Newcrest Mining — Investor Presentation (October 2021)
31 slides from Newcrest Mining's investor presentation, Oct 12, 2021
Slide 1: Advancing our global organic growth portfolio
Advancing our global organic growth portfolio Sandeep Biswas Craig Jones Managing Director and Chief Executive Officer Chief Operating Officer PNG Suresh Vadnagra Gerard Bond Chief Technical and Projects Officer Finance Director and Chief Financial Officer
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: Competent Person's Statement
Disclaimer Competent Person’s Statement The information in this document that relates to Mineral Resources or Ore Reserves for Telfer and Cadia (other than for Cadia East) has been extracted from the release titled “Annual Mineral Resources and Ore Reserves Statement – 31 December 2020” dated 11 Feb
Slide 4: Advancing our global organic growth portfolio
Advancing our global organic growth portfolio1,2,3 Attractive economics Reducing AISC Growth in copper production All four organic growth options Projected reduction in Group +37% growth in expected have PFS’s estimated to deliver AISC by >50% from current copper production by FY30 an IRR of 16% or
Slide 5: What does this mean for Newcrest?
What does this mean for Newcrest?6 Maintains Newcrest’s status as a major scale, long life, high margin gold producer AISC anticipated to decline to levels well below today’s lowest cost gold major producers Increasing copper production aligns Newcrest to a decarbonising world Peer-leading reserve l
Slide 6: Attractive economics and significant value accretion
Attractive economics and significant value accretion1,2,3,4 Cadia PC1-2 Red Chris BC Havieron (Stage 1) Lihir Phase 14A Australia Canada Australia Papua New Guinea Helps sustain Cadia’s position as one Confirms Red Chris potential to Stage 1 expected to deliver solid Supports gold production growth
Slide 7: Projecting substantial reduction in AISC & strong cash flow generation
Projecting substantial reduction in AISC & strong cash flow generation Newcrest’s indicative base case AISC/oz profile1,2,3,5,8,9 1,200 Projected reduction in Newcrest’s AISC/oz by >50% from current levels by FY30 1,000 AISC/oz expected to progressively decline over the 800 next 9 years to <$500/oz
Slide 8: Indicative base case gold production profile to 2030
Indicative base case gold production profile to 20301,2,3,9 Strong base case gold production of approximately Indicative base case gold production profile 2Mozpa, assuming execution of the PFS projects, but 2,500 before any potential expansions or upside Red Chris production profile excludes any con
Slide 9: Indicative base case copper production profile to 2030
Indicative base case copper production profile to 20301,2,3,9 Indicative base case copper production profile 200 Projected +37% growth in copper production which is expected to reach >175ktpa in FY30 180 160 140 Indicative base case copper production from assets Copper Production (kt) exclusively in
Slide 10: Red Chris Block Cave PFS confirms Tier 1 potential
Red Chris Block Cave PFS confirms Tier 1 potential • PFS confirms potential for Red Chris to become a world class, long life mine • Study builds on Newcrest’s experience and success with block cave developments in Australia • Substantial low-cost gold and copper production growth in a Tier 1 jurisdi
Slide 11: Red Chris Block Cave PFS confirms Tier 1 potential
Red Chris Block Cave PFS confirms Tier 1 potential Key study outcomes (100% terms)1,3,9,12,13 IRR 17% Payback14 ~3 years NPV4 $1,826m LOM 31 years Project capital15 $2,106m Gold produced 4.9Moz Copper produced 1.5Mt Average AISC5 (US$144/oz) Red Chris Exploration decline has advanced 319 metres as a
Slide 12: Red Chris Block Cave PFS – surface & underground infrastructure
Red Chris Block Cave PFS – surface & underground infrastructure1 • Underground mine will consist of MB1, MB2 & MB3, mined sequentially with a block cave strategy • Block cave mining selected due to its low operating cost, productivity and suitability to the geometry and conditions of the resource •
Slide 13: Potential for further upside at Red Chris
Potential for further upside at Red Chris11,16 Schematic long section of Red Chris • Drilling continues to expand the higher grade mineralisation intersected at East Ridge • East Ridge is located outside of Newcrest’s Mineral Resource estimate and has the potential to increase the resource base • Re
Slide 14: Havieron Stage 1 PFS delivers solid returns & base for future growth
Havieron Stage 1 PFS delivers solid returns & base for future growth1,3 • Capital efficient, low intensity development utilising existing Telfer processing infrastructure • Estimated average gold production of 160kozpa @ AISC of US$743/oz over initial 9 year mine life from a 2Mtpa operation5,18,19 •
Slide 15: Havieron Stage 1 PFS delivers solid returns & base for future growth
