Newcrest Mining — FY2022 Earnings Presentation
27 slides from Newcrest Mining's earnings presentation, Aug 19, 2022
Slide 1: FY22 Full Year Results
FY22 Full Year Results Sandeep Biswas Managing Director and Chief Executive Officer Sherry Duhe Chief Financial Officer
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 Reliance on Third Party Information This document contains information that has been obtained from third parties and has not been independently verified, including estimates and actual outcomes that relate to production and AISC for Fruta del Norte. No representation or warranty is made a
Slide 4: Strong FY22 performance as growth projects advance
Strong FY22 performance as growth projects advance Newcrest is very well positioned to advance its unique portfolio of organic gold and copper growth options • Statutory profit1 and Underlying profit of $872 million Strong performance • Cash flow from operations of $1,680 million supports final • Fu
Slide 5: Exceptional organic growth portfolio continues to advance
Exceptional organic growth portfolio continues to advance Newcrest has made significant progress against its Forging an Even Stronger Newcrest plan in FY22 Cadia • Regulatory approval received to increase Lihir • Phase 14A Feasibility Study on track for processing capacity to 35Mtpa4 completion in Q
Slide 6: Brucejack integration progressing well
Brucejack integration progressing well Expected synergies increase with further opportunities identified Phase 1: Optimise Phase 2: Unlock Phase 3: Grow • FY22 safety performance best on record • Mine simulation review underway aiming to • New discovery at Golden Marmot located increase mining rates
Slide 7: Delivering on Newcrest's growth targets
Delivering on Newcrest’s growth targets9 Significant milestones achieved in FY22 with a range of project catalysts expected in FY23 Key FY22 milestones achieved Oct-22 Dec-22 Quarter H2 FY23 FY27 Cadia Lihir Red Chris Red Chris Telfer WDS5 cutback PC1-2 Feasibility Phase 14A Block Cave Block Cave fi
Slide 8: Newcrest is progressing its sustainability commitments
Newcrest is progressing its sustainability commitments Roadmap has identified key steps for Newcrest to deliver its goal of net zero carbon emissions by 20503 Group Net Zero Emissions Roadmap Key activities expected to support the Roadmap5 Near-term • Power Purchase Agreement (PPA) through the Rye P
Slide 9: Financial results
Financial results Sherry Duhe Chief Financial Officer 9
Slide 10: FY22 full year results
FY22 full year results Newcrest is in excellent financial shape to progress organic growth in a safe and responsible manner Solid operating and Major projects investment Strong balance sheet and financial performance underpins future growth shareholder returns Cadia Expansion Project, including PC2-
Slide 11: Robust balance sheet and long term debt structure in place
Robust balance sheet and long term debt structure in place Strong financial position maintained following the acquisition of Pretium Resources Net debt position as at 30 June 2022 ($M) Debt maturity profile ($M) 3,707 1,200 Drawn Debt Undrawn Facilities 1,000 2,889 Brucejack cash 800 consideration 2
Slide 12: Strong financial position maintained
Strong financial position maintained Comfortably within all financial policy targets as at 30 June 2022 Leverage ratio (Net Debt / EBITDA) Gearing ratio Coverage ($bn) Target less than 2.0 times (for trailing 12 months) Target less than 25% Target minimum $1.5bn with ~ 1/3 held as cash 3.9 3.6 3.5 3
Slide 13: Dividends to shareholders while advancing organic growth
Dividends to shareholders while advancing organic growth Total fully franked dividends of US 27.5 cents for FY22 exceeds the minimum dividend policy target payout Returning cash to shareholders (US cents / share) FY22 final dividend 40.0 20 17.5 20.0 US cents per share 7.5 11.0 14.5 15.0 7.5 7.5 7.5
Slide 14: Newcrest is well positioned to manage external environment
Newcrest is well positioned to manage external environment 5,13,14,15 Cost mitigation strategies in place to address inflationary pressures which are expected to be ~6-8% in FY23 Operating cost Labour16 Consumables Maintenance Fuel & Other17 spend category & Parts Energy % of total operating costs ~
Slide 15: Newcrest is using multiple levers to address cost pressures
Newcrest is using multiple levers to address cost pressures5 Key levers Recent examples Consolidation, volume based discounts, rate standardisation • Negotiation of long term / umbrella contracts (2-3 years) with necessary exit clauses Re-negotiation and long-term contracts • Electricity at Cadia: F
Slide 16: FY23 guidance
FY23 guidance18,19 Fruta del FY23 guidance Cadia Lihir Telfer Brucejack Red Chris Havieron Other21 Group Norte20 Production Gold (koz) 560 - 620 720 - 840 355 - 405 320 - 370 ~30 125 - 145 - - 2,100 - 2,400 Copper (kt) 95 -115 - ~20 - ~20 - - - 135 - 155 All-In Sustaining Cost (AISC) – includes prod
Slide 17: Newcrest is a unique investment in the gold industry
Newcrest is a unique investment in the gold industry Cu Low-cost Outstanding Material Long Strong Financially production organic growth copper reserve life exploration & robust portfolio exposure technical capabilities 17
Slide 18: Find out more
Find out more: www.newcrest.com Engage with us +61 (3) 9522 5570 +1 (604) 566 8781 18
Slide 19: Appendices
Appendices @ NEWCREST MINING LIMITED
Slide 20: Endnotes
Endnotes 1. Statutory profit is profit after tax attributable to owners of the Company. 2. Total Recordable Injury Frequency Rate (injuries per million hours). 3. Relating to operational (Scope 1 and Scope 2) emissions. Newcrest intends to work across its value chain to reduce its Scope 3 emissions.
