia’s indicative cave production schedule1,2,3 Start First Panel Cave Ore (mt) Construction production PC2-3 (approved to execution) FY19 FY23 142 PC1-2 FY22 FY25 408 PC3-1 FY33 FY36 149 PC2-4 FY42 FY44 113 PC5001 FY44 FY47 96 PC1-4 FY48 FY50 175 PC2-5 FY51 FY54 35 1 Stage 1 of the Cadia Expansion
Slide 34: Cadia Expansion Project - Indicative mine plan
Cadia Expansion Project - Indicative mine plan1,2,3,4 Total material Timing (Years) Plant Feed (mt) Average Gold grade (g/t) Average Copper grade (%) movement (mt) FY21 - 23 ~95 ~91 0.8 0.4 FY24 - 26 ~99 ~99 0.4 0.3 FY27 - 29 ~102 ~102 0.4 0.3 FY30 - 32 ~102 ~102 0.4 0.3 FY33 - 35 ~102 ~102 0.4 0.3
Slide 35: Cadia Expansion Stage 2 FS Findings
Cadia Expansion Stage 2 FS Findings1,2 Stage 2 of the Expansion Study was approved to execution in October 2020 Key Findings: • Attractive IRR of 21%3 • Payback of 4.2 years3 • Plant and equipment upgrades expected to deliver: o Increased plant capacity from 33mpta to 35mtpa o LOM gold recoveries of
Slide 36: Molybdenum Plant Update
Molybdenum Plant Update Feasibility Study completed: • Design of a molybdenum separation plant expected to generate ~6,500tpa of 52% molybdenum concentrate with a 92% recovery • Shipping and logistics parameters confirmed • On track for commissioning in June 2021 quarter1. FS Key Findings1,2,3 Progr
Slide 37: Block caving fundamentals
Block caving fundamentals Subsidence zone Cadia Panel Cave 1 • ~1,200 metres deep, 114 drawbells Cadia Panel Cave 2 • ~1,400 metres deep, 165 drawbells Caving levels Comparative surface impact Cadia hill open pit Cadia East subsidence zone Waste rock dumps 36
Slide 38: Lihir – Mine optimisation underway
Lihir Lihir – Mine optimisation underway Site Process Key Statistics1 1 Element Description Gold Reserve Life: ~28 years Gold Ore Reserves: 22moz Mining Open pit drill, blast, load and haul mining, currently in Gold M&I Mineral Resources: 43moz Phases 14 & 15 in Lienitz. Gold Inferred Resources: 4.9
Slide 39: Argillic Ore Management
Argillic Ore Management Key Focus Areas: Future Improvements – Autoclave Management Improved blending and operational control Installation of new transfer chutes to drive significant materials handling improvements Chute impact zone & conveyor profile modifications largely complete Trommel s
Slide 40: Lihir Mine Optimisation Study Outcomes
Lihir Mine Optimisation Study Outcomes Current Lihir Mine Plan Sequence Key Findings1: Eastern limits of Ph16 and 17 increased by ~120m, bringing higher grade into the mine sequence earlier Potential for an additional ~1.4Moz2 of contained gold in mill feed across FY22- FY34 Increased volumes
Slide 41: Lihir - Indicative Mine Plan
Lihir - Indicative Mine Plan1,2,3,4,5 Timing Total Material Tonnes to Ex-pit Tonnes Stockpile Plant Feed Feed Grade Sources Waste (Mt) (Years) Moved (Mt)2 Stockpiles (Mt) Fed (Mt) Tonnes Fed (Mt) (Mt)3 Range (g/t) Lienetz, medium/low grade FY22-24* 180 – 210 90 – 110 15 – 25 25 – 35 15 – 25 40 – 50
Slide 42: Potential for significant value uplift at Lihir
Potential for significant value uplift at Lihir1 Lienitz Pit Phase 14A Cutback Opportunity Phase 14A opportunity identified additional ~400-600koz2 of contained gold in FY23-25 Opportunity utilises civil engineering wall support techniques to enable the safe retrieval of otherwise inaccessible M
Slide 43: Lihir Deep Sea Tailings Placement
Lihir Deep Sea Tailings Placement • Rigorous baseline studies prior to approval • DSTP approved as the preferred tailings management option from an environmental and social point of view for Lihir which has limited space for terrestrial tailings storage and is a seismically active region • Governmen
