Newcrest Mining — Investor Day (October 2018)
174 slides from Newcrest Mining's investor day presentation, October 2018
Slide 1: Investor Day Briefing Book
Investor Day Briefing Book October 2018 0
Slide 2: Venue Safety Briefing
Venue Safety Briefing • Exit locations 1
Slide 3: 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 4: Agenda
Agenda Session 1: 9.00 – 10.30am Overview – Sandeep Biswas Cadia – Craig Jetson Telfer – Philip Stephenson Gosowong – Philip Stephenson Wafi-Golpu – Craig Jones Technology & Innovation – Sandeep Biswas Break 10.30 – 11.00am Session 2: 11.00 – 12.35pm Exploration Presentation – Fraser MacCorquodale G
Slide 5: Overview
Overview Sandeep Biswas Managing Director & CEO 4
Slide 6: The transformation journey so far
The transformation journey so far Phase 1 – Assess and Plan FY14 • Intensify focus on major Phase 2 – Execute and Realise hazards FY15 – FY16 • Assess the operations and culture • Implement Edge Phase 3 – Sustain and Grow • Launch Edge • Increase the intensity of FY17 – FY18 • Establish the senior t
Slide 7: T2 – The second stage of transformation
T2 – The second stage of transformation Delivering on the Five Pillars Aspirations CY18-20 By end of CY 2020 • Safety & Sustainability • Zero fatalities and industry leading TRIFR • People • First quartile Organisational Health • Operating Performance • First quartile AISC per ounce • Technology & I
Slide 8: Our Safety Transformation Plan
Our Safety Transformation Plan Everybody going home safe and healthy every day Zero fatalities and life-changing injuries Build a stronger safety Critical controls for Robust process culture through NewSafe every high-risk task safety management Everybody making safer Verifying that the most Systema
Slide 9: Safety update
Safety update FY15-FY18 TRIFR1 Critical Control Management Verifications 3.6 3.7 3.3 2k 2.4 in FY18 252k in FY18 FY15 FY16 FY17 FY18 Integrated Safety System Highlights with existing systems • Three years fatality free, zero life changing injuries and historically low TRIFR Process Safety • Safety r
Slide 10: Investment Proposition
Investment Proposition Long Low cost reserve life production Organic growth Do what options we say (at Cadia, Lihir and Wafi Golpu) Strong exploration & technical Financially robust capabilities 9
Slide 11: Sustainability
Sustainability Areas of High Importance Who we are Conducting business transparently and ethically Our people Ensuring employee and contractor health and safety Managing our people and their capabilities Social Performance Local community development and investment Environmental Stewardship Water ma
Slide 12: Our people plan
Our people plan Our people vision Measure of success Talented people working together to High performance no-nonsense culture with top their full potential quartile organisational health 1 2 3 Get the basics Develop our Create a diverse right people and and inclusive + capability + environment The r
Slide 13: Diversity & Inclusion
Diversity & Inclusion Diversity and inclusion are essential parts of Newcrest’s vision, values and company culture. We aim to create a diverse and inclusive environment where everyone feels safe, valued and supported to bring their unique self to work. We know having a diverse and inclusive work env
Slide 14: Our Diversity & Inclusion Strategy
Our Diversity & Inclusion Strategy 13
Slide 15: Our Executive Team
Our Executive Team Sandeep Biswas Gerard Bond Craig Jetson Craig Jones lan Kemish Managing Director & CEO Finance Director & CFO EGM Cadia, Lihir & Group EGM Wafi-Golpu EGM People & Technical Services External Affairs bs — : Francesca Lee Michael Nossal Phil Stephenson Melanie Allibon General Counse
Slide 16: An aligned executive remuneration structure
An aligned executive remuneration structure 1 Short Term Incentive Criteria People, Safety Safety & Sustainability 25% 25% Operating Earnings Performance 25% 25% Personal Business measures measures Value & Cash 40% 60% Costs Generation 25% 25% Profitable Free Cash Flow Growth 25% 25% Long Term Incen
Slide 17: Culture – Measuring success
Culture – Measuring success • Organisational Health Index – measures how an organisation aligns itself, executes with excellence, and renews itself to sustainably achieve performance aspirations • Healthy organisations deliver superior financial and operating performance over both the short and long
Slide 18: Our performance Edge
Our performance Edge The vision Measure of success Our relentless drive to realise the Safely maximising cash generation full potential of our assets 1 2 3 Stretch Targets Owner’s Mindset Operating discipline Aspirational targets that drive A strong owner’s mindset and Rapidly identify and capture b
Slide 19: Our operating assets and advanced project
Our operating assets and advanced project Cadia Lihir FY19 Prod. Guidance: 800-880koz Au, ~90kt Cu FY19 Prod. Guidance: 950-1,050koz Au FY18 AISC: $171/oz FY18 AISC: $934/oz Ore Reserves: 23moz gold & 4.4mt copper Ore Reserves: 25moz gold Mineral Resources: 39moz gold & 8.4mt copper Mineral Resource
Slide 20: Trending down the cost curve
Trending down the cost curve Newcrest’s Position on the AISC Cost Curve ($/oz)1,2 1,300 1,200 1,100 1,000 900 FY18, 835 Sept18Q, 778 800 June18Q, 795 700 600 500 400 0% 25% 50% 75% 100% FY18 Company Curve Newcrest 1. Source: Metals Focus “MF Quarterly Gold Mine Cost Service – Q2 2018” (cost curve);
Slide 21: Newcrest retains long reserve life advantage
Newcrest retains long reserve life advantage Note: Width of bubble size represents relative size of gold reserves, indicative AISC margin based on $1,200 gold price Indicative AISC Margin - Interest Exp US$ per ounce1 500 Newcrest 400 Barrick Goldcorp 300 Kinross Gold Fields Newmont 200 AngloGold 10
Slide 22: Newcrest retains long reserve life advantage
Newcrest retains long reserve life advantage Note: Width of bubble size represents relative size of gold reserves, indicative AISC margin based on $1,200 gold price 500 Indicative AISC Margin - Interest Exp US$ per ounce1 Newcrest 400 Barrick Goldcorp 300 Kinross Gold Fields 200 Newmont AngloGold 10
Slide 23: Lihir and Cadia are in a class of their own
Lihir and Cadia are in a class of their own Mineral Resource & Ore Reserve base of global majors’ operating assets (moz)1 60 Solid bars = ore reserve 50 Transparent bars = mineral resource 40 moz 30 20 10 - 1 Based on producing assets held by Barrick, Newmont, Goldcorp and Newcrest with an attributa
Slide 24: Lihir and Cadia are in a class of their own
Lihir and Cadia are in a class of their own Resource & Reserve base of global majors’ operating assets (moz)1 60 Solid bars = ore reserve 50 Transparent bars = mineral resource 40 moz 30 20 10 - 1 Based on producing assets held by Barrick, Newmont, Goldcorp and Newcrest with an attributable reserve
Slide 25: Newcrest’s reserve ounces arguably undervalued
Newcrest’s reserve ounces arguably undervalued Enterprise Value to Gold Equivalent Reserve Ounce ($/oz)1 $1,000 $900 $800 $700 $600 $500 $400 Avg. (ex NCM) $300 $200 $100 $0 1 Source: FactSet and company reports. Note: Gold equivalent values based on spot commodity prices as at 8 October 2018. Enter
