Newcrest Mining — H1 FY22 Earnings Presentation
93 slides from Newcrest Mining's earnings presentation, February 2022
Slide 1: Newcrest Briefing Book
Newcrest Briefing Book February 2022 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 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
Disclaimer Technical and scientific information The technical and scientific information contained in this document relating to Pretivm was reviewed by Ms Jillian Terry, Head of Resource Management, FAusIMM, a Qualified Person as defined in NI 43-101 and confirmed to be a true and accurate represent
Slide 5: Our Aspirations
Forging an even stronger Newcrest Our aspirations by the end of 2025 Our Purpose Creating a brighter future Our Vision To be the Miner of Choice: Our Edge Collaboration, innovation for people through safe and • Valued by our people and communities and an owner’s mindset responsible mining • Respecte
Slide 6: Safety update
Safety update TRIFR1 profile Critical Control Management Verifications 3.5 3.3 2 2.6 378 2.4 2.3 2.3 FY22 YTD 188k3 FY22 YTD Integrated FY17 FY18 FY19 FY20 FY21 HY22 with existing systems Safety Transformation • Newcrest is more than six years fatality free Process Safety • Increase in injury rates
Slide 7: Sustainability: Aspiring to be an industry leader
Sustainability: Aspiring to be an industry leader Water Health & Safety Stewardship More than six years Implementation of site fatality free water efficiency plans Transparent and Biodiversity Ethical Business Implementation of site High-quality Biodiversity Action governance, Plans and no net loss
Slide 8: Sustainability: Aspiring to be an industry leader
Sustainability: Aspiring to be an industry leader Cultural Heritage Diversity & Inclusion Policies in place to help An inclusive and protect & preserve diverse workforce cultural heritage Supply Chain Modern Slavery Undertake due diligence Second Modern of critical and high-risk Slavery Statement su
Slide 9: Climate Change: Targets, Shadow Carbon Price & TCFD
Climate Change: Targets, Shadow Carbon Price & TCFD Climate Change Policy, 2030 emissions target & goal of net zero emissions • Goal of net zero carbon emissions by 20501 • Target of 30% reduction in greenhouse gas emissions intensity by 2030 2 • In December 2020, Newcrest entered into a renewable e
Slide 10: Goal of net zero carbon emissions by 2050
Goal of net zero carbon emissions by 20501 Stepping up sustainability commitments: • Multiple near term GHG reduction opportunities being progressed • Newcrest will pursue innovative solutions and adopt new technology in the long term • Continued progress against TCFD2 recommendations, completing Tr
Slide 11: Sustainability: Key affiliations and reporting
Sustainability: Key affiliations and reporting International Council on Mining & Metals: Member • Independently assured annually against the 10 Principles and Positions Statements, including GRI • Alignment to Global Industry Standard on Tailings Management (5 August 2020) Minerals Council of Austra
Slide 12: Progress reflected in improved ESG scores
Progress reflected in improved ESG scores1 S&P Global (DJSI) Sustainalytics 86%* 28.2* Continued improvement, 2020 (82%) Decrease in risk profile Retained in the Dow Jones Sustainability Index Retained in ‘Medium risk’ Asia Pacific *percentile ranking in Australia Metals & Mining Index *ESG risk sco
Slide 13: Newcrest is a unique investment in the gold industry
Newcrest is a unique investment in the gold industry Cu Low-cost Outstanding Material Long reserve Strong Financially production organic growth copper life exploration & robust portfolio exposure technical capabilities 12
Slide 14: Capital allocation framework
