June 2013 Quarterly Results. Greg Robinson Managing Director and Chief Executive Officer

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Transcription:

June 2013 Quarterly Results Greg Robinson Managing Director and Chief Executive Officer

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 and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and 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 licenses 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 extreme weather 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, there may be other factors that could cause actual results, performance, achievements or events 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 these materials 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 the Corporations 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 2004 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. As a company listed on the Toronto Stock Exchange ( TSX ), Newcrest is subject to certain Canadian disclosure requirements and standards, including the requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ( NI 43-101 ). In accordance with NI 43-101, Newcrest reports 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 2012 Resources and Reserves Statement, the reconciliation is set out in Newcrest s Canadian News Release dated 8 February 2013, and is available at www.sedar.com and at Newcrest s website www.newcrest.com.au. Except as otherwise noted in that document, there are no material differences between the definitions of Measured, Indicated and Inferred Mineral Resources, and Proven and Probable Reserves, under the CIM Definition Standards and the equivalent or corresponding definitions in the JORC Code. Competent Person s Statement The information in this presentation that relates to Exploration Results and other scientific and technical information is based on information compiled by C. Moorhead, EGM Minerals for Newcrest who is a Fellow of The Australasian Institute of Mining and Metallurgy, and a full-time employee of Newcrest. Mr Moorhead 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 and is a Qualified Person within the meaning of NI 43-101. Mr Moorhead consents to and has approved the inclusion in this presentation of the matters based on this information in the form and context in which it appears including sampling, analytical and test data underlying the results. For details of exploration reports refer to the Newcrest website at www.newcrest.com.au. 2

Full financial year 2013 highlights Gold production: 2.11Moz at cash cost of A$750/oz Within revised guidance of 2.00-2.15Moz Gold revenue is expected to be based on sales 78 koz lower than production (shipment timing) Copper production 80.4kt in line with original guidance Copper revenue is expected to be based on sales 3.4kt lower than production (shipment timing) Total site costs and capital expenditure within original guidance Major expansion projects in operation Lihir plant expansion completed and continues to be optimised Cadia East Panel Cave 1 production ramping up, Panel Cave 2 development on track Lower gold price environment Targeting all operations to be free cash flow positive or neutral in FY14 Have reduced business development, exploration and functional activities 3

June 2013 quarter highlights Increased quarterly production Gold production 642,032 ounces (25% increase over prior quarter) Copper production 22,818 tonnes (20% increase over prior quarter) Unit cash cost A$762/oz and total production cost of A$1,069/oz Solid operational performance across all sites Operation Production Change from Comment prior quarter Cadia Valley 140.3 koz +20% Cadia East displacing lower-grade stockpiles Lihir 201.2 koz +17% Increased throughput Telfer 161.8 koz +30% Increased throughput, grade and recoveries Gosowong 92.9 koz +59% Access to higher grade stopes Hidden Valley 23.2 koz +22% Increased throughput, grade and recoveries Bonikro 22.7 koz -5% Lower mill throughput Group 642.0 koz +25% 4

Unit cash costs Unit Cash Costs Higher production has driven unit cash cost ~5% lower Qtr on Qtr Full year total cash costs (A$2.2B) within original guidance range Total Cash Costs (pre by-product credits) Higher June quarter total cash costs reflect increased activity in period: Higher Cadia East volume Higher Lihir stripping and processing Higher Telfer mining cost 1 Higher energy, consumables, realisation and royalties Elevated maintenance at Lihir & Cadia $10m adverse FX impact (Kina & US$) Unit Cash Costs is Total Cash Costs divided by gold production and is shown on both a pre by product credit and post by product credit basis. Total Cash Costs is the sum of mining, milling and site administration costs, smelting, refining & transport costs, royalties, stripping and inventory adjustments. (1) Net of deferred mining charge. 5