Slide 26: Strong total shareholder returns
Strong total shareholder returns Total Shareholder Return – 1 July 2015 to 19 October 2018 (%)1 200 150 Cumulative Total Shareholder Return (%) 100 NCM AUD +64% 50 NCM USD +52% Gold Index +17% - (50) (100) 30/06/2015 31/12/2015 30/06/2016 31/12/2016 30/06/2017 31/12/2017 30/06/2018 Newcrest AUD Newc
Slide 27: Technology & Innovation
Technology & Innovation Sandeep Biswas Managing Director & CEO 26
Slide 28: Our technology and innovation plan
Our technology and innovation plan The vision Measure of success Unlock full potential of assets through Quickly transform tough innovation and step change thinking deposits into tier one assets 1 2 3 Transformative Collaboration and Fast Vision Experimentation Adoption + + Realise full potential of
Slide 29: Value breakthrough strategies
Value breakthrough strategies targeting five breakthroughs by 2020 Breakthrough Levers Operating Adopting now Evaluating Developing future NextGen NextGen Intensive pre- Autonomous Undercut-less Post caving cave process Caving conditioning production caving leaching control NextGen Partial Low cost
Slide 30: NextGen Caving
NextGen Caving deeper, more productive Breakthrough challenge: Materially reduce cave establishment costs and improve the productivity of caving as grades decline Remove personnel from hazardous environments Intensive pre-conditioning Cave process control Hydrofracturing equipment, Cadia Elexon cave
Slide 31: NextGen HydroMet
NextGen HydroMet processing complex ores at materially lower cost Breakthrough challenge: Selective treatment based on improved understanding of orebody mineralogy, experimentation and ore type process customisation Partial (selective) oxidation Low cost refractory process Pyrite end members, Lihir
Slide 32: Selective Processing
Selective Processing removing waste earlier from mine to mill Breakthrough challenge: Rejection of unprofitable material as early as possible in the mining and refining process Improve plant performance and mineral recoveries Float residue scavenging Particle sorting Float tails leach, Lihir Ore sor
Slide 33: Robotic Mining
Robotic Mining remote, safe, productive mining Breakthrough challenge: Creating a long term vision of the future mine system and collaborating with developers and manufacturers to make this an operational reality In mine sensing Robotic mine production Proximity detection system, Telfer Remote mobil
Slide 34: Sustainable mines
Sustainable mines reducing footprint and costs Breakthrough challenge: Improve the environmental and social impact of our operations and projects through technology and innovation Renewable energy Energy efficiencies Geothermal power infrastructure, Lihir O2 plant, Lihir Value capture levers • Renew
Slide 35: Newcrest and TCS collaboration
Newcrest and TCS collaboration • Newcrest signed a collaboration agreement with Tata Consultancy Services (TCS) on 16 October 2018. • TCS is a leading IT services, consulting and business solutions firm that has been partnering with businesses on their transformation journeys. A genuine, long-term p
Slide 36: Cadia
Cadia Craig Jetson EGM – Cadia, Lihir & Group Technical Services 35
Slide 37: Cadia – Cash generation plus growth potential
Cadia Cadia – Cash generation plus growth potential Site Process Key Statistics 1 Element Description Gold Reserve Life: ~33 years Mining Panel Cave mining from Cadia Gold Ore Reserves: 23moz East (Panel Cave 1 and 2), Gold Mineral Resources: 39moz with underground crushing and Copper Ore Reserves:
Slide 38: Cadia – Health, Safety & Environment
Cadia – Health, Safety & Environment Key activities TRIFR1 • NextGen training implemented across 12 workforce - managers and opinion leaders 9 active in building the safety culture • Critical control management embedded at 6 manager and supervisor level 3 • Occupational health and hygiene program an
Slide 39: Cadia – Generic process flow sheet
Cadia – Generic process flow sheet Flotation Rougher / Copper Grinding Scavenger Coarse Ore Flotation Concentrate Flotation Ore Secondary Crushers Ball Mills Cells Flash Float / Sources Gravity Circuit Concentrate Blayney thickener De-watering HPGR ROM SAG Mill Re-grind / Cyclone Mill Underground Tr
Slide 40: Cadia – Process plant
Cadia – Process plant Ridgeway Concentrator 2 conveyor Concentrator 1 Coarse ore stockpile Mobile maintenance Administration Cadia East conveyor 39
Slide 41: Cadia - Site overview
Cadia - Site overview Commercial, Cadia Hill administration & open pit processing Waste rock Cadia East dumps subsidence Location of embankment Water storage slump Southern Northern Tailings Facility Tailings Facility 40
Slide 42: Cadia – Edge performance improvement
Cadia – Edge performance improvement Initiative implemented Current initiative in progress Initiative Initiative • Draw point availability and utilisation • Grinding media cost and performance through improved secondary break & optimisation scheduling Activity Activity • Collaborate with suppliers t
Slide 43: PC2 partial breakthrough to surface
PC2 partial breakthrough to surface Yielded Zone Mobilised PC1 PC1 PC2 PC2 PC2 Cave shape as at September 2018 • PC2 is now interacting with the existing PC1 draw column, as planned • PC2 eastern draw is being tightly controlled for final cave propagation to the surface • Improving maturity of fragm
Slide 44: Cadia East subsidence zone expanding
Cadia East subsidence zone expanding • Subsidence crater deepening as PC1 draw continues • Tension cracks forming and growing above PC2 yielded and Cracking mobilisation zones • Site access road re-routed early 43
Slide 45: Mine induced seismicity
Mine induced seismicity • Seismicity for last two years >0.5ML • Mining process relies on seismicity • Management of seismicity achieved through sequence and geometry of blocks, ground support system and conditioning of rockmass to reduce potency of events • Real time monitoring and management throu
Slide 46: Northern Tailings Storage Facility repair
Northern Tailings Storage Facility repair • Root cause of failure not related to seismicity • No movement in embankment detected since event • Independent review expected to be finalised by end of 2018 • Repair plan to be finalised after receipt of independent review findings • Reviewed the STSF and
Slide 47: NextGen Caving improvements
NextGen Caving improvements post April 2017 seismic event Cave preconditioning • The next mine block, PC2-3, will Orebody have significantly more pre- Hydrofracturing conditioning performed than PC1 or PC2. • Hydrofracturing will be extended into the footprint and surrounding infrastructure areas wi
Slide 48: NextGen Caving improvements
NextGen Caving improvements post April 2017 seismic event Caving engineering • Cave engineering level used to precondition the rockmass and install monitoring beacons before cave commencement • Footprint well developed ahead of cave front minimising personnel to the higher stress abutment zone 47
Slide 49: NextGen Caving improvements
