Telfer. Craig Jones Executive General Manager Australian Operations and Projects. 7 October 2014

Transcription

1 Telfer Craig Jones Executive General Manager Australian Operations and Projects 7 October 2014

2 Disclaimer Forward Looking Statements These materials include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as may, will, expect, intend, plan, estimate, anticipate, continue, and guidance, or other similar words andmay include, without limitation, statementsregarding plans, strategies and objectives of management, anticipated production or construction commencementdatesand expected costs or production outputs. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the company s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extremeweather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are based on the company and its management s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the company s business and operations in the future. The company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the company s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the company or management or beyond the company s control. Although the company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, theremay be other factors that could cause actual results, performance, achievements orevents not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in thesematerials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based. Ore Reserves and Mineral Resources Reporting Requirements As an Australian company with securities listed on the Australian Securities Exchange ( ASX ), Newcrest is subject to Australian disclosure requirements and standards, including the requirements of thecorporations Act and the ASX. Investors should note that it is a requirement of the ASX listing rules that the reporting of ore reserves and mineral resources in Australia comply with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code ) and that Newcrest s ore reserve and mineral resource estimates comply with the JORC Code. Newcrest ceased its listing on the Toronto Stock Exchange on 4 September 2013 and recently applied to the Ontario Securities Commission ( OSC ) for a decision that the company cease as a reporting issuer in Canada. In the meantime, Newcrest will remain subject to certain Canadian disclosure requirements and standards and will continue, in accordance with the requirements of National Instrument Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, to report its ore reserves and mineral resources estimates in compliance with the JORC Code, along with a reconciliation to the material differences between the JORC Code and the applicable definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM Definition Standards). In relation to the December 2013 Resources and Reserves Statement, the reconciliation is set out in Newcrest s Canadian News Release dated 14 February 2014, and is available at and at Newcrest s website Except as otherwise noted in that document, there are no material differences between the definitions of Measured, Indicated and Inferred Mineral Resources, and Provenand Probable Reserves, under the CIM Definition Standards and the equivalent or corresponding definitions in the JORCCode. Competent Person s Statement The information in this presentation that relates to Exploration Targets, Exploration Results, Mineral Resources and Ore Reserves and other scientific and technical information, is based on information compiled by Mr C. Moorhead. MrMoorhead is the Executive General Manager Minerals and a full-time employee of Newcrest Mining Limited. He is a shareholder in Newcrest Mining Limited and is entitled to participate in Newcrest s executive equity long term incentive plan, details of which are included in Newcrest s 2014 Remuneration Report. Ore Reserves growth is one of the performancemeasures under that plan. He is a Fellow of The Australasian Institute of Mining and Metallurgy. MrMoorhead has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in The JORC Code 2012 and is a Qualified Person within the meaning of National Instrument Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ( NI ). MrMoorhead consents to the inclusion in this presentation of themattersbased on his information in theform and context in whichit appears including sampling, analytical and test data underlying theresults. Non-IFRS Financial Information This presentation is a summary document and should be read in conjunction with the Appendix 4E and Annual Financial Report available on the ASX platform. This presentation uses Non-IFRS financial information including Underlying profit, EBITDA, EBIT, All-In Sustaining Cost and Free cash flow. Thesemeasures are presented to provide greater understanding of the underlying business performance of the Company s operations. EBITDA and EBIT are used to measure segment performance and have been extracted from the Segment Information disclosed in the ASX Appendix 4E. When reviewing business performance, this non-ifrsinformation should be used in addition to, andnot as a replacement of, measures prepared in accordance withifrs. Non-IFRSinformation has not been subject toaudit by Newcrest sexternal auditor. 1

3 Contents Telfer and the future EDGE 2

4 Telfer overview Total Resource 1 Total Reserve 1 Au 15Moz 6.3Moz Cu 0.78Mt 0.29Mt Telfer Timor-Leste 3,000 km Australia Two open pits Main Dome and West Dome Underground mines: Sub Level Cave M-Reefs (narrow vein stoping) Two train processing plant with ~22Mtpa capacity Active relationship and employment programs with traditional owners, the Martu people 1 Newcrest Annual Report 2014 and Newcrest Annual Statement of Mineral Resources and Ore Reserves as at December 31, Data is reported to two significant figures to reflect appropriate precision in the estimate and this may cause some apparent discrepancies in totals. Numbers exclude O Callaghans. 3