Slide 44: Lihir DSTP Monitoring
Lihir DSTP Monitoring No significant operational, compliance, environmental or social issues related to the operation of the DSTP system since Newcrest’s acquisition of Lihir in 2010. ~20 years of operation & scientific monitoring in accordance with the comprehensive Environmental Management and Mon
Slide 45: Telfer – Strategically positioned in the Paterson Telfer Province
Telfer – Strategically positioned in the Paterson Telfer Province Site Process Key Statistics1 1 Element Description Gold Reserve Life: ~3 years Mining Open pit mining contracted to Gold Ore Reserves: 1.1moz Macmahon Gold M&I Mineral Resources: 3.4moz Gold Inferred Resources2: 2.5moz Underground sub
Slide 46: Telfer – Indicative mine plan
Telfer – Indicative mine plan Mineral Resource & Ore Reserves1 Gold Copper Dry Tonnes Grade Insitu Gold Dry Tonnes Insitu Grade (%) (Million) (g/t) (Moz) (Million) Copper (Mt) Main Dome Open Pit Ore Reserves 11 0.40 0.14 11 0.074 0.0079 (incl. stockpiles) West Dome Open Pit 37 0.69 0.81 37 0.073 0.0
Slide 47: Havieron – Initial Inferred Mineral Resource Estimate
Havieron – Initial Inferred Mineral Resource Estimate Diagram: Havieron Initial Resource Extents and Growth Options Initial Inferred Mineral Resource estimate of 3.4Moz Au and 160Kt Cu1 Mineralisation remains open outside of resource which indicates potential to grow resource Growth targets in
Slide 48: Havieron – Higher grade option for Telfer
Havieron – Higher grade option for Telfer Diagram: High grade mineralisation >400 gram metre intercepts HAD042 124m @ 3.9g/t Au & 0.21% Cu, incl. 17.3m @ 19g/t HAD049 Au & 0.62% Cu. HAD018 96.4m @ 4.5 g/t 82m @ 6.1g/t Au & 0.41% Cu, HAD084 Au and 0.14% Cu incl. incl. 34.8m @ 9.2g/t Au & 342.2m @ 2.0
Slide 49: Havieron – an exploration success story
Havieron – an exploration success story in the Paterson Province, Western Australia Higher grade • Located under 420m of cover, 45km east of Telfer option for Telfer • Drilling has returned the best high grade Au / Cu results within the Paterson Province Initial Inferred • Initial Inferred Mineral R
Slide 50: Red Chris – Potential Tier 1 orebody
Red Chris Red Chris – Potential Tier 1 orebody1 Site Process Key Statistics Element Description FY21 Prod. Guidance2: 45-55koz Au, 25-30kt Cu Mining Open pit mining (currently) H1 FY21 Production3: 24koz Au & 13kt Cu Block cave (potentially)1 H1 FY21 AISC : 3 $2,961/oz Processing Crushing, grinding,
Slide 51: Achievements since acquisition at Red Chris
Achievements since acquisition at Red Chris ERT Building under Improved working conditions for >104,000m drilled in CY20 with Block Cave Concept Study Fleet Management System construction to house Red Chris employees with ~90,000m planned for CY21. complete, and PFS in progress installed and commiss
Slide 52: Significant exploration upside potential
Significant exploration upside potential Cadia 5.5km Big Cadia Little Cadia Cadia Quarry Cadia Hill Ridgeway Cadia East Red Chris 3km Main Zone East Zone OP Au ppm Gully Zone East Zone UG Open Open 51
Slide 53: Red Chris – Higher grade discovered across the porphyry corridor
Red Chris – Higher grade discovered across the porphyry corridor The Red Chris drill results in this slide have been extracted from Newcrest’s releases titled “Quarterly Exploration Report” dated 28 January 2021, 23 July 2020 and 30 April 2020. The exploration releases includes the exploration resul
