Newcrest Mining — FY2021 Earnings Presentation
31 slides from Newcrest Mining's earnings presentation, Aug 19, 2021
Slide 1: FY21 Full Year Results
NEWCREST FY21 Full Year Results Sandeep Biswas Managing Director and Chief Executive Officer Gerard Bond Finance Director and Chief Financial Officer Suresh Vadnagra Chief Technical and Projects 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 (other than for Havieron and Red Chris and Cadia East on Slide 22) has been extracted from the release titled “Annual Mineral Resources and Ore Reserves Statement – 31 December
Slide 4: Newcrest Mining Limited
Newcrest _ Mining Limited
Slide 5: FY21 Key achievements
FY21 Our Purpose & Key achievements Our Aspirations Safety & Financial results & Sustainability shareholder returns Progressing Summary growth
Slide 6: Strong financials underpin increased dividends
Creating a brighter future for people through safe & responsible mining • Strong Zero fatalities (now almost 6 years fatality free) • 12% reduction in injury rates compared to the prior year financials • COVID-19 successfully managed with no material impacts to production underpin • Goal of net zero
Slide 7: New plan & organic growth pipeline showcases future potential
New plan & Progressing our growth options organic growth • Cadia growth options progressing well pipeline o Execution of the works for Stages 1 & 2 of the Cadia Expansion Project remain on track 1 showcases o Moly plant commissioning commenced, with first production expected by the end of September
Slide 8: FY21 Key achievements
FY21 Our Purpose & Key achievements Our Aspirations Safety & Financial results & Sustainability shareholder returns Progressing Summary growth
Slide 9: 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 10: FY21 Key achievements
FY21 Our Purpose & Key achievements Our Aspirations Safety & Financial results & Sustainability shareholder returns Progressing Summary growth
Slide 11: Industry-leading low injury rates
Total Recordable Injury Frequency Rate (per million hours worked) Industry-leading 3.3 low injury rates1 2.4 2.6 2.3 2.3 FY17 FY18 FY19 FY20 FY21 Safety Transformation ▪ Approaching six years free of fatalities and zero life TRIFR improvements at most operations2 changing injuries ▪ Significant redu
Slide 12: Stepping up sustainability commitments
Stepping up Goal of net zero carbon emissions by 20501 sustainability commitments CO2 • Multiple near term GHG reduction opportunities being progressed NEAR TERM & UNDER LONGER TERM CURRENT STATE CONSIDERATION* • Newcrest will pursue innovative solutions and CADIA adopt new technology in the Coal-po
Slide 13: FY21 Key achievements
FY21 Our Purpose & Key achievements Our Aspirations Safety & Financial results & Sustainability shareholder returns Progressing Summary growth
Slide 14: Strong production and higher gold and copper prices underpin financial records
Strong production Strong financial Strong balance sheet and higher gold performance - Net cash position of $176m and copper - Record Statutory & Underlying profit of - $3.9bn of liquidity2 prices underpin $1.2bn - Excellent debt structure - Record free cash flow of $1.1bn multiple financial - Record
Slide 15: Record free cash flow generation in FY21
Record free cash flow generation in FY21 • ~$4.3bn of free cash flow generated since FY14 1 • $92m received from Fruta del Norte finance facilities in FY21 1. FY20 includes investments in M&A activity which includes the payment for the acquisition of Red Chris (70% ownership) of $769 million, the ac
Slide 16: Strong balance sheet & debt structure ideal for growth phase
Strong balance Net debt position as at 30 June 2021 sheet & debt 3,707 structure ideal 2,889 for growth phase 2,107 Acquired Red Chris & FdN finance facilities for total of $1.2bn in FY20 1,499 • Net cash position of $176m at 1,040 30 June 2021, with a ~$3.9bn 624 reduction in net debt since 395 Jun
Slide 17: Strong financial position
Leverage ratio (Net Debt / EBITDA) Gearing ratio Strong Target less than 2.0 times (for trailing 12 months) Target less than 25% financial 2.7 2.1 33.8% 29.3% position 1.6 22.8% 16.6% 1.1 12.2% 0.7 6.8% 0.3 4.9% 0.2 (0.1) (1.8%) FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY14 FY15 FY16 FY17 FY18 FY19 F