5 Safety Tragically, there was a fatality in December 2013 We have responded through intense safety engagement with focus on major hazards and visible safety leadership 4

6 Telfer has had a declining investment profile Capex profile at Telfer A$mn Future Drivers Growth Sustaining Production Stripping Growth projects and production stripping Future growth projects dependent on investment returns (cash on cash) Production stripping campaign has finished 196 FY FY Midpoint FY15 Guidance Sustaining capital Reduced projects Better market conditions Challenging every dollar spent 1 Elevated stripping expenditure in FY13 was due to an Main Dome open pit cut back 2 Capital guidance is A$55-65mn 5

7 Telfer is currently a significant generator of cash Reported Total Cash Cost Curve FY14 1,2, US$/oz 2,000 1,000 0 AISC 3, A$/oz 2,000 1,500 1, ,704 FY13 1, Q1 Q2 FY14 Telfer Q3 Production, Percentile Q4 Q1 FY15 Context FY14 EBITDA less total capex was A$227m Remote location WA labour rates and FIFO workforce Supply and logistics Large pre-stripping campaign completed early FY14 providing access to open pit ore Future objectives Sustain recent cost reduction and productivity improvement Improve economics of future potential open pit cutbacks Maximise cash returns 1 GFMS cost curve for the 12 months ended 30 June Newcrest s reported cash cost of production, post by-products credit, for the 12 months ended 30 June All-In Sustaining Cost (AISC) per World Gold Council Guidance Note on Non-GAAP Metrics, released 27 June Newcrest s AISC will vary from period to period as a result of various factors including production performance, timing of sales, the level of sustaining capital and production stripping 6

8 Telfer ore sources WEST DOME MAIN DOME SCHEMATIC SECTION Notional Pit Shell Main Dome Stage mrl M-Reefs Sub Level Cave Western Flanks 4000 mrl Vertical Stockwork Corridor me me 500 m 7

9 Current mine and processing plant configuration Main Dome and stockpiles ~16Mtpa 1 Sub Level Cave ~5.7Mtpa 1 M-Reefs ~0.24 Mtpa 1 Future considerations Truck and shovel open pit operation Underground crusher & hoisting Trucking When Main Dome and stockpiles conclude current phase in ~2 years 2, Telfer will need to: Dump leach Train 2 ~11Mtpa 1 Train 1 ~11Mtpa 1 Bring online new ore source(s) to continue existing production, and/or Reconfigure site footprint Gold dore Copper concentrate ~30% Au oz produced 1 ~70% Au oz produced 1 (Cu grade ~15% 1) 1 Approximate production rates based on FY14. Should not be construed as indicating production guidance for the future 2 Subject to market and operating conditions 8

10 With ~2 years 1 remaining of current surface operations, we are exploring all of Telfer s options Telfer s longer term production options West Dome Open pit. Sufficient in scale to replace Main Dome production. Requires capital to develop. Sub Level Cave (SLC) extension Extension to current mine. Material must be trucked up to conveyor level. Narrower continuation of existing SLC. M-Reefs Narrow Vein. Requires drilling definition. Site restructure required if pursued stand-alone. Western Flanks Requires drilling definition. Near existing infrastructure. Factors affecting cash returns (main metric for decision) Telfer cost base Financial feasibility of mill at lower throughput Project capital requirements A$ gold price outlook Factors we can impact through EDGE 1 Subject to market and operating conditions 9

11 Contents Telfer and the future EDGE 10

12 EDGE is Telfer s future Whilst still early, results are promising and EDGE is driving engagement and sharpness in accountability and delivery: We are safely lifting productivity and driving down our costs Teams are building on each success We chase every opportunity and every dollar 11