Slide 54: Red Chris – Drilling confirms higher grade at the East Zone
Red Chris – Drilling confirms higher grade mineralisation at the East Zone Drilling confirms • Drilling has returned some of the best Au / Cu porphyry results within the Golden Triangle the presence of • RC 611: 628m @ 1.7 g/t Au and 0.91% Cu higher grade • Incl 282m @ 3.3g/t Au and 1.7% Cu incl 22m
Slide 55: Increased economic exposure to Fruta del Norte
Increased economic exposure to Fruta del Norte Newcrest has a 32% equity interest in Lundin Gold, the owner of the Fruta del Norte mine Fruta del Norte Financing Facilities acquired for $460 million1 • Gold pre-pay term credit facility with face value of US$150 million: o Repayment through 19 quarte
Slide 56: Wafi-Golpu – Feasibility Study Outcomes
Wafi-Golpu Wafi-Golpu – Feasibility Study Outcomes1 Key Statistics – Golpu2 Gold Ore Reserves: 5.5moz ~18.2% (real) IRR3: Avg. copper grade: 1.27% Gold M&I Mineral Resources: 7.9moz ~$2.6bn (real) NPV: Avg. gold grade: 0.9 g/t Gold Inferred Mineral Resources: 1.4moz ~9.5 years from Avg. annual Payba
Slide 57: Wafi-Golpu – Indicative Production
Wafi-Golpu – Indicative Production1,2,3 1 The figures above reflect 100% of project, Newcrest owns 50% of the project. These figures are estimates from the updated Feasibility Study (as at 19 March 2018) and as such were prepared with the objective of being subject to an accuracy range of ±15%, with
Slide 58: Wafi-Golpu – Indicative Free Cashflow
Wafi-Golpu – Indicative Free Cashflow1,2 Year post grant of SML and 1 2 3 4 5 6 board approval Undiscounted FCF (100% basis) $(133)m $(374)m $(465)m $(1,003)m $(766)m $(82)m 1 The figures above reflect 100% of project, Newcrest owns 50% of the project. These figures are estimates from the updated Fe
Slide 59: DSTP - The Preferred Tailings Option
DSTP - The Preferred Tailings Option Pipe location Huon Gulf Steep sub-sea slopes Deep Canyon Sediment movement towards a 9km deep trench Extensive scientific studies completed Western Huon Gulf is a highly suitable environment for DSTP Environmentally and socially, deep sea tailings placement
Slide 60: What is a Tier 1 Deposit?
What is a Tier 1 Deposit? “We aspire to a portfolio within 10 years of 5 x Tier 1 assets, 2 - 4 x Tier 2 assets and a strong pre-production pipeline …”1 Definitions of Tier 1 and Tier 2 assets below used to guide portfolio optimisation decisions: Tier 1 Tier 2 Scale Potential for > 300 kozpa Au Pote
Slide 61: Current Exploration Footprint
Current Exploration Footprint Canada • Red Chris (70% JV) • GJ Project 100% North America • Jarbidge/Jack Creek (O) Mexico • Azucar Minerals (EI) Ecuador • Lundin Gold (EI) • Lundin Gold (JV) • SolGold (EI) • Cana Brava project (O & FI) • Porphyry targets (100%) Key: • FI = Farm-in • JV = Joint Vent
Slide 62: Strong record of free cash flow generation
Strong record of free cash flow generation Billion $3.5 Billion $3.5 1. Cash investment in M&A activity in FY20 comprises the payment for the acquisition of Red Chris (70% ownership) of $769 million, the acquisition of Fruta del Norte finance facilities of $460 million, further investments in Lundin
Slide 63: Debt level and structure is ideal for growth phase
Debt level and structure is ideal for growth phase Decline in net debt ($m) Maturity profile as at 31 December 20201,2 3,707 ($m) Corporate Bonds 900 2,889 2,107 600 1,499 1,040 300 3 624 395 330 - Jun-2014 Jun-2015 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Dec-2020 FY21 FY22 FY23 FY24 FY25 FY26
Slide 64: Financial Policy Metrics