NextGen Caving improvements post April 2017 seismic event Fault line knowledge • Major review of structures & fault lines through the underground system has been undertaken • Future caves incorporate these learnings, with improved identification processes in studies ensuring critical infrastructure
Slide 50: NextGen Caving improvements
NextGen Caving improvements post April 2017 seismic event Boundary fault hydrofracturing for seismic release Hydrofracturing will be completed on identified high stress faults outside of the cave zone to reduce the potential impact of future fault slips. Near cave fault to be Near cave fault hydrofr
Slide 51: NextGen Caving improvements
NextGen Caving improvements post April 2017 seismic event Dynamic tunnel support capacity • The dynamic capacity of the rock bolts used in the cave was consumed during seismic event • We have replaced and upgraded this capacity with deeper dynamic bolts • All future caves have been planned with this
Slide 52: Cadia Expansion PFS Findings
Cadia Expansion PFS Findings1,2 Cadia - uniquely long life Debottlenecking to 33mtpa with upside potential to 35mtpa Project capital: $ 598m IRR: 21% - Plant expansion: $ 58m Payback (years): 8 - PC2-3 development: $ 540m NPV: $887m 1000 120 900 100 800 700 Copper Production (kt) Gold Production (ko
Slide 53: Cadia Gold, Copper & Gold Equivalent production
Cadia Gold, Copper & Gold Equivalent production1 1 Assumptions include: Gold price of US$1,200/oz, copper price of US$3.00/lb, AUD:USD exchange rate of 0.75. Recovered Gold & Copper Production as provided in the chart above as indicative of the forward metal sales profile. Gold-equivalent production
Slide 54: Indicative Cadia panel cave development
Indicative Cadia panel cave development1 1 Diagram is taken from the Prefeasibility Study, which was prepared with the objective of being subject to an accuracy range of ±25%. Panel cave development is subject 53 to completion of the Feasibility Study, all necessary permits, regulatory requirements
Slide 55: Cadia’s indicative cave production schedule
Cadia’s indicative cave production schedule1,2 Panel Cave Start Construction First production Ore (mt) PC2-3 FY19 FY22 122 PC1-2 FY21 FY25 401 PC3-1 FY36 FY38 153 PC2-4 FY42 FY43 106 PC5001 FY44 FY47 93 PC1-4 FY48 FY52 154 PC2-5 FY49 FY52 35 35 30 25 Ore Production (mtpa) 20 15 10 5 0 PC1-4 PC2-5 PC
Slide 56: Cadia – Pre-Feasibility Study Indicative mine plan
Cadia – Pre-Feasibility Study Indicative mine plan1,2,3,4 Timing (Years) Total material movement (Mt) Plant Feed (Mt) Average Gold grade (g/t) Average Copper grade (%) FY19 – 21 ~90 ~91 1.0 0.4 FY22 – 24 ~99 ~94 0.6 0.3 FY25 – 27 ~99 ~99 0.5 0.4 FY28 – 30 ~99 ~99 0.4 0.3 FY31 – 33 ~99 ~99 0.5 0.3 FY
Slide 57: Cadia – Expansion to 33Mtpa
Cadia – Expansion to 33Mpta1 Flotation Rougher / Copper Grinding Scavenger Coarse Ore Flotation Flotation Concentrate Ore Secondary Crushers Cells Flash Float / Sources Gravity Circuit Concentrate Ball Mills thickener HPGR ROM Blayney De-watering SAG Mill Re-grind / Cyclone Mill Train to port Underg
Slide 58: Cadia – Potential expansion to 35Mtpa
Cadia – Potential expansion to 35Mpta1 Flotation Rougher / Copper Grinding Scavenger Coarse Ore Flotation Flotation Concentrate Ore Secondary Crushers Cells Flash Float / Sources Gravity Circuit Concentrate Ball Mills thickener HPGR ROM Blayney De-watering Re-grind / SAG Mill Cyclone Mill Train to p
Slide 59: Cadia – Concept study 35mtpa indicative mine plan
Cadia – Concept study 35mtpa indicative mine plan1,2,3 Timing (Years) Total material movement (Mt) Plant Feed (Mt) Average Gold grade (g/t) Average Copper grade (%) FY19 – 21 ~90 ~91 1.0 0.4 FY22 – 24 ~102 ~97 0.6 0.3 FY25 – 27 ~103 ~103 0.5 0.4 FY28 – 30 ~105 ~105 0.5 0.3 FY31 – 33 ~106 ~106 0.5 0.
Slide 60: Cadia Life of Mine recovery improvement options
Cadia Life of Mine recovery improvement options1 PFS Life of Mine Gold Recovery 72% Further Recovery Improvement Options Innovative Coarse Traditional Option or Ore Flotation Ball Mill Confirmed Recovery Improvements • Extended use of Jameson Cells 3 - 4% • Upgrades to the gravity gold circuit • Exp
Slide 61: Selective Processing
1 Selective Processing Coarse Ore Flotation • Coarse Ore Flotation is an aerated fluidized-bed separator that has demonstrated increased recovery of coarse particles compared to conventional flotation technology • The Coarse Ore Flotation circuit treats the full flotation tailings stream from Train
Slide 62: Selective Processing
Selective Processing Full scale coarse ore flotation plant operational • Coarse Ore Flotation plant • Cost ~$30m • Trials began July 2018 Coarse ore flotation plant, Cadia 61
Slide 63: Sustainable mines
Sustainable mines Cadia Water Saving Initiatives • Site Water Committee established 55 initiatives aiming to conserve, recover or secure water: • Lifting tails thickener performance to technical limits. • Optimising process control loops to minimize water wastage. Total Water Projected savings Thick
Slide 64: Sustainable mines
Sustainable mines Cadia Energy Energy represents ~20% of Cadia’s operating costs New energy contract announced in December 2017 • Base price is 20% lower than the previously contracted price for FY18 • Fixed price contract to the end of FY23 Investigating renewable energy solutions for Cadia • Optio
Slide 65: NextGen HydroMet – Molybdenum Plant Update
NextGen HydroMet Molybdenum Plant Update Feasibility Study in progress yielding the following results: • Design of a molybdenum separation plant expected to generate ~6,500tpa of 52% molybdenum concentrate • Flow sheet and plant layout optimised through the Feasibility Study • Shipping and logistics
Slide 66: Technology & Innovation opportunities at Cadia
Technology & Innovation opportunities at Cadia Lower capex, higher productivity caving, recoveries, tailings Breakthrough challenge: • Step change reduction in block cave est. costs • Low cost increase in mining capacity • Reduce energy intensity • Sustainable, low cost tailings disposal Value captu
Slide 67: Cadia - Community Relations
Cadia - Community Relations Cadia has a strong commitment to local schools and the next generation of the local community. It offers scholarships, apprenticeships, and secondary school bursary programs to local students to ensure they are given every opportunity to take advantage of Cadia. Cadia Gen
Slide 68: Cadia - Community Relations
Cadia - Community Relations Cadia is partnering with the Orange Local Aboriginal Land Council for seed collection, propagation and tree planting for its rehabilitation programs. The partnership includes funding a full-time Business Development role within the Orange Local Aboriginal Land Council to
Slide 69: Lihir
Lihir Craig Jetson EGM - Cadia, Lihir & Group Technical Services 68
Slide 70: Lihir – Turnaround continues
Lihir Lihir – Turnaround continues Site Process Key Statistics 1 Element Description Gold Reserve Life: ~27 years Gold Ore Reserves: 25 moz Mining Open pit drill, blast, load and haul mining, currently in Gold Mineral Resources: 52 moz Phase 9 of Minifie Pit and Phases 14 & 15 in Lienitz. FY19 Prod.