13 EDGE: top production and cost initiatives Production Cost Initiative objectives Increase M-Reef production Improve open pit dig rates Reduce open pit truck cycle times Optimise plant recovery from effective process control Dedicate bogger zones for loader productivity increase Renegotiate supplier contracts Improve productivity of fixed plant maintenance Reduce number of shuts from 4 to 3 per year Increase contractor tool time Change grinding media to reduce consumption Everyone understands how important delivering EDGE is to Telfer s future 12

14 Initiative: increasing in open pit tonnes hauled 1 Open Pit Productivity Telfer dig rate Excavator Tonnes per operating hour Objective: changing practices and pit design to improve productivity 3,079 3,605 3,924 3, % Every crew member contributed through listening to every idea, committing to improvement and working together, we exceeded expectations Open pit manager Jul-Dec 13 (avg.) Open pit teams have initiated many of the improvements, leading to daily production increases through Jul-14 Aug-14 Sep min reduction in shift changeover Changes to haul routes to reduce bends and rises for improved cycles Re-engineered truck trays to minimise tonnes lost from carry-back 1 These are initial results of initiatives yet to be fully embedded to achieve sustained benefits that can be reliably quantified and forecast 13

15 Initiative: increasing in hoisted tonnes from Sub Level Cave 1 Underground SLC improvements Average tonnes hoisted per day kt Objective: increasing hoist tonnes and daily metres drilled in undergound Sub Level Cave The improvement strategy was developed by our bogger operators and that s why the new process is working so well Production manager 14.5 Jun-14 14% increase in daily tonnes hoisted through 15.0 Jul Aug Sep % Dedicated bogger zones to minimise vehicle movements through production areas 23% reduction to re-entry times after blasting by re-engineering ventilation Crusher stockpile capacity increase to keep boggers running during shaft inspections 1 These are initial results of initiatives yet to be fully embedded to achieve sustained benefits that can be reliably quantified and forecast 14

16 Initiative: improving ore production from M-Reefs 1 Stronger cash flows from M-Reefs M-Reef Production Monthly Tonnes Objective: plan and program changes to improve M-Reefs cash flow 25,136 20,903 16,673 14,555 18,362 27,663 21,600 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Improvements to M- Reefs cash flow through Dedicated Maintenance team to create constancy and consistency New technology to blast whole face at once Aligned incentives with suppliers 1 These are initial results of initiatives yet to be fully embedded to achieve sustained benefits that can be reliably quantified and forecast 15

17 Summary Improved safety performance a key focus Currently a substantial cash generator for Newcrest AISC performance has been strong Life extension decisions clear and studies underway Future open pit cutbacks dependent upon improved economics (lower operating costs, reduced capital costs and favourable market conditions) Potential to re-scale mining and milling operation 16

