BMO Capital Markets Global Metals & Mining Conference Feb 2012, Florida USA

Transcription

1 BMO Capital Markets Global Metals & Mining Conference Feb 2012, Florida USA Greg Robinson Managing Director & CEO

2 Disclaimer 2 Forward Looking Statements These materials include forward looking statements. Forward looking statements inherently involve subjective judgement and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside of the control of, and may be unknown to, the company. Actual results and developments may vary materially from those expressed in these materials. The types of uncertainties which are relevant to the company may include, but are not limited to, commodity prices, political uncertainty, changes to the regulatory framework which applies to the business of the company and general economic conditions. Given these uncertainties, readers are cautioned not to place undue reliance on such 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, the company does not in providing this information undertake any obligation to publicly update or revise any of the forward looking statements or any change in events, conditions or circumstances on which any such statement is based. Non-IFRS Financial Information This presentation uses Non-IFRS financial information including Underlying Profit, Operating EBITDA and Operating EBIT. Underlying profit is presented to assist in the assessment of the relative performance of the Group. Refer to the Appendices for the reconciliation to Statutory Profit. Underlying profit has not been subject to review by the external auditors. Operating EBITDA and Operating EBIT are used to measure segment performance and have been extracted from the Segment Information disclosed in the Group s Half-Year financial report, which has been subject to review by the external auditors. 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 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. Competent Persons Statement The information in this presentation that relates to Exploration Results, Mineral Resources and Ore Reserves are based on information compiled by Colin 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 2004 Edition of the JORC Code. Mr Moorhead consents to the inclusion in this presentation of the matters based on this information in the form and context in which they appear. 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.

3 Newcrest Mining 4th largest Bonikro global gold producer 1 6 production regions in 4 countries Workforce of ~18,000 Gold production Moz 2 Tandai Gosowong Manus Lihir Wafi-Golpu Hidden Valley Copper production 75-85kt 2 5 year growth rate target 8%pa Gold Resource Moz Telfer Cadia Valley Namosi Bonikro Operation Project Exploration Project 3 1 By market capitalisation 2 FY12 production guidance

4 Financial Highlights - Half Year FY12 Record Profit & Cashflow Statutory Profit 1 up 50% - A$659M Underlying Profit 2 up 17% - A$611M Cashflow from Operations - A$1,009M Significant investment in growth Capital Expenditure A$1,254M Exploration Expenditure A$66M Balance Sheet strength Gearing 8% 3 Undrawn debt US$1,730 million Dividend increased 20% to 12cps 4 1 Profit after tax and non-controlling interest 2 Profit after tax and non-controlling interest before hedge restructures and other significant items 3 Calculated as net debt to net debt plus equity

5 Financial Highlights Record Profits continue into H1 FY12 Strong EBIT Margin Statutory Profit Underlying Profit 32% 30% 40% 38% 17% , FY07 FY08 FY09 FY10 FY11 H1 FY12 EPS (Statutory Profit)

6 Delivering Growth; maintaining long life Newcrest: 8% growth rate, 21 year reserve life CAGR% (5 year forward period) Reserve life (years) Current Production Level 11% 8% Primarily Cadia East and Lihir driven Growth Production Level % % 13 1 Goldcorp Newcrest Newmont Barrick Newcrest Goldcorp Barrick Newmont 6 Source: Company websites, Bloomberg 21 Feb Compounded growth rate over 6 years

7 Dividend Growth (A$) Divide end (cps) % increase in interim i dividendid d Dividend yield of 1.5% Statutory Profit ($M ) cps FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Half Interim Dividend Final Dividend Special Dividend FY Statutory Profit

8 Strong Financial Position (US$M) Calendar year Long dated debt repayment profile Gearing remains low 750 8% % Jun 11 Dec 11 Private Placement Bilateral Facilities Corporate Bonds US$1,730 million in undrawn facilities at 31 December