Capital allocation framework1 Newcrest’s Capital Allocation Framework Cash flow from operations Newcrest’s financial objectives are to: • Meet all financial obligations • Maintain a strong balance Sustaining Growth Exploration Maintain a Minimum sheet to withstand cash capital / investment strong ba
Slide 15: Delivering dividends to shareholders
Delivering dividends 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 metrics and its balance
Slide 16: An aligned executive remuneration structure
An aligned executive remuneration structure Short Term Incentive Criteria1 Long Term Incentive Criteria Safe & Sustainable Safety 20% Best People Sustainability 10% Outstanding Operators Earnings (NPAT) 25% Innovation & Creativity Costs (AISC $/oz) 20% Grow Profitably Free Cash Flow 25% 15 1. Each o
Slide 17: An experienced management team
An experienced management team Sandeep Biswas Kim Kerr1 Craig Jones2 Philip Stephenson2 Managing Director and Acting Chief Financial Chief Operating Officer Chief Operating Officer Chief Executive Officer Officer (Americas) (Australasia) Lisa Ali3 Maria Sanz Perez Seil Song Suresh Vadnagra2 Chief Pe
Slide 18: Newcrest operating assets and advanced projects
Newcrest operating assets and advanced projects Red Chris (70%) Location: British Columbia, Canada Product: Gold, Copper Brucejack (100%)1 Location: British Columbia, Canada Product: Gold, Silver Lihir (100%) Location: New Ireland Province, PNG Product: Gold Wafi-Golpu (50%) Fruta del Norte (32%)2 L
Slide 19: Newcrest operating assets and advanced projects
Newcrest operating assets and advanced projects1,2 Cadia Province (100%) Lihir Province (100%) FY21 Production 765koz Au, 106kt Cu FY21 Production 737koz Au FY21 AISC -$109/oz FY21 AISC $1,391/oz Probable Ore Reserves 19Moz Au, 3.9Mt Cu Proved and Probable Ore Reserves 22Moz Au M&I Mineral Resources
Slide 20: Projecting substantial reduction in AISC
Projecting substantial reduction in AISC & strong cash flow generation1,2 Newcrest’s Indicative Base Case AISC/oz Profile • Projected reduction in Newcrest’s $1,200 AISC/oz by >50% from current levels $1,000 • FY30 AISC/oz expected to progressively decline over the $800 next 9 years to <$500/oz AISC
Slide 21: Indicative base case gold production profile to 2030
Indicative base case gold production profile to 20301,2,3,4,5,6 Indicative Base Case Gold Production Profile • Strong base case gold production of 3,000 more than 2Mozpa, assuming Newcrest expects extensional, near mine and regional exploration along with mine to mill optimisation will deliver execu
Slide 22: Indicative base case copper production profile to 2030
Indicative base case copper production profile to 20301,2,3,4 Indicative Base Case Copper Production Profile • Projected +37% growth in copper 200 production which is expected to reach >175ktpa in FY30 180 160 • Indicative base case copper production from assets exclusively in Copper Production (kt)
Slide 23: Estimated PFS capex including Cadia expansion
Estimated PFS capex including Cadia expansion1,2,3,4,5,6,7,8,9,10,11 Estimated PFS Capital Expenditure 800 • Projected total operating cash flow over the period FY22-30 expected 700 to exceed projected total investing 600 cash flows (including the Major Project capital expenditures Project capex pro
Slide 24: Newcrest retains long reserve life advantage
Newcrest retains long reserve life advantage Gold peers by Reserve Life and AISC Margin1,2,3 600 AISC Margin Less Net Finance Cost (US$/oz Au) Pro Forma Agnico Eagle 500 Pro Forma Evolution 400 Barrick Newmont Pro Forma Newcrest Pro Forma Northern Star 300 200 5 10 15 20 25 30 Indicative Gold Reserv
Slide 25: Advancing global organic growth portfolio with attractive economics