18 Gosowong David Woodall Executive General Manager International Operations 7 October 2014

19 Disclaimer Forward Looking Statements These materials include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as may, will, expect, intend, plan, estimate, anticipate, continue, and guidance, or other similar words andmay include, without limitation, statementsregarding plans, strategies and objectives of management, anticipated production or construction commencementdatesand expected costs or production outputs. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the company s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extremeweather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are based on the company and its management s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the company s business and operations in the future. The company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the company s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the company or management or beyond the company s control. Although the company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, theremay be other factors that could cause actual results, performance, achievements orevents not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in thesematerials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based. Ore Reserves and Mineral Resources Reporting Requirements As an Australian company with securities listed on the Australian Securities Exchange ( ASX ), Newcrest is subject to Australian disclosure requirements and standards, including the requirements of thecorporations Act and the ASX. Investors should note that it is a requirement of the ASX listing rules that the reporting of ore reserves and mineral resources in Australia comply with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code ) and that Newcrest s ore reserve and mineral resource estimates comply with the JORC Code. Newcrest ceased its listing on the Toronto Stock Exchange on 4 September 2013 and recently applied to the Ontario Securities Commission ( OSC ) for a decision that the company cease as a reporting issuer in Canada. In the meantime, Newcrest will remain subject to certain Canadian disclosure requirements and standards and will continue, in accordance with the requirements of National Instrument Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, to report its ore reserves and mineral resources estimates in compliance with the JORC Code, along with a reconciliation to the material differences between the JORC Code and the applicable definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM Definition Standards). In relation to the December 2013 Resources and Reserves Statement, the reconciliation is set out in Newcrest s Canadian News Release dated 14 February 2014, and is available at and at Newcrest s website Except as otherwise noted in that document, there are no material differences between the definitions of Measured, Indicated and Inferred Mineral Resources, and Provenand Probable Reserves, under the CIM Definition Standards and the equivalent or corresponding definitions in the JORCCode. Competent Person s Statement The information in this presentation that relates to Exploration Targets, Exploration Results, Mineral Resources and Ore Reserves and other scientific and technical information, is based on information compiled by Mr C. Moorhead. MrMoorhead is the Executive General Manager Minerals and a full-time employee of Newcrest Mining Limited. He is a shareholder in Newcrest Mining Limited and is entitled to participate in Newcrest s executive equity long term incentive plan, details of which are included in Newcrest s 2014 Remuneration Report. Ore Reserves growth is one of the performancemeasures under that plan. He is a Fellow of The Australasian Institute of Mining and Metallurgy. MrMoorhead has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in The JORC Code 2012 and is a Qualified Person within the meaning of National Instrument Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ( NI ). MrMoorhead consents to the inclusion in this presentation of themattersbased on his information in theform and context in whichit appears including sampling, analytical and test data underlying theresults. Non-IFRS Financial Information This presentation is a summary document and should be read in conjunction with the Appendix 4E and Annual Financial Report available on the ASX platform. This presentation uses Non-IFRS financial information including Underlying profit, EBITDA, EBIT, All-In Sustaining Cost and Free cash flow. Thesemeasures are presented to provide greater understanding of the underlying business performance of the Company s operations. EBITDA and EBIT are used to measure segment performance and have been extracted from the Segment Information disclosed in the ASX Appendix 4E. When reviewing business performance, this non-ifrsinformation should be used in addition to, andnot as a replacement of, measures prepared in accordance withifrs. Non-IFRSinformation has not been subject toaudit by Newcrest sexternal auditor. 18

20 Gosowong overview Total Resource 1 Total Reserve 1 Au 1.7Moz 1.2Moz Gosowong is a high grade epithermal deposit discovered by Newcrest Geologists in 1993 Newcrest 75% and PT Aneka Tambang 25% Process plant capacity of ~800,000tpa Currently consists of two underground mines Toguraci and Kencana Mine life is ~3 years at current production rates 2 Province remains highly prospective and has a history of reserve and resource renewal 1 Newcrest Annual Report 2014 and Newcrest Annual Statement of Mineral Resources and Ore Reserves as at December 31, Data is reported to two significant figures to reflect appropriate precision in the estimate and this may cause some apparent discrepancies in totals. The figures shown represent 100% of the Mineral Resource and Ore Reserve. Gosowong (inclusive of Toguraci and Kencana) is owned and operated by PT Nusa Halmahera Minerals, an incorporated joint venture company which is owned by Newcrest (75%) and PT Aneka Tambang (25%) 2 From 1 July 2014 and based on current reserves and production rates 19

21 Health, Safety, Environment, Community Increased site leadership visibility and regular safety observations Significant Potential Incidents 11 TRIFR Health and Safety Priority attention on Major Hazards related to ground control and hot water Site focus on Malaria resulting in reduced incidences FY13 FY14 FY15 YTD (end Sep) FY13 FY14 FY15 YTD (end Sep) Community and Environment Wide-ranging community program and strong relationships Good environmental compliance record 1 Recordable injuries per million man hours worked 20

22 Focus on EDGE improvements and mine-life extension Production, koz FY13 AISC, A$/oz 1,500 1, FY FY FY15 Guidance , Q1 Q2 FY14 Q3 Q4 Q1 FY15 Drivers of performance Mine development rates: Controlling ground conditions at Kencana Managing hot water at Toguraci Variable production and AISC 2 period-to-period depending on grade FY15 Goals Reducing costs and driving productivity improvements Ongoing near-mine and regional exploration with the goal of mine-life extension 1 Mid-point of FY15 production guidance of koz, achievement of which is subject to market and operating conditions 2 All-In Sustaining Cost per World Gold Council Guidance Note on Non-GAAP Metrics, released 27 June AISC will vary from period to period as a result of various factors including production performance, timing of sales, the level of sustaining capital, production stripping and the relative contribution of each asset. AISC is non-ifrs financial information 21