9 Exploration Exploration at Telfer 9

10 Exploration Activity FY12 A$25-30M 11 rigs A$25-30M, NML share 7 rigs Tandai Gosowong Manus Is INDONESIA Wafi-Golpu PAPUA NEW GUINEA Lihir A$20-25M Hidden Valley 3 rigs A$20-25M 7 rigs FIJI Namosi Mali Burkina Faso Telfer AUSTRALIA A$10-15M, NML share 3 rigs CÔTE D IVOIRE Cadia Valley Yamoussoukro Liberia Bonikro Abidjan 100 km A$20-25M 5 rigs Minor spend $10-15M $20-25M $25-30M Mining Operation 10 FY12 expenditure range A$ M 44 drill rigs drilling Advanced Project Greenfields Exploration FY12 indicative spend

11 PNG, Lihir Resource Growth PLAN VIEW OPEN Area of Current Drilling Kapit North East Pacific 3.5g/t Au 5.7g/t Au g/t /tau 2.2g/t Au 4.2g/t Au Exploration Target 3 Drill rigs Strong exploration results beyond Kapit North East Kapit Reclaimed land 3.1g/t Au 2.2g/t Au 10g/t Au 2.7g/t Au 7.1g/t Au Inferred Resource boundary Lienetz Minifie Coastal Lihir Plant 2011 LIHIR RESOURCE (1) 1000 m 57Moz Au High grade mineralisation intersected at Coastal Extension of the resource to the north and east 11 (1) Newcrest Statement of Mineral Resources & Ore Reserves to December 31, 2011.

12 Indonesia, Gosowong Growth Opportunities PLAN VIEW Contract of Work Boundary Ngoali NTD g/t /tau 15g/t Au Toguraci (1) 1.4Moz Au Tobobo 2011 GOSOWONG RESOURCE (2) 2.5Moz Au Exploration Target Batu Api Matat Ngailamo Gosowong (1) 1.0Moz Au Gosowong Plant Kencana (1) 3.5Moz Au 58g/t Au 33g/t Au Jakarta 1000 km Gosowong INDONESIA AUSTRALIA Prospect 4 km 11 Drill rigs Significant results from Kencana drilling High grade epithermal veining intersected 1km north of Toguraci Regional exploration continues 12 (1) Includes past production and current Resources. (2) Newcrest Statement of Mineral Resources & Ore Reserves to December 31, Resource figures quoted on 100% basis.

13 WA, Telfer West Dome Significant Growth Potential SCHEMATIC LONG SECTION (looking south west) Main Dome (1) 9.6 Moz Au previously mined Main Dome Decline Telfer Deeps (1) 2.4Moz Au VSC (1) 1.3Moz Au MUC g/t Au & 1.4% Cu 3.5g/t Au u&05%cu 0.5% 8.4g/t Au & 0.6% Cu Saddle Target Area Current development West Dome (1) 7.8Moz Au Exploration Target MRC22539A 1.6g/t Au & 0.1% Cu West Dome decline design 2011 TELFER RESOURCE (1) 21Moz Au 1.0 km 5200 mrl 3200 mrl 7 Drill rigs Continued VSC and West Dome drilling West Dome decline development progress Main Dome and West Dome extended north Reviewing saddle area between Domes 13 (1) Newcrest Statement of Mineral Resources & Ore Reserves to December 31, 2011.

14 PNG, Wafi-Golpu JV Wafi Transfer Zone PLAN VIEW Zimake 7 Drill rigs Bavaga Targeting further growth of the Golpu porphyry Nambonga Wafi Kesiago Zenapu Hekeng Miapilli Golpu 2011 WAFI-GOLPU RESOURCE (1) 26.6Moz 6M Au & 9.0Mt Cu Accelerated drilling campaign within the Wafi Transfer Zone Kesiago, Zimake Mt Tonn Pekumbe 14 Mt Tonn 4 km Copper/gold target area (1) Newcrest Statement of Mineral Resources & Ore Reserves to December 31, Resource figures quoted on 100% basis.