Advancing Newcrest’s global organic growth portfolio with attractive economics1,2,3,4 Cadia PC1-2 Red Chris BC Havieron (Stage 1) Lihir Phase 14A Australia Canada Australia Papua New Guinea Helps sustain its position as one of Confirms Red Chris potential to Stage 1 expected to deliver solid Support
Slide 26: Lihir and Cadia are in a class of their own
Lihir and Cadia are in a class of their own 1,2,3,4,5,6,7 Gold Resource & Reserve base of global majors’ operating assets (Moz) 50 Solid bars = Ore Reserve Transparent bars = Measured & Indicated Mineral Resource 40 30 20 10 0 1. Based on producing assets held by Newcrest, Newmont and Barrick with a
Slide 27: Substantial and growing copper exposure
Substantial and growing copper exposure Copper Resource & Reserve Base of Newcrest’s Provinces1,2,3,4 4,000 Dry Tonnes (million) 3,000 2,000 Cadia Namosi 1,000 Wafi-Golpu Red Chris Telfer 0 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 Area of bubble represents proportionate size of insitu copper (million tonnes)
Slide 28: A unique suite of technical capabilities
A unique suite of technical capabilities Lihir, Telfer, Telfer Telfer Cadia Red Chris Open Pit Selective Reef Underground Bulk Sublevel Caving Block/Panel Underground Caving Large scale comminution Pressure oxidation Processing Copper-gold flotation Cyanide & carbon in leach 27
Slide 29: Innovation keys to unlock mineral inventories
Innovation keys to unlock mineral inventories Breakthrough Levers Adopt Adapt Develop Shape C Cadia G L Lihir C R L R T G C R C R T L R Red Chris Next Gen High lift, Selective, Low cost cave High lift Flooded pit T Telfer Mining deep caving steep pits establishment selective UG mining 9 8 6 6 4 G Wa
Slide 30: Breakthrough #1: High draw, deep caving
Breakthrough #1: High draw, deep caving Utilising our caving expertise to extend our current assets and deliver our growing portfolio Key Milestones • Aug-21: Cadia PC1-2 PFS History of Adoption • Q3 CY21 Red Chris Block Cave PFS • FY23: PC2-3 first production Bubble size represents production rate.
Slide 31: Breakthrough #2: NextGen HydroMet
Breakthrough #2: NextGen HydroMet Partial oxidation strategy – delivering results Microcrystalline pyrite1 – appears more reactive and generally has higher gold content. Particle oxidises more rapidly in the autoclave, Selective liberating gold relatively quickly oxidation Crystalline (blocky) pyrit
Slide 32: Breakthrough #3: Selective Processing
Breakthrough #3: Selective Processing1 Coarse Ore Flotation – delivering higher recovery with less energy output Coarse Ore Flotation is an aerated fluidized-bed separator that has demonstrated increased recovery of coarse Coarse particles compared to conventional flotation. Flotation In addition to
Slide 33: Breakthrough #4: Single Pass Cave Establishment
Breakthrough #4: Single Pass Cave Establishment Single Pass Cave Establishment (Undercutless) trial completed at Telfer Key objectives of the Single Pass Cave Establishment (SPCE) Block Cave Trial were met: High lift, deep caving Design height functionally verified Connection between the four Underc
Slide 34: Breakthrough #5: Mining Robotics & Hi-Temp Explosives
Breakthrough #5: Mining Robotics & Hi-Temp Explosives New hot mining 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 Hot Mining Development of a full suite of mining robotics solutions
Slide 35: Delivering on our profitable growth targets
Delivering on our profitable growth targets1,2 Dec 2020 Feb 2021 Mar 2021 Aug 2021 Oct 2021 Oct 2021 Havieron Lihir Red Chris Telfer Lihir Havieron Initial Pit Initial WDS5 Ph14A PFS PFS inferred optimisation Newcrest cutback released released resource study resource approved Jan 2021 Feb 2021 Jun 2
Slide 36: Delivering on our profitable growth targets
