Cadia Valley. Peter Smith Executive General Manager Australian Operations

Transcription

1 Cadia Valley Peter Smith Executive General Manager Australian Operations

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 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 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, 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 for any material differences between the JORC Code and the applicable definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM Definition Standards). 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. Exploration Target The potential quantity and grade related to any Exploration Targets referred to in this presentation 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 Long life, low cost, organic growth FY13 production guidance 400 to 500koz gold 53 to 58kt copper 5 year outlook 700 to 800koz gold a year 80 to 90kt copper a year >30 year reserve life Cadia East ramp up CVO, Australia CVO Gold Moz Copper Mt Resource Reserve Refer Newcrest Annual Statement of Mineral Resources & Ore Reserves as at December 31, Annual gold production range: gold bar designates up to low end of range, blue signifies high end of range Gold production 2 473koz 400 to 500koz 700 to 800koz FY12 FY13 FY17 3

4 First quartile gold producer Cadia East capital targeting high returns ~$1.3bn expansion over 5 year plan period ~$100m development spend per year thereafter Cadia East to deliver: Mining costs $5 to 6/tonne Unit cash costs post credits ~$200/oz 2 Cadia Valley Cash cost post credits Production cost post credits FY12 A$423 per ounce A$663 per ounce EBIT margin 40% Return on net assets 13% (27% excluding CE WIP) Unit cash cost per ounce 1 1,500 1,000 USD$/oz Cadia % 25.0% 50.0% 75.0% 100.0% ,000 Current cash cost Target cash cost Percentile 1 Source: GFMS, accessed 25 September Assumes US$2.50/lb and AUD:USD

5 Cadia Valley: long life, low cost, organic growth FY13 Production 400 to 500koz transition year Cadia East commercial production - rate steps-up Process stockpiles, RWD at 8mtpa Plants commissioned 5 years Increase production to 700 to 800koz gold plus 80 to 90kt copper 100% Cadia East ore Optimise cave performance Drive cash costs lower and stabilise capital Studies to drive 30 to 35mtpa processing 15 years Production sustained for 30+ years Broader province exploration options Near mine supplementary ore supply Seamless mining and processing factory Future mine Highly automated, high technology, low cost long life 5

6 Cadia Valley Province in central NSW Australia Cadia Valley Cowal 4.5 Moz Au # Northparkes 4.1 Moz Au # 2.3 Mt Cu Marsden Marsden Project 1 Peak Hill 1 Moz Au historical production # Parkes 43 Copper Hill Mine 1.6 Moz Au, 640 kt Cu # Orange Cadia Valley Operations Bathurst Cowra McPhillamys 3 Moz Au, 60 kt Cu # Mineralised Corridor Ridgeway 3.4 Moz Au CADIA PLANT Big Cadia 0.55 Moz Au Cadia Extended 0.93 Moz Au Cadia Hill 5.4 Moz Au Cadia East 33 Moz Au Gooleys Willow Park Tenement Legend Newcrest ML Newcrest EL EL - Active EL Application nn 2011 Gold Resource (Moz Au) Newcrest interest basis 50 km Tenement Legend Newcrest ML Newcrest EL EL - Active EL Application Target areas 50 km # externally reported figures Refer Newcrest Mineral Resource & Ore Reserve Explanatory Notes issued 15 August

7 Cadia Valley - Australia Newcrest Owned Land Operational Area Mining Lease CVO land position is secure 7

8 CVO site well established footprint 8

9 18700 Mega litres of site storage 2 years without refill Southern Tails Northern Tails Upper Rodds Creek Dam CVO well set up for water supplies 9

10 Environmental impact monitoring and management includes: Noise: operational & traffic Blasting and vibration Air quality, soil and water Meteorological monitoring Rehabilitation & biodiversity Aboriginal and historical heritage Open community relations practised Employee awareness Inductions and participation Open days, site tours, newsletters 24 hour community hotline Regular consultation forums 10

11 Plan view Ridgeway Mine Grid 1000 m Ridgeway Big Cadia Cadia Extended Cadia Extended Cadia Hill Big Cadia Pit outline Long projection (looking mine grid north) 1000 m F F Stage 4 Cadia Hill F F Cadia Valley Sydney Cadia East Cadia East Resource RESOURCE Resource Reserve 43.2 Moz Au 8 Mt Cu 26.6 Moz Au 4.3 Mt Cu 2011 CADIA EAST RESOURCE (1) g/t Au & 0.28 % Cu 33.1 Moz Au 6.6 Mt Cu 2011 RIDGEWAY RESOURCE (1) g/t Au & 0.37 % Cu 3.3 Moz Au 0.54 Mt Cu 2011 CVO OTHER RESOURCE (1) g/t Au & 0.15 % Cu 6.8 Moz Au 0.84 Mt Cu 2011 CADIA EAST RESERVE (1) g/t Au & 0.31 % Cu 22.2 Moz Au 3.7 Mt Cu 2011 RIDGEWAY RESERVE (1) g/t Au & 0.36 % Cu 2.5 Moz Au 0.35 Mt Cu 2011 CVO OTHER RESERVE (1) g/t Au & 0.20 % Cu 2.0 Moz Au 0.25 Mt Cu (1) Newcrest Annual Statement of Mineral Resources & Ore Reserves as at December 31,