15 Projects & Studies Cadia East drawpoint extraction 15

16 Lihir Million Ounce Plant Upgrade (MOPU) CCD circuit NCA circuit Autoclave building Oxygen Compressor building 16

17 Lihir Million Ounce Plant Upgrade (MOPU) Capital approximately US$1.3 billion Increase process capacity to 11 million tonnes pa Increase gold output by k oz pa Progress 70% complete Construction at peak manning Neutral/Cyanidation/Adsorption commissioned Power supply commissioned Crushing March quarter 2012 Oxygen / Pressure Oxidation September quarter 2012 Scheduled completion December Autoclave Vessel

18 Cadia East Flotation plant, ball mill building HPGR installation Remote 18 Regrind Heavy Vehicle Workshop

19 Cadia East Capex A$1.9 billion (100% committed) Deliver production of 700koz and 80kt Cu Progress 70% complete 20km of Mine development Panel Cave 1 production commencing Ball Mill commissioned to schedule CE plant tie-in shutdown December 2011 Conveying system March quarter 2012 Flotation and HPGR in June quarter 2012 Operational early December quarter 2012 Crushing and screening plant 19

20 Wafi-Golpu: A world class Copper/Gold district PLAN VIEW OPEN Miapilli Porphyry Surface Diatreme Surface Diatreme m Nambonga (1) 1.0Moz Au Golpu (1) 19.3Moz Au 9.0Mt Cu 21,000mN 800 m Diatreme 300 m Wafi (1) 6.2Moz Au 20,000mN 2009 GOLPU RESOURCE (2) 0.57g/t Au & 1.1% Cu Moz Au & 1.7 Mt Cu 500 m 20,000mE 2011 WAFI-GOLPU RESOURCE (1) 26.6Moz Au & 9.0Mt Cu Copper/gold target area 2011 GOLPU RESOURCE (1) 0.69g/t Au & 1.03% Cu 19.3 Moz Au & 9.0 Mt Cu ~800 m 20 (1) Newcrest Statement of Mineral Resources & Ore Reserves to December 31, Resource figures quoted on 100% basis. (2) Newcrest Statement of Mineral Resources & Ore Reserves to June 30, Resource figures quoted on 100% basis.

21 Wafi-Golpu Pre-Feasibility Study (PFS) Expected Initial Capex ~A$4 billion 1 Indicative annual production range 1 : Gold koz Copper kt Ramp-up over 5 years Wafi/Golpu Hill 1st quartile cash costs PFS completion June quarter 2012 Expected production FY17 Permitting and Community support critical Dependent on cave depth starting point Leverage CE development approach % basis

22 Newcrest Value Chain Technologies 22

23 Gold companies should correlate with gold prices Gold Correlation - 1 year Gold Correlation - 10 year (0.20) (0.03) 0.00 (0.20) Analyst price forecasts remain substantially below spot gold price 23 Source: Bloomberg

24 2012 Newcrest Focus Areas - M&A/ Exploration Studies Projects Operations Marketing/ Sales Exploration Studies Projects Operations 44 drill rigs targeting high quality near mine and d greenfields fi ld projects in Australia, PNG, Indonesia Fiji Indonesia, and Côte d Ivoire Pre-feasibility studies on Wafi-Golpu, O C ll h O Callaghans, and Namosi complete in 2012 Cadia East and Lihir MOPU delivery in calendar l d 2012 Improvement focus on: Total material movement Metal recovery Maintenance Training/skills T i i / kill 24