23 EDGE: top production and cost initiatives Production Cost Initiative objectives Recover additional ore through resin injection Install pumping systems in Toguraci underground mine Reduce re-entry times after underground blasting Improve blast cycle times Increase dissolved oxygen in gold leaching Improve blasting reliability Improve ore treatment crushing efficiency Reduce shotcrete costs Accelerate ground support installation Reduce underground production drill consumables cost Over 90 different initiatives in the pipeline at Gosowong 22

24 Initiative: improving blasting cycle times 1 Blasting cycle times Objective: using single pass ground support and hollow bars with resin grout in Kencana Ground blasting cycle time improvement Hours % 2 Pass 1 Pass 1 Pass-Hollow Bars 31-27% Blasting cycle time improvement achieved through Single pass ground support using Jumbo only Approximately 150kt of additional ore due to hollow bars 1 These are initial results of initiatives yet to be fully embedded to achieve sustained benefits that can be reliably quantified and forecast 23

25 Initiative: installing pumping systems in Toguraci underground mine 1 Toguraci ground water management Time required per face turnaround Hours Objective: installation of pumping system in Toguraci to manage hot water conditions (up to 80 o C) 60 Baseline 24 Improved state -60.0% Increase in face turnaround and productivity at Toguraci was achieved through Installation of new pumping system (two Oddesse 22kW high temperature submersibles) which brought local water level down by ~3.5m in 30 days Reduction in temperature is allowing for longer periods of uninterrupted work 1 These are initial results of initiatives yet to be fully embedded to achieve sustained benefits that can be reliably quantified and forecast 24

26 Gosowong: near mine exploration target areas 7. Upper Imur/Tolo 4. Yahut North West 1. West of Toguraci Gosowong 8. Village East Toguraci 5. Wokala Kencana 2. Salut South East 3. Toguraci South East 6. Kencana South 25

27 Contract of Work currently subject to negotiations Current Gosowong Contract of Work (CoW) will expire in 2029, the CoW contains an operating, investment and fiscal framework 2009 Indonesian Mining Law confirmed the validity of CoWs but also provided for CoWs to be adjusted by negotiation Gosowong CoW contains a tax and fiscal framework that has provided the basis for past 15 years of investment and operation at Gosowong Indonesian Government seeks adjustments including royalties and tax rates to align with current laws Negotiations between many CoW holders, including PT Nusa Halmahera Minerals 1, and the Indonesian government are continuing Gosowong has a local partner (ANTAM 25%) and converts ore to metal in country exports finished gold 1 Gosowong (inclusive of Toguraci and Kencana) is owned and operated by PT Nusa Halmahera Minerals, an incorporated joint venture company which is owned by Newcrest (75%) and PT Aneka Tambang (25%) 26

28 Summary Gosowong is a high grade, epithermal deposit Mine life is ~3 years at current production rates 1 History of reserve and resource renewal Exploration focused on mine life extension Current Contract of Work subject to adjustment negotiations with the Indonesian government 1 From 1 July 2014 and based on current reserves and production rates 27

