Newcrest Mining — FY2023 Earnings Presentation
25 slides from Newcrest Mining's earnings presentation, Aug 11, 2023
Slide 1: FY23 Full Year Results
FY23 Full Year Results Sherry Duhe Interim Chief Executive Officer Dan O’Connell Interim Chief Financial Officer
Slide 2: Disclaimers
Disclaimers Forward Looking Statements This document includes forward looking statements and forward looking information within the meaning of securities laws of applicable jurisdictions, including within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act
Slide 3: Disclaimers
Disclaimers These measures are used internally by Management to assess the performance of the business and make decisions on the allocation of resources and are included in this document to provide greater understanding of the underlying financial performance of Newcrest’s operations. The non-IFRS i
Slide 4: Safety and sustainability remain a key focus at Newcrest
Safety and sustainability remain a key focus at Newcrest Newcrest is creating a brighter future for people through safe and responsible mining • Learnings shared across the business following the tragic fatality at Brucejack in October and serious injury at Cadia in June • Improved annual TRIFR1 of
Slide 5: FY23 performance highlights
FY23 performance highlights Higher gold and copper production in FY23 with equal record annual dividend FY23 performance2 Key highlights • Statutory and underlying profit of $778M6 2,105 koz +8% Gold production3 • Fully franked final dividend of US 20 cents per share, bringing total dividends for FY
Slide 6: FY23 operations overview
FY23 operations overview Group FY23 gold production and All-In Sustaining Cost guidance achieved • Gold production 597koz, copper • Zero recordable injuries in Q3 and Q4 production 98kt, AISC $45/oz • Gold production 670koz, AISC Cadia Lihir • Cadia working proactively with EPA and $1,466/oz local c
Slide 7: Advancing multiple gold and copper growth options
Advancing multiple gold and copper growth options Newcrest has made significant progress across its organic gold and copper growth portfolio Cadia Expansion • Two-stage plant expansion Lihir Phase 14A9 • Phase 14A higher grade ore project completed expected to be delivered from FY24 • PC2-3 delivere
Slide 8: Newcrest entered binding scheme implementation deed with Newmont
Newcrest entered binding scheme implementation deed with Newmont Transaction expected to establish a clear global leader in gold production with a significant and growing exposure to copper Key Terms Additional benefits for Newcrest shareholders • Newcrest shareholders will be entitled to receive sc
Slide 9: Financial results
Financial results Dan O’Connell Interim Chief Financial Officer
Slide 10: FY23 full year results
FY23 full year results Higher gold and copper production in FY23 supports increased shareholder returns FY23 financial FY23 highlights performance $778M Underlying profit • Fully franked final dividend of US 20 cents per share • Total dividends for FY23 of US 55 cents per share5, which is an equal a
Slide 11: Increasing shareholder returns
Increasing shareholder returns Total dividends of US 55 cents per share for FY23 demonstrates commitment to shareholder returns Returning cash to shareholders (US cents / share) FY23 final dividend 20 20.0 40.0 US cents per share5 20.0 20.0 17.5 14.5 11.0 7.5 Newcrest expects to pay a franked 15.0 1
Slide 12: Strong financial position with long term debt structure in place
Strong financial position with long term debt structure in place Newcrest is well positioned with more than 6 years until the next Corporate Bond repayment is due Net debt position as at 30 June 2023 ($M) Debt maturity profile as at 30 June 2023 ($M) 3,707 1,200 Drawn Debt Undrawn Facilities 1,000 2
Slide 13: Balance sheet remains in excellent shape