Delivering on our profitable growth targets1,2 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 production
Slide 37: Cadia: Low cost, world class asset
Cadia: Low cost, world class asset Site Process Key Statistics1 Cadia Element Description Gold Reserve Life: ~25 years1 Gold Ore Reserves: 19Moz Mining Panel Cave mining from Cadia East Gold M&I Mineral Resources: 33Moz (Panel Cave 1 and 2), with Gold Inferred Resources: 4.6Moz underground crushing
Slide 38: Cadia: Expansion Project
Cadia: Expansion Project1,2 Stage 1 (in Execution) Stage 2 (in Execution) • Estimated capital cost: $685m • Estimated capital cost: $175m o PC2-3 mine development o Approval received to increase o Materials handling system upgrades permitted processing capacity to o Associated infrastructure 35Mtpa3
Slide 39: Cadia: PC1-2 Pre-Feasibility Study Findings
Cadia: PC1-2 Pre-Feasibility Study Findings1,2,3,4 PC1-2 Extraction Level Design In August 2021, the Board approved the Cadia PC1-2 PFS to the Feasibility Stage, enabling the commencement of the Early Works PC1-2 PFS: Key Findings • Real, after-tax Internal Rate of Return of 22% • Net Present Value
Slide 40: Cadia: PC1-2 Pre-Feasibility Study Findings
Cadia: PC1-2 Pre-Feasibility Study Findings1,2,3 Estimated PC1-2 Project Capital Expenditure PC1-2 Expected Rates4 Recovery Grade Stage 1: Early Works Program & FS completion $0.1bn Gold ~84% 0.50g/t Stage 2: Main Works Program $0.8bn Copper ~91% 0.28% Total Project Capital $0.9bn Gold Life of Mine
Slide 41: Cadia: Indicative cave production schedule
Cadia: Indicative cave production schedule1,2,3,4 Start First Panel Cave Ore (mt) Construction production PC2-3 In Progress FY23 128 PC1-2 FY22 FY26 258 PC1-3 FY31 FY32 137 PC3-1 FY34 FY37 168 PC2-4 FY37 FY39 115 PC1-4 FY43 FY45 156 PC2-5 FY46 FY47 22 PC5001. FY48 FY50 80 1. The Cadia PC1-2 Pre-Feas
Slide 42: Cadia: Indicative mine plan
Cadia: Indicative mine plan1,2,3,4,5 Total material Average Average Timing (Years) Plant Feed (mt) movement (mt) Gold grade (g/t) Copper grade (%) FY22 – 24 ~101 ~99 0.7 0.4 FY25 – 27 ~105 ~105 0.4 0.3 FY28 – 30 ~107 ~107 0.5 0.4 FY31 – 33 ~107 ~107 0.5 0.3 FY34 – 36 ~107 ~107 0.5 0.3 FY37 – 39 ~107
Slide 43: Cadia: Molybdenum plant update
Cadia: Molybdenum plant update Feasibility Study completed • Molybdenum separation plant expected to generate a LOM average of ~4.1Mlb of Molybdenum per annum at concentrate grade of 52% with a 90% recovery1 • Shipping and logistics parameters confirmed • Plant in commissioning stage FS Key Findings
Slide 44: Cadia: Block Caving Fundamentals
Cadia: 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 East subsidence zone Cadia hill open pit and waste rock dumps 43
Slide 45: Lihir: 1Moz+ per annum aspiration
Lihir: 1Moz+ per annum aspiration Lihir Site Process Key Statistics1 Element Description Gold Reserve Life: ~30 years1 Mining Open pit drill, blast, load and haul Gold Ore Reserves: 22Moz mining, currently in Phases 14,15 & Gold M&I Mineral Resources: 42Moz 16 in Lienitz. Substantial stockpiles Gold
Slide 46: Lihir: Phase 14A PFS demonstrates strong financial returns
Lihir: Phase 14A PFS demonstrates strong financial returns & risk mitigation Lienitz Pit – Phase 14A Cutback Opportunity Key Study Outcomes1,2,3,4,5 IRR at Study Assumptions 37% IRR at $1,750/oz 47% Payback6 2.6 years NPV7 at Study Assumptions $284m NPV7 at $1,750/oz $365m LOM8 5 years Project capit
Slide 47: Lihir: Phase 14A accelerates aspiration of +1Mozpa from FY24
Lihir: Phase 14A accelerates aspiration of +1Mozpa from FY241,2,3,4 • Accelerates Newcrest’s aspiration for Lihir to be a 1Moz+ producer for 10 years from FY24 • Increases Lihir’s Ore Reserves by 1Moz5 • Additional 400koz expected to be produced in first 5 years • Accelerates the potential for Lihir
