Newcrest Mining — FY2018 Earnings Presentation
24 slides from Newcrest Mining's earnings presentation, Aug 22, 2018
Slide 1: FY18 Full Year Results
NEWCREST FY18 Full Year Results Sandeep Biswas / Gerard Bond Managing Director and Chief Executive Officer / Finance Director and Chief Financial 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: Newcrest Mining Limited
Newcrest Mining Limited Placeholder image
Slide 4: Overview of FY18 results
Overview of Safety FY18 Production Financials results Growth & portfolio Summary optimisation
Slide 5: FY18 key achievements
FY18 key Safety achievements • Zero Fatalities and 28% reduction in TRIFR Production • Produced 2.35moz gold and 78kt copper at AISC of $835/oz Cash Generation • Generated free cash flow of $601m Growth • Delivering on growth pillar
Slide 6: Overview of FY18 results
Overview of Safety FY18 Production Financials results Growth & portfolio Summary optimisation
Slide 7: Continued safety improvement
Group TRIFR1 progress Continued safety 3.6 3.7 3.3 28% improvement 2.4 FY15 FY16 FY17 FY18 Zero Fatalities All operations recorded TRIFR improvements Remaining vigilant Encouraging results reflecting the ongoing safety leadership with another year and culture change fatality-free Cadia TRIFR Lihir T
Slide 8: Overview of FY18 results
Overview of Safety FY18 Production Financials results Growth & portfolio Summary optimisation
Slide 9: FY18 production by operation
Group FY18 Group production marginally below FY17 2,423 2,439 2,381 2,346 production by Higher AISC reflects the 780 762 787 835 lower production from operation Cadia FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Cadia Cadia exceeded the 30mtpa target throughput rate in June 667 669 620 600 Record low AIS
Slide 10: FY18 production by operation
Telfer FY18 Higher ore mined and 520 462 426 1,178 1,262 production by milled for the year AISC impacted by higher 386 791 967 operation production stripping activity and strong AUD FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Gosowong Production and AISC 332 adversely impacted by 296 lower head grades 1
Slide 11: Standout performance at Lihir
Record breaking June quarter completes an outstanding year Standout Record mill throughput rate of 16mtpa in the June 2018 quarter performance Record low AISC for the June 2018 quarter of $724/oz at Lihir Record gold production for the June 2018 quarter of 307koz Third consecutive year of record pro
Slide 12: Overview of FY18 results
Overview of Safety FY18 Production Financials results Growth & portfolio Summary optimisation
Slide 13: Underlying profit bridge FY17 to FY18
Increased Underlying Revenue $85 million Operating Costs $(34) million Depreciation & Amortisation Profit ($m) 106 109 $(106) million Statutory profit $202m Underlying profit $459m (88) (39) (3) 135 2 (11) (10) (23) (95) (11) (7) 459 394 Corporate and other1 Gold price Copper price FX on depreci
Slide 14: Strong operating cash flow and growth investment
Strong flow and growth ($m) investment in operating cash FY18 EBITDA 1,565 Exploration expenditure written-off & 68 Non-cash items Working Capital movements (27) Interest & taxes paid (172) Cashflow from operating activities 1,434 Lundin Gold (251) Azucar Minerals (15) (9) SolGold Investments $275 m
Slide 15: $3.4bn of free cash flow generated since January 2014
$3.4bn of free cash flow generated since 1 January 2014
Slide 16: Building on our strong financial position
Leverage Ratio (Net Debt / EBITDA) Gearing Ratio Building on Target less than Target less than our strong 2.0x (for trailing 23% 25% 12 months) 21% 1.6x financial 17% 16% 1.3x 1.2x 1.1x 12% position 0.7x 30 Jun 2016 31 Dec 2016 30 Jun 2017 31 Dec 2017 30 Jun 2018 30 Jun 2016 31 Dec 2016 30 Jun 2017
Slide 17: Overview of FY18 results
Overview of Safety FY18 Production Financials results Growth & portfolio Summary optimisation
Slide 18: Delivering on the growth pillar
Delivering on the growth Wafi-Golpu Feasibility Study Update submitted pillar Lihir 14mtpa sustainable annualised mill throughput achieved Cadia 30mtpa annualised ore production throughput rate target achieved Cadia Expansion Pre-Feasibility Study findings released Acquired 27.1% of Lundin Gold whic
Slide 19: Capital discipline – Cadia Expansion PFS
Capital Debottlenecking to 33mtpa with upside potential to 35mtpa Project capital: $598m discipline – NPV: $887m Cadia IRR: 21% Expansion Payback (years): 8 PFS1 1 Subject to all necessary permits, regulatory requirements and Board approval. Estimates were prepared to a Prefeasibility Study level wi
Slide 20: Exploration
Exploration Australia, PNG and West Africa New exploration projects entered into in Australia and Côte d’Ivoire Wholly owned exploration tenements Americas granted in Australia and Côte d’Ivoire New exploration projects entered into in Ecuador, Chile and the USA Drilling commenced/continued at Ségué
Slide 21: Overview of FY18 results
Overview of Safety FY18 Production Financials results Growth & portfolio Summary optimisation
Slide 22: 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 23: Find out more
Find out more: www.newcrest.com.au Engage with us +613 9522 5717
Slide 24: FY18 Full Year Results
NEWCREST FY18 Full Year Results Sandeep Biswas / Gerard Bond Managing Director and Chief Executive Officer / Finance Director and Chief Financial Officer