Balance sheet remains in excellent shape Newcrest remains comfortably within all financial policy targets as at 30 June 2023 Leverage ratio (Net Debt / EBITDA) Gearing ratio Coverage ($bn) Target less than 2.0 times (for trailing 12 months) Target less than 25% Target minimum $1.5bn with ~ 1/3 held
Slide 14: FY24 guidance
FY24 guidance Group level guidance on key metrics for FY24 Group FY24 guidance9,18,19,20 Gold production 2,000 - 2,300 koz Copper production 120 - 140 kt All-In Sustaining Cost $2,200M - $2,600M Sustaining capex21 $560M - $640M Non-sustaining capex22 $610M - $735M Exploration expenditure $130M - $15
Slide 15: Newcrest is a unique investment in gold and copper
Newcrest is a unique investment in gold and copper Cu Low-cost Outstanding Material Long Strong Financially production organic growth copper reserve life exploration & robust portfolio exposure technical capabilities 15
Slide 16: Appendices
Appendices @ NEWCREST MINING LIMITED
Slide 17: Endnotes
Endnotes 1. Total Recordable Injury Frequency Rate (injuries per million hours). 2. Percentage variances are calculated in comparison to the twelve months ended 30 June 2022. 3. Group gold production, gold sales and AISC includes Newcrest’s 32% attributable share of Fruta del Norte through its 32% e
Slide 18: Endnotes
Endnotes 14. Newcrest expects to have sufficient franking credits available to frank a special dividend up to an amount of US$1.10 per share. The franking of the special dividend amount is subject to change based on timing of implementation of the scheme, business performance, foreign exchange movem
Slide 19: Newcrest operating assets and advanced projects
Newcrest operating assets and advanced projects Red Chris (70%) Location: British Columbia, Canada Product: Gold, Copper Brucejack (100%) Location: British Columbia, Canada Product: Gold, Silver Lihir (100%) Location: New Ireland Province, PNG Product: Gold Wafi-Golpu (50%) Fruta del Norte (32%)1 Lo
Slide 20: Newcrest operating assets and advanced projects
1,2 Newcrest operating assets and advanced projects Cadia Province (Ownership: 100%) Lihir Province (Ownership: 100%) Telfer Province (Ownership: 100%, Havieron: 70%) FY23 Production 597koz Au, 98kt Cu FY23 Production 670koz Au FY23 Production (Telfer) 349koz Au, 17kt Cu FY23 AISC $45/oz FY23 AISC $
Slide 21: FY23 results summary
FY23 results summary Fruta del FY23 full year actuals1 Cadia Lihir Telfer Brucejack Red Chris1 Havieron6 Other7 Group Norte1,2 Production Gold (koz) 597 670 349 286 39 164 - - 2,105 Copper (kt) 98 - 17 - 18 - - - 133 All-In Sustaining Cost (AISC) – includes production stripping (sustaining) and sust
Slide 22: Foreign exchange, operating costs & oil hedges
Foreign exchange, operating costs & oil hedges Foreign exchange1 FY23 Indicative currency exposure on US dollar operating costs Foreign exchange sensitivity Foreign Exchange Estimated FY23 Impacts USD AUD PGK CAD Parameter Movement EBIT impact ($M) Cadia 20% 80% - - AUD:USD +0.01 AUD 0.68 to 0.69 (1
Slide 23: Newcrest: Ore Reserves
Newcrest: Ore Reserves Summary as at 30 June 2023 Gold Copper Proved Reserves Probable Reserves Proved Reserves Probable Reserves Ore Reserves As at 30 June 20231,2 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) (g/
Slide 24: Newcrest: Measured and Indicated Mineral Resources
Newcrest: Measured and Indicated Mineral Resources Summary as at 30 June 2023 Gold Copper Measured and Indicated Mineral Measured Mineral Resource Indicated Mineral Resource Measured Mineral Resource Indicated Mineral Resource Resources As at 30 June 20231,2 Dry Dry Dry Dry Au Grade Insitu Au Au Gra
Slide 25: Newcrest: Inferred Mineral Resources
Newcrest: Inferred Mineral Resources Summary as at 30 June 2023 Gold Copper Inferred Mineral Resource Inferred Mineral Resource Inferred Mineral Resources As at 30 June 20231,2 Dry Tonnes Au Grade Insitu Au Dry Tonnes Cu Grade Insitu Cu (Mt) (g/t) (Moz) (Mt) (%) (Mt) Total Cadia3 550 0.26 4.6 550 0.