Credit Suisse Asia Investor Conference 20-22 March 2013, Hong Kong 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. Non-IFRS Financial Information This presentation uses Non-IFRS financial information including Underlying Profit, EBITDA and EBIT. Underlying Profit is presented to assist in the assessment of the relative performance of the Group. EBITDA and EBIT are used to measure segment performance and have been extracted from the Segment Information disclosed in the ASX Appendix 4D. Non-IFRS information has not been subject to review by Newcrest s external auditor. 2
Newcrest Mining Newcrest in a snapshot Bonikro 4 th largest global gold producer 1 6 production assets in 4 countries, primarily Australia and Asia Pacific Gosowong Manus Is Gold production 2.3 2.5Moz 2 Copper production 75 85kt 2 Tandai Wafi-Golpu Lihir Is Hidden Valley Reserve life >40 years Workforce 19,000+ Telfer Namosi JV Newcrest strategy Long life, low cost, moderate growth Gold Equivalent Resource +50Moz 20-50Moz 0-20Moz 1 By market capitalisation 2 FY13 production guidance. Cadia Valley Australia, SE Asia focus Unhedged, low gearing, dividend growth Focus on early stage resources People & technical capability focus Management incentives ROCE, reserve growth, and cost position 3
Recent highlights A$3.5B in major brownfield projects delivered Cadia East (A$2.4B) 8% above budget Lihir MOPU (US$1.4B) 8% above budget Wafi Golpu, the next longer term growth project Capital expenditure to decline Projects commissioned, capital spend declining, production and cashflow growing Stripping at Telfer and Bonikro winding down by June 2013 Growth in Reserves and Resources Reserves: gold 10% increase, copper 43% increase Resources: gold 8% increase, copper 5% increase Corporate bonds issued and bank facilities renewed New Enterprise Agreements in place for Cadia & Telfer employees (4 years) 4
Key themes for Newcrest Drive performance from existing assets Ramp up and optimise high margin assets Lift return from existing assets Technology and people capability focus Increase productivity Strong focus on cost reduction Capital reduction Major investments in growth completed Minimise future investment until cycle trend becomes clear Entering period of strong free cash flow generation Grow shareholder returns 5
Interim dividend maintained Dividend growth Increasing payout ratio Dividend (cps) 60 50 40 30 20 10 FY13 Interim dividend of 12cps (unfranked) 1200 1000 800 600 400 200 Statutory Profit (A$M) 11% 12% 10% 9% 15% 34% including special dividend 16% 20% 25% 29% interim 0 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Interim Dividend Final Dividend Special Dividend FY Statutory Profit FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Calculated as DPS divided by EPS (underlying) 1H FY13 Objective is to grow profit and cashflow, maintain a conservative balance sheet, spend within means, and return cash to shareholders via ordinary, special dividends 6
Financial flexibility with long dated debt (US$M) 1,200 Long dated debt repayment profile Low gearing 16.9% 12.5% 750 750 500 100 25 2015 2017 2020 2021 2022 2041 Jun 12 Dec 12 Private Placement Bilateral Facilities Corporate Bonds US$1,405 million in undrawn facilities at 31 December 2012 Objective is to reduce level of bank debt over next 18 months as major projects ramp up 7
Near term growth from past investment Gold Production 2.29 Moz 2.3Moz to 2.5Moz 5% to 10% growth per year 2012 2013 2017 5-year production growth 35% to 50% CAGR = 5 to 10% per annum Past investments drive future growth Cadia East = 30 to 40% of 5 year growth Lihir = 50 to 70% of 5 year growth Other growth option studies continue Copper Production 5-year production growth 20% to 30% 76kt 75kt to 85kt 5% to 7% growth per year CAGR = 5 to 7% per annum Cadia East ramp-up delivers growth Telfer production declines to 25ktpa from FY14 2012 2013 2017 8 As provided in August 2012 market guidance
