Quarterly Report. Greg Robinson Managing g Director & CEO

Transcription

1 June 2012 Quarterly Report Greg Robinson Managing g Director & CEO

2 Disclaimer Forward Looking Statement 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 n and unknown n risks, uncertainties and other factors that may cause the company s actual al 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 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 anticipated, estimated or intended, and many events are beyond the reasonable control of the company. Accordingly, gy, 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 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ( NI ). In accordance with NI , Newcrest reports its ore reserves and mineral 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. Competent Person s Statement The information in this quarterly report that relates to Exploration Results and other scientific and technical information is based on information compiled by C. Moorhead, EGM Minerals for Newcrest Mining Limited who is a Fellow of The Australasian Institute of Mining and Metallurgy, and a full-time employee of Newcrest Mining Limited. 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 Mr Moorhead consents to and has approved the inclusion in this quarterly report 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 com Exploration Target The potential quantity and grade related to Exploration Targets in this report is conceptual in nature as there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource. Refer to Newcrest s detailed exploration summary on our website at and on 2

3 June Quarter Key Points Operations Quarterly production versus March 2012 quarter Gold production (587,310 ounces): up 10% Copper production (20,544 tonnes): up 14% Improved production at Cadia Valley, Lihir and Hidden Valley Results within revised 2012 financial year guidance Gold production 2.285mozs Copper production 76,015 tonnes Costs $2,031m Unit cash cost position maintained at A$604/oz 3 Robust cash margins of A$970/oz

4 June Quarter Key Points Growth Lihir MOPU: on budget and on schedule for completion in December 2012 quarter Cadia East project: within 10% above budget; on schedule for first commercial production in December 2012 quarter Wafi-Golpu pre-feasibility study (PFS): Scheduled for completion early in September 2012 quarter Project partners have commenced assessment Strong exploration results continue: The presence of a new gold zone confirmed west of Golpu 4 Continuity of high grade mineralisation confirmed at Lihir Good results from open pit extension drilling at Bonikro

5 Cash Costs reflect increased activity levels Cash costs A$M A$ Cash Cost per Ounce Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 5 Total Cash Costs Ore Processing Realisation & Royalties Mining (net of stripping) Site Adminstration Cash Cost per ounce (post by product credits) By Product Credit

6 Cash Margins Remain Robust $1,383 $1,409 $1,623 $1,648 $1,587 $1,574 Achieved Gold price (A$/oz) $886 $867 $1,029 $1,042 $978 $970 Cash margin (A$/oz) $497 $542 $594 $606 $609 $604 Cash costs (A$/oz) Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 6

7 Operations Copper concentrate loading at Telfer Telfer haulage Cadia Valley: Ore from HPGR operation 7

8 Operations Cadia Valley Cadia Hill open pit on care and maintenance Ridgeway Record mining rates achieved Block cave operating at rates higher than feasibility study June month: total underground at 7.5Mtpa annualised rate Target remains 8Mtpa capacity Mill performance 15% improvement in mill performance All Cadia East surface tie-ins i are complete Unit cost reduction through Increased gold and copper production Mining costs at Ridgeway Deeps <$10/t in June month 8

9 Operations Lihir Gold production 9% higher than March 2012 quarter 10% increase in open pit material mined Further improvements in dewatering capacity implemented Recovery improvement evident Commissioning of new NCA circuit Improved performance in the existing i flotation circuit i Detailed engineering and design for new flotation circuit commenced Jun 2012 Quarter Reliability Focus Commissioning new 785D haul trucks NCA refurbishment project Autoclave shutdowns Mill reline Core electrical infrastructure upgraded Sep 2012 Quarter Reliability Focus NCA refurbishment project Mobile plant and drill availability Continue electrical infrastructure upgrade Crusher and conveyor reliability 9

10 10 Operations - Other Telfer Gold production impacted by lower recoveries Higher unit costs: strip ratio returned to first half year rates Gosowong Record mill throughput: 16% increase over last quarter 12% higher gold production than last quarter Labour cost pressures adversely impacting site costs Hidden Valley 35% increase in gold production Recovery continues following high rainfall in March 2012 quarter Bonikro Gold production adversely impacted by lower feed grade and planned mill shutdown

