Quarterly Report Newcrest Mining Limited For the three months ending 30 June 2007 (These figures are unaudited) Key Points Operations Record quarterly gold production of 463,170oz (390,096oz). Group cash costs for the quarter based on achieved copper prices were A$230/oz (A$283/oz). Record full year group gold production of 1,617,251oz (1,529,866oz). Full year group cash costs based on achieved copper prices of A$280/oz. Legacy copper hedging positions completed. Development Approval for Ridgeway Deeps project to proceed to development. Pre-feasibility study for K2 extension project at Gosowong commenced. Exploration Newcrest to earn a 65% interest in Namosi prospect in Fiji. Production Highlights Production Highlights June 2007 Quarter March 2007 Quarter % Change Twelve Months to June 2007 Group production - gold oz 463,170 390,096 19 1,617,251 - copper t 22,188 21,628 3 88,940 Cadia production - gold oz 91,561 70,535 30 246,661 - copper t 6,659 6,376 4 23,181 Ridgeway production - gold oz 82,182 74,637 10 314,028 - copper t 9,443 9,474-37,939 Telfer production - gold oz 167,880 142,499 18 627,077 - copper t 6,086 5,778 5 27,820 Gosowong production - gold oz 101,253 78,211 29 347,807 Cracow production - gold oz 20,294 24,214 (16) 81,678 Group Cash Cost achieved prices A$/oz 230 283 (19) 280 Group Total Costs achieved prices A$/oz 374 440 (15) 420 Group Cash Cost spot prices A$/oz 103 170 (39) 141 Group Total Cost spot prices A$/oz 247 327 (24) 281 Achieved gold price A$/oz 748 658 14 682 Note: Cash and total costs in this report are quoted net of by product credits (Numbers in brackets reflect the comparable figures for the March 2007 Quarter) 1
Quarterly Report to 30 June 2007 Gold Production Summary June 2007 Quarter Mine Production (000t) Tonnes Treated (000t) Head Grade (g/t Au) Gold Recovery (%) Production (oz) Cash Cost (A$/oz) @ achieved prices Total Costs (A$/oz) @ achieved prices Cadia Hill 11,607 4,128 0.84 81.7 91,561 321 439 Cracow (70%) 68 68 9.59 94.0 20,294 371 525 Gosowong 53 69 50.8 94.9 101,253 191 258 Ridgeway 1,366 1,434 2.02 86.6 82,182 (427) (295) Telfer Open Pit 16,231 4,331 1.22 78.8 135,053 - - Telfer Underground 759 667 1.35 85.3 24,994 - - Telfer Dump Leach - - - - 7,833 - - Total Telfer 16,990 4,998 1.24 79.7 167,880 509 718 Total 30,084 10,697 1.59 85.2 463,170 230 374 Twelve Months to June 2007 Cadia Hill 47,159 16,624 0.58 79.7 246,661 351 484 Cracow (70%) 263 270 10.11 93.9 81,678 342 486 Gosowong 570 313 37.36 94.2 347,807 238 301 Ridgeway 5,853 5,694 2.00 85.7 314,028 (228) (109) Telfer Open Pit 58,658 17,817 1.12 75.4 486,435 - - Telfer Underground 2,477 2,755 1.45 84.4 106,533 - - Telfer Dump Leach - - - - 34,109 - - Total Telfer 61,135 20,572 1.16 76.9 627,077 534 732 Total 114,980 43,473 1.37 83.2 1,617,251 280 420 Notes: Cash and total costs are in accordance with the Gold Institute production cost standard for by-product costing (unaudited). Cash and total costs at achieved prices include the impact of copper hedging. Cash and total costs, include the impact of realised and unrealised quotation period adjustments. All figures are 100% Newcrest Mining Limited unless stated otherwise. Telfer underground production for July-October 2006 is treated as commissioning production and is excluded from the YTD cost reporting statistics. Telfer s cash and total costs include the costs of the open pit, dump leach and underground (from 1 November 2006). Mine production for open pit includes ore and waste, underground includes only ore production. Copper Production Summary June 2007 Quarter Copper Grade % Copper Recovery % Concentrate Produced (tonnes) Metal Production (tonnes) Cadia Hill 0.18 90.1 32,032 6,659 Ridgeway 0.72 90.3 34,270 9,443 Telfer Open Pit 0.16 54.2 20,205 4,031 Telfer Underground 0.37 80.1 11,699 2,055 Total Telfer 0.19 60.9 31,904 6,086 Total 0.26 79.9 98,206 22,188 Twelve months to June 2007 Cadia Hill 0.16 89.3 107,214 23,181 Ridgeway 0.73 90.6 137,120 37,939 Telfer Open Pit 0.18 58.9 90,683 18,841 Telfer Underground 0.39 83.5 44,664 8,979 Total Telfer 0.21 65.3 135,347 27,820 Total 0.25 80.6 379,681 88,940 2
Quarterly Report to 30 June 2007 Cadia Hill Open pit material movement increased due to improved fleet availability. Mining operations focused on mining the lower benches of the pit exposed by cutback 2 and the commencement of cutback 3. Gold production increased 30% due to mining and processing higher grade ore. Copper production increased 4% due to a grade improvement. Unit cash costs on an achieved basis declined 16% as a result of the higher production level partially offset by higher deferred mining charges. Runoff from early winter rainfall in combination with agreement by the Orange City council and the New South Wales state government to provide the mine with up to 450 mega litres of raw water on commercial terms is expected to provide sufficient water to support operations at current levels until at least the