Slide 48: Lihir: Phase 14A PFS Findings
Lihir: Phase 14A PFS Findings Lihir Life of Mine Indicative Production Profile1,2 1,500 Gold Produced (koz) 1,000 500 - FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39 FY40 FY41 Base Case Base Case + Phase 14A Offsets low grade stockpile ore with higher grad
Slide 49: Lihir: Leveraging Newcrest's innovation engine
Lihir: Leveraging Newcrest’s innovation engine1 Phase 14A design showing current design slopes versus • Leverages Newcrest’s principles of adapting conventional mining slopes existing technology to unique mining solutions • Utilises standard civil construction techniques • Standard multi strand soil
Slide 50: Lihir: Indicative mine plan
Lihir: Indicative mine plan1,2,3,4 Tonnes to Stockpile Timing Total Material Ex-pit Tonnes Plant Feed Feed Grade Sources Waste (Mt) Stockpiles Tonnes Fed (Years) Moved (Mt)5 Fed (Mt) (Mt)6 Range (g/t) (Mt) (Mt) Lienetz, medium/low grade FY22-24 200 - 220 100 - 120 15 - 25 25 – 35 10 - 20 40 - 50 2.4
Slide 51: 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 • Governme
Slide 52: Lihir: DSTP Monitoring
Lihir: DSTP Monitoring Water quality monitoring locations • 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 compre
Slide 53: Telfer: Strategically positioned in the Paterson
Telfer: Strategically positioned in the Paterson Site Process Key Statistics1 Telfer Element Description Gold Reserve Life: ~4 years1 Gold Ore Reserves2: 1.5Moz Mining Open pit mining contracted to Gold M&I Mineral Resources2: 4.1Moz Macmahon Gold Inferred Resources2: 1.7Moz Underground sub-level ca
Slide 54: Telfer: Indicative mine plan
Telfer: Indicative mine plan Telfer: Proposed Indicative Development1,2 Timing Total material moved Ore Mined Total waste movement Gold grade Copper grade Area (years) (Mt) (Mt) (Mt) (g/t) % Open pit FY22-23 60-70 30-40 ~20 ~0.7 ~0.07 Underground FY22-23 4-5 4-5 n/a ~1.2 ~0.3 FY24+ Remaining Ore Res
Slide 55: Havieron: Stage 1 PFS delivers solid returns & base for future growth
Havieron: Stage 1 PFS delivers solid returns & base for future growth1,2 • Capital efficient, low intensity development utilising Havieron Stage 1 existing Telfer processing infrastructure • Estimated average gold production of 160kozpa @ AISC of US$743/oz over initial 9 year mine life from a 2Mtpa
Slide 56: Havieron: Stage 1 PFS delivers solid returns & base for future growth
Havieron: Stage 1 PFS delivers solid returns & base for future growth Havieron Stage 1 Key Study Outcomes (100% terms)1,2,3,4,10 IRR at Study Assumptions 16% IRR at $1,750/oz 26% Payback5 4 years NPV6 at Study Assumptions $228m NPV6 at $1,750/oz $499m LOM 9 years Project capital7,8 $397m Gold produc
Slide 57: Havieron: Leverage Telfer's existing infrastructure
Havieron: Leverage Telfer’s existing infrastructure1 • The Havieron Project is located Havieron Project Location 45km east of Telfer in the Paterson Province • Project leverages benefit of existing infrastructure and processing capacity at Telfer which currently operates two processing trains with a
Slide 58: Havieron: Potential for further upside
Havieron: Potential for further upside1 PFS based on the currently defined Indicated Mineral Resource located in the upper sections of the South East Crescent and includes drilling completed to February 2021 Figure 1: Section view looking north of Crescent Zone mineralisation and the Figure 2: 3D vi
Slide 59: Havieron: Targeting growth
Havieron: Targeting growth Extensive growth drilling program targeting resource growth across key target areas Geology Plan View of the Havieron Deposit1 SE Crescent Deeps – Higher grade at depth1 Figure: 3D Plan view schematic showing the spatial association of the South East Crescent, Figure: 3D s