World Gold Council Cost Metrics All in Sustaining Cash Cost 1 (financial year 2013) AUD/oz sales Gold sales (oz) 2 2,032,228 Cash Cost (including by-product credits) 748 Corporate and administration costs 54 Rehabilitation accretion & amortisation 13 On-site exploration expenditure 16 Capitalised stripping & underground development 170 Sustaining capital expenditure 281 All-in sustaining costs $1,283 All-in Sustaining Cash Cost 1 (financial year 2013) A$2,422 2000 A$1,765 A$1,705 1800 All-in sustaining cash cost for FY13 was A$1,283 per ounce ~65% of gold sales from lower cost assets Significant production stripping programs in FY13 at Lihir, Telfer and Bonikro All-in Sustaining Cash Cost (A$/oz) 1600 1400 1200 1000 800 600 A$635 A$662 A$1,177 Lihir Telfer Bonikro Hidden Valley All-in sustaining cash cost expected to decline in FY14 Reduced production stripping Lower sustaining capex 400 200 Cadia Valley Gosowong Reduced Corporate costs 0 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Sales (koz) 1 Cost metrics per World Gold Council Guidance Note on Non-GAAP Metrics, released 27 June 2013 2 Excludes gold sales from pre-commissioning and development production at Cadia East and costs associated with these sales 6

Cadia Valley and Lihir performance Cadia East ramping up in line with plan Panel Cave 1 development and crusher commissioning increased production Panel Cave 2 development on plan Cadia East Mine Production kt mined per quarter 1,585 Ridgeway production continues at 8Mtpa 477 763 795 Sep 12 Dec 12 Mar 13 Jun 13 Lihir plant reliability improving Plant rectification works progressed Planned NCA circuit rebuild completed Lihir new flotation plant completed Negotiation of the Lihir Sustainable Development Plan with landowners continues kt into plant per quarter Lihir Plant Throughput 2,003 2,183 1,593 1,162 Sep 12 Dec 12 Mar 13 Jun 13 7

Increased quarterly production from other assets Operation Quarter Highlights Telfer 30% increase in gold production compared to previous quarter Higher mill throughput, grade and recoveries Major stripping contract work completed Cost reduction program Gosowong 59% increase in gold production compared to previous quarter Access to higher grade stopes in Kencana Gosowong open pit mining completed Hidden Valley 22% increase in gold production compared to previous quarter Higher grade, mill throughput and recoveries Overland conveyor and crusher commissioning in progress Cost reduction program Bonikro 5% lower gold production compared to previous quarter Cost reduction program 8

Exploration focus on near mine resources 21 active drill rigs AFRICA Gosowong 10 drill rigs Drilled regional targets Wafi Golpu and Morobe 4 drill rigs Drilled Golpu upper levels CÔTE D IVOIRE BOUAFLE BONIKRO BOUAKE Yamoussoukro Abidjan 100 km GOSOWONG INDONESIA WAFI GOLPU /MOROBE EXPL JV PAPUA NEW GUINEA LIHIR HIDDEN VALLEY Bonikro and Côte d Ivoire 2 drill rigs Drilled near mine and regional targets Telfer 4 drill rigs Drilled below West Dome pit Drillled below Main Dome sub level cave FIJI NAMOSI JV TELFER AUSTRALIA Namosi 1 drill rig Drill testing Wainaulo Exploration Target CADIA VALLEY 1000 km Operation Advanced Project Exploration Project 9

Gosowong exploration Sesewet TOGURACI CORRIDOR Tobobo KENCANA GOSOWONG CORRIDOR Ngoali Upper Imur Batu Api / Matat Jakarta 1000 km Gosowong INDONESIA LEGEND Operation Drilling target AUSTRALIA NEWCREST TENEMENT Contract of Work Area of active exploration Targeting near-mine resource additions to increase mine-life Drilling intersected new epithermal structure 1km south-west of Toguraci, including: 5m (5.0m) @ 7.9g/t Au (TSD53) 2.5m (2.4m) @ 10.5g/t Au (TSD057) 2.4m (2.1m) @ 130g/t Au (TSD059) Gosowong Toguraci Toguraci SW Gosowong Cutback Plant Kencana Contract of Work boundary Salut TSD053 5.0m @ 7.9 g/t Au TSD057 2.5m @ 10.5 g/t Au TSD059 2.4m @ 130 g/t Au 2 km 10

Telfer exploration SCHEMATIC DRILL SECTION M70 WR28605B 4600mRL 4400mRL West Dome Deeps Target Lower Limey Unit. Assays pending ~80m zone of well developed stockwork WEST DOME West Dome Deeps Target 59200mE MAIN DOME Decline VSC SLC 500 m Lower Limey Unit 23.4m @ 1.36g/t Au,0.26% Cu Drilling targeting Telfer Deeps repetitions at West Dome WR28605B intersects well developed reef style within target position 23.4m @ 1.36g/t Au,0.26%Cu Follow-up drilling planned to test continuity of mineralisation WRC28605B 4200mRL 12m @ 1.21g/t Au, 0.59% Cu incl. 0.7m @ 14.4g/t Au, 7.6% Cu Positive drill results between the Sub-Level Cave (SLC) and the Vertical Stockwork Corridor (VSC) 100 m 58400mE 13000mN 58600mE 58800mE 11