end of March 2008 quarter. Normal winter rainfall will provide sufficient water for operations to continue to at least next winter. Ridgeway The Ridgeway operation continued to function in accordance with plan. Ore mined declined 9% while mill throughput increased 2%. Gold production increased 10% due to improved grades, recoveries and higher mill throughput. A modest reduction in copper production was the result of lower copper grades and recoveries. Unit cash costs continued to decline, reflecting higher achieved copper prices and lower realisation costs. Telfer Operational performance at Telfer improved progressively throughout the quarter. The ongoing impact of the rainfall events experienced in March restricted April s production rates however access to Stage 3 open pit ore later in the quarter significantly improved the overall grade and recovery profile of the site. Open pit material movement increased 8% during the quarter. Mining operations focused on completing Stage 2 and accessing Stage 3 ore from the pit later in the quarter. After a slow rainfall affected start underground ore production was 0.8Mt. Production continued to be sourced from the undercut and first production levels of the sublevel cave with development work continuing on the next two production levels. A modest reduction in mill throughput resulted from processing harder ore sourced from Stage 3 of the open pit in combination with a major mill shutdown in May. Open pit gold production increased 29% during the quarter due to a 16% improvement in gold grade and 10% increase in gold recovery. A significant portion of stockpiled feed continued to be processed in April until access to the higher grade Stage 3 ore became available in May. During April, 56% of mill feed was lower grade stockpile supergene feed, compared to 8% in May and June. For the quarter, 25% of mill feed was stockpile supergene ore compared to 31% in the March quarter. Significant improvements in gold grade and recovery rates were achieved in May and June when the processing of Stage 3 ore commenced. This ore has better metallurgical recovery characteristics than the oxidised supergene stockpiles. Underground gold production declined 7% as a result of reduced availability of ore due to March rainfall events. This was partially offset by a 7% increase in grade and 5% improvement in recovery. Copper production was steady during the quarter. Unit cash costs declined on an achieved basis due to increased production levels partially offset by lower mining cost deferrals. Telfer is implementing strategies to increase overall gold and copper recoveries in order to enhance financial returns. The strategy involves:- increasing plant availability and reducing time lost due to mill stoppages by improving asset management and operating practices; debottlenecking specific parts of the plant; enhancing metallurgical process controls; and assessing the feasibility of producing multiple concentrate products These strategies are expected to be implemented over the next 12 months. Modifications to the gravity gold recovery circuit were completed and commissioned during the quarter. The overall percentage of gold production recovered as dore for the year was 37%. Gosowong Record gold production was achieved during the quarter with the 29% increase due to a significant uplift in the grade of ore mined underground. Process plant optimisations continued including refinement of the grind size and other minor plant modifications that assisted in improving gold recovery. 3
Development continued on the decline and lower sub level access. Cracow (70%) Mining and milling rates increased during the quarter. Gold production declined 16% due to a reduction in mill head grade and associated recovery. Unit cash costs increased as a result of the lower production level. Project Development Cadia East Decline development during the quarter was 475 metres for a cumulative advance of 3.7km since development commenced in May 2005. A total of 6.7 km of decline development is required to access the ore body undercut which is scheduled to occur during the December quarter of 2008. Detailed planning continued for the studies test work programme which is to be carried out once access is gained to the underground orebody. The Cadia East open pit pre-feasibility study is scheduled for completion in the September 2007 quarter. Ridgeway Deeps Approval to develop the Ridgeway Deeps project was received during the quarter. The capital cost of the project is estimated at $545 million and involves the establishment of a block cave mining operation below the existing successful sub level cave operation. Two new underground crushing stations will be established together with associated ore haulage conveyors linking them to the existing haulage conveyor system. Some modifications to the existing processing plant will also be made. This extension to the Ridgeway mine is expected to produce over 2.8M gold equivalent ounces (1.6 Moz of gold and 210,000 tonnes of copper) over a total project life of 12 years, of which 8 years will be at the design production rate of 5.6 Mtpa. The transition from the sub level cave to the block cave will occur over the next two financial years with full design production achieved in Financial Year 2010. Underground development to establish the Ridgeway Deeps block cave, was 693 metres for the quarter bringing the total to date to 2,843 metres. This development was entirely on the undercut level. Gosowong A pre-feasibility study was commissioned to identify the optimal strategy for extensions to the existing Kencana underground mine (K2-K Link Extension Project). 