Newcrest Mining — BMO Global Metals & Mining Conference 2020
27 slides from Newcrest Mining's conference presentation, February 2020
Slide 1: What Makes Newcrest Different
BMO GLOBAL METALS & MINING CONFERENCE 2020 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: Safety & Sustainability
Safety Investment Proposition & Sustainability Our Assets Exploration & Technical Capabilities Financials Summary
Slide 5: Continued Focus on Safety
Improving Safety Performance Continued TRIFR1 (per million hours worked) Focus on Safety1 3.7 3.3 51% 2.4 2.3 2.3 1.8 FY16 FY17 FY18 FY19 HY20 (excluding Red HY20 (including Red Chris) Chris) Zero Fatalities Safety Transformation Remaining vigilant with ~4.5 • Red Chris integration progressing well
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: Investment Proposition
Safety Investment Proposition & Sustainability Our Assets Exploration & Technical Capabilities Financials Summary
Slide 8: 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 and Red Chris) Strong exploration & technical Financially robust capabilities
Slide 9: Our Assets
Safety Investment Proposition & Sustainability Our Assets Exploration & Technical Capabilities Financials Summary
Slide 10: Long-life, low cost portfolio
Cadia (100%) Lihir (100%) Telfer (100%) Long-life, H1 FY20 Production: 411koz Au, 45kt Cu H1 FY20 Production: 381koz Au H1 FY20 Production: 182koz Au, 7kt Cu low cost H1 FY20 AISC: Ore Reserves: $167/oz 21moz Au & 4.3mt Cu H1 FY20 AISC: Ore Reserves: $1,154/oz 23moz Au H1 FY20 AISC: Ore Reserves: $1
Slide 11: Cadia and Lihir reserves greater than mines of major gold peers
Cadia and Reserve base of operating assets1 (moz) Lihir reserves 25 greater than mines of 20 major gold peers 15 10 5 0 1 Based on producing assets held by Barrick, Newmont and Newcrest with an attributable reserve >4moz. Source: Company reports as at 21 February 2020. Reserves reflect proven and pr
Slide 12: Lowest cost major gold producer
Lowest cost AISC/oz for calendar year 20191 ($/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
Slide 13: Exploration & Technical Capabilities
Safety Investment Proposition & Sustainability Our Assets Exploration & Technical Capabilities Financials Summary
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
Slide 15: Leveraging our technical capabilities at Red Chris
+220 Moz Au* regional endowment Red Chris1 Leveraging 0 25 50 our technical kilometres capabilities at Red Chris Red Chris JV Schaft Creek Galore Creek Eskay Creek KSM Brucejack ▪ Large metal endowment 20Moz Au and 13Blbs Cu ▪ Presence of high grade mineralisation 1. This information relates to the
Slide 16: Mineralisation expanded in the Gully Zone at Red Chris
Mineralisation RC591R 64m @ 1.6g/t Au & 1.1% Cu from expanded in 847m, incl. 62m @ 1.7g/t Au & 1.1% Cu from 847m & incl. 56m @ the Gully 1.8g/t Au & 1.2% Cu from 851m. Zone at RC603 124m @ 0.58g/t Au & Open Pit Red Chris 0.42% Cu from 466m, incl. 94m @ 0.71g/t Au & 0.51% Cu from 470m & incl. 10m @ 1
Slide 17: Red Chris concept study underway
Block cave concept study1 Achievements to date Red Chris ▪ Investigating potential to start ▪ 6 drill rigs in operation concept exploration decline by end of CY2020 ▪ 17,500 metres drilled as at 31 study ▪ Concept study investigating potential December 2019 commercial production ~5 years from underw
Slide 18: Mineralisation expanded at Havieron
Havieron1 +27 Moz Au* regional endowment Mineralisation Winu expanded at Magnum Telfer Havieron Leveraging existing infrastructure at Telfer Havieron Telfer O’Callaghans Niffy Yeneena Maroochydore kilometres ▪ Located 45km east of Telfer 0 10 20 ▪ Potential high grade mill feed zone for Telfer Cover
Slide 19: Havieron studies underway
Achievements to date Havieron ▪ 8 drill rigs in operation studies ▪ Drilled ~31,000m as at 31 December 2019 underway ▪ A further 20,000m – 30,000m planned for H2 FY20 ▪ Increased exploration expenditure guidance range by $25m for ramp up of drilling activity Havieron studies1 ▪ Investigating potenti
Slide 20: Large portfolio of early entry partnerships
Australia-Pacific Americas Large portfolio of early entry partnerships Australia USA Mexico • Second Junction Reefs (JV) • Jarbidge (O) • Azucar (EI-19.9%) • Encounter Alliance & JVs • Rattlesnake Hills (O&FI) • Prodigy Gold NL (FI) Chile • Isa North (100%) Ecuador • Altazor (O&FI) • Bulimba (100%)
Slide 21: Financials Summary
Safety Investment Proposition & Sustainability Our Assets Exploration & Technical Capabilities Financials Summary
Slide 22: Strong free cash flow generation
Cumulative free cash flow of $3.4bn since January 2014 ($m) Strong free cash flow1 Investment in growth generation $3.4 Billion H1 FY20 invested in future growth H2 Free Cash Flow H1 Free Cash Flow 1 Free cash flow is calculated as cash flow from operating activities less cash flow related to invest
Slide 23: Strong financial position
Leverage Ratio (Net Debt / EBITDA) Gearing Ratio Strong Target less than 2.0x (for Target less than 25% financial trailing 12 months) 15.1% position 12.2% 11.5% 0.8x 0.7x 0.6x 4.9% 0.2x Comfortably within all four financial 30 Jun 2018 31 Dec 2018 30 Jun 2019 31 Dec 2019 30 Jun 2018 31 Dec 2018 30 J
Slide 24: Focused on returns to shareholders
Newcrest Dividends (US$ per share) Focused on 0.25 0.22 returns to 0.20 shareholders 0.185 0.15 0.15 US$ per share Strong dividend policy 0.10 0.075 H1 FY17 H1 FY18 H1 FY19 0.05 0.00 FY17 FY18 FY19 H1 FY20 ▪ H1 FY20 Interim Dividend of US 7.5 cents per share as in previous 3 years ▪ Targeting a tota
Slide 25: Summary
Safety Investment Proposition & Sustainability Our Assets Exploration & Technical Capabilities Financials Summary
Slide 26: 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 and Red Chris) Strong exploration & technical Financially robust capabilities
Slide 27: Find out more: Engage with us
Find out more: www.newcrest.com.au Engage with us +613 9522 5717 +1 (647) 255 3139
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