Newcrest Mining — FY2019 Earnings Presentation
88 slides from Newcrest Mining's earnings presentation, August 2019
Slide 1: Newcrest Briefing Book
Newcrest Briefing Book August 2019 0
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: Disclaimer
Disclaimer Competent Person’s Statement The information in this presentation that relates to Mineral Resources or Ore Reserves (other than Red Chris and Havieron) has been extracted from the release titled “Annual Mineral Resources and Ore Reserves Statement –31 December 2018” dated 14 February 2019
Slide 4: Safety update
Safety update FY16- FY19 TRIFR1 Critical Control Management Verifications 3.7 3.3 1,657 2.4 2.3 FY19 302k FY19 FY16 FY17 FY18 FY19 Integrated Safety System Highlights with existing systems • Newcrest’s three safety pillars continue to deliver improvement: • A strong safety culture Process Safety • C
Slide 5: Sustainability
Sustainability High international and industry performance standards International Council on Mining & Metals members – bound by the Sustainability Framework • Must be independently assured annually against the 10 Principles and position statements Minerals Council of Australia members – Enduring Va
Slide 6: Sustainability - New policies, new targets
Sustainability - New policies, new targets Water Sustainability Stewardship Aspire to be an industry Catchment-based leader assessments Climate Biodiversity Change No net loss of Applying phased biodiversity values approach to TCFD for new projects reporting Emissions Carbon Price Intensity $25/t-$5
Slide 7: Climate Change, Shadow Carbon Price, TCFD
Climate Change, Shadow Carbon Price, TCFD Climate Change Policy and 2030 emissions target • Sustainability is core to our business • A sustainable business is a successful business • Target of 30% reduction in emissions intensity by 2030 (from 2018). Based on CO2-e per tonne of ore treated. Shadow c
Slide 8: Investment Proposition
Investment Proposition Long Low cost reserve life production Organic growth Do what options we say (at Cadia, Lihir, Wafi Golpu & Red Chris) Strong exploration & technical Financially robust capabilities 7
Slide 9: An aligned executive remuneration structure
An aligned executive remuneration structure 1 Short Term Incentive Criteria Long Term Incentive Criteria 1 Each of the CEO, CFO and other Executives have different specific personal measures under the 5 categories listed. 8
Slide 10: Preparing for the next phase of growth
Preparing for the next phase of growth Chief Executive Officer Sandeep Biswas Chief Operating Officer Chief Operating Officer Chief Development Officer Chief Financial Officer (Australia, Indonesia & (PNG)# Michael Nossal* America) Gerard Bond Philip Stephenson Craig Jones Chief People & Chief Techn
Slide 11: Our operating assets and advanced projects
Our operating assets and advanced projects Cadia (100%) Lihir (100%) Telfer (100%) FY19 Production: 913koz Au, 91kt Cu FY19 Production: 933koz Au FY19 Production: 452koz Au, 15kt Cu FY19 AISC: $132/oz FY19 AISC: $887/oz FY19 AISC: $1,253/oz Ore Reserves: 22moz Au & 4.3mt Cu Ore Reserves: 24moz Au Or
Slide 12: Lowest cost major gold producer
Lowest cost major gold producer AISC/oz for the most recently reported quarter1 ($/oz) 1,016 996 953 910 869 720 Newcrest Mining Barrick Gold Gold Fields Agnico Eagle Anglogold Ashanti Newmont Mining 2 1 AISC/oz from company reports for 3 months ended 30 June 2019. Based on data available as at 5:00
Slide 13: 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 600 Evolution 500 Newcrest 400 Newmont Goldcorp Barrick 300 Northern Star 200 100
Slide 14: 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 600 Evolution 500 Newcrest 400 Newmont Goldcorp 300 Northern Star Barrick 200 100
Slide 15: 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)1,2 60 Solid bars = ore reserve Transparent bars = mineral resource 50 40 moz 30 20 10 - 1 Based on producing assets held by Barrick, Newmont and Newcrest with an attributable reserve >4moz (w
Slide 16: Strong total shareholder returns
Strong total shareholder returns Total Shareholder Return – 1 July 2015 to 9 August 2019 (%)1 250 NCM AUD +208% 200 NCM USD +172% Cumulative Total Shareholder Return (%) 150 100 Gold Index +73% 50 - (50) (100) 30/06/2015 31/12/2015 30/06/2016 31/12/2016 30/06/2017 31/12/2017 30/06/2018 31/12/2018 30