29 Bonikro David Woodall Executive General Manager International Operations 7 October 2014

30 Disclaimer Forward Looking Statements These materials include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as may, will, expect, intend, plan, estimate, anticipate, continue, and guidance, or other similar words andmay include, without limitation, statementsregarding plans, strategies and objectives of management, anticipated production or construction commencementdatesand expected costs or production outputs. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the company s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extremeweather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are based on the company and its management s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the company s business and operations in the future. The company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the company s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the company or management or beyond the company s control. Although the company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, theremay be other factors that could cause actual results, performance, achievements orevents not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in thesematerials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based. Ore Reserves and Mineral Resources Reporting Requirements As an Australian company with securities listed on the Australian Securities Exchange ( ASX ), Newcrest is subject to Australian disclosure requirements and standards, including the requirements of thecorporations Act and the ASX. Investors should note that it is a requirement of the ASX listing rules that the reporting of ore reserves and mineral resources in Australia comply with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code ) and that Newcrest s ore reserve and mineral resource estimates comply with the JORC Code. Newcrest ceased its listing on the Toronto Stock Exchange on 4 September 2013 and recently applied to the Ontario Securities Commission ( OSC ) for a decision that the company cease as a reporting issuer in Canada. In the meantime, Newcrest will remain subject to certain Canadian disclosure requirements and standards and will continue, in accordance with the requirements of National Instrument Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, to report its ore reserves and mineral resources estimates in compliance with the JORC Code, along with a reconciliation to the material differences between the JORC Code and the applicable definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM Definition Standards). In relation to the December 2013 Resources and Reserves Statement, the reconciliation is set out in Newcrest s Canadian News Release dated 14 February 2014, and is available at and at Newcrest s website Except as otherwise noted in that document, there are no material differences between the definitions of Measured, Indicated and Inferred Mineral Resources, and Provenand Probable Reserves, under the CIM Definition Standards and the equivalent or corresponding definitions in the JORCCode. Competent Person s Statement The information in this presentation that relates to Exploration Targets, Exploration Results, Mineral Resources and Ore Reserves and other scientific and technical information, is based on information compiled by Mr C. Moorhead. MrMoorhead is the Executive General Manager Minerals and a full-time employee of Newcrest Mining Limited. He is a shareholder in Newcrest Mining Limited and is entitled to participate in Newcrest s executive equity long term incentive plan, details of which are included in Newcrest s 2014 Remuneration Report. Ore Reserves growth is one of the performancemeasures under that plan. He is a Fellow of The Australasian Institute of Mining and Metallurgy. MrMoorhead has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in The JORC Code 2012 and is a Qualified Person within the meaning of National Instrument Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ( NI ). MrMoorhead consents to the inclusion in this presentation of themattersbased on his information in theform and context in whichit appears including sampling, analytical and test data underlying theresults. Non-IFRS Financial Information This presentation is a summary document and should be read in conjunction with the Appendix 4E and Annual Financial Report available on the ASX platform. This presentation uses Non-IFRS financial information including Underlying profit, EBITDA, EBIT, All-In Sustaining Cost and Free cash flow. Thesemeasures are presented to provide greater understanding of the underlying business performance of the Company s operations. EBITDA and EBIT are used to measure segment performance and have been extracted from the Segment Information disclosed in the ASX Appendix 4E. When reviewing business performance, this non-ifrsinformation should be used in addition to, andnot as a replacement of, measures prepared in accordance withifrs. Non-IFRSinformation has not been subject toaudit by Newcrest sexternal auditor

31 Bonikro overview Total Resource 1 Total Reserve 1 Au 2.4Moz 1.5Moz Current priorities: Sustain improved recent results at Bonikro Continued focus to drive further improvement Emphasis on free cash flow Strategy: Achieve full potential of Bonikro mine Develop near mine alternative ore sources; current focus on Hiré Platform for potential growth in West Africa 1 Newcrest Annual Report 2014 and Newcrest Annual Statement of Mineral Resources and Ore Reserves as at December 31, Data is reported to two significant figures to reflect appropriate precision in the estimate and this may cause some apparent discrepancies in totals. The figures shown represent 100% of the Mineral Resource and Ore Reserve. Bonikro is inclusive of mining and exploration interests in Côte 30 d Ivoire held by LGL Mines CI SA (Newcrest, 89.9%), LGL Exploration CI SA (Newcrest, 100%) and LGL Resources CI SA (Newcrest, 99.89%) 3 0

32 Health, Safety, Environment, Community Health and Safety 10% reduction in TRIFR Focus on major hazards and SPIs Rapid diagnosis and treatment of Malaria plus campaign to reduce infection Intensive risk management of Ebola no known cases in Côte d Ivore HIV awareness programs ongoing Significant Potential Incidents 2 FY13 3 FY14 4 FY15 YTD (end Sep) TRIFR FY FY FY15 YTD (end Sep) Community and Environment Hiré project - land acquisition and compensation in progress Clear artisanal miner legislation UN Development Program partnership Local development plan Filling in artisanal workings at Hiré 1 Recordable injuries per million man hours worked