Slide 60: Telfer: Opportunities to further extend mine life
Telfer: Opportunities to further extend mine life1,2 Current Open Pit Cutbacks at Telfer • WDS5 cutback approved in Aug-21 and will support continuity of Telfer operations into FY24 • Potential for other ore sources at or near Telfer to supplement the Havieron ore feed in FY24 and beyond • Further O
Slide 61: Red Chris: Potential Tier 1 orebody
Red Chris: Potential Tier 1 orebody1 Site Process Key Statistics2 Element Description Gold Ore Reserves2: 5.6Moz Red Chris Gold M&I Mineral Resources2: 8.9Moz Mining Open pit mining (currently) Gold Inferred Resources2: 1.3Moz Block cave (potentially)1 Copper Ore Reserves2: 1.5Mt Copper M&I Mineral
Slide 62: Red Chris: Achievements in 2021
Red Chris: Achievements in 2021 Red Chris have completed the following key activities in calendar year 2021: Every Child Matters/Orange 793 higher capacity, lighter +200,000m Exploration MineStar/Dispatch system Cyclone sand construction ribbon campaigns with truck boxes drilled under NCM implementa
Slide 63: Red Chris: Block Cave PFS confirms Tier 1 potential
Red Chris: Block Cave PFS confirms Tier 1 potential1 • PFS confirms potential for Red Chris to Red Chris – Block Cave Development become a world class, long life mine • Study builds on Newcrest’s experience and success with block cave developments in Australia • Substantial low-cost gold and copper
Slide 64: Red Chris: Block Cave PFS confirms Tier 1 potential
Red Chris: Block Cave PFS confirms Tier 1 potential Red Chris – Block Cave Development Key Study Outcomes (100% terms)1,2,3,4,9 IRR at Study Assumptions 17% IRR at $1,750/oz and $4.15/lb 22% Payback5 ~3 years NPV6 at Study Assumptions $1,826m NPV6 at $1,750/oz and $4.15/lb $2,876m LOM 31 years Proje
Slide 65: Red Chris: Block Cave PFS – surface & underground infrastructure
Red Chris: Block Cave PFS – surface & underground infrastructure1 • Underground mine will consist of MB1, MB2 & Key Infrastructure MB3, mined sequentially with a block cave strategy • Block cave mining selected due to its low operating cost, productivity and suitability to the geometry and condition
Slide 66: Red Chris: Potential for further upside
Red Chris: Potential for further upside1 • East Ridge is a significant new discovery at the Schematic Long Section of Red Chris2 Red Chris deposit. • Drilling continues to expand the higher grade mineralisation intersected at East Ridge, which remains open to the east and at depth. • East Ridge is l
Slide 67: Red Chris: Block Cave PFS confirms Tier 1 potential
Red Chris: Block Cave PFS confirms Tier 1 potential1,2 Indicative gold and copper production profile Indicative mill feed & grade profile Indicative Mine Production Profile Total Material Average Gold Grade Average Copper Year Ore Source Plant Feed (Mt) Movement (Mt) (g/t) Grade (%) FY22 – 26 Open P
Slide 68: Economic exposure to Fruta del Norte
Economic exposure to Fruta del Norte Newcrest has a 32% equity interest in Lundin Gold (the owner of the Fruta del Norte mine) and is also the lender under the Fruta del Norte Financing Facilities described below Fruta del Norte Financing Facilities acquired for $460 million1 • Gold pre-pay term cre
Slide 69: Wafi-Golpu: Feasibility Study Outcomes
Wafi-Golpu Wafi-Golpu: Feasibility Study Outcomes1 Key Statistics2 Cu Au Key Study Outcomes2 Ore Reserves 2.5Mt 5.5Moz IRR3 (real) ~18.2% M&I Mineral Resources 3.7Mt 11Moz Payback (from commencement of earthworks for declines) ~9.5 years NPV (real) ~$2.6bn Inferred Mineral Resources 0.62Mt 2.7Moz LO
Slide 70: Wafi-Golpu: Schematic and Section
Wafi-Golpu: Schematic and Section1 Wafi-Golpu: Schematic Section Section Showing Golput Intrusive Complex 69 1. See Wafi-Golpu Project NI 43-101 for further details.