Slide 17: A unique suite of technical capabilities
A unique suite of technical capabilities Lihir, Telfer Telfer Gosowong Telfer Cadia Open pit Selective Reef Underground Narrow Vein Bulk Sublevel Caving Block/Panel Underground Caving Large scale comminution Pressure oxidation Processing Copper-gold flotation Cyanide & carbon in leach 16
Slide 18: Value breakthrough strategies
Value breakthrough strategies targeting five breakthroughs by end of calendar 2020 Breakthrough Levers Operating Adopting now Evaluating Developing future Next Gen High draw, Cave process Single pass Remote Post caving Caving deep caving control caving production leaching Next Gen Selective Low cost
Slide 19: Value breakthroughs captured
Value breakthroughs captured Competitive technology advantages +50% +30% +15% Draw height inventory Oxygen energy constraint release Grind energy intensity saving 1 2 3 High draw, deep caving Selective oxidation Coarse flotation Unique high draw capability Selective oxidation optimises Reduces grind
Slide 20: High draw, deep caving expertise
High draw, deep caving expertise Bubble size represents production rate. Data source: International caving benchmarking study stage 2, University of Queensland. 19
Slide 21: 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 High draw, deep caving Cave process control Hydrofracturing equipment, Cadia Elexon cave mon
Slide 22: NextGen HydroMet
NextGen HydroMet processing at lower cost Breakthrough challenge: Selective treatment based on improved understanding of orebody mineralogy, experimentation and ore type process customisation Selective oxidation Low cost complex ores Pyrite end members, Lihir Kapit North stockpile, Lihir Value captu
Slide 23: Selective processing
Selective processing focus on processing ore at all scales Breakthrough challenge: Rejection of unprofitable material as early as possible in the mining and refining process Improve plant performance and mineral recoveries Coarse flotation Screening & sorting Coarse ore flotation, Cadia Screening de
Slide 24: 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 mining Proximity detection system, Telfer Remote mobile equipme
Slide 25: 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 Energy efficiencies Renewable energy growth Selective oxidation, Lihir Geothermal power infrastructure, Lihir Value capt
Slide 26: Cadia – Reduced costs & increased cash flow
Cadia Cadia – Reduced costs & increased cash flow Site Process Key Statistics 1 Element Description Gold Reserve Life: ~24 years Mining Panel Cave mining from Cadia Gold Ore Reserves: 22moz East (Panel Cave 1 and 2), Gold Mineral Resources: 38moz with underground crushing and Copper Ore Reserves: 4.
Slide 27: NextGen Caving PC2 fully fractured through to surface
NextGen Caving PC2 fully fractured through to surface • Substantially reduces the likelihood of Comminution Zone – Rock actively flowing exposure to an air gap hazard and breaking up • PC2 eastern draw is being controlled Dilating Zone – Rock mass broken and with a focus on the growth of the eastern
Slide 28: 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 29: Cadia Expansion Feasibility Study progressed
Cadia Expansion Feasibility Study progressed • Findings of the Cadia Expansion Feasibility Study expected to be released by the end of December 2019 • In conjunction with the study, Cadia commenced early works on the next block cave of Cadia East, PC2-3. 28
Slide 30: 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 31: Cadia Gold, Copper & Gold Equivalent production
Cadia Gold, Copper & Gold Equivalent production1,2,3 1 Estimates were prepared to a Prefeasibility Study level with the objective of being subject to an accuracy range of ±25%. The estimates are subject to completion of the Feasibility Study, all necessary permits, internal and regulatory requiremen
Slide 32: 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 31 to completion of the Feasibility Study, all necessary permits, internal and regulatory
Slide 33: 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 34: 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 (%) FY20 - 22 ~94 ~93 0.9 0.4 FY23 - 25 ~99 ~94 0.6 0.3 FY26 - 28 ~99 ~99 0.5 0.4 FY29 - 31 ~99 ~99 0.5 0.3 FY32 - 34 ~99 ~99 0.5 0.3 FY