Slide 21: Newcrest operating assets and advanced projects
Newcrest operating assets and advanced projects Newcrest is in an enviable position with exposure to six Tier 1 orebodies and a growing presence in Tier 1 regions1 Red Chris (70%) Location: British Columbia, Canada Product: Gold, Copper Brucejack (100%) Location: British Columbia, Canada Product: Go
Slide 22: Newcrest operating assets and advanced projects
Newcrest operating assets and advanced projects1,2 Cadia Province (Ownership: 100%) Lihir Province (Ownership: 100%) Telfer Province (Ownership: 100%, Havieron: 70%) FY22 Production 561koz Au, 85kt Cu FY22 Production 687koz Au FY22 Production (Telfer) 408koz Au, 14kt Cu FY22 AISC -$124/oz FY22 AISC
Slide 23: FY22 results summary
FY22 results summary Fruta del FY22 Actuals1 Cadia Lihir Telfer Brucejack2 Red Chris1 Other Group Norte1,3 Gold production (koz) 561 687 408 114 42 144 - 1,956 Copper production (kt) 85 - 14 - 21 - - 121 AISC ($M)4 (67) 1,080 565 135 55 107 124 1,999 Capital expenditure ($M) Production stripping4 -
Slide 24: Foreign exchange, operating costs & oil hedges
Foreign exchange, operating costs & oil hedges Foreign exchange1 FY22 Indicative currency exposure on US dollar operating costs Foreign exchange sensitivity Foreign Exchange Estimated FY23 Impacts USD AUD PGK CAD Group Parameter Movement EBIT impact ($M) Cadia 20% 80% - - 100% AUD:USD +0.01 AUD 0.68
Slide 25: Newcrest: Ore Reserves
Newcrest: Ore Reserves Summary as at 30 June 20221,2,3 Gold Copper Proved Reserves Probable Reserves Proved Reserves Probable Reserves Ore Reserves As at 30 June 2022 Dry Dry Dry Dry Au Grade Insitu Au Au Grade Insitu Au Cu Grade Insitu Cu Cu Grade Insitu Cu Tonnes Tonnes Tonnes Tonnes (g/t) (Moz) (
Slide 26: Newcrest: Measured and Indicated Mineral Resources
Newcrest: Measured and Indicated Mineral Resources Summary as at 30 June 20221,2,3,4 Gold Copper Measured and Indicated Mineral Measured Mineral Resource Indicated Mineral Resource Measured Mineral Resource Indicated Mineral Resource Resources As at 30 June 2022 Dry Dry Dry Dry Au Grade Insitu Au Au
Slide 27: Newcrest: Inferred Mineral Resources
Newcrest: Inferred Mineral Resources Summary as at 30 June 20221,2,3,4 Gold Copper Inferred Mineral Resource Inferred Mineral Resource Inferred Mineral Resources As at 30 June 2022 Dry Tonnes Au Grade Insitu Au Dry Tonnes Cu Grade Insitu Cu (Mt) (g/t) (Moz) (Mt) (%) (Mt) Total Cadia Province5 550 0.