33 Health: major focus areas Malaria cases non-endemic, Malaria cases number Jan 19 Feb 10 Mar Apr May 2 Jun 2 3 Jul Expatriates malaria cases 2013 Expatriates malaria cases Aug Sep 2 Oct 2 Nov 2 Dec Rapid diagnosis and treatment of Malaria plus campaign to reduce infection Plans in place to reduce risk of Ebola infection and for business continuity Proactive approach in discussing the Ebola risk and mitigation strategy This is benefiting local communities

34 Bonikro: emphasis on free cash flow Production, koz FY13 AISC 2, A$/oz 2,000 1,000 0 FY14 1,751 1,715 FY15 Guidance 1 1,260 1, ,062 FY13 Q1 Q2 Q3 Q4 Q1 FY15 FY14 Recent developments Appointment of Brad Sampson as General Manager Culture of bottom-up innovation New near mine ore sources FY15 goals Maintaining performance improvement Delivering Hiré oxide project and preparations for Hire fresh rock projects on time Rationalising exploration portfolio 1 Mid-point of FY15 production guidance of koz, achievement of which is subject to market and operating conditions 2 All-In Sustaining Cost per World Gold Council Guidance Note on Non-GAAP Metrics, released 27 June All-in Sustaining Cost (AISC) will vary from period to period as a result of various factors including production performance, timing of sales, the level of sustaining capital and production stripping

35 EDGE: top production and cost initiatives Production Initiative objectives Improve gold production via mill scats rejection Augment feed with Hire and Dougbafla oxide pits Improve drill and blast performance to increase excavator productivity Change gravity screen to increase gold recovery Cost Reduce stores inventory Improve diesel fuel control Optimise blasting costs

36 Platform for potential regional expansion Mines/Deposits Birimian Geology Bonikro Large spread of deposit sizes and grade Fertile geology and structural framework Big deposits often proximate province scale targets Greenfields discoveries are still relatively shallow Exploration and mine development in West Africa has potential to be very cost effective

37 Summary Focus on achieving full potential of Bonikro Health, safety and operating discipline Emphasis on free cash flow Developing alternate ore sources near to current operation Existing regional presence can provide platform for growth

