Newcrest Mining — Credit Suisse Conference (September 2020)
33 slides from Newcrest Mining's conference presentation, September 2020
Slide 1: Delivering on Investment
CREDIT SUISSE CONFERENCE Delivering on Investment Philip Stephenson Chief Operating Officer (Australia & Americas)
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 ® NEWCREST HIN ING LIMITED
Slide 4: What makes Newcrest different
What makes Long reserve life – ~24 years reserve life1 Newcrest different Low cost production – first quartile cost position Do what we say Organic growth options (at Cadia, Lihir, Wafi-Golpu, Havieron & Red Chris) 1. Reserve life is indicative and calculated as proven and probable gold reserves (co
Slide 5: Operating assets, advanced projects and investments
Cadia (100%) Lihir (100%) Telfer (100%) Operating FY20 Production: 843koz Au, 96kt Cu FY20 Production: 776koz Au FY20 Production: 393koz Au, 16kt Cu FY20 AISC: $160/oz assets, Ore Reserves: 21moz Au & 4.3mt Cu FY20 AISC: Ore Reserves: $1,206/oz 23moz Au FY20 AISC: Ore Reserves: $1,281/oz 1.4moz Au &
Slide 6: Cadia and Lihir reserves larger than mines of major gold peers
Cadia and Reserve base of operating assets1 (moz) Lihir reserves 25 larger than mines of 20 major gold peers 15 10 5 0 1. Based on producing assets held by Barrick, Newmont and Newcrest with an attributable reserve >4moz. Source: Company reports as at 21 February 2020. Reserves reflect proven and pr
Slide 7: Lowest cost major gold producer
Lowest cost AISC/oz for year to 30 June 20201 ($/oz) major gold producer 1,035 1,010 989 971 946 862 2 1. AISC/oz from company reports based on data available as Newcrest Gold Fields Barrick AngloGold 2 Newmont Agnico Eagle at 5:00pm EST, 15 September 2020 2. Agnico Eagle report AISC/oz produced
Slide 8: A unique suite of technical capabilities
A unique Lihir, Telfer, Telfer Gosowong1 Telfer Cadia suite of Red Chris technical capabilities OPEN PIT SELECTIVE Reef Narrow Vein UNDERGROUND BULK Sublevel Caving Block/Panel UNDERGROUND Caving Large scale comminution Pressure oxidation PROCESSING Copper-gold flotation Cyanide & carbon in leach 1.
Slide 9: Adding value through technical capabilities
Red Chris Havieron Adding value through • 70% acquired in August 2019 • Exploration earn-in agreement technical • Open Pit operation, with underground • 40% interest with pathway to 75%1 potential capabilities 1. The Havieron Project is operated by Newcrest Red Chris2 under a farm-in agreement with
Slide 10: Red Chris
Red Chris
Slide 11: Delivering improvement
Apply Newcrest’s Delivering Safety Edge Apply Newcrest’s industry leading improvement Transformation transformation technology approach Keep our people Improve existing Develop future safe operations potential
Slide 12: Improving safety
Improving safety Build a stronger safety culture through NewSafe Everybody making safer choices in everything we do, every time, every day. Critical controls for every high-risk task Verifying that the most important life-saving controls are known, in place and working.