Slide 35: 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 36: 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 37: NextGen HydroMet Molybdenum Plant Update
NextGen HydroMet Molybdenum Plant Update Feasibility Study completed: • Design of a molybdenum separation plant expected to generate ~6,500tpa of 52% molybdenum concentrate with a 92% recovery • Shipping and logistics parameters confirmed • Full load Commissioning expected to be completed – FY221 1,
Slide 38: Northern Tailings Storage Facility (NTSF)
Northern Tailings Storage Facility (NTSF) • No significant movement in embankment detected since event • Independent Technical Review Board (ITRB) report released in April 2019 • In consultation with NSW Regulators, Newcrest will adopt all recommendations of the report • Concept study into repair pl
Slide 39: Block caving fundamentals
Block caving fundamentals Subsidence zone Panel Cave 1 • ~1,200 metres deep, 114 drawbells Panel Cave 2 • ~1,400 metres deep, 165 drawbells Caving levels Comparative surface impact Cadia hill open pit Cadia East subsidence zone Waste rock dumps 38
Slide 40: Lihir – Strong cash flow generation
Lihir Lihir – Strong cash flow generation Site Process Key Statistics 1 Element Description Gold Reserve Life: ~26 years Gold Ore Reserves: 24moz Mining Open pit drill, blast, load and haul mining, currently in Gold Mineral Resources: 50moz Phase 9 of Minifie Pit and Phases 14 & 15 in Lienitz. FY20
Slide 41: 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 2019 Achieved with 12.4mtpa Achieved with 13mtpa in × Achieved with 15mtpa Achieved with 16mtpa in in December 2015 December 2016 quarter in March 2018 qua
Slide 42: NextGen HydroMet partial oxidation strategy
NextGen HydroMet partial oxidation strategy – delivering results Actively manage autoclave throughput based on sulphur content of feed to maximise gold production Microcrystalline Crystalline (blocky) 1 1 pyrite – appears pyrite – appears less more reactive and reactive and generally has higher gene
Slide 43: 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 FY20-24 350-360 145-155 50-55 20-25 50-55 70-80 ~2.6 s
Slide 44: 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 45: Telfer – Seeking to maximise value
Telfer Telfer – Seeking to maximise value Site Process Key Statistics 1 Element Description Gold Reserve Life: ~4 years Mining Open pit mining contracted Gold Ore Reserves: 2.0moz to Macmahon Gold Mineral Resources: 6.4moz Underground sub-level cave Copper Ore Reserves: 0.20mt and stope mining contr
Slide 46: Telfer – Indicative mine plan
Telfer – Indicative mine plan Mineral Resource & Ore Reserves1 Cutback Timetable Gold Copper FY20 onwards2,3,5 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 9.3 0.5
Slide 47: Technology & Innovation at Telfer
Technology & Innovation at Telfer Breakthrough challenge: Extend Telfer’s life through step change technologies that materially improve cost base and product quality Particle sorting & screening Pebbles as grinding media Value capture levers being Trials nearing completion Partial replacement of ste
Slide 48: Telfer - Selective Processing- Screening
Telfer - Selective Processing- Screening A system changing focus • A pilot plant trial has been completed over a 3 month period to assess the potential opportunity of screening Telfer’s lower grade and mineralised waste ore sources. • The results indicate ~80% of the gold is contained in ~50% of the
Slide 49: Telfer hedge profile
Telfer hedge profile Financial Year Ending Gold Ounces Hedged Average Price A$/oz 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 763,967 1,852 *During FY19 Newcrest realised 231,224 ounces of Telfer gold sales hedged at an average pr
Slide 50: Havieron – Opportunity for Telfer
Havieron – Opportunity for Telfer Drill results as at 30 June 2019 • Farm-in agreement on the Havieron tenement with potential to deliver high grade ore feed to Telfer • Newcrest to manage the exploration program • $5m minimum commitment over initial 12 months, with potential to earn 70% JV interest
Slide 51: Gosowong
Gosowong Gosowong Site Process Key Statistics1 2 Element Description Gold Reserve Life: ~2 years Gold Ore Reserves: 0.37 moz Mining Underground mining using predominantly underhand Gold Mineral Resources: 1.1 moz cut-and-fill (Kencana) and long hole stopes with paste FY20 Prod. Guidance: 145-175koz