Slide 71: Lihir – Health, Safety & Environment
Lihir – Health, Safety & Environment Key activities TRIFR1 2 • NextGen roll-out commenced with whole management team 1.5 • NewSafe commenced for contractors and employees in the Mining and Mobile 1 Maintenance teams 0.5 • Process Safety HAZOP’s2 have been completed in the processing area 0 • Environ
Slide 72: Lihir – Process plant
Lihir – Process plant Coarse ore Pre-ox CCD NCA #1 stockpile tanks FGO mills NCA #2 Flotation & Main gate grind thickener HGO mills Lime & cyanide Oxygen plants Warehousing Main admin building Wharf Seawater intake & Diesel power Autoclave Tank farm Maintenance tailings outfall station buildings 71
Slide 73: Lihir - Mine area
Lihir - Mine area Dyno Minifie pit area Shovel pad explosives Lienetz pit area magazine Primary Kapit flat crushers stockpile Mine offices Near shore cut- off wall (proposed) Geothermal plant Mobile fleet Future Kapit workshop mine area Interim power Harbour waste station platform Wharf #1 & #2 Inne
Slide 74: Lihir’s increased throughput lowers AISC per oz
Lihir’s increased throughput lowers AISC per oz 12mtpa 13mtpa 14mtpa 15mtpa By December 2015 By December 2016 By December 2017 By end June 20191 ✓ Achieved with 12.4mtpa ✓ Achieved with 13mtpa in × Achieved with 15mtpa • Current target in December 2015 December 2016 quarter in March 2018 quarter qua
Slide 75: NextGen HydroMet
NextGen HydroMet partial oxidation strategy – delivering results Actively manage autoclave throughput based on sulphur content of feed to maximise gold production Microcrystalline Crystalline (blocky) pyrite – appears pyrite – appears less 1 1 more reactive and reactive and generally has higher gene
Slide 76: Lihir - Indicative mine plan
Lihir - Indicative mine plan1,2,3,4,5 Timing Total Material Tonnes to Ex-pit Tonnes Stockpile Tonnes Average Feed Sources Waste (Mt) Plant Feed (Mt)4 (Years) Moved (Mt)3 Stockpiles (Mt) Fed (Mt) Fed (Mt) Grade g/t Minifie & Lienetz, medium grade FY19-23 340-350 140-150 35-40 30-35 40-50 70-80 ~2.6 s
Slide 77: Organic growth options at Lihir
Organic growth options at Lihir1 • Steady increase in mill throughput • Since plant expansion completed in FY13, only small expansion capital spend • Introduction of new operating strategy (partial oxidation) unlocked Lihir FY19 • Aspirational target of 17mtpa – multiple potential avenues to achieve
Slide 78: Lihir – Process flow sheet - current
Lihir – Process flow sheet - current Ore sources Crushing Grinding 14 MTPA 14 MTPA Waste Flotation Expit FGO Float tails Gyratory leach stage 2 Coarse Ore Tails Abon Stockpile leach pipeline HGO1 8 MTPA Jaw 1 Stockpiles 11 MTPA HGO2 Leaching Jaw 2 Pressure Oxidation Float / autoclave bypass 77
Slide 79: Lihir – Rate and utilisation drive performance
Lihir – Rate and utilisation drive performance 2,500 16 90% 16.00 Millions Millions 14 14.00 85% 2,000 12 12.00 Average Operating Milling Rate (t/hr) 80% 10 10.00 1,500 Tonnes Milled Tonnes Milled Utilisation 8 75% 8.00 1,000 6 6.00 70% 4 4.00 500 65% 2 2.00 0 0 60% - FY11 FY12 FY13 FY14 FY15 FY16 F
Slide 80: Lihir – Edge performance improvement
Lihir – Edge performance improvement Initiative implemented Current initiative in progress Initiative Initiative • Increase the life span of the agitator • Safe explosives loading under hot geothermal blades in the Autoclaves conditions (up to 150°C) Achieved Activity • The new design and wear resis
Slide 81: Lihir - Recovery and rate performance
Lihir - Recovery and rate performance Lihir Recent Recovery and Rate performance 16 86 14 84 82 12 Milled Tonnes (mtpa) Gold Recovery (%) 80 10 78 8 76 6 74 4 72 2 70 0 68 2010 2011 2012 2013 2014 2015 2016 2017 2018 Milled Tonnes (mt) Gold Recovery (%) 80
Slide 82: Lihir - Pursuing improvement in recovery
Lihir - Pursuing improvement in recovery Potential Target Initiative 1 Description Recovery Capital 4 Timing 5 Uplift 2 & 3 Recover high grade fast floating material to reduce fines Flash Flotation 1% to 2% $$ FY21 losses Additional Flotation Capacity Additional roughing capacity to improve residenc
Slide 83: Lihir recovery improvement options
Lihir recovery improvement options • Increase float fines recovery by • Increase utilisation of installed float tails leach (FTL) facility by addressing backend capacity constraints • Autoclave improvements reduced available space in Counter Current Decantation (CCD) unit for FTL • Adding low cost C
Slide 84: Lihir seepage barrier
Lihir seepage barrier Proposed new position of seepage barrier Feasibility Study Ongoing • Ground investigation completed in FY18 • Re-alignment toward the east is likely go forward pathway • Easterly alignment utilises the Harbour Waste Platform as a key embankment • Plastic concrete panel wall con
Slide 85: Pit cooling - Key activities and achievements
Pit cooling - Key activities and achievements • Cooling the ground with cold water injection (CWI) • Drilled 6 directional drill holes to permit water injection, monitoring and steam relief – all wells drilled between 500-900m long, 250-350m deep • Drilling eight sub-vertical wells to permit pressur
Slide 86: Lihir Deep Sea Tailings Placement
Lihir Deep Sea Tailings Placement • Rigorous baseline studies prior to approval • DSTP approved as the preferred tailings management option from an environmental and social point of view for Lihir which has limited space for terrestrial tailings storage and is a seismically active region • Ongoing m
Slide 87: Sustainable mines
Sustainable mines Lihir Geothermal Power Generation Program Context • Mining the Kapit orebody will impact geothermal power production • Any lost geothermal power was to be replaced with conventional power Seepage barrier design and construction optimisation • Impact on geothermal infrastructure bei
Slide 88: Technology & Innovation opportunities at Lihir
Technology & Innovation opportunities at Lihir Throughput, recoveries, energy, mining systems Breakthrough challenge: • Reduce all-in Kapit mining costs • Reduce energy intensity of processing • Convert large resource and mineral endowments to higher margin production levels Value capture levers Nex
Slide 89: Lihir – Community relations
Lihir – Community relations What we are doing differently Key Achievements • Enhanced engagement with the community • No community disruption since April 2015 • Increased transparency - quarterly fact sheets • Increased community trust and media coverage on royalty payments, tax • Targeted delivery
Slide 90: Lihir Agreements Review Update