Comfortably within our financial targets Element Target 31 December 2020 Financial Policy Metrics Leverage ratio Less than 2.0x 0.1x (Net Debt / EBITDA) (for trailing 12 months) Gearing Ratio Less than 25% 3.3% Credit rating Aim to maintain investment grade Investment grade Cash and committed undraw
Slide 65: Newcrest's long-term metal price assumptions
Newcrest’s long-term metal price assumptions used for Reserves and Resources estimates1 Long Term Metal Price Newcrest Assumptions (excluding Telfer) Telfer2 Mineral Resources Estimates Gold Price US$1,400/oz US$1,400/oz Copper Price US$3.40/lb3 US$3.40/lb3 Silver Price US$21.00/oz US$21.00/oz Molyb
Slide 66: Mineral Resources and Ore Reserves – Gold Measured and Indicated
Newcrest’s Mineral Resources and Ore Reserves 31 December 2020 Gold Measured and Indicated Mineral Resources* Dec-20 Measured Dec-19 Measured and Dec-20 Mineral Resources Measured Resource Indicated Resource and Indicated Indicated Resource Resource Insitu Insitu Insitu Insitu Gold Measured and Dry
Slide 67: Mineral Resources and Ore Reserves – Gold Inferred
Newcrest’s Mineral Resources and Ore Reserves 31 December 2020 Gold Inferred Mineral Resources* Dec-19 Inferred Dec-20 Mineral Resources Dec-20 Inferred Resource Resource Gold Inferred Mineral Dry Gold Insitu Gold Dry Gold Insitu Gold Resources Tonnes Grade (million Tonnes Grade (million (million) (
Slide 68: Mineral Resources and Ore Reserves – Copper Measured and Indicated
Newcrest’s Mineral Resources and Ore Reserves 31 December 2020 Copper Measured and Indicated Mineral Resources* Dec-20 Measured Dec-19 Measured and Dec-20 Mineral Resources Measured Resource Indicated Resource and Indicated Indicated Resource Resource Copper Measured and Insitu Insitu Insitu Insitu
Slide 69: Mineral Resources and Ore Reserves – Copper Inferred
Newcrest’s Mineral Resources and Ore Reserves 31 December 2020 Copper Inferred Mineral Resources* Dec-19 Inferred Dec-20 Mineral Resources Dec-20 Inferred Resource Resource Insitu Insitu Dry Copper Dry Copper Copper Inferred Mineral Copper Copper Tonnes Grade Tonnes Grade Resources (million (million
Slide 70: Mineral Resources and Ore Reserves – Gold Ore Reserves
Newcrest’s Mineral Resources and Ore Reserves 31 December 2020 Gold Ore Reserves* Dec-19 Total Dec-20 Ore Reserves Proved Reserve Probable Reserve Dec-20 Total Reserve Reserve Insitu Insitu Insitu Insitu Dry Gold Dry Gold Dry Gold Dry Gold Gold Gold Gold Gold Gold Ore Reserves Tonnes Grade Tonnes Gr
Slide 71: Mineral Resources and Ore Reserves – Copper Ore Reserves
Newcrest’s Mineral Resources and Ore Reserves 31 December 2020 Copper Ore Reserves* Dec-20 Ore Reserves Proved Reserve Probable Reserve Dec-20 Total Reserve Dec-19 Total Reserve Insitu Insitu Insitu Insitu Dry Copper Dry Copper Dry Copper Dry Copper Copper Copper Copper Copper Copper Ore Reserves To
Slide 72: Mineral Resources and Ore Reserves – Molybdenum Measured and Indicated
Newcrest’s Mineral Resources and Ore Reserves 31 December 2020 Molybdenum Measured and Indicated Mineral Resources* Dec-20 Measured and Dec-19 Measured and Dec-20 Mineral Resources Measured Resource Indicated Resource Indicated Resource Indicated Resource Molybdenum Measured and Indicated Insitu Ins
Slide 73: Supply & Demand Data
Supply & Demand Data Gold demand & supply (tonnes)1 China and India make up >52% of Demand 2019 2020 jewellery demand. Demand for jewellery is down on recent prior Jewellery 2,122.7 48% 1,411.6 38% periods, attributed to COVID-19 Technology 326.0 7% 301.9 8% and associated lockdowns Electronics 262.