12 CVO operations are in a transition phase from open pit to all underground Cadia Hill open cut: care and maintenance on 30th June 2012 Ridgeway underground mine: Newcrest s first Block Cave mine, hitting targets Cadia East Project on schedule for commercial production in December quarter Ore processing facility: fully commissioned 12

13 CVO future production dominated by Cadia East (CE) Transition phase: from open cut (CH) and underground to all underground RWD (RW) operating at 8mtpa, pushing to 9mtpa Cadia East ramping to 26mtpa capability Tonnes Processed (Mt) koz 0 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY CE Mill Tonnes RW Mill Tonnes CH Mill Tonnes CH Stockpile Mill Feed Gold Produced mid point estimate koz 13

14 RWD learning & perfecting how to block cave RWD is a single level block cave mine - Feasibility design of 5.6mtpa - Now operating at 8mtpa - Static panel layout reserves of 100mt - Material handling system max capability of 9-10mtpa Demonstrated technical capability to build and operate deep block cave mine in CVO conditions Managed secondary break out of critical path Remote / automated bogging tested Demonstrated electric loaders can compete Introduce link to SAOC All learnings lead to CE SLC Lift 1 Lift 2 14

15 Cadia East: the largest underground mine in Australia Panel Cave mine - Depth: 1200m 1500m 1.2bn tonnes ore in total 26mtpa production capacity ~$5 to $6/tonne mining costs 5 year capital: $1.3bn Intense preconditioning of cave Mine infrastructure capability Crushers Belts Processing Operating systems tuned at RWD Cadia Hill Open Pit 825 m PC1 S2 1,225m 1,475m 400m PC1 S1 600m PC2 S1 PC2 S2 700m 15

16 Production has commenced Cave propagating well Main crusher on track PC2 on track Infrastructure commissioned Future state design complete SAOC imbedded 16

17 FY13 cave layout: currently 27 drawbells fired and 28 ready (drilled) Note: 2 drawpoints for each drawbell 17

18 Undercut moving to plan: grey = fired, blue = drilled 18

19 PC1 S1 PC2 S1 FY13 Cave development over the next 3 years: FY13 19

20 PC1 S1 PC2 S1 Cave development over the next 3 years: FY14 20

21 PC1 S1 PC2 S1 Cave development over the next 3 years: FY15 21

22 Unlike RWD CE is a dynamic multi panel multi level layout We are now here To compare: this is the size of RWD Cadia East future sequencing - Macro Blocks (LOM Au Grade) 22

23 Feasibility Feasibility Optimised Panel cave 2 extraction level layout optimised 23

24 Panel cave 1 phase 2 crusher chamber progressing to plan 24

25 Isometric View (looking towards West) The cave has started to propagate very well 4670 PC1 Undercut 4650 PC1 Extraction 25

26 Cave Back Open Monitoring Holes Recorded Seismicity 11th 24th September 2012 PC1 Cave Shape 4670 PC1 Undercut Level Top of Undercut Drilling Drawbells fired and connected to Undercut 4650 PC1 Extraction Level 26

27 Cave Back Interpretation September 2012 Caved Stock: 430,000 Tonnes Caved Stock Available: 50,000 Tonnes 9 m average air gap (25 m max) Next 6 UC firings to the North To create caving and filling of gap Isometric View (looking towards West) 4670 PC1 Undercut Expansion Void height (m) Assumes 2 pathways Nomogram 4650 PC1 Extraction Muckpile Height (m) Red Orange Yellow Green Daily monitoring and reporting tools in place 27

28 There is potential to drive processing to 35mtpa 1 HIGH CASE 35Mtpa Leverage assets Step upper change limits New technologies Leverage assets upper limits MID CASE 30Mtpa Execute the plan BASE CASE 26Mtpa 1. Subject to regulatory approvals. 28

29 Emerging Cadia Step Changes Getting higher productivities from what we have Finer Engineered Cave Ore Exploit finer, engineered cave material Ridgeway showing fine material as cave matures Cadia East additionally has intensive preconditioning Low grade segregation before processing Higher productivity from asset Adopt semi-continuous cave production Fine tuning ore transfer system productivities Working with Codelco Field trialling mobile breaker units at Cadia High Productivity Transfer Systems Macro block value sequencing Refining draw column value assessment processes Understanding cave engineered design parameters front ended grade & metal by sequencing value better Macro Block Value Re-sequencing Sustained, low cost 30-35Mtpa Mining Factory 29

30 Future State Collaboration Hub - Operations Excellence (Tier 3) Excellence (Tier 3) Collaboration Hub - Expert Tune Up (Tier 2) Sites Site Asset Operations Centres (Tier 1) Continuous mines, safe delivery of plan Rapid, quality short interval decision making Drive on-going operational improvement Establish Newcrest ops plans and improvement priorities Shared context in real-time CVO performance will be underpinned by the company's integrated operating philosophy 30

31 Cadia Valley: long life, low cost, organic growth FY13 Production 400 to 500koz transition year Cadia East commercial production - rate steps-up Process stockpiles, RWD at 8mtpa Plants commissioned 5 years Increase production to 700 to 800koz gold plus 80 to 90kt copper 100% Cadia East ore Optimise cave performance Drive cash costs lower and stabilise capital Studies to drive 30 to 35mtpa processing 15 years Production sustained for 30+ years Broader province exploration options Near mine supplementary ore supply Seamless mining and processing factory Future mine Highly automated, high technology, low cost long life 31

32 Cadia Valley operations at the dawn of greatness The future is here 32