Lihir Agreements Review Update Status Next Steps • The revised MOA is with National Executive Council • Liaise with Minerals Resources Authority to for endorsement establish status of MOA • Compensation, Relocation and Development • Agreements to be tabled for executive level Agreements being drafte
Slide 91: Telfer
Telfer Philip Stephenson EGM Gosowong, Telfer & HSES 90
Slide 92: Telfer – Seeking to maximise value
Telfer Telfer – Seeking to maximise value Site Process Key Statistics 1 Element Description Gold Reserve Life: ~5 years Mining Open pit mining contracted Gold Ore Reserves: 2.4moz to Macmahon Gold Mineral Resources: 8.2moz Underground sub-level cave Copper Ore Reserves: 0.21mt and stope mining contr
Slide 93: Telfer – Health & Safety
Telfer – Health & Safety Key activities TRIFR1 • NewSafe Opinion Leaders and Site Leadership team 12 continuing to build the safety culture through progressive implementation of NewSafe playbooks. 9 • NewSafe NextGen delivery commenced across site. 6 • New Pre-Task Risk Assessment tool capturing the
Slide 94: Telfer – Site map
Telfer – Site map Dump leach Airport & village Main Dome open pit West Dome open pit Underground shaft Power station ROM pads Processing plant Tails storage facility 93
Slide 95: Telfer – Process Plant
Telfer – Process Plant Primary SCATS stockpile Primary crushing Crushing Underground Maintenance mine transfer workshops conveyor Coarse ore Warehouse stockpile Grinding & Raw water dam gravity Copper concentrate Pyrite regrind storage & load out Reagent storage Copper flotation Tails thickening CIL
Slide 96: Telfer – Process Flow Sheet
Telfer – Process Flow Sheet Crushing & Stockpiling Grinding, Classification & Copper/Gold Flotation & Pyrite/Gold Flotation & Tailings Disposal Gravity Concentration Treatment Treatment Open Pit & Underground SAG Mills, Ball Mills Copper Roughers, Cleaners Pyrite Roughers, Cleaners, Tailings Dam Min
Slide 97: Telfer – Indicative underground ore sources
Telfer – Indicative underground ore sources FY19 FY20 FY21 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SLC WF M Reef 96
Slide 98: Telfer – Indicative open pit ore sources
Telfer – Indicative open pit ore sources FY19 FY20 FY21 FY22 FY23 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 MD4 MD6 WD2 WD3 WD4 97
Slide 99: Telfer – Indicative mine plan
Telfer – Indicative mine plan Mineral Resource & Ore Reserves1 Cutback Timetable Gold Copper FY19 onwards2,3 Dry Tonnes Grade Insitu Gold Dry Tonnes Insitu Timing Indicative Grade (%) Pit Cutback Stage (Million) (g/t) (Moz) (Million) Copper (Mt) (years) Cost Ore Reserves Main Dome Open Pit 21 0.56 0
Slide 100: Telfer – Edge performance
Telfer – Edge performance Key initiatives • Ore designation optimisation • Minimise ore rehandle • Modify stacker chutes to reduce crusher • Maintenance effectiveness and efficiency downtime review underway with tool time focus • M Reef stope production bottleneck removal • Contract management and c
Slide 101: Telfer - Selective Processing
Telfer - Selective Processing A system changing focus • Pilot plant testing underway to test potential of innovative x-ray ore sorting technology to extract value out of the Telfer scats stream • Positive early stage results yielding gold and copper metal recovered back to the process that would oth
Slide 102: Telfer - Selective Processing
Telfer - Selective Processing A system changing focus Test results to date (3 months) Parameter Test results to date Feed 100 kt Feed gold grade 0.18 g/t Feed copper grade 0.04% Gold recovery 79% Copper recovery 60% Mass recovery to product 26% Gold product grade 0.56g/t Copper product grade 0.08% •
Slide 103: Telfer - Near mine resource extensions
Telfer - Near mine resource extensions • Aspirational target +100 koz – higher value UG mine life • Complete assessment <12 months Main Dome M Reefs North M-Reefs SLC Cave limit M Reefs M60-70 South LLU North Western Flanks LLU South LLU SW Target Testing LLU W Economic/Geological Assessment Rejecte
Slide 104: Telfer - Technology & Innovation opportunities
Telfer - Technology & Innovation opportunities A system changing focus Breakthrough challenges: Single train processing • The Telfer team are exploring a number of avenues to drive a step change reduction to the all-in cost base • Ore sorting could make the large marginal resource endowment into new
Slide 105: Telfer – driving sustainability
Telfer – driving sustainability • Driving leading practice in arid mine site • Newcrest has a deep history of engagement with rehabilitation the Martu people, and together we have built an • Ongoing stakeholder engagement between intergenerational and multi-pronged approach to regulators, the commun
Slide 106: Telfer hedge profile
Telfer hedge profile Financial Year Ending Gold Ounces Hedged Average Price A$/oz 30 June 2019 231,224 1,739 30 June 2020 204,794 1,729 30 June 2021 216,639 1,864 30 June 2022 204,615 1,902 30 June 2023 137,919 1,942 Total 995,191 1,826 *During FY18 Newcrest realised 294,697 ounces of Telfer gold he
Slide 107: Gosowong
Gosowong Philip Stephenson EGM Gosowong, Telfer & HSES 106
Slide 108: Gosowong – Strong free cash contributor
Gosowong Gosowong – Strong free cash contributor Site Process Key Statistics1 2 Element Description Gold Reserve Life: ~2 years Gold Ore Reserves: 0.48 moz Mining Underground mining using predominantly underhand Gold Mineral Resources: 1.2 moz cut-and-fill (Kencana) and long hole stopes with paste F
Slide 109: Gosowong – Health, Safety & Environment
Gosowong – Health, Safety & Environment Key activities TRIFR1 • Underground mining risk reviews 5 completed and a comprehensive QA/QC program implemented 4 • Improved Mine Planning and Geotechnical 3 Management programs implemented • Critical Control Management embedded at 2 manager and supervisor l
Slide 110: Gosowong – Process plant
Gosowong – Process plant WHS reagent Mixing reagent Process water Crusher storage area pond Mill feed stockpile CCD train #2 ROM pad CCD train #1 stockpile SAG #1 Ball mill gravity SAG #2 circuit Merrill Crowe circuit & gold Fuel diesel room storage tank 109 Power house Power house Mechanical & Preg
Slide 111: Gosowong – Process flow sheet
Gosowong – Process flow sheet Ore Cyclone Verti mill Sources Plating and Grinding Jaw Smelting Crusher Smelting and SAG Mill Leach Tanks moulds Ball Mill Merrill Crowe Gold Process doré Cyclone Hopper CCD Thickeners Trucking ore to surface Gravity Recovery Detox tank Tails Dam Underground Undergroun
Slide 112: Gosowong – Indicative mine plan