25 25 Appendices

26 Newcrest Asset Portfolio Gosowong 400 koz pa Au US$ /oz cash cost Resource of 2.5Moz Au 1 Reserves of 2.0Moz Au 1 Telfer koz Au pa, 25 30kt Cu pa US$ /oz cash cost Resource of 21.3Moz Au, 1.22Mt Cu 1 Reserves of 11.7Moz Au, 0.63Mt Cu 1 Tandai Wafi Golpu (100%) Exploration Target 40Moz Au & 15Mt Cu 2 Resource of 26.6Moz Au, 9.0Mt Cu 1 Manus Island Namosi Lihir Targeting 1.5Moz Au pa US$450/oz cash cost Resource 56.6Moz Au 1 Reserve 31.5Moz Au 1 Mali Bonikro Liberia Burkina Faso CÔTE D IVOIRE Yamoussoukro Abidjan 100 km Bonikro Target 250koz Au pa US$ /oz cash cost Resource of 2.9Moz 29M Au 1 Reserves of 1.1Moz Au 1 Cadia Valley Targeting ~800 koz Au, 90ktpa Cu First quartile cash costs Resource 43.2Moz Au, 7.97Mt Cu 1 Reserve 26.6Moz Au, 4.27Mt Cu 1 Hidden Valley (100%) 300k oz Au & 2Moz Ag pa US$ /oz cash cost Resource 3.1Moz Au 1 Reserve 1.8Moz Au 1 Mining i Operation Project Exploration 26 1 Newcrest Annual Statement of Mineral Resources & Ore Reserves to December 31, Resource and Reserve figures quoted on 100% basis.

27 Portfolio Overview - Operations Cadia Valley Reserve 26.6Moz gold, 4.27Mt copper Resource 43.2Moz gold, 7.97Mt copper Cadia East commercial production FY13 Production growth from 500koz pa to 800koz pa Copper increasing to 80-90kt pa First quartile cash cost 2015 optimise plant and throughput 27 Lihir Reserves 31.5Moz Resources 56.6Moz gold MOPU delivers growth to M 1.3Moz pa Scope for further optimisation Grow production to Moz pa in 5 years Cash costs around US$450/oz

28 Portfolio Overview - Operations Telfer Reserve 11.7Moz gold, 0.63Mt copper Resource 21.3Moz gold, 1.22Mt copper Sustainable production koz pa for 10 yrs Cash cost US$ /oz Simplify pit material movement O Callaghans in production by 2015 WA cost pressure 28 Gosowong o Reserve 2.0Moz Resource 2.5Moz gold Consistent t production around 400koz pa Grade tracking back towards reserve grade Cash cost US$ /oz Development and extension of Toguraci Exploration focus to extend reserve life

29 Portfolio Overview - Operations Bonikro Reserves 1.1Moz Resources 2.9Moz gold Potential to grow open pit Target production growth to 250koz pa Mill expansion growth from 2 to 5 Mtpa Target cash costs US$ /oz Test near mine targets to increase life Regional exploration 29 Hidden Valley Reserves 1.8Moz Resources 3.1Moz gold Stabilise production around 300koz pa Incremental growth Cash cost US$ /oz Exploration and underground

30 Gold Production: Target 3.8Moz in FY16 ~ 50% increase in Gold production over 5 years FY17+ FY16 FY15 FY14 FY13 FY12 FY11 Target 3.8 Moz 2,539 koz Best growth opportunities: Large resource Low-cost assets 5 year growth primarily: Cadia Lihir Growth beyond FY16: Wafi Golpu 2.5 Moz 3.8 Moz Current Operations Current Projects New Projects 30 Note: Gold production profile excludes divested Queensland assets

31 Delivering Growth; maintaining long life EV / Au Resources (US$/oz) EV / Au Reserves (US$/oz) Resource and Reserve base Newcrest: 8% growth rate, 21 + year reserve life Goldcorp Barrick Newmont Newcrest Goldcorp Barrick Newcrest Newmont CAGR% (5 year forward period) Primarily Cadia East and Lihir driven 11% 31 8% 5% 3% Current Production Level Growth Production Level Reserve life (years) Source: Company websites, Bloomberg 21 Feb Compounded growth rate over 6 years 1 Goldcorp Newcrest Newmont Barrick Newcrest Goldcorp Barrick Newmont

32 Newcrest Financials EBIT Margin Conversion of price growth into profit Statutory Profit 4,500 4,000 3,500 3,000 EBIT Margin % Total Revenue A$M Underlying Profit Achieved gold price A$/oz 1, , ,378 2,500 2,000 1,500 1, % 38% 32% 30% 17% FY07 FY08 FY09 FY10 FY , FY07 FY08 FY09 FY10 FY11 32

33 Newcrest Financials Strong cash margins Cash margin Cash cost per ounce post credit 1,169 1, ,