Slide 74: Volatility of Gold Versus Other Metals
Volatility of Gold Versus Other Metals Gold price 2012 to 2020 (US$/oz)1 High price as % low prices since January 20122 2,200 500% 400% 2,000 300% 1,800 3 year trading range 200% $1,174 - $2,064/oz 1,600 100% 1,400 0% Gold Lead Copper Thermal Nickel Iron Ore Oil Coal 1,200 -100% -200% 1,000 Dec Dec
Slide 75: Operating Costs
Operating Costs Newcrest is a US dollar reporting entity. Its operating costs will vary in accordance with the movements in its operating currencies where those costs are not denominated in US dollars. The table below shows indicative currency exposures on operating costs for H1 FY21 by site: USD AU
Slide 76: Foreign Exchange Sensitivities and Oil Hedges
Foreign Exchange Sensitivities1 and Oil Hedges Approximate Half Year Site Parameter Movement EBIT Impact (US$m) Cadia AUD/USD +0.01 AUD (0.72 → 0.73) (4) Telfer AUD/USD +0.01 AUD (0.72 → 0.73) (2) Lihir USD/PGK -0.1 PGK (3.50 → 3.40) (4) Red Chris USD/CAD -0.01 CAD (1.30 → 1.29) (1) Group AUD/USD +0
Slide 77: Results Summary – 1H FY21
Results Summary – 1H FY211 Red Fruta del Corp / Cadia Lihir Telfer Havieron Group Chris1 Norte1,2 Other Gold Production (koz) 391 378 185 24 61 - - 1,039 Copper Production (kt) 52 - 5 13 - - - 69 AISC ($m) 21 516 290 72 39 - 54 992 Capital expenditure ($m): - Production Stripping2 - 57 - 19 - - - 76
Slide 78: FY21 Guidance
FY21 Guidance1,2 Red Fruta del Corp / Cadia Lihir Telfer Havieron Group Chris2 Norte2,3 Other4 Gold production (koz) 680 – 760 720 – 820 360 – 420 45 – 55 95 – 110 - - 1,950 – 2,150 Copper production (kt) 95 – 105 - 10 – 20 25 – 30 - - - 135 – 155 AISC ($m)5 50 – 130 940 – 990 510 – 570 80 – 115 81
Slide 79: NEWCREST MINING LIMITED
NEWCREST MINING LIMITED Board Forward Shareholder Enquiries to: Peter Hay Non-Executive Chairman Australia: Sandeep Biswas Managing Director and CEO Link Market Services Gerard Bond Finance Director and CFO Tower 4, 727 Collins Street Philip Aiken AM Non-Executive Director Melbourne, Victoria, 3000
Slide 80: Appendix - Mineral Resource Endnotes
Appendix - Mineral Resource Endnotes 1. Cadia East Underground Mineral Resource-JORC Competent Person: Luke Barbetti. Underground block cave operation, Cadia, NSW, Australia. For key assumptions, parameters and methods used to estimate the Mineral Resource refer to Cadia Operations, New South Wales,
Slide 81: Appendix - Ore Reserve Endnotes
Appendix - Ore Reserve Endnotes 21. Cadia East Underground Ore Reserve-JORC Competent Person: Ian Austen. Underground block cave operation, Cadia, NSW, Australia. For key assumptions, parameters and methods used to estimate the Ore Reserves refer to Cadia Operations, New South Wales, Australia, NI 4