Newcrest Mining — Merger or Acquisition (November 2021)
28 slides from Newcrest Mining's merger presentation, Nov 9, 2021
Slide 1: Newcrest agrees to acquire Pretium Resources
Newcrest agrees to acquire Pretium Placeholder image Resources Owner of the Tier 1 Brucejack gold mine in British Columbia, Canada
Slide 2: Disclaimer: Forward Looking Statements
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: Reserves and Resources Reporting Requirements
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: Technical information and US implications
Disclaimer Technical and scientific information The technical and scientific information contained in this document relating to Pretivm was reviewed by Ms Jillian Terry, a Qualified Person as defined in NI43-101 and confirmed to be a true and accurate representation of data presented in the Q1 2021
Slide 5: Transaction Highlights & Strategic Rationale
Transaction Highlights & Strategic Rationale(1,2) 1 Adds a Tier 1 large scale, long life, low cost producing mine to Newcrest’s portfolio of Tier 1 assets Immediately increases Newcrest’s gold production by >300,000oz pa (~15%) to well above 2Moz(3,4) Accretive to Newcrest’s EBITDA and cash flow Pro
Slide 6: Transaction Overview
Transaction Overview Overview • Newcrest Mining Limited (“Newcrest”) has entered into an agreement (the “Arrangement Agreement”) with Pretium Resources Inc (“Pretivm”) to acquire all of the issued and outstanding common shares of Pretivm, other than the 4.8% it already owns (the “Transaction”) • Una
Slide 7: Overview of Brucejack
Overview of Brucejack • 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 life, high-grade underground gold mine • Underground mining
Slide 8: Attributable Gold Production (koz)
Increases Newcrest’s annual gold production to well above 2Moz Indicative Base Case Gold Production(1,2,3,4) Indicative Cost Profile(13,14) 3,000 $1,200 Newcrest expects extensional, near mine and regional exploration along with mine to mill optimisation will deliver 2,500 further upside to Pretivm’
Slide 9: Accretive to Newcrest's production, EBITDA and cash flow
Accretive to Newcrest’s production, EBITDA and cash flow(19) FY21 Gold Production FY21 EBITDA FY21 Free Cash Flow (Au koz)(15,16,17) (US$M)(16,17) (Post-tax, US$M)(16,17,18) 2,437 13% 2,750 1,350 16% 2,443 22% 2,093 1,104 Newcrest Pro Forma Newcrest Newcrest Pro Forma Newcrest Newcrest Pro Forma New
Slide 10: Operational and financial diversification from a Tier 1 jurisdiction
Operational and financial diversification from a Tier 1 jurisdiction Increased Diversification Enhanced Jurisdictional Immediate Free Cash Flow of Production Exposure Contribution FY21 Gold Production(15,17) FY21 Gold Production(15,17) FY21 FCF (Pre-Tax)(17,18) 1,232 Red Chris (70%) Ecuador FDN (32%
Slide 11: Newcrest is a major scale, long life, high margin gold producer
1 Newcrest is a major scale, long life, high margin gold producer Newcrest would continue to retain its unrivalled long reserve life and low AISC/oz advantage Gold peers by Reserve Life and AISC Margin(20,21) 600 AISC Margin Less Net Finance Cost (US$/oz Au) Evolution 550 Pro Forma Agnico Eagle Pro
Slide 12: Newcrest operates in BC and has strong existing relationships
Newcrest operates in BC and has strong existing relationships Newcrest will be the majority owner and operator of two world class gold operations in British Columbia BRITISH COLUMBIA Eskay Creek • Newcrest will immediately be the largest 37 gold producer(1,2,3,22) within the prolific Red Chris Golde
Slide 13: Newcrest and Pretivm share similar values, passion and purpose
Newcrest and Pretivm share similar values, passion and purpose Enhanced career and growth opportunities for employees of both companies Benefits for employees and other stakeholders: • Newcrest and Pretivm have complementary corporate cultures and values, with a focus on safety, employee development
Slide 14: Newcrest offers opportunity for future growth
Newcrest offers opportunity for future growth Newcrest has an unrivalled organic growth pipeline and its expansion in British Columbia through this Transaction represents an opportunity for Pretivm shareholders to benefit from continued growth Benefits to Shareholders of Pretivm: • Immediate and com
Slide 15: Newcrest looking to invest and grow in the region
Newcrest looking to invest and grow in the region Newcrest plans to invest in British Columbia to deliver benefits for the region, First Nations people & host communities Newcrest intends to: • Sustain Canadian jobs and enhance advancement opportunities for employees as part of a larger, more divers