Cadia East project Cadia East Summary A$2.05 billion brownfield project Underground panel cave mine Plant expansion to 26Mtpa capacity Increases annual production to: 700 to 800koz gold (from ~ 450koz) 90kt copper (from ~ 75kt) Lowest quartile cash costs Province life of at least 30 years Project Status First panel cave in commercial production on 1 January 2013, ramping up Cave performing well Project cost within 8% above budget Next phase crusher completes March 2013 Second panel cave development on track Drawbell drilled and fired (x54) Drawbell drilled and ready to fire (x27) Panel cave 1 schematic at 18 February 2013 9
Lihir MOPU project Lihir MOPU Summary US$1.4 billion brownfield project Process plant expansion Increases annual production to 1Moz gold Second quartile cash cost Province life of at least 30 years Project Status Project complete, in operation on 1 February 2013, and ramping up Project cost within 8% above budget Second phase plant optimisation and flotation upgrade project underway Target FY15 production at 1.2-1.3 Moz 10
Wafi Golpu the next major province Wafi Golpu Summary US$4.8 billion (100%) greenfield project Underground panel cave mine Process plant Support infrastructure Annual production 500-600koz gold 300-400kt copper First production around 2019; >30yr mine life Lowest quartile cash cost Project Status Technical pre-feasibility completed Engaging with the government, landowner communities and other stakeholders Resource development & exploration drilling continues Optimise project capital and metallurgical parameters Commence feasibility study once suitable stakeholder arrangements in place 11
Wafi Golpu in the gold sector Wafi-Golpu Mineral Resource containing 29Moz gold and 9Mt copper 1 Golpu Ore Reserve containing 12.4Moz gold and 5.44Mt copper 1 Selected SE Asia porphyry copper-gold deposits 1 Cu (wt %) 1.30 1.20 1.10 1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 Namosi 54 Moz Dexing 16 Moz Tampakan 94 Moz Frieda River 83 Moz Northparkes 12 Moz Oyu Tolgoi 248 Moz Batu Hijau 37 Moz Kingking 24 Moz Golpu 2010 35 Moz Cadia Valley 125 Moz Golpu 2012 69 Moz Golpu 2007 13 Moz Grasberg 329 Moz Ridgeway Didipio 11 Moz 5 Moz Ok Tedi 20 Moz 0.00 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 In production Project Golpu as at 2007 and 2010 Golpu as at 2012 Au (g/t) Sourced from Company Reports and Wood Mackenzie Database (accessed 28/06/2012). Bubble size represents total resource gold-equivalent ounces, based on US$1250/oz gold, US$3.10/lb copper on an in-situ basis 1 100% share 12
Options for medium term growth Potential for delivery within 5 years Lihir tune-up and expansion to ~1.4Moz pa Cadia mine to mill optimised to 30Mtpa Further Bonikro plant expansions Namosi open pit mine O Callaghans tungsten mine Delivery beyond 5 years Wafi-Golpu Telfer underground West Dome Deeps Lihir Argillic Ore and Stockpiles Gosowong exploration success Côte d Ivoire exploration success Multiple project options at various stages of evaluation Conservative approach to capital decisions at this time Brownfield focus for Exploration 13
Exploration program ~ A$150M in FY13 Tandai, Manus Island and Mt Andewa JVs: A$10 to 15m Grassroots exploration Gosowong: A$20 to 25m Step out drilling around Toguraci and Kencana Regional grassroots exploration within the CoW PHILIPPINES Wafi-Golpu and Morobe: A$35 to 40m Wafi-Golpu project Wafi Transfer Zone discovery exploration Regional exploration Manus Is JV Bonikro and Côte d Ivoire: A$25 to 30m Exploration around Bonikro Mine Accelerated regional exploration program PAPUA NEW GUINEA CÔTE D IVOIRE BOUAFLE BONIKRO AFRICA MANKONO Yamoussoukro Abidjan 100 km Tandai JV INDONESIA Wafi-Golpu/ Morobe Mt Andewa JV Lihir: A$10 to 15m Resource and Reserve drilling Offshore exploration Telfer: A$20 to 25m West Dome advanced exploration Hidden Valley FIJI AUSTRALIA Cadia Valley Namosi: A$5 to 10m Discovery exploration in Namosi SPL 1000 km Indicative spends shown, Newcrest share Exploration objectives: Resource additions < $20/oz Early stage province capture Drilling > 50% total spend 13 projects, 36 drill rigs, $150M Operation Advanced Project Exploration Project 14