Slide 71: Wafi-Golpu: Indicative Production
Wafi-Golpu: Indicative Production1,2 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 t
Slide 72: Wafi-Golpu: Indicative Free Cash Flow
Wafi-Golpu: Indicative Free Cash Flow1,2 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 F
Slide 73: 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 74: Overview of Brucejack
Overview of Brucejack Transaction completion expected in the March 2022 quarter1 • Pretivm is a Canadian incorporated company headquartered in • ~950km north-west of Vancouver Vancouver, listed on the TSX and NYSE Location • ~140km south-west of the Red Chris mine • Brucejack is a large scale, long
Slide 75: Newcrest operates in BC and has strong existing relationships
Newcrest operates in BC and has strong existing relationships BRITISH COLUMBIA • Newcrest will immediately be the largest gold producer1,2,3,4 Red Chris within the prolific Golden Triangle region of British Columbia GJ Project(5) • Strengthens position in region with further district-scale potential
Slide 76: 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 77: Newcrest Anchor Districts
Newcrest Anchor Districts Value generated through looking deeper & opening up new search space in targeted global gold belts Paterson New under cover discoveries - Transform Telfer to Paterson processing hub Havieron (JV&FI), Juri (JV&FI), Wilki (FI), Antipa (EI) Red Chris JV (70%) Brucejack (100%)2
Slide 78: Anchor District: Paterson Province
Anchor District: Paterson Province Success in deep exploration under cover leading to potential growth opportunities for Telfer Telfer Australia Havieron JV (Greatland Gold): New under cover higher 1 grade discovery – 45km east of Telfer Winu Havieron Pre-Feasibility Study underpins an initial Ore 2
Slide 79: Anchor District: British Columbia
Anchor District: British Columbia Higher grade epithermal and porphyry opportunities within British Columbia Red Chris: Newcrest acquires 70% of a potential Tier 1 1 orebody on 15 August 2019 Newcrest announces its initial Probable Ore Reserve GJ Red Chris JV Shaft 2 estimate of 8.1Moz Au and 2.2Mt
Slide 80: Anchor District: Ecuador
Anchor District: Ecuador Higher grade epithermal & porphyry opportunities throughout Ecuador 32% interest in Lundin Gold: Exposure to the Tier 1 1 Fruta del Norte mine Direct exposure to Fruta del Norte through acquired 2 finance facilities - ~US$160 million in net pre-tax cashflows received since a
Slide 81: Innovative Predictive Targeting
Innovative Predictive Targeting Exploring historical data for the next discovery Compilation, validation & integration of Australia-wide 1 public geochemistry to identify and rank prospective signatures +12 million surface samples: cleaned and integrated 2 with continental scale geophysical layers O
Slide 82: Balance sheet well positioned to fund growth
Balance sheet well positioned to fund growth Net debt position as at 31 December 2021 (US$m) Corporate Bonds maturity profile (US$m)1 3,707 900 Next repayment not due until May 2030 ($m) 2,889 600 2,107 Acquired Red Chris & FdN finance facilities for total of 1,499 $1.2bn in FY20 1,040 300 624 395 4
Slide 83: Comfortably within Newcrest's financial targets
Comfortably within Newcrest’s financial targets1 Element Target 31 Dec 2021 Financial Policy Metrics Leverage ratio Less than 2.0 times 0.2x (Net Debt / EBITDA) (for trailing 12 months) Gearing Ratio Less than 25% 4.5% Credit rating Aim to maintain investment grade Investment grade $3.23bn Coverage
