Newcrest Mining — Denver Gold Forum 2020
23 slides from Newcrest Mining's conference presentation, September 2020
Slide 1: Delivering Profitable Growth
DENVER GOLD FORUM Delivering Profitable Growth Sandeep Biswas Managing Director and Chief Executive 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 Mining Limited ~ ep) ®o pas oO = oO za
Slide 4: Delivering on our aspirations set in 2018
Delivering on our aspirations set in 2018 Our Vision: To be the Miner of Choice Our Pillars: SAFETY & PEOPLE OPERATING TECHNOLOGY PROFITABLE SUSTAINABILITY PERFORMANCE & INNOVATION GROWTH ASPIRATIONS Zero fatalities First quartile First quartile 5 breakthrough Exposure to five tier one and industry-
Slide 5: Investing in growth
• Mine and plant expansion works in progress Investing in • Construction of Molybdenum plant in progress Cadia growth Picture • Feasibility studies progressing on seepage barrier to access Kapit orebody, and recovery improvements Lihir • Earned 40% interest in Havieron Picture • Reported positive dr
Slide 6: Cadia – increase in milled tonnes achieved with minimal capital
Cadia – Cadia Mine Production (mtpa) Cadia Mill Throughput (mtpa) increase in milled tonnes 30 30 achieved with minimal capital1 25 25 20 20 15 15 10 10 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY14 FY15 FY16 FY17 FY18 FY19 FY20 1. See Operating and Financial Reviews contained in Newcrest’s ASX Appendix 4
Slide 7: Cadia – progressing next phase of expansion
Stage 1 (in Execution) Stage 2 (in Feasibility Study) Cadia – progressing • PC2-3 development - targeting first • Plant expansion to 35mtpa and production in FY23 recovery improvements next phase of • Plant capacity expansion to 33mtpa • Study finalisation expected end CY20 expansion • Targeting imp
Slide 8: Cadia - Molybdenum Plant to add additional revenue stream
Cadia - First production in CY211 Molybdenum Plant to add additional revenue stream Indicative Plant Layout 1 Subject to market and operating conditions. Estimates were prepared to a Feasibility Study level with the objective of being subject to an accuracy range of Current Progress Photo (August 20
Slide 9: Lihir – improvement team focused on mitigating clay impacts
• Higher than normal proportion of certain clays impact Issue materials handling, flotation and autoclave performance Lihir – improvement Period of Likely • FY20 (high stockpile feed) team focused Impact • FY21 and some of FY22 (stockpiles, Phase 15 argillic cap) on mitigating • Optimising feed blen
Slide 10: Lihir – realising future value
Lihir – Pit optimisation study realising Seepage barrier feasibility study future value Activities In Progress Technological advances in working in hot ground Front end recovery improvement study
Slide 11: Paterson province - viewed through a new lens
122º00’E Telfer 21º00’S Paterson province - viewed through a new lens Nifty TELFER Havieron O’Callaghans 22º00’S Legend Maroochydore Newcrest tenements Wi l ki JV tenements Ha vi eron JV tenement Grea tland tenement 20 kms
Slide 12: Havieron – growth of a discovery
• Joint venture with Greatland Gold plc Havieron – • Newcrest has earned 40% interest, with pathway to 75% ownership2 growth of a Sep-20 • ~99,000m of drilling to date discovery1 +464200 E +464000 E • Initial resource targeted by Dec 2020, PFS expected by late 2021 +7598000 N Jun-19 Dec-19 Jun-20 Se
Slide 13: Red Chris – delivering improvement
Apply Newcrest’s Red Chris – Safety Edge Apply Newcrest’s industry leading delivering Transformation transformation technology improvement approach Keep our people Improve existing Develop future safe operations potential
Slide 14: Red Chris – appears similar to an early Cadia
Cadia 5.5km Red Chris – Big Cadia Little Cadia appears Cadia Quarry Cadia Hill similar to an early Cadia Ridgeway Cadia East Red Chris 3km Main Zone East Zone OP Au ppm Gully Zone East Zone UG Open Open
Slide 15: History of growing a world class asset
1992 1994 1998 2002 2012 2014 Cadia Hill Cadia Open pit Concentrator 2 Bulk UG Second block History of discovered by East discovered mining at Cadia Hill commissioned mining at Cadia East cave in Cadia East growing a Newcrest (PC1) (PC2) world class asset 1993 1996 2002 2009 2012 2019 First Ridgeway
Slide 16: Red Chris – next steps towards growth
Commence Decline Additional Drilling Red Chris – (75,000m in FY21) Construction (late 2020 or early 2021) next steps towards Initial Newcrest growth1 Prefeasibility Study Resource (by Sept 2021) (by March 2021) 1. Subject to market and operating conditions
Slide 17: Wafi-Golpu – world class undeveloped copper/gold deposits
Key Statistics1 Wafi-Golpu – Next Steps world class • Gold Ore Reserves: 5.5 moz • Re-engaging with the State of PNG undeveloped • Gold Mineral Resources: 9.3 moz and progressing discussions on the Special Mining Lease copper/gold • Copper Ore Reserves: 2.5 mt deposits • Copper Mineral Resources: 4.
Slide 18: A growing portfolio of other exposures
A growing portfolio of other exposures Increased exposure to Fruta del 32% equity interest in Lundin Gold Norte through financing facilities Canada America Mexico PNG Ecuador Australia Chile 1 As at September 2020. Includes 100% interest, farm Early entry portfolio opportunities increased in, option
Slide 19: Delivered five breakthrough successes
Single lift, high draw height caving (>1km) by adopting Delivered five intensive preconditioning and cave process control (at Cadia) breakthrough successes Lower cost, refractory processing by adopting selective oxidation for gold bearing, pyrite types (at Lihir) Step change reduction in expansion g
Slide 20: World leading undercutless technology
Benefits: World leading • Safety: Reduces number of people, and time spent, in deep caves undercutless • Cost: Aim to be ~30% lower cave establishment costs compared with the advanced technology undercutting cave establishment methodology • Speed: Aim to be ~10% faster in overall block cave establis
Slide 21: Targets for delivering profitable growth
Targets for delivering profitable Dec 2020 Dec 2020 End 2020/ Mar 2021 Sep 2021 In CY21 In FY23 Early 2021 growth Pit optimisation 35mtpa process Commence Initial Newcrest PFS Moly plant first PC2-3 first production study capacity decline resource production FS construction Dec 2020 Dec 2020 End 202
Slide 22: What makes Newcrest different
What makes Newcrest Long Low cost different reserve life production Do what Organic growth options (at Cadia, Lihir, Wafi-Golpu, we say Havieron & Red Chris) Strong exploration & technical Financially robust capabilities
Slide 23: Find out more: Engage with us
Find out more: www.newcrest.com Engage with us +61 3 9522 5717 +1 866 396 0242