Slide 18: Sixth consecutive year of increased dividends
Sixth Increasing earnings per share (US cents/share) consecutive 142.5 year of Earnings per share increased 71% 83.4 dividends 73.0 43.3 40.2 • Shareholders to benefit 26.3 higher than the prior from gold price strength period FY16 FY17 FY18 FY19 FY20 FY21 • Final fully franked dividend 129% higher
Slide 19: FY21 Key achievements
FY21 Our Purpose & Key achievements Our Aspirations Safety & Financial results & Sustainability shareholder returns Progressing Summary growth
Slide 20: Delivering on our profitable growth targets
Delivering on Dec 2020 Feb 2021 Mar 2021 Aug 2021 Q3 CY21 Q3 CY21 2H CY21 our profitable Havieron Lihir Red Chris Telfer Cadia Lihir Havieron growth Initial inferred Pit optimisation Initial Newcrest WDS5 cutback Moly plant first Ph14A PFS to be PFS to be released targets1,2 resource study resource
Slide 21: Cadia Moly plant
Cadia Moly plant1 • In commissioning, first production expected by the end of Sep-211 • Additional revenue stream for Cadia • Estimated ~$50/oz reduction in Cadia’s future AISC/oz2 1. Subject to market and operating conditions and potential delays due to COVID-19 impacts. 2. Estimates were prepared
Slide 22: Cadia PC1-2 PFS Findings
Cadia PC1-2 PFS Findings1 • Estimated capital cost of ~A$1.3bn (~US$0.9bn2) • Attractive returns with an estimated IRR of 21.5% and NPV of A$2.0bn (US$1.5bn2) • ~17 year mine life from first production, at an average of 15mtpa (from PC1-2) • Total estimated ore production of 258mt producing 3.5moz o
Slide 23: Advancing Havieron
Advancing Havieron Australia • Exploration decline construction underway • Decline has advanced 99 metres as at 11 Aug-21 • Pre-Feasibility Study to estimate mine size, mining method, timing and capital cost expected to be released in second half of CY21 • First production expected in 2-3 years1 1.
Slide 24: Additional growth potential at Havieron
SE Crescent Deeps – Higher grade Geology Plan View of the Havieron Deposit open at depth Additional growth potential at Havieron • Initial Inferred Mineral Resource estimate of 3.4Moz Au and 160kt Cu1 • Completion of infill drilling increases confidence in the continuity of high grade mineralisation
Slide 25: Progressing Red Chris
Progressing Red Chris • Exploration decline construction underway • Decline has advanced 96 metres as at 11 Aug-21 • Block Cave Pre- Feasibility Study to estimate mine size, timing and capital cost expected to be released by end of Sep-21 • Potential to mine high grade pods for early cashflow genera
Slide 26: New zone of higher grade mineralisation discovered at Red Chris
New zone of Schematic long section of Red Chris: higher grade mineralisation discovered at Red Chris • East Ridge is located outside of Newcrest’s Mineral Resource estimate, with drill results to date supporting potential resource growth • Drilling in Jun-21 Qtr returned highest grade intercept from
Slide 27: Substantial and growing copper exposure
Substantial and Copper Resource & Reserve Base of Newcrest’s Provinces1,2 growing copper 4,000 exposure Dry Tonnes (million) 3,000 Cadia • Record copper production of ~143kt in FY21 2,000 • Copper represented Namosi ~22% of net revenue in 1,000 FY21 Red Chris Wafi-Golpu • Significant copper 0 Telfer
Slide 28: FY22 Guidance
Fruta del Cadia Lihir Telfer Red Chris2 Havieron Other Group Norte2,3 FY22 Production: Guidance1 Gold (koz) 540 - 610 700 - 800 390 - 440 40 - 42 120 - 135 1,800 - 2,000 Copper (kt) 85 – 95 ~15 23 – 25 125 – 130 All-In Sustaining Cost (AISC) – Includes production stripping (sustaining) and sustainin
Slide 29: FY21 Key achievements
FY21 Our Purpose & Key achievements Our Aspirations Safety & Financial results & Sustainability shareholder returns Progressing Summary growth
Slide 30: 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 31: Find out more: Engage with us
Find out more: www.newcrest.com Engage with us +61 3 9522 5717 +1 (866) 396 0242