Slide 84: Mineral Resources & Ore Reserve
Mineral Resources & Ore Reserve Long Term Price Assumptions1 Newcrest Long Term Metal Price Assumptions Telfer2 (excluding Telfer) 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 Molybdenum Price US$10.00/lb4 Or
Slide 85: Newcrest: Ore Reserves
Newcrest: Ore Reserves Summary as at 31 December 20211,2 Gold Copper Proved Ore Reserves Probable Ore Reserves Proved Ore Reserves Probable Ore Reserves Ore Reserves As at 31 December 2021 Dry Dry Dry Dry Tonnes Au Grade Insitu Au Tonnes Au Grade Insitu Au Tonnes Cu Grade Insitu Cu Tonnes Cu Grade I
Slide 86: Newcrest: Measured & Indicated Mineral Resources
Newcrest: Measured & Indicated Mineral Resources Summary as at 31 December 20211,2,3 Gold Copper Measured & Indicated Mineral Measured Mineral Resources Indicated Mineral Resources Measured Mineral Resources Indicated Mineral Resources Resources As at 31 December 2021 Dry Dry Dry Dry Tonnes Au Grade
Slide 87: Newcrest: Inferred Mineral Resources
Newcrest: Inferred Mineral Resources Summary as at 31 December 20211,2,3 Gold Copper Inferred Mineral Resources Inferred Mineral Resources Inferred Mineral Resources As at 31 December 2021 Dry Dry Tonnes Au Grade Insitu Au Tonnes Cu Grade Insitu Cu (Mt) (g/t Au) (Moz) (Mt) (% Cu) (Mt) Total Cadia Pr
Slide 88: Supply & Demand Data
Supply & Demand Data Gold demand & supply (tonnes)1 Demand 2021 2020 Jewellery demand has continued to rebound to Jewellery 2,220.9 55% 1,327.4 36% pre-pandemic levels, fully Technology 330.2 8% 302.8 8% recovering the losses Electronics 272.0 82% 249.3 82% sustained in 2020 driven by China and Indi
Slide 89: Operating Costs
Operating Costs Newcrest is a US dollar reporting entity. Its operating costs will vary in accordance with the movements in its operating currencies where those costs are not denominated in US dollars. The table below shows indicative currency exposures on operating costs for H1 of FY22 by site: USD
Slide 90: Foreign exchange & oil hedging impacts
Foreign exchange & oil hedging impacts Foreign exchange sensitivities1 Approximate Half Year Site Parameter Movement EBIT Impact (US$m) Cadia AUD:USD +0.01 AUD (0.75 → 0.76) (4) Telfer AUD:USD +0.01 AUD (0.75 → 0.76) (2) Lihir USD:PGK -0.1 PGK (3.51 → 3.41) (3) Red Chris USD:CAD -0.01 CAD (1.25 → 1.
Slide 91: H1 FY22 Results Summary
H1 FY22 Results Summary1 Fruta del H1 FY22 Actuals Cadia Lihir Telfer Red Chris1 Havieron Other Group Norte1,2 Gold production (koz) 224 305 214 20 69 - - 833 Copper production (kt) 33 - 7 10 - - - 51 AISC ($m)4 19 541 278 27 56 - 56 977 Capital expenditure ($m) Production stripping3 - 62 9 21 - - -
Slide 92: FY22 Guidance
FY22 Guidance1,2 Fruta del FY22 Guidance Cadia Lihir7 Telfer Red Chris2 Havieron Other Group7 Norte2,3 Gold production (koz) 540 – 610 700 - 800 390 - 440 40 – 42 120 – 135 1,800 – 2,000 Copper production (kt) 85 – 95 ~15 23 – 25 - 125 – 130 AISC ($m)4 (100) - 30 1,070 - 1,160 600 – 680 (25) – 15 10
Slide 93: Key Information
Key Information Board Forward Shareholder Enquiries To: Peter Tomsett Non-Executive Chairman Australia Sandeep Biswas Managing Director and CEO Link Market Services Tower 4, 727 Collins Street, Melbourne, Victoria, Australia 3000 Philip Aiken AM Non-Executive Director Telephone: 1300 554 474 | +61 1