Slide 16: Significant near mine and district-scale exploration opportunity
Significant near mine and district-scale exploration opportunity Potential for significant near mine and extensional exploration upside • Significant resource base has shown the potential for further resource expansion o Measured & Indicated Mineral Resource 7.2Moz gold at an average grade of 10.0g/
Slide 17: Significant near mine and district-scale exploration opportunity
Significant near mine and district-scale exploration opportunity Potential for significant district exploration upside • Brucejack comprises four mining leases and six mineral claims totaling 33.1 km2 and forms part of a contiguous claims package greater than 1,200 km2 (32) • Newcrest has reviewed e
Slide 18: Due diligence has identified potential for further improvement
Due diligence has identified potential for further improvement Building on strong foundations to optimise and further unlock the value of Brucejack Selected operational improvements • Implement at Brucejack with the objective of achieving a further improvement in safety culture, Newcrest Safety cont
Slide 19: Aligns to Newcrest's net zero emissions goal
Aligns to Newcrest’s net zero emissions goal The addition of Brucejack(1,26,27) will contribute to Newcrest’s goal of net zero carbon emissions by 2050 Pretivm’s GHG and Water Intensity levels benchmark significantly lower than Newcrest’s key peer range • Brucejack’s greenhouse gas (GHG) emissions i
Slide 20: Cash consideration funded from Newcrest's strong balance sheet
Cash consideration funded from Newcrest’s strong balance sheet Newcrest will retain significant financial capacity to progress its pipeline of organic growth projects • At 30 June 2021 Newcrest had US$3.9 Transaction Sources of Funds(28) CAD$M(6) US$M(6) billion in available liquidity, comprising: N
Slide 21: Newcrest's strong balance sheet will be maintained
Newcrest’s strong balance sheet will be maintained Comfortably within all financial policy targets as at 30 June 2021 Leverage Ratio (Net Debt / EBITDA) Gearing Ratio Newcrest Target less than 2.0x (for trailing 12 months) Newcrest Target less than 25% 0.8x 15.1% 0.3x 6.8% 0.1x 3.3% (0.1x) (1.8%) De
Slide 22: Forging an even stronger Newcrest
Forging an even stronger Newcrest Our Purpose Our Vision Our Edge Creating a brighter future for To be the Miner of Choice: Collaboration, innovation people through safe and • Valued by our people and communities and an owner’s mindset responsible mining • Respected by our partners, customers, suppl
Slide 23: Find out more
Find out more: www.newcrest.com Engage with us +61 (3) 9522 5570 +1 (866) 396 0242 23
Slide 24: Brucejack Mine Mineral Reserves – January 2021
Brucejack Mine Mineral Reserves – 1 January 2021(9) Grades (g/t) Contained Metal (Moz) Ore Reserves(i),(ii),(iii),(iv),(vii) Ore (Mt) Gold Silver Gold Silver Valley of Kings(v) Proven 1.0 8.9 10.7 0.3 0.3 Probable 10.5 8.7 9.7 2.9 3.3 Total Proven and Probable 11.5 8.7 9.8 3.2 3.6 West Zone(vi) Prov
Slide 25: Brucejack Mine Mineral Resources – January 2021
Brucejack Mine Mineral Resources – 1 January 2021(10) Grades (g/t) Contained Metal (Moz) Mineral Resources(i),(ii),(iii),(iv),(v),(vi),(vii) Ore (Mt) Gold Silver Gold Silver Valley of Kings Measured 1.9 10.1 12.2 0.6 0.8 Indicated 15.6 11.3 12.2 5.7 6.1 Measured & Indicated 17.6 11.2 12.2 6.3 6.9 In
Slide 26: Endnotes
Endnotes 1. Subject to market and operating conditions and should not be construed as guidance. 2. Subject to satisfaction of Transaction conditions precedent, including court approval and Pretivm shareholder approval. 3. The Brucejack production target (attributable basis 311kozpa gold from 15.64Mt
Slide 27: Endnotes
Endnotes 18. Fruta del Norte “free cash flow” depiction represents net pre-tax cash flows received from finance facilities acquired from Lundin Gold Inc, relating to the Fruta Del Norte mine. Pretivm pre-tax free cash flow based on reported free cash flow and adjusted for the impacts of income tax p
Slide 28: Endnotes
Endnotes 22. The Red Chris production target has been prepared on an attributable basis (70% of 316kozpa gold and 80ktpa copper from 480Mt Probable Reserves, comprising 89% of Probable Reserves, at 0.52g/t gold and 82% of Probable Reserves at 0.45% copper). Refer to Figure 2 in the release titled ‘R
Newcrest Mining — Merger or Acquisition (November 2021) on 6ix