Slide 52: 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 1.4 8.1 0.37 12 0.54 Mineral 3.3 10 1.1 14 1.5 Resources Proposed indicative development of Gosowong mining operations2,3 Timi
Slide 53: Gosowong – $1.6bn free cash flow generated
Gosowong – $1.6bn1 free cash flow generated • High grade world-class epithermal province • As announced on 26 June 2018, discovered by Newcrest geologists in 1993 Newcrest’s 75% owned Indonesian subsidiary, PT Nusa Halmahera Minerals • Gosowong has performed reliably and (PT NHM), entered into an ag
Slide 54: Red Chris – Potential Tier 1 orebody
Red Chris Red Chris – Potential Tier 1 orebody1,2 Site Process Key Statistics1,2 Element Description Gold Mineral Resource: 20moz Copper Mineral Resource: 13blb Mining Open pit mining (currently) Block Cave (potentially)3 Q4 FY19 Production: 7.6koz Au & 8.0kt Cu Processing Crushing, grinding, flotat
Slide 55: Red Chris – Two stage transformation
Red Chris – Two stage transformation Stage 1 - Apply Newcrest’s Edge transformation approach • Process plant optimisation • Mine optimisation • Supply chain cost reduction • Extensional resource and exploration drilling program Stage 2 - Apply Newcrest’s industry leading technology • Block caving •
Slide 56: Red Chris Forward work plan
Forward work plan FY20 FY20 FY20 FY20 FY21 FY21 FY21 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Drilling program Ore deposit knowledge Resource Drilling Exploration Drilling Open pit optimisation Open pit optimisation Transformation Determine economic Stage 1 open pit extent Process plant optimisation Determine optimal p
Slide 57: Significant exploration upside potential
Significant exploration upside potential 56
Slide 58: 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 59: 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 60: 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 61: Wafi-Golpu – Indicative timeline and staging
Wafi-Golpu – Indicative timeline and staging Months From SML 1,2 & 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) commercia
Slide 62: 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 63: 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 62 Source: Minex Consulting - https://www.minexconsulting.com/)
Slide 64: 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 65: 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 66: 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 67: 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 68: Current exploration footprint
Current exploration footprint Canada • Red Chris JV (70% JV) North America • Jarbidge (O) • Rattlesnake Hills (O & FI) Mexico • Azucar Minerals (EI) Indonesia PNG • Antam Alliance • Wamum project (100%) • Tatau / Big Tabar Island (O & FI) Ecuador • SolGold (EI) Cote d’Ivoire • Lundin Gold (EI) • Bar
Slide 69: Lundin Gold strategic partnership
Lundin Gold strategic partnership Exploration earn-in • JV to explore eight early stage exploration concessions north and south of Fruta del Norte finalised • Up to 50% interest earn-in → $20m over a 5yr period, incl. minimum $4m in first 2 yrs • Newcrest to manage exploration activities • Synergies
Slide 70: History of strong operating, investing & free cash flow
History of strong operating, investing & free cash flow 1,600 1,600 $1,467m $1,487m $1,434m 1,400 1,400 $1,280m $1,241m 1,200 1,200 $683m $728m Realised Gold Price ($/oz) $426m 1,000 $427m $833m 1,000 Cash flow ($m) 800 800 600 600 400 $854m $814m $804m 400 $739m $601m 200 200 0 0 FY15 FY16 FY17 FY1
Slide 71: Eleven consecutive halves of strong free cash flow
Eleven consecutive halves of strong free cash flow Cumulative free cash flow ($m) $4.2 Billion H1 Free Cash Flow H2 Free Cash Flow 70
Slide 72: Good debt structure and clean balance sheet
Good debt structure and clean balance sheet Maturity profile as at 30 June 20191,3 ($m) 1,200 Corporate Bonds 900 600 300 - FY20 FY21 FY22 FY23 FY24 FY25 FY42 • No goodwill remaining on the balance sheet • Relatively low level of future mine rehabilitation costs2 1 All Newcrest’s debt is denominated
Slide 73: Improving financial policy metrics