Wafi-Golpu exploration SCHEMATIC PLAN VIEW Golpu drilling Zenapu WR483 12m @ 1.12 g/t Au 32m @ 3.16 g/t Au 20m @ 7.38 g/t Au 22m @ 4.83 g/t Au M Zone WR397 10m @ 9.1g/t Au Northern Zone Miapilli Demonstrates the continuity of higher grade mineralisation in the upper levels Confirms that the mineralisation remains open below the base of present resources Nambonga (1) 1.0 Moz Au 86 Kt Cu Northern WR392 85m @ 3.2g/t Au Margin 500 m Western Zone WR426 157m @ 1.0g/t Au Wafi (1) 7.2 Moz Au Diatreme Golpu (1) 20.3 Moz Au 9.0 Mt Cu Eastern Margin Dokaton South 721,000mN 720,000mN local project grid Wafi-Golpu Exploration More epithermal mineralisation New intercepts from the Northern Zone (WR483): 12m @ 1.12g/t Au 32m @ 3.16g/t Au 20m @ 7.38g/t Au 22m @ 4.83g/t Au Stylised Resource outline (may not be representative of most current Resource definition) 20,000mE (1) Newcrest Annual Statement of Mineral Resources & Ore Reserves to December 31, 2012. Resource figures quoted on 100% basis. 12

FY14 production guidance Operation Gold Production Comments Cadia Valley 480 530 koz Cadia East displacing lower grade stockpiles Lihir 700 800 koz Improving plant reliability; increased stockpile processing Telfer 400 450 koz Main Dome open pit and Sub-Level Cave ore feed Gosowong 260 320 koz Underground risk (temperature and ground conditions) Hidden Valley (50%) 80 105 koz Steady, overland conveyor utilisation Bonikro 80 95 koz Steady Group 2.0 2.3 Moz Gradual increase in quarterly production during FY14 Operation Copper Production Comments Cadia Valley ~ 60 kt Increased production; higher grade Cadia East Telfer ~ 20 kt Consistent quarterly production Group 75 85 kt Focus remains on maximising free cash flow at all operations 13

Summary Improved production and unit cost performance for the quarter FY14 gold production guidance 2.0 2.3 Moz (with gradual increase over the year) Actions taken to manage in a lower gold price environment Focus areas unchanged Production growth from Cadia Valley and Lihir Capital and cost control Positioning Wafi-Golpu as a development option Growth options preserved; longer term (FY15+) production profile dependent on market conditions 14

Appendices 15

WGC All-in cost metrics - bridge to All-in sustaining cash cost Operation Cadia Valley Sales FY13 (koz) 2 Productio n FY13 (koz) 2 All-in Sustaining Cash Cost 1 FY13 (A$/oz) Production Cost FY13 (A$/oz) Bridge Between Production Cost to All-in Sustaining Cash Cost (A$/oz - major adjustments only) 428 424 635 691 Use sales volume rather than production volume. Remove depreciation (-313), add sustaining capital (+230) Gosowong 303 313 662 852 Use sales volume rather than production volume. Remove depreciation (-231), add sustaining capital (+70), add rehabilitation (+20) Lihir 622 649 1,177 895 Use sales volume rather than production volume. Remove depreciation (-206), add sustaining capital (+312), add capitalised stripping (+176) Telfer 509 526 1,705 1,411 Use sales volume rather than production volume. Remove depreciation (-389), add sustaining capital (+276), add capitalised stripping (+368) Bonikro 86 90 1,765 1,222 Use sales volume rather than production volume. Remove depreciation (-237), add sustaining capital (+138), add capitalised stripping (+540), add on-site exploration (+86) Hidden Valley 84 85 2,422 2,081 Use sales volume rather than production volume. Remove depreciation (-468), add sustaining capital (+403), add capitalised stripping (+305), add rehabilitation (+45) Group 2,032 2,087 1,283 1,040 1 Cost metrics per World Gold Council Guidance Note on Non-GAAP Metrics, released 27 June 2013 2 Excludes gold production and sales from pre-commissioning and development and associated costs at Cadia East 16