PNG, Morobe Mining JV firming up Wafi Golpu West WR423 758m @ 0.67g/t Au, 1.28% Cu 5,000 mrl SCHEMATIC SECTION Looking North WR440 286m @ 0.53g/t Au, 1.22% Cu East Golpu Project Recent Drilling Increase in Lift 1 gold and copper grades Confirms eastern boundary of Lift 2 Lift 1 Lift 2 4850 mrl Mineralisation continuity below Lift 2 WR429W intersects: Indicated 658m @ 0.86g/t Au, 1.09% Cu WR429W_3 658m @ 0.86g/t Au, 1.09% Cu incl. 246m @ 1.68g/t Au, 1.97% Cu Lift 3 4100 mrl Inferred 3850 mrl Including 246m @ 1.68g/t Au, 1.97% Cu 250 m OPEN Exploration 20,600 me 15
Telfer - West Dome Deeps Drilling targets structural and stratigraphic repeat of Main Dome Telfer Deeps Parent holes are well advanced and expected to intersect target in the coming quarter SCHEMATIC SECTION WEST DOME West Dome final pit design MAIN DOME Main Dome final pit design Open Pit Extensions 5,000 mrl Drill hole in progress Exploration Decline SLC Resource (2) (pre mining) 3.3Moz Au, 220Kt Cu 4,000 mrl 500 m West Dome Deeps Target 59000 me Lower Limey Unit 61000 me VSC Resource (1) 1.3Moz Au, 160Kt Cu 1 Newcrest Annual Statement of Mineral Resources & Ore Reserves to December 31, 2012. 2 Newcrest Annual Statement of Mineral Resources & Ore Reserves to June 30, 2008. 16
Côte d Ivoire near mine and regional Côte d Ivoire AFRICA PLAN VIEW Bonikro District Drilling Reserve increase at Bonikro of 0.2 million ounces of gold (1) Mankano BFRC032 32m @ 1.0g/t Au BFRC041 8m @ 18g/t Au Bouaflé Yamoussoukro Dougbafla DNDD052 17m @ 1.3g/t Au, 15m @ 2.3g/t Au and 9m @ 4.0g/t Au 1 2 100 km Bonikro 3 Abidjan Timbé / Bouake Dougbafla DEDD001 32m @ 2.1g/t Au ORC1215B 19m @ 1.6g/t Au and 12m @ 4.1g/t Au Oumé Hiré Hire HDD2603C 80m @ 6.4g/t Au Newcrest Tenement Greenstone Success near mine Hiré 80m @ 6.4g/t Au from 99m Dougbafla 32m @ 2.1g/t Au from 205m Regional Exploration Bouaflé diamond drilling 8m @ 18g/t Au from 116m 32m @ 1.0g/t Au from 140m 17 1 Newcrest Annual Statement of Mineral Resources & Ore Reserves to December 31, 2012. Resource figures quoted on 100% basis.
Long reserve life, concentrated focus 42 Reserve life (years) 31 Number of Mine Provinces 28 20 19 17 17 7 Newcrest Goldcorp Newmont Barrick Source: company filings December 2012 Barrick Newmont Goldcorp Newcrest Source: Intierra Based on minimum 40% holding. At least one project at mine must be pre-feasibility / concept Long reserve life in the industry Percentage of Mine Provinces in Top 30 Mines 43% Concentration of high quality assets 29% 24% 16% Brownfield focus continues to deliver upside Newcrest Goldcorp Newmont Barrick Source: Intierra; Top 30 NPV basis from BMO Equity Research at 5% discount rate and street consensus pricing; current as of 8-Jan-2013 18
Main production at the low end of the cost curve Gold industry cash costs USD$/oz 2,000 1,800 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 1,600 Hidden Valley 1,400 1,200 Major growth projects in 1 st and 2 nd quartile 1,000 Telfer Bonikro 800 600 Gosowong Cadia Valley Lihir 400 200 Percentile 0 0% 25% 50% 75% 100% Source: Thompson-Reuters GFMS ; CY2012 (Q1 to Q3) Industry Reported Total Cash Cost ($ oz) 19
Productivity challenge: people, innovation & technology Innovation turned into reality The next phase Remote Operators Remote expert monitoring Central control rooms Semi-continuous underground mining Continuous open pit mining systems On-line gold analysers Technical testing site Adopting bulk underground at Cadia East Autoclave efficiency Coarse particle flotation machines Capability training, speed Hard rock mechanical tunnelling Operator training Early waste removal People logistics Cave flow tracking Waste technology improvement Rock cutting 20
Conclusion Newcrest Themes: drive value, cost & capital reduction, grow shareholder returns Solid major projects delivery achieved Deliver production growth from Cadia and Lihir Production growth from lower cost operations Strong free cash flow capacity Capital spend declining Increase momentum on Operational reliability and efficiency Carefully progress Wafi-Golpu, the next major province Continue exploration focus on brownfield opportunities Maintain strong financial position; reward shareholders 21