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

Transcription

1 Wafi Golpu 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 Wafi Golpu overview Total Resource (100%) 1 Total Reserve (100%) 1 Au 29Moz 12Moz Cu 9.1Mt 5.4Mt 50:50 joint venture with Harmony Gold Established administration in Lae for both Hidden Valley and Wafi Golpu Government option to buy 30% of mining lease (bring NML share to 35%) Strong exploration potential 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. Figures shown for MMJV relate to projects owned by the Morobe Mining unincorporated joint ventures between subsidiaries of Newcrest and Harmony Gold Mining Company Ltd (Newcrest 50%) 2

4 Golpu is one of the world s most attractive undeveloped gold/copper projects WAFI TRANSFER Zimake Bavaga Zenapu WAFI/GOLPU Kesiago Pekumbe Zenag Mt Tonn Bulolo Wau Edie Creek Mungowe HAMATA HIDDEN VALLEY Kuari Kerimenge Lae Morobe Province Huon Gulf Kulang Papua New Guinea MMJV project area Port Moresby Lae HIDDEN VALLEY WAU DISTRICT SOLOMON SEA WAFI (1) 7.2 Moz Au Golpu Resource Dec-2013 PROJECTION VIEW Looking North ( Bearing 353 ) Porphyry s GOLPU (1) 20 Moz Au 9.0 Mt Cu World class ore body High gold and copper grades Suitable for caving Potential to be a low cost producer Long life and expandable Large ore reserve base (450Mt) 1 Strong province resource growth potential Morobe 3850mRL 25 km Garawaria TENEMENT STATUS Current/renewal (JAug-2014) GARAWARIA TREND Central Province 500m 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. Resource figures on this page quoted on 100% basis. 3

5 The 2012 PFS as designed is not currently being pursued PFS design 2012 PFS implications Initial capex of US$4.8bn (US$9.8bn over 32 years) Dual declines with incline conveyor Lift 1 Lift 2 Ventilation Rise Ventilation Rise First production in 2019 IRR of 8.4% First quartile cash costs Two lift block cave Production ramp up to15mtpa for Lift 1 and 22Mtpa for Lift 2 Average production of 400koz of gold and 250kt copper per year during initial 15 years of full production CASE SHELVED 1 Golpu Pre-Feasibility Study and Reserve Announcement August 29, Technical Report on the Wafi-Golpu Property in Morobe Province Papua New Guinea 4

6 New approach to Golpu development seeks improved economics Objectives Reduced start-up capital PFS focus areas Reduced scale Shorter payback Targeting high grade porphyry core Preservation of future options Suitable investment framework Modular design for scalability Continued engagement with PNG government (up to 30% option) We anticipate completion of PFS by mid FY15 5

7 Sustainable development Local community capacity building independent success of communities and businesses Local employment Responsible management of environment to ensure success and longevity of operation 6

8 Our proven caving capability is key to unlocking the potential of this great asset 2002 Ridgeway sub level cave 2004 Telfer sub level cave 2010 Ridgeway Deeps block cave 2013 Cadia East panel cave GOLPU We have experience in this region and we are strong in exploration 7

9 Summary Golpu is an attractive growth project for Newcrest Golpu is a world class ore body PFS expected to be released by mid FY15 PFS focus on low capital start up mine attractive rate of return a suitable investment framework PNG government has option to acquire up to 30% 8