11 Projects Cadia East transfer station construction 11

12 Cadia East Project June Quarter Report Area Completed Status Underground construction and development >50% 50% of undercut tunnelling completed 14 drawbells fired Temporary conveyor system improved Permanent conveyor 87% complete Treatment Plant 100% Flotation plant, regrind vertimill, and high pressure grinding rolls commissioned in June 2012 quarter Infrastructure 98% Final power line works scheduled for July 2012 Total 80% Remains on schedule for first commercial production in December 2012 quarter Within 10% above budget 12 Panel cave 2 decline development continued: Ventilation connections and access to the undercut and extraction levels completed

13 Lihir MOPU June Quarter Report Project commissioning in the December 2012 Quarter Project 91% complete Commissioning activities 54% complete Remains on budget June 2012 Quarter: Primary crushing and conveying circuit commissioned Oxygen plant constructed Project close out items: Oxygen plant commissioning Completion and commissioning of: Milling circuit Overland conveying system Autoclave Project commissioning and ramp up Autoclave 13 Oxygen Plant

14 Exploration Exploration at Telfer 14

15 Exploration 46 Rigs Operating Bonikro and Côte d Ivoire Exploration Recent results indicate potential for pit expansion at Bonikro. Regionally, drilling advances the Bouaflé, Mankono and Timbe/Bouaké prospects. Wafi-Golpu and Morobe Exploration Golpu Lift 1 grade increases. Emergence of a new gold zone west of Golpu. Drilling at Kesiago returns 0.61g/t Au from surface. Trenching at Garawaria delimits a new gold zone over 1km strike. AFRICA CÔTE D IVOIRE 1 MANKONO BOUAFLÉ 1 Yamoussoukro BONIKRO 4 Abidjan 100 km TANDAI JV Gosowong Step out drilling at Kencana continues to grow the resources. Initial regional drilling confirms the presence of an epithermal system north of Gosowong. GOSOWONG 12 1 MANUS IS JV 1 INDONESIA 7 WAFI-GOLPU TELFER PAPUA NEW GUINEA LIHIR MT ANDEWA JV HIDDEN VALLEY Lihir Continuity of high grade domain well outside of the present resource confirmed at Kapit North East. 2 FIJI NAMOSI Telfer West Dome exploration progressed VSC drilling complete, with the project now in pre-feasibility study AUSTRALIA 2 CADIA VALLEY Operation Advanced Project Exploration Project km Number refers to drill rigs operating in province

16 Greenfields Exploration Strong Portfolio Manus Is JV Drilling commences Encouraging g initial drilling at Kisi with epithermal breccia intersected and gold mineralisation Surface sampling highlights the potential of the structural corridor further west of Kisi Manus Island Arie Kisi 10 km KISI KD g/t Au and 8.4g/t Ag Mt Andewa JV Tandai JV Farm-In Agreement with Frontier finalised Newcrest earning in to obtain a majority interest in Frontier s Mt Andewa and Mt Schrader projects Drilling commences, testing porphyry gold-copper targets Multiple epithermal targets defined Drill testing of the Ulukau epithermal prospect commences Regional stream sediment and rock float sampling identifies several areas of gold anomalism West New Britain Mt. Schrader Mt. Andewa Kimbe MT ANDEWA Kandrian 50 km Sumatra Lelangi Tandai Ulukau 20 km TANDAI TDD g/t Au and 28g/t Ag and 3.6g/t Au and 39g/t Ag Bengkulu 16