Gosowong – Indicative mine plan Mineral Resource & Ore Reserves1 Gold Silver Dry Tonnes Grade Insitu Gold Grade Insitu Silver (millions) (g/t) (Moz) (g/t) (Moz) Ore Reserves 1.9 8.0 0.48 10 0.62 Mineral 3.7 10 1.2 14 1.7 Resources Proposed indicative development of Gosowong mining operations 2,3 Tim
Slide 113: Gosowong – Edge performance improvement
Gosowong – Edge performance improvement Initiative implemented Current initiative in progress Initiative Initiative • Increase exhaust capacity of K1 / KN • Optimise Toguraci Yahut stope dimension Ventilation System Activity Achieved • Improving strike length at Yahut to accelerate • The Kencana und
Slide 114: Gosowong – CoW agreement provides regulatory certainty
Gosowong – CoW agreement provides regulatory certainty Amended Contract of Work • CoW has been amended in line with the agreement in place with the Government of Indonesia - provides certainty of regulatory and fiscal framework going forward • Newcrest’s 75%-owned Indonesian subsidiary PT NHM to pay
Slide 115: Gosowong – $1.6bn free cash flow generated
Gosowong – $1.6bn1 free cash flow generated • High grade world-class epithermal • Over 5.4moz gold produced and province discovered by Newcrest ~$1.6bn free cash flow generated geologists in 1993 since first full year of production in 2000 • Gosowong has performed reliably and consistently while del
Slide 116: Wafi-Golpu
Wafi-Golpu Craig Jones EGM Wafi-Golpu 115
Slide 117: Wafi-Golpu – Updated Feasibility Study
Wafi-Golpu Wafi-Golpu – Updated Feasibility Study1 Key Statistics – Golpu2 Gold Ore Reserves: 5.5 moz IRR3: ~18.2% (real) Avg. copper grade: 1.27% Gold Mineral Resources: 9.3 moz NPV: ~$2.6bn (real) Avg. gold grade: 0.9 g/t Copper Ore Reserves: 2.5 mt Payback: ~9.5 years from Avg. annual copper comm
Slide 118: Wafi-Golpu – Indicative production
Wafi-Golpu – Indicative production1,2,3 1 Figures above reflect 100% of project, Newcrest owns 50% of the project. These figures are estimates from the updated Feasibility Study (as at 19 March 2018) and as such were prepared with the objective of being subject to an accuracy range of ±15%, with the
Slide 119: Wafi-Golpu – Indicative free cashflow
Wafi-Golpu – Indicative free cashflow1,2 Year post grant of SML 1 2 3 4 5 6 and board approval Undiscounted FCF $(133)m $(374)m $(465)m $(1,003)m $(766)m $(82)m (100% basis) 1 Figures above reflect 100% of project, Newcrest owns 50% of the project. These figures are estimates from the updated Feasib
Slide 120: Wafi-Golpu – Indicative timeline and staging
Wafi-Golpu – Indicative timeline and staging Months From SML 1 & Board Approval 3 Commence Nambonga Decline 58 Process plant commissioning and first production (dev’t ore) 65 Block cave 44 (BC1) first production (first draw bell fired) 72 BC1 commercial production 126 Block cave 42 (BC2) commercial
Slide 121: Potential economic and social benefits
Potential economic and social benefits • ~2,500 jobs during construction • ~850 ongoing operations jobs • Plus employment of local contractors and suppliers • Social development investment program designed across the life of the mine • Since 2010, the Program has also been investing in water and san
Slide 122: Unlocking the potential of Morobe
Unlocking the potential of Morobe • Will open up the region from Highlands Highway to Bulolo Highway • Unlock Morobe’s agribusiness potential: • cocoa development program • investigate other potential agricultural initiatives • Complement and support the Morobe Provincial Government's Kundu Vision 2
Slide 123: DSTP the preferred tailings option
DSTP the preferred tailings option Pipe location Huon Gulf Steep sub-sea slopes Deep Canyon Sediment movement towards a 9km deep trench • Extensive scientific studies completed • Western Huon Gulf is a highly suitable environment for DSTP • Environmentally and socially, deep sea tailings placement i
Slide 124: DSTP the preferred tailings option
DSTP the preferred tailings option 123
Slide 125: Exploration & Growth
Exploration & Growth Michael Nossal Chief Development Officer 124
Slide 126: Exploration and Technical capability drive Ore Reserve & Mineral Resource growth
Exploration and Technical capability drive Ore Reserve & Mineral Resource growth1,2 200 Moz Golpu 180 Deeps Deep M Reefs Telfer Toguraci UG 160 Cracow Cadia Hill Wainaulo 140 Kencana O'Callaghans 120 Toguraci Gosowong Lihir Marsden Open Pit Acquisition 100 Cadia East 80 Ridgeway Morobe Acquisition 6
Slide 127: Able to mine and process a diverse range of Gold and Gold-Copper deposits
Able to mine and process a diverse range of Gold and Gold-Copper deposits 126
Slide 128: NextGen Caving
NextGen Caving Newcrest’s Caving Technology enables deeper search space 2000 - 2010 2009 - 2016 2012 onwards Future 2005 onwards Ridgeway Ridgeway Cadia East Golpu Telfer Sublevel Deeps Sequence of > Block Caves Sublevel Caving Caving Block Cave 10 caves 127
Slide 129: Australia Undercover Search Space – New Approach
Australia Undercover Search Space – New Approach Gold Deposit Endowment Our Cover / Basement Search Young Cover Space Palaeozoic Basement Old Archean-Proterozoic Basement 128
Slide 130: Looking deeper in Australia opens new opportunities
Looking deeper in Australia opens new opportunities 1. Looking Deeper in Outcrop Areas 2. Exploring under Cover Cross Section (Not to Scale) High resolution geophysics NO SURFACE Surface MINERALISED EXPRESION OUTCROP OPEN CUT 100m MINE Newcrest UNDER COVER Search Space Traditional Barren Cover 200m
Slide 131: Leveraging of our expertise to look deeper in South America
Leveraging of our expertise to look deeper in South America Satellite Mapping High Resolution Geophysics Ultra trace geochemistry Prospective Hot Crack As Land Surface Alteration Blanket 100m As As Sb Bi Sb 200m Sn Mo Mo Te Epithermal Gold Au Au Shallow Altered Rock 500 Intermediate Sulfidation Depo
Slide 132: Exploration Innovation Smarter and Faster Exploration
Exploration Innovation Smarter and Faster Exploration Ground Selection • Fertility toolbox • Crustal-scale frameworks • Predictive Technologies Smarter and Faster Geochemistry • Ultra low level geochemistry • Machine learning/clustering High Resolution Core Logging • Real-time assaying • High-resolu
Slide 133: Exploration Innovative Predictive Technologies
Exploration Innovative Predictive Technologies 60 km Satellite Image - Satellite Mapping Chile 60 km Known Gold Target Surface Altered Rock Indicator Mineral Map Known Gold Target Key Indicator Mineral KNOWN GOLD TARGET TCS automation of satellite image processing to rapidly and routinely produce mi
Slide 134: What is a Tier 1 deposit?
