Newcrest Mining — Merger or Acquisition (March 2019)
17 slides from Newcrest Mining's merger presentation, March 2019
Slide 1: Newcrest to acquire potential Tier 1 orebody in Canada
NEWCREST Newcrest to acquire potential Tier 1 orebody in Canada Sandeep Biswas Managing Director and Chief Executive 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: Disclaimer – Foreign Estimates
Disclaimer Foreign Estimates – clarifying statements as required by ASX Listing Rule 5.12 The estimates of Mineral Resources for Red Chris deposit are qualifying foreign estimates under the ASX Listing Rules reported in accordance with the National Instrument 43-101 (NI 43-101) by Imperial and filed
Slide 4: Newcrest Mining Limited – Red Chris mine
Newcrest Mining Limited Placeholder image Red Chris mine
Slide 5: Transaction summary
Transaction • Newcrest has agreed to acquire 70% of the Red Chris mine from Imperial Metals for a cash amount of US$806.5 million summary • Newcrest to be the operator • The transaction is expected to close in Q3 CY19 • Newcrest plans to fund the acquisition from cash and committed undrawn bank faci
Slide 6: Benefits for Newcrest shareholders
1. Supports strategic goals Benefits for • Measured entry into North America Newcrest shareholders • Operating mine with potential to become a Tier 1 asset 2. Immediate asset and geographic diversification 3. Large mineral endowment 4. Significant upside opportunity • Early application of Edge trans
Slide 7: Two stage transformation
Stage 1 - Apply Newcrest’s Edge transformation approach Two stage • Process plant optimisation transformation • Debottlenecking process plant • Gold and copper recovery uplifts History of Owners • Process control improvements Mindset through the • Improving concentrate quality for enhanced marketing
Slide 8: Block caving
Block caving Newcrest has built and operates one of the deepest block caves in the world – Highly productive, Cadia East at 1.4km deep and low cost underground mass mining method Cadia is one of the lowest cost, largest gold producers in the world Over 12 years of experience in building and operatin
Slide 9: Value added through block caving expertise
Value added Cadia East Gold Reserve & Resource growth due to caving expertise 1 40 through block 35 caving 30 25 expertise Ore Reserve Mineral Resource moz 20 15 10 5 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Cadia Broker Consensus NAV overtime
Slide 10: Red Chris exhibits Cadia like porphyry geology
Plan View Cross Section Red Chris Cadia, NSW, Australia exhibits Cadia like porphyry geology Red Chris, BC, Canada The information on this slide relates to the geological knowledge of Imperial and is based on the “National Instrument 43-101 Technical Report” dated 30 September 2015 and filed by Impe
Slide 11: Coarse ore processing
Demonstrated benefits in processing energy intensity or recovery rates Coarse ore processing1 ▪ Full scale coarse ore flotation plant operational and circuit re-optimisation ongoing at Cadia Coarse ore ▪ Delivers the ability to: flotation for rate and recovery improvements ▪ maintain recovery whilst
Slide 12: Immediate asset and geographic diversification
Immediate Americas Australia-Pacific asset and geographic diversification Red Chris (70%) Wafi-Golpu (50%) into a leading Lihir mining Gosowong (75%) jurisdiction Azucar (19.9%) Namosi (71.82%) Telfer SolGold (15.2%) Lundin Gold (27.1%) Cadia Producing Mine Development Project Equity Investments
Slide 13: Large mineral endowment
20Moz of Gold Mineral Resources and 13Blbs of Copper Mineral Resources Large mineral endowment The information on this slide relates to the Mineral Resource estimates of Imperial and is based on the “National Instrument 43-101 Technical Report” dated 30 September 2015 and filed by Imperial on SEDAR
Slide 14: World class exploration opportunity
World class • Located in the highly exploration prospective ‘Golden Triangle’ in opportunity northwest British Columbia, Canada • Established mining jurisdiction with several world-class mineral deposits and ranked top 20 in Fraser Institute Annual Survey of Mining Companies 2017 • The Red Chris pro
Slide 15: Comfortably within all four financial policy targets
Leverage Ratio (Net Debt / EBITDA) Gearing Ratio Comfortably Target less than 2.0x (for Target less than 25% within all four trailing 12 months) 16.6% 15.9% financial policy 1.1x 1.2x 12.2% 11.5% targets as at 0.7x 0.6x 31 December 2018 30 Jun 2017 31 Dec 2017 30 Jun 2018 31 Dec 2018 30 Jun 2017 31
Slide 16: 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 17: Find out more
Find out more: www.newcrest.com.au Engage with us +613 9522 5717 +1 647 255 3139