Improving financial policy metrics Element Target 30 June 2017 30 June 2018 30 June 2019 Leverage ratio Less than 2.0x Financial Metrics 1.1x 0.7x 0.2x (Net Debt / EBITDA) (for trailing 12 months) Gearing Ratio Less than 25% 16.6% 12.2% 4.9% Credit rating Aim to maintain investment grade Investment
Slide 74: 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 75: Newcrest's long-term metal price assumptions
Newcrest’s long-term metal price assumptions used for Reserves and Resources estimates1 Long Term Metal Price 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$1,200/oz Copper Price US
Slide 76: Mineral Resources and Ore Reserves – Gold Mineral Resources
Newcrest’s Mineral Resources and Ore Reserves 31 December 2018 Gold Mineral Resources1 1 As per Newcrest Annual Statement of Mineral Resources and Ore Reserves as at 31 December 2018. 75
Slide 77: Mineral Resources and Ore Reserves – Copper Mineral Resources
Newcrest’s Mineral Resources and Ore Reserves 31 December 2018 Copper Mineral Resources1 1 As per Newcrest Annual Statement of Mineral Resources and Ore Reserves as at 31 December 2018. 76
Slide 78: Mineral Resources and Ore Reserves – Gold Ore Reserves
Newcrest’s Mineral Resources and Ore Reserves 31 December 2018 Gold Ore Reserves1 1 As per Newcrest Annual Statement of Mineral Resources and Ore Reserves as at 31 December 2018. 77
Slide 79: Mineral Resources and Ore Reserves – Copper Ore Reserves
Newcrest’s Mineral Resources and Ore Reserves 31 December 2018 Copper Ore Reserves1 1 As per Newcrest Annual Statement of Mineral Resources and Ore Reserves as at 31 December 2018. 78
Slide 80: Operating costs – exchange rate exposure estimates
Operating costs – exchange rate exposure estimates Newcrest is a US dollar reporting entity, its operating costs will vary in accordance with the movements in its operating currencies where those costs are not denominated in US dollars. The table below shows indicative currency exposures on operatin
Slide 81: Operating costs – indicative costs by type
Operating costs – indicative costs by type 1 The below represents an indicative exposure on operating costs by a variety of spend types (FY19) Maintenance Energy and Labour 2 Consumables (excl labour) Other3 Total Fuel and Parts Cadia 35% 15% 10% 25% 15% 100% Telfer 30% 10% 15% 15% 30% 100% Lihir 40
Slide 82: Foreign exchange sensitivities and oil hedges
Foreign exchange sensitivities1 and oil hedges Approximate Full Year Site Parameter Movement EBIT Impact (US$m) Cadia AUD/USD +0.01 AUD (0.72 → 0.73) (8) Telfer AUD/USD +0.01 AUD (0.72 → 0.73) (4) Lihir USD/PGK -0.1 PGK (3.20 → 3.10) (7) Gosowong USD/IDR -1,000 IDR (14,500 → 13,500) (10) Group AUD/U
Slide 83: AISC and AIC to cost of sales reconciliation
AISC and AIC to cost of sales reconciliation 12 months to 30 June 2019 12 months to 30 June 2018 $m $/oz $m $/oz Gold sales (koz) 2,529 2,308 Cost of Sales1 2,648 1,047 2,724 1,180 less Depreciation and amortisation (727) (288) (777) (336) less By-product revenue1 (569) (225) (543) (235) plus Gold c
Slide 84: FY19 results summary
FY19 results summary Element Cadia Lihir Telfer Goso- Wafi- Corp / Group wong Golpu Other Gold Production (koz) 913 933 452 190 - - 2,488 Copper Production (kt) 91 - 15 - - - 106 AISC ($m) 121 855 565 219 - 105 1,865 Capital Expenditure - Production Stripping1 - 63 67 - - - 130 - Sustaining Capital1
Slide 85: FY20 guidance
FY20 guidance1,5 Element Cadia Lihir Telfer Goso- Wafi- Corp / Group wong Golpu Other Gold production (koz) 760-840 930-1,030 400-460 145-175 - - 2,350-2,500 Copper production (kt) ~100 - ~15 - - - 110-120 AISC ($m)2 40-130 890-970 485-545 190-215 - 105-120 1,780-1,880 Capital expenditure - Producti
Slide 86: IT & Digital Awards
IT & Digital Awards “Fix This” mobile maintenance app using AI Machine Vision technology; Warehouse Barcoding mobility solution for Cadia; “My Telfer” site mobility App; Easy SAP App for employee and manager self-service utilising SAP Cloud platform. Improving availability and production using virtu
Slide 87: Winning Internet of Things (IoT) solutions
Winning Internet of Things (IoT) solutions Improving availability and production with Industrial IoT Winner: Australia’s Best Primary Industry IoT Project PROBLEM 2019 Advantech IoT Co-Creation partner conference • Cadia: Microwave Sensors in underground crushers monitor level of material in bins an
Slide 88: 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