What is a Tier 1 deposit? “We aspire to a portfolio within 10 years of 5 x Tier 1 assets, 2 - 4 x Tier 2 assets and a strong pre-production pipeline …” Definitions of Tier 1 and Tier 2 assets below used to guide portfolio optimisation decisions: Tier 1 Tier 2 Scale Potential for > 300 kozpa Au Poten
Slide 135: Current exploration footprint
Current exploration footprint North America • Jarbidge (O & AP) • Rattlesnake Hills (O & FI) • Epithermal targets (100%) Mexico • Azucar Minerals (EI) Indonesia PNG • Antam Alliance • Wamum (100%) • Tatau / Big Tabar Island (O & FI) Ecuador Cote d’Ivoire • SolGold (EI) • Séguéla (100%) • Lundin Gold
Slide 136: Americas – Active early entry arrangements
Active early entry arrangements Name Jurisdiction Target Arrangement Status Altazor, Mirasol Chile HS Epithermal Au Option and Farm In Drilling planed in early 2019 Zeus, Mirasol Chile HS Epithermal Au Option and Farm In Target generation Jarbidge USA LS Epithermal Au Option & Asset Purchase Active
Slide 137: Ecuador – attractive place to invest
Ecuador – attractive place to invest • Ecuador is a mineral rich country with limited history of mining • The Government is keen to open up the sector and establish mining as another arm of the Ecuadorian economy. • Newcrest conducted extensive due diligence prior to investing in Ecuador. • In addit
Slide 138: Lundin Gold strategic partnership
Lundin Gold strategic partnership Equity Investment • In February 2018, Newcrest announced a $251m investment in Lundin Gold to acquire a 27.1% interest in the company • Newcrest has appointed two directors to Lundin Gold board and Project Advisory Committee to oversee the development of Fruta del N
Slide 139: Lundin Gold strategic partnership
Lundin Gold strategic partnership Exploration earn-in • HoA to form a JV to explore eight early stage exploration concessions north and south of Fruta del Norte • Up to 50% interest earn-in → $20m over a 5yr period, incl. minimum $4m in first 2 yrs • Newcrest to manage exploration activities • Syner
Slide 140: Newcrest’s long-term metal assumptions used for Reserves and Resources estimates
Newcrest’s long-term metal assumptions used for Reserves and Resources estimates1 Long Term Metal Newcrest & Assumptions MMJV Mineral Resources Estimates Gold Price US$1,300/oz Copper Price US$3.40/lb2 Silver Price US$21.00/oz Ore Reserves Estimates Gold Price US$1,200/oz Copper Price US$3.00/lb3 Si
Slide 141: Newcrest’s Mineral Resources and Ore Reserves – Gold Mineral Resources
Newcrest’s Mineral Resources and Ore Reserves 31 December 2017 Gold Mineral Resources1 Comparison to Dec-16 Dec-17 Mineral Resources Measured Resource Indicated Resource Inferred Resource Dec-17 Total Resource Total Resource Competent Person Dry Gold Dry Gold Dry Gold Dry Gold Insitu Gold Dry Gold I
Slide 142: Newcrest’s Mineral Resources and Ore Reserves – Copper Mineral Resources
Newcrest’s Mineral Resources and Ore Reserves 31 December 2017 Copper Mineral Resources1 Comparison to Dec-16 Dec-17 Mineral Resources Measured Resource Indicated Resource Inferred Resource Dec-17 Total Resource Total Resource Competent Person Dry Copper Dry Copper Dry Copper Dry Copper Insitu Coppe
Slide 143: Newcrest’s Mineral Resources and Ore Reserves – Gold Ore Reserves
Newcrest’s Mineral Resources and Ore Reserves 31 December 2017 Gold Ore Reserves1 Comparison to Dec-16 Dec-17 Ore Reserves Proved Reserve Probable Reserve Dec-17 Total Reserve Total Reserve Competent Person Dry Gold Dry Gold Dry Gold Insitu Gold Dry Gold Insitu Gold Gold Ore Reserves Tonnes Grade To
Slide 144: Newcrest’s Mineral Resources and Ore Reserves – Copper Ore Reserves
Newcrest’s Mineral Resources and Ore Reserves 31 December 2017 Copper Ore Reserves1 Comparison to Dec-16 Total Dec-17 Ore Reserves Proved Reserve Probable Reserve Dec-17 Total Reserve Reserve Competent Person Dry Copper Dry Copper Dry Copper Insitu Copper Dry Copper Insitu Copper Copper Ore Reserves
Slide 145: Recent update to Cadia East and Cadia Hill Ore Reserves
Recent update to Cadia East and Cadia Hill Ore Reserves1 Cadia East Ore Reserve Ore Gold Copper Silver Mt g/t Moz % Mt g/t Moz Total Ore Reserve 1,400 0.49 22 0.30 4.2 0.79 35 Proved Ore Reserve Probable Ore Reserve 1,400 0.49 22 0.30 4.2 0.79 35 On 23 April 2018 Newcrest announced that the Cadia Hi
Slide 146: Finance & Capital Management
Finance & Capital Management Gerard Bond Finance Director & CFO 145
Slide 147: Shareholder returns focus – FY16-18
Shareholder returns focus – FY16 - 18 Improved Strengthen Improve Stronger free operational balance returns to cash flow performance sheet shareholders • Low AISC/oz • FY16 FCF of $814m • Net debt reduction of • Strong relative share $1.1bn in 2 years price performance • Lihir throughput • FY17 FCF
Slide 148: Shareholder returns focus – going forward
Shareholder returns focus – going forward Improved Strengthen Improve Stronger free operational balance returns to cash flow performance sheet shareholders • Continue with Edge • Focus on safe • Continue to reduce • Pursue profitable maximisation of free net debt, lower growth • Throughput uplift at
Slide 149: Nine consecutive halves of strong free cash flow
Nine consecutive halves of strong free cash flow 148
Slide 150: History of strong operating cash flow
History of strong operating cash flow 7,000 1,434 6,387 $m 1 6,000 833 1,467 601 5,000 3,243 728 4,000 1,241 739 427 3,000 1,280 814 2,000 426 3,144 854 965 1,000 829 0 136 FY14 FY15 FY16 FY17 FY18 Total FCF Investing cash flow Operating cash flow 1 In FY18, includes $251m investment in Lundin Gold
Slide 151: Strong balance sheet
Strong balance sheet Debt, Cash and Leverage1,2 5,000 3.0 (times) ($m) 4,000 2.5 3,000 2.0 2,000 1.5 1,000 1.0 - 0.5 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 (1,000) - (2,000) (0.5) US Private Placement Notes Corporate Bonds Other Bilateral Bank Debt Cash (as negative) Leverage Ratio (RHS) 1 Dat