Havieron Stage 1 PFS delivers solid returns & base for future growth Key study outcomes (100% terms)1,3,9,18,19 IRR 16% Payback14 4 years NPV4 $228m LOM 9 years Project capital21,22 $397m Gold produced (LOM) 1.4Moz Copper produced (LOM) 0.1Mt Average AISC5 $743/oz Havieron Exploration decline has ad
Slide 16: Havieron to leverage Telfer's existing infrastructure
Havieron to leverage Telfer’s existing infrastructure • The Havieron Project is located 45km east of Telfer in the Paterson Province • Project leverages benefit of existing infrastructure and processing capacity at Telfer which currently operates two processing trains with a total capacity of ~22Mtp
Slide 17: Potential for further upside at Havieron
Potential for further upside at Havieron11 • PFS based on the currently defined Indicated Mineral Resource located in the upper sections of the South East Crescent and includes drilling completed to February 2021 • PFS underpins an initial Ore Reserve estimate of 14Mt @ 3.7 g/t Au and 0.54% Cu for 1
Slide 18: Potential for further upside at Havieron
Potential for further upside at Havieron11,17 • Potential to expand the existing Inferred Mineral Resource through the extension of the SE Crescent Zone below the current Mineral Resource, where increasing grade and thickness of mineralisation has been observed in recent drilling • Expansion of mult
Slide 19: Opportunities to further extend Telfer's mine life
Opportunities to further extend Telfer’s mine life6,11 • WDS5 cutback approved in Aug-21 and ensures the continuation of the operation for at least the next 2 years • Potential for other ore sources at or near Telfer to supplement the Havieron ore feed in FY24 and beyond • Further Open Pit extension
Slide 20: Lihir Ph14A PFS demonstrates strong financial returns & risk mitigation
Lihir Ph14A PFS demonstrates strong financial returns & risk mitigation Key study outcomes1,3,23,24 IRR 37% Payback14 2.6 years NPV4 $284m LOM25 5 years Project capital $179m Gold produced (LOM) 1.0Moz Figure 1: Lienitz Pit – Phase 14A Cutback Opportunity. Note: Endnote references on this slide can
Slide 21: Ph14A accelerates Lihir's aspiration of +1Mozpa from FY24
Ph14A accelerates Lihir’s aspiration of +1Mozpa from FY241,3,23,24 • Accelerates Newcrest’s aspiration for Lihir to be a 1Moz+ producer for 10 years from FY247 • Increases Lihir’s Ore Reserves by 1Moz26 • Additional 400koz expected to be produced in first 5 years • Accelerates the potential for Lihi
Slide 22: Lihir Phase 14A PFS findings
Lihir Phase 14A PFS findings LOM indicative gold production profile1,7 1,500 Gold produced (koz) 1,000 500 - FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39 FY40 FY41 Base Case Base Case + Phase 14A Offsets low grade stockpile ore with higher grade fresh ore
Slide 23: Leveraging Newcrest's innovation engine
Leveraging Newcrest’s innovation engine Phase 14A design showing current vs supported design slopes • Leverages Newcrest’s principles of adapting existing technology to unique mining solutions • Utilises standard civil construction techniques • Standard soil multi strand soil anchors with shotcrete
Slide 24: Financial capability – strong balance sheet & access to liquidity
Financial capability – strong balance sheet & access to liquidity Estimated PFS capex including Cadia expansion1,3,9,13,19,21,22,24,27,28,29 800 700 Net cash Coverage $3.9Bn Project capex profile ($m) 600 500 $176M Target minimum $1.5bn, 400 at 30 June 2021 with 1/3 held as cash 300 200 100 - Gearin
Slide 25: Key project milestones & estimated timing
Key project milestones & estimated timing6 Red Chris Block Cave Date Gating Feasibility Study to Execution 2H FY23 First Ore 2H FY26 First Production of Gold/Copper FY27 Havieron Date Gate Feasibility Study to Execution Q2 FY23 First Ore 1H FY24 First Production of Gold/Copper 2H FY24 Lihir Phase 14
Slide 26: Study outcomes underpin an ongoing growth story
Study outcomes underpin an ongoing growth story1,6,11 Potential Red Chris Block Cave Havieron & Telfer Opportunities • PFS currently considers only the Indicated Mineral Resource • Growth drill program immediately below the • East Ridge potential to increase the resource Crescent Zone shows signific
Slide 27: 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 28: Find out more: www.newcrest.com
Find out more: www.newcrest.com Engage with us +61 3 9522 5717 +1 (866) 396 0242
Slide 29: Appendix
Appendix
Slide 30: Endnotes
Endnotes 1. The estimates are indicative only and are subject to market and operating conditions and all necessary approvals . They should not be construed as guidance. 2. The production target underpinning the estimates for Lihir is ~12Moz of gold over the projected ~9 year period. The production t
Slide 31: Endnotes
Endnotes 13. As Red Chris’ functional currency is CAD, the study has been assessed in CAD. CAD values have been converted to USD using an exchange rate of 0.80. 14. Payback is the earliest date that net accumulated free cash flow is equal to zero. This is calculated from first commercial production,
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