38 Hidden Valley David Woodall Executive General Manager International Operations 7 October 2014

39 Disclaimer Forward Looking Statements These materials include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as may, will, expect, intend, plan, estimate, anticipate, continue, and guidance, or other similar words andmay include, without limitation, statementsregarding plans, strategies and objectives of management, anticipated production or construction commencementdatesand expected costs or production outputs. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the company s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extremeweather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are based on the company and its management s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the company s business and operations in the future. The company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the company s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the company or management or beyond the company s control. Although the company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, theremay be other factors that could cause actual results, performance, achievements orevents not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in thesematerials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based. Ore Reserves and Mineral Resources Reporting Requirements As an Australian company with securities listed on the Australian Securities Exchange ( ASX ), Newcrest is subject to Australian disclosure requirements and standards, including the requirements of thecorporations Act and the ASX. Investors should note that it is a requirement of the ASX listing rules that the reporting of ore reserves and mineral resources in Australia comply with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code ) and that Newcrest s ore reserve and mineral resource estimates comply with the JORC Code. Newcrest ceased its listing on the Toronto Stock Exchange on 4 September 2013 and recently applied to the Ontario Securities Commission ( OSC ) for a decision that the company cease as a reporting issuer in Canada. In the meantime, Newcrest will remain subject to certain Canadian disclosure requirements and standards and will continue, in accordance with the requirements of National Instrument Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, to report its ore reserves and mineral resources estimates in compliance with the JORC Code, along with a reconciliation to the material differences between the JORC Code and the applicable definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM Definition Standards). In relation to the December 2013 Resources and Reserves Statement, the reconciliation is set out in Newcrest s Canadian News Release dated 14 February 2014, and is available at and at Newcrest s website Except as otherwise noted in that document, there are no material differences between the definitions of Measured, Indicated and Inferred Mineral Resources, and Provenand Probable Reserves, under the CIM Definition Standards and the equivalent or corresponding definitions in the JORCCode. Competent Person s Statement The information in this presentation that relates to Exploration Targets, Exploration Results, Mineral Resources and Ore Reserves and other scientific and technical information, is based on information compiled by Mr C. Moorhead. MrMoorhead is the Executive General Manager Minerals and a full-time employee of Newcrest Mining Limited. He is a shareholder in Newcrest Mining Limited and is entitled to participate in Newcrest s executive equity long term incentive plan, details of which are included in Newcrest s 2014 Remuneration Report. Ore Reserves growth is one of the performancemeasures under that plan. He is a Fellow of The Australasian Institute of Mining and Metallurgy. MrMoorhead has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in The JORC Code 2012 and is a Qualified Person within the meaning of National Instrument Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ( NI ). MrMoorhead consents to the inclusion in this presentation of themattersbased on his information in theform and context in whichit appears including sampling, analytical and test data underlying theresults. Non-IFRS Financial Information This presentation is a summary document and should be read in conjunction with the Appendix 4E and Annual Financial Report available on the ASX platform. This presentation uses Non-IFRS financial information including Underlying profit, EBITDA, EBIT, All-In Sustaining Cost and Free cash flow. Thesemeasures are presented to provide greater understanding of the underlying business performance of the Company s operations. EBITDA and EBIT are used to measure segment performance and have been extracted from the Segment Information disclosed in the ASX Appendix 4E. When reviewing business performance, this non-ifrsinformation should be used in addition to, andnot as a replacement of, measures prepared in accordance withifrs. Non-IFRSinformation has not been subject toaudit by Newcrest sexternal auditor

40 Hidden Valley overview Total Resource (100%) 1 Total Reserve (100%) 1 Au 5.7Moz 3.4Moz Ag 100Moz 59Moz Gold and Silver mine in Morobe Province of PNG Hidden Valley JV owned 50% Newcrest, 50% Harmony FY14 improvement was encouraging 1,000 km 1 Newcrest Annual Report 2014 and Newcrest Annual Statement of Mineral Resources and Ore Reserves as at December 31, Data is reported to two significant figures to reflect appropriate precision in the 39 estimate and this may cause some apparent discrepancies in totals. Figures shown for MMJV relate to projects owned by the Morobe Mining unincorporated joint ventures between subsidiaries of Newcrest and 3 Harmony Gold Mining Company Ltd (Newcrest 50%) 9

41 Health, Safety, Environment, Community Health and Safety Community and Environment Escalated focus on road safety Focus on major hazards and behaviour based programs Awareness programs for HIV, TB and malaria Working with regional government to improve healthcare Improved water quality and sediment control Strong relationships with local communities and government Landowner service companies heavily involved in operations Half of the workforce is from Morobe province Significant Potential Incidents 25 FY13 TRIFR FY13 8 FY FY14 1 FY15 YTD (end Sep) 1.5 FY15 YTD (end Sep) 1 Recordable injuries per million man hours worked 40

42 Hidden Valley: operational priorities Production, koz FY13 AISC, A$/oz FY14 FY15 Guidance 2 Recent performance Improved reliability of overland conveyor Sustained plant processing performance Higher plant recoveries Cost reductions through sourcing and labour productivity 4,000 2, ,407 FY13 1,889 Q1 1,343 Q2 FY14 1,217 Q3 1,191 Q4 1,257 Q1 FY15 FY15 goals Maintaining improvement trajectory Free cash flow positive 4 1 Shows Newcrest s 50% share of production 2 Mid-point of FY15 production guidance of koz, achievement of which is subject to market and operating conditions 3 All-In Sustaining Cost per World Gold Council Guidance Note on Non-GAAP Metrics, released 27 June All-in Sustaining Cost (AISC) will vary from period to period as a result of various factors including production performance, timing of sales, the level of sustaining capital and production stripping 4 Subject to market and operating conditions 41