Slide 152: Good debt structure and clean balance sheet
Good debt structure and clean balance sheet Maturity profile as at 30 June 20181 ($m) 1,200 Corporate Bonds 900 600 300 - FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY42 • FY17 – Fully repaid US Private Placement debt and drawn bank facilities • No goodwill remaining on the balance sheet • Relativ
Slide 153: Improving financial policy metrics
Improving financial policy metrics Element Target 30 June 2016 30 June 2017 30 June 2018 Leverage ratio Less than 2.0x Financial Metrics 1.6x 1.1x 0.7x (Net Debt / EBITDA) (for trailing 12 months) Gearing Ratio Less than 25% 22.8% 16.6% 12.2% Credit rating Aim to maintain investment grade Investment
Slide 154: Focused on returns to shareholders
Focused on returns to shareholders Dividend Policy1 Newcrest’s dividend policy seeks to balance financial performance and capital commitments with a prudent leverage and gearing level for the Company. Newcrest looks to pay ordinary dividends that are sustainable over time having regard to its financ
Slide 155: Balanced deployment of cashflow
Balanced deployment of cashflow Dividends declared, Interest and Exploration payments 20.0 18.5 17.9 18.0 15.6 16.0 14.0 15 13.4 cents per share 12.0 10.0 9.4 7.5 7.6 8.0 5.7 6.0 4.0 2.0 0.0 FY16 FY17 FY18 Exploration Payments Interest Paid Dividend Declared 154
Slide 156: Operating costs – exchange rate exposure estimates
Operating costs – exchange rate exposure estimates Newcrest is a US dollar reporting entity, its operating costs will vary in accordance with the movements in its operating currencies where those costs are not denominated in US dollars. The table below shows indicative currency exposures on operatin
Slide 157: Operating costs – indicative costs by type
Operating costs – indicative costs by type 1 The below represents an indicative exposure on operating costs by a variety of spend types (FY18) Maintenance Energy and Labour 2 Consumables (excl labour) Other3 Total Fuel and Parts Cadia 35% 15% 15% 20% 15% 100% Telfer 35% 15% 15% 15% 20% 100% Lihir 40
Slide 158: Foreign exchange sensitivities and oil hedges
Foreign exchange sensitivities1 and oil hedges Approximate Full Year Site Parameter Movement EBIT Impact (US$m) Cadia AUD/USD +0.01 AUD (0.75 → 0.76) (9) Telfer AUD/USD +0.01 AUD (0.75 → 0.76) (3) Lihir USD/PGK -0.1 PGK (3.20 → 3.10) (8) Gosowong USD/IDR -1,000 IDR (13,500 → 12,500) (10) Group AUD/U
Slide 159: AISC and AIC to cost of sales reconciliation
AISC and AIC to cost of sales reconciliation 12 months to 30 June 2018 12 months to 30 June 2017 US$m US$/oz US$m US$/oz Gold sales (koz)1 2,308 2,377 Cost of Sales 2,724 1,180 2,541 1,069 less Depreciation and amortisation (777) (336) (671) (282) less By-product revenue (543) (235) (476) (200) plus
Slide 160: FY18 results
FY18 results Element Cadia Lihir Telfer Goso- Bonikro Wafi- Corp / Group wong Golpu Other Gold Production (koz) 600 955 426 251 115 2,346 Copper Production (kt) 62 - 16 - - 78 AISC ($m) 100 869 533 234 83 107 1,926 Capital Expenditure - Production Stripping1 - 95 43 - 12 - - 150 - Sustaining Capital
Slide 161: FY19 guidance
FY19 guidance1 Element Cadia Lihir Telfer Goso- Wafi- Corp / Group wong Golpu Other Gold production (koz) 800-880 950-1,050 400-460 200-240 - - 2,350-2,600 Copper production (kt) ~90 - ~13 - - - 100-110 AISC ($m)2,3 85-155 880-935 530-575 230-250 - 95-110 1,870-1,970 Capital expenditure - Production
Slide 162: Digital
Digital Gerard Bond Finance Director & CFO 161
Slide 163: Newcrest’s Digital Strategy
Newcrest’s Digital Strategy • Integrated data across systems and networks • Machine level automation ✓ Focussed on site needs • Intelligent use of alarms and visualisations PROCESS • Accurate instrumentation and sensors CONTROL ✓ Data driven insights applied across value • Optimise site operations t
Slide 164: Lihir – Digital collaboration yields planning insights
Lihir – Digital collaboration yields planning insights 163
Slide 165: Cadia – NexGen surveying improves safety and production
Cadia – NexGen surveying improves safety and production 164
Slide 166: Cadia - Soft ‘virtual’ sensors increase crusher capacity
Cadia - Soft ‘virtual’ sensors increase crusher capacity Benefit 165
Slide 167: Cadia - Predictive algorithm reduces mill down time
Cadia - Predictive algorithm reduces mill down time 166
Slide 168: Lihir – Digital drives mill optimisation
Lihir – Digital drives mill optimisation 167
Slide 169: Lihir - Virtual reality technology improves safety
Lihir - Virtual reality technology improves safety 168
Slide 170: Lihir - Digital dashboards improve operator performance
Lihir - Digital dashboards improve operator performance 169
Slide 171: Cadia - Machine learning reduces crushing costs
Cadia - Machine learning reduces crushing costs 170
Slide 172: Newcrest taps global talent pool through crowdsourcing
Newcrest taps global talent pool through crowdsourcing Lihir Acoustic Machine Health Physical sensors on autoclaves to Cadia Hydrosaver determine sparge predicts tailings tube deterioration underflow density Enabling reuse and recycling of water. Currently moving into production Cadia underground lo
Slide 173: The Newcrest Crowd
The Newcrest Crowd Hydrosaver Goal: Predict tailings underflow density by 3 hours to increase water recycled in the plant and reduce tailings deposited. Result: 750 predictive models, 150 people from 12 countries. Status: 90% complete implementing into Cadia SAOC. Get to the Core Goal: Automate crop
Slide 174: Newcrest Mining Limited
NEWCREST MINING LIMITED Board Forward Shareholder Enquiries to Peter Hay Non-Executive Chairman Link Market Services Sandeep Biswas Managing Director and CEO Tower 4, 727 Collins Street Gerard Bond Finance Director and CFO Melbourne, Victoria, 3000 Philip Aiken AM Non-Executive Director Australia Ro