4 Telfer Quarterly Report to 30 June 2007 Several concept studies into potential enhancements to operations at Telfer have been initiated. Studies focussing on lower cost bulk underground mining methodologies, lower cost open pit materials handling systems (in pit crushing and conveying) and on-site metal production are scheduled for completion during the September quarter. Namosi Joint Venture Newcrest signed a Memorandum of Understanding with Nittetsu Mining Co. Ltd and Mitsubishi Materials Corporation (MMC) to establish a joint venture to explore for copper-gold in the Namosi region of Fiji. Newcrest has been invited to earn a 65% interest in the joint venture over a 4 to 5.5 year period by funding exploration. During that period, and after it has earned its interest, Newcrest will be the manager of joint venture activities. The Namosi tenement is located 30km west of the Fiji capital, Suva. The tenement is a highly prospective, large copper-gold porphyry mineralised system, to which Newcrest s deep drilling and exploration expertise will be applied. Between 1991 and 1995 Placer Pacific conducted exploration drilling and defined a low grade open pit copper/gold resource in excess of 900Mt* grading 0.43% Cu and 0.14g/t Au. Past exploration and evaluation activities within the Namosi tenement have identified potential near term development opportunities. The immediate work program for Namosi will include concept level studies centred on previously identified mineralisation at Waisoi as well as testing possible depth extensions of the Waisoi mineralisation. Initial emphasis of the regional exploration activities will focus on the more than 15 significant copper and gold prospects already identified during reconnaissance level exploration within the broader Namosi tenement. The concept study on the Waisoi deposit will assess the potential of open pit and bulk underground exploitation options utilising Newcrest s expertise in developing and operating both large open pit and bulk underground operations. *Note: Newcrest has not verified the classification of historic resource references and is not treating it as a JORC compliant resource verified by a Competent Person s Statement. Although this historical reference of resource potential may be relevant to recognizing the potential of the district, it should not be relied upon. Exploration Discovery exploration activities continued on a range of projects in all states of Australia, Nevada, southern Peru, and northern Chile and at Gosowong in Indonesia. Resource definition drilling was conducted
at Cracow and on the greenfields Marsden project in NSW. Exploration activities on other projects included geological mapping and sampling, geophysics and early-stage drilling. Mineral Resource estimates were progressed on the Kilkenny mineralisation at Cracow and on part of the porphyry-style gold-copper mineralisation identified at Marsden. Marsden, New South Wales (100%) Widely-spaced resource definition drilling was ongoing to enable an initial Mineral Resource estimate to be reported on part of the gold-copper porphyry mineralization. The initial estimate will be reported with the Company s Annual Mineral Resource and Ore Reserve update in August 2007. Cracow Joint Venture (70%) Drilling to enable a Mineral Resource estimate was completed and will be reported with the Company s Annual update in August 2007. Exploration activity is now focussed on exploring extensions to the major faults which host the presently-identified gold shoots. Less than 50% of the strike extent of these faults has been investigated by drilling. Hedging Quarterly Report to 30 June 2007 The hedgebook consists of a series of sold gold forwards and gold bullion sale contracts out to FY2013. The mark-to-market of the hedgebook (including gold loan derivatives) as at 30 June 2007 is as follows: 30 June 2007 $M 31 Mar 2007 $M Gold (1,168) (1,411) Copper - (52) Total (1,168) (1,463) Total gold hedge commitments (including gold loan) represent 13% of reserves and 7% of resources. The achieved gold price for the quarter was A$748/oz (A$658oz), pre hedge accounting treatment. The higher achieved price is due to a lower proportion of sales hedged in the current