17 Lihir Continues to Grow PLAN VIEW OPEN Kapit North East Pacific high grade mineralisation target Kapit Coastal Lienetz Kapit North East DDHL1973 DDHL1974 DDHL1975 DDHL1976 DDHL1978 DDHL1979 DDHL g/t Au 3.6g/t Au 2.6g/t Au 2.4g/t Au 3.3g/t Au 2.4g/t Au 2.8g/t Au Lihir Plant Kapit North East Drilling continued to deliver strong results from the Kapit North East area Continuity of the high grade domain outside of the present resource shell confirmed Minifie Resource upgrade scheduled during 2013 financial year 1000 m LIHIR RESOURCE (1) 56.6Moz Au (1) Mineral Resource quoted. Refer Newcrest Annual Statement of Mineral Resources & Ore Reserves to December 31,

18 PNG, Morobe Mining JV Emerging Province WAFI TRANSFER Bavaga Zenapu Wafi/Golpu Kesiago Pekumbe Mt Tonn Zimake Bavaga Edie Creek Mungowe Hamata Hidden Valley Zenag Bulolo Wau Lae Huon Gulf HIDDEN VALLEY - WAU DISTRICT Kulang Kuari Kerimenge Morobe Province Papua New Guinea Port Moresby Lae MMJV project area SOLOMON SEA Wafi Transfer Golpu Lift 1 grade increases Presence of a new gold zone confirmed west of Golpu Porphyry mineralisation drilled at Kesiago g/t Au from 0m Hidden Valley-Wau District Drilling commences at Kerimenge Regional Exploration 25 km TENEMENT STATUS Current/renewal Central Province Garawaria Morobe Giu Wiwo Trench sampling defines bedrock gold target of one kilometre strike at Garawaria 18

19 PNG, Morobe Mining JV Golpu Project PLAN VIEW Northern Zone WR g/t Au WR g/t Au Nambonga (1) 1.0Moz Au m WR426 WR g/t Au Diatreme Wafi (1) 6.2Moz Au Golpu (1) 19.3Moz Au 9.0Mt Cu 20,000mE Miapilli Porphyry Target WR433 Golpu Golpu Lift 1 grade increases - WR % Cu and 0.53g/t Au incl. 2.57% Cu and 1.15g/t 15g/t Au Potential exists for an improved grade of the ,000mN resource WR432 WR434 Golpu WR % Cu, 0.39g/t Au incl. 2.17% Cu, 0.97g/t Au WR % Cu, 0.53g/t Au incl. 2.57% Cu, 1.15g/t Au WR % Cu, 0.82g/t Au 720,000mN local mine grid (1) Mineral Resource quoted. Refer Newcrest Annual Statement of Mineral Resources & Ore Reserves to December 31, Resource figures quoted on 100% basis. Northern Gold Zone Presence of a new gold zone confirmed west of Golpu - WR g/t Au Gold mineralisation defined over 200m strike Remains open in all directions

20 Bonikro Pit Expansion Opportunity LONG SECTION (viewing west) final pit design BRRC g/t Au BRRD g/t Au and 1.4g/t Au BRRD269C 14g/t Au and 2.4g/t Au BONIKRO RESOURCE (1) 2.9Moz Au BRRC g/t Au Bonikro Recent drill results confirm and upgrade the Inferred Resource Strong potential for pit expansion 00mRL High grade mineralisation Indicated Resource Inferred Resource -200mRL BRRD271B 3.0g/t Au, 2.0g/t Au and 4.1g/t Au BRRD249C 2.2g/t Au and 2.9g/t Au 200 m 688,800mN800mN 689,200mN (1) Mineral Resource quoted. Refer Newcrest Annual Statement of Mineral Resources & Ore Reserves to December 31, Resource figures quoted on 100% basis. 20

21 Upcoming Shareholder Communications Full Year Results: 13 th August 2012 FY13 guidance released 5YP update Wafi-Golpu PFS and Golpu Ore Reserve: September 2012 Quarter Investor Day: 2nd October 2012, Sydney Focus on Newcrest asset portfolio and growth plans Site Visits: 21 3rd October 2012: Cadia Valley 5th October 2012: Lihir The first opportunity to see the Cadia East underground panel cave and the expanded Lihir operation. September 2012 Quarterly Report: 18th October 2012