Slide 13: Reducing injury rates
Reducing Newcrest TRIFR (excluding Red Chris) Red Chris TRIFR injury rates 12 month MMA 3.7 18.0 18.1 17.4 3.3 15.0 14.6 13.8 13.8 13.7 13.7 13.5 2.4 2.3 12.7 12.6 2.0 Jul-20 Jan-20 Feb-20 Mar-20 Jun-20 Oct-19 Aug-19 Sep-19 Nov-19 Dec-19 May-20 Apr-20 FY16 FY17 FY18 FY19 FY20 1. TRIFR = total record
Slide 14: Improving existing operations
Improving Haul Truck Availability TMM Uplift existing operations Plant Improvements Facilities Upgrades Cell 6 ratio Cell 6 ratio LIC AIC Froth Depth Control Cell 5 ratio Cell 5 ratio LIC AIC Air rate Control Cell 4 ratio Cell 4 ratio LIC AIC Cell 3 ratio Cell 3 ratio LIC AIC Cell 2 ratio Cell 2 rat
Slide 15: Haul truck availability uplift program
Planning Establishment SAP Integration Haul truck availability uplift program Organisational Development Foundational Materials Heavy Vehicle Workshop Restoration Project
Slide 16: Increased material movement rates
Fleet Management Payload Utilisation Operating for Increased System Increase Improvements Reliability material movement Total Material Movement (FY20) rates 100% % Change from August 2019 Baseline 90% 80% 70% 60% 50% 40% 30% 20% Newcrest commenced 10% operatorship in August 2019 0% Aug Sep Oct Nov D
Slide 17: Focused on recovery improvement
Six Donut Launders Process Control Short Interval Control Additional Capacity Focused on recovery improvement
Slide 18: Facilities uplift enhancing appeal and preparing for growth
Facilities uplift enhancing appeal and preparing for growth
Slide 19: Multiple higher grade intercepts
Multiple higher grade intercepts Results include: RC 611: 628m @ 1.7g/t Au and 0.91% Cu 1. The information in this slide that relates to exploration results at Red Chris has been extracted from the Newcrest release titled “Exploration Update” dated 10 September 2020 and other prior exploration relea
Slide 20: Block caving potential to unlock value
Block caving • Block caving enables relatively low operating cost extraction of ore potential to • Ability to mine >1km below surface unlock value Subsidence zone Caving levels Comparative surface impact Comparative surface impact Cadia hill open pit Cadia East subsidence zone Waste rock dumps 20
Slide 21: Developing world leading undercutless technology
Benefits: Developing • Safety: Reduces number of people, and time spent, in deep caves world leading • Cost: Aim to be ~30% lower cave establishment costs compared with the advanced undercutless undercutting cave establishment methodology technology • Speed: Aim to be ~10% faster in overall cave blo
Slide 22: PFS on track
PFS on track Areas of focus • Updated block model incorporating latest drilling • Mining methods Mining • Materials handing options • Geotechnical, hydrogeological and metallurgical characterisation • Processing plant size and configuration Processing • Application of technology (e.g. Hydrofloat) •
Slide 23: Significant exploration tenements
Significant exploration tenements
Slide 24: Working with the Tahltan
• Tahltan Nation is the Indigenous Nation whose territory the Red Chris mine is situated within Working with the Tahltan • Impact Benefit and Co-Management Agreement • Respect for and recognition of culture • Increased Tahltan workforce • Increased commercial partnering • Working with Tahltan Centra
Slide 25: Havieron
Havieron
Slide 26: Success of Newcrest's early stage entry approach to exploration
Success of Newcrest’s early stage JunQ 2019 DecQ 2019 1 April 2020 DecQ 2020 Late 2021 entry Drilling 18,888m Earned 40% Initial PFS commenced drilled interest resource approach to 2,800m drillled1 exploration Mar 2019 SepQ 2019 MarQ 2020 JunQ 2020 End 2020/ Entered 9,180m 17,231m 28,714m Early 2021
Slide 27: Higher grade crescent zone
Higher grade crescent zone Results include: HAD049: 82m @ 6.1g/t Au and 0.41% Cu HAD059: 109m @ 6.3g/t Au and 0.71% Cu Legend 0 50 100m Crescent Sulphide Zone Slice -300mRL 1. The information on this slide relating to exploration 1g/t Au LF Shell Slice -300mRL results at Havieron has been extracted
Slide 28: Higher grade zone
Higher-grade arcuate sulphide mineralised zone Higher grade zone LEGEND LEGEND Geology Geology Post Mineral Post Mineral Dy ke Dy ke Au (g/t) Leapfrog Cu_Pct Leapfrog Grade Contours & Grade Contours & Downhole Intercepts Downhole Intercepts > 5 g/t > 0.75% 1. The information on this slide relating t
Slide 29: Next steps
Potential to start construction of an exploration decline by the end of CY2020 or Next steps early 2021 Initial resource by end of December 2020 Next Steps1 ~80,000+ metres of planned drilling in FY21 Study on selective and bulk underground mining options Potential to achieve commercial production w
Slide 30: Paterson province - renewal
122º00’E Telfer 21º00’S Paterson province - renewal 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 31: Working with the Martu People
Working with • Martu People are the Traditional Owners of the the Martu land on which Telfer and Havieron are located People • Respect for and recognition of culture • Indigenous Land Use Agreement • Training and employment • Community programs • COVID-19 Community Support Fund
Slide 32: 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 32
Slide 33: Find out more
Find out more: www.newcrest.com Engage with us +61 3 9522 5717 +1 866 396 0242
Newcrest Mining — Credit Suisse Conference (September 2020) on 6ix