quarter 26% (70%). The legacy copper hedge positions were completed during the quarter. For further information on hedging please refer to the Newcrest website. Corporate Gosowong District Joint Venture (82.5%) Mr Tim Lehany has been appointed as Acting Executive In addition to conducting resource definition drilling at Kencana, exploration activities have been directed towards identifying other gold-bearing structures with the potential to host bonanza-grade gold mineralisation similar to that discovered at Kencana. Recentlycompleted electrical geophysical surveys (CSAMT & IP) are being used in conjunction with geological mapping to identify further targets for discovery drilling. Drilling in the Gosowong North area has intersected narrow intervals of high grade gold in the hanging-wall to the Lempung Vein. General Manager Operations. Mr Lehany is a Mining Engineer and has been with Newcrest for 8 years as General Manager of Cadia Valley operations and more recently as Group General Manager Operations with responsibility for all the Group s operational sites. I Smith Managing Director and Chief Executive Officer 5
Quarterly Report to 30 June 2007 Cost Per Ounce of Gold Produced on an achieved basis 3 months to 30 June 2007 $/oz 12 months to June 2007 $/oz Note Cadia Cracow Gosowong Ridgeway Telfer Group Cadia Cracow Gosowong Ridgeway Telfer Group Mining 374 226 86 149 424 283 514 209 109 145 373 283 Milling 196 84 34 139 266 171 261 84 42 137 291 191 Administration and other 64 76 77 49 93 75 85 71 90 46 94 81 Stripping & ore inventory adjustments (1) 71 (27) (2) (35) (105) (32) (122) (34) 1 (32) (106) (67) Site Operations Costs 705 359 195 302 678 497 738 330 242 296 652 488 By product credits (2) (545) (13) (18) (926) (330) (396) (605) (13) (18) (778) (280) (358) Third party smelting, refining and transporting costs 121 2 5 138 124 94 186 2 5 207 126 119 Royalties 40 23 9 59 37 35 32 23 9 47 36 31 Cash Cost 321 371 191 (427) 509 230 351 342 238 (228) 534 280 Depreciation & Amortisation (3) 118 154 67 132 209 144 133 144 63 119 198 140 Total Cost 439 525 258 (295) 718 374 484 486 301 (109) 732 420 Note: (1) Represents adjustment for the cost of waste removal at life-of-mine stripping ratio rates, share of advanced development costs and ore inventory movements. (2) Copper and silver by product revenue is measured at achieved prices and includes finalisation adjustments. (3) Depreciation and amortisation of mine site assets is determined on the basis of the lesser of the asset s useful economic life or the life of the mine. Life-of-mine assets are depreciated according to unit of production and the remainder on a straight line basis. 6
June 2007 Quarter Cash Cost (A$/oz) @ spot prices Quarterly Report to 30 June 2007 Total Costs (A$/oz) @ spot prices Cadia Hill 130 248 Cracow (70%) 371 525 Gosowong 191 258 Ridgeway (732) (600) Telfer 411 620 Total 103 247 Twelve Months to June 2007 Cadia Hill 109 242 Cracow (70%) 342 486 Gosowong 238 301 Ridgeway (544) (425) Telfer 429 627 Total 141 281 Corporate Information Board Members Don Mercer Ian Smith Bryan Davis Ron Milne Mick O Leary Nora Scheinkestel Greg Robinson Bernard Lavery Non-Executive Chairman Managing Director and CEO Executive Director Company Secretary Registered & Principal Office ABN 20 005 683 625 Level 8, 600 St Kilda Road Melbourne, Victoria, Australia 3004 Telephone: +61 (0)3 9522 5333 Facsimile: +61 (0)3 9525 2996 Email: corporateaffairs@newcrest.com.au Website: www.newcrest.com.au Stock Exchange Listings Australian Stock Exchange New York ADR s (Ticker NCM) (Ticker NCMGY) Forward Shareholder Enquiries to Link Market Services Level 9, 333 Collins Street Melbourne, Victoria, 3000 Australia Telephone: 1300 554 474 +61 (0)3 9615 9947 Facsimile: +61 (0)3 9615 9900 Email: registrars@linkmarketservices.com.au Website: www.linkmarketservices.com.au Substantial Shareholder(s) at 30 June 2007 Capital Group 13.7% Black Rock Inc 8.4% Commonwealth Bank of Australia 8.2% Issued Share Capital At 30 June 2007 issued capital was 334,935,288 ordinary shares. Quarterly Share Price Activity High Low Last $ $ $ April - June 2007 24.47 21.56 22.85 Competent Persons Statement The information in this report that relates to Exploration Results is based on information compiled by D. Wood, EGM Exploration for Newcrest Mining Limited who is a Member of The Australasian Institute of Mining and Metallurgy, and a full-time employee of Newcrest Mining Limited. Mr Wood 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 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Wood consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. For further information, please contact: Investor Enquiries Media Enquiries Karen McRae, Head of Investor Relations Daryl Corp Telephone: +61 3 9522 5316 + 61 3 9522 5376 Email: karen.mcrae@newcrest.com.au Email: daryl.corp@newcrest.com.au This information is available on our website at www.newcrest.com.au 7