Newcrest Mining Ltd - CEO Presenttn - May 2011 - Global Metals and Mining Conf

8/3/2019 Newcrest Mining Ltd - CEO Presenttn - May 2011 - Global Metals and Mining Conf

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Merrill LynchGlobal Metals & Mining Conference

10 to 12 May 2011, Barcelona Spain

Ian SmithMD & CEO

Newcrest Mining Limited


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Newcrest

3rd largest global gold producerby market capitalisation

11 th largest ASX listed company(~US$35 Billion)

Proven ability to find, build andoperate world class gold mines

Multiple growth options


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World Class Asset Portfolio

10 operating mines in 4 countries

NamosiFiji

Australia

IndonesiaPNG

Lihir Island

Wafi/Golpu

Hidden Valley

Gosowong

Telfer

Mt RawdonBonikro

Producing Asset

Advanced Exploration

Cracow

Cadia Valley


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Newcrest Safety

1.33

1.10

1.33

0.84

0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

05-06 06-07 07-08 08-09

11.19 10.78

8.44

6.99

0

2

4

6

8

10

12

14

05-06 06-07 07-08 08-09

Lost Time InjuryFrequency Rate

Total Recordable InjuryFrequency Rate

accidents per 1. million work hours

2. ~ 500 people per annum

5.78

09-10

0.62

09-10

0.25

10-11 YTD

3.55

10-11 YTD


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Current 5 Year Production Profile

2.74Moz

FY2010 FY2014

Hidden Valley

CVO

LihirCadia East

3.75Moz

Average ~ 8% pa Growth

Future & additional production upside from the following internal opportunities:West Africa, Wafi/Golpu, OCallaghans, Namosi, Gosowong 2, Vertical Stockwork Corridor


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5 Year Relative Market Capitalisation (US$M)

$0

$10

$20

$30

$40

$50

K i n r o s

s

A g n i c

o - E a g

l e

N e w c

r e s t

H a r m

o n y

G o l d

F i e l d s

G o l d c

o r p

A n g l o

G o l d

N e w m

o n t

B a r r i

c k M a r

k e t C a p

i t a

l i s a

t i o n

( U S $ B )

2006 2011

Source: HSBC The Senior Gold Book, Bloomberg

Newcrests market capitalisation has grown toover 6 times its 2006 size in under 5 years.


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Growth in Gold Reserves

KinrossNewcrest GoldfieldsAngloGoldBarrickGoldcorp Newmont

Reserve Growth Net of Depletion(including acquisitions)

Dec 2006 Dec 2010

6%(11%)0%

14%

133%

56%

Source: Company Reports

38%


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Efficient Use of Capital

KinrossNewcrest GoldfieldsBarrick GoldcorpNewmont

14%

1%

6%

20%

38%

24%

10%

Source: Bloomberg 22 March 2011. ROCE = Operating Income / Capital Employed

Return On Capital Employed (ROCE) - 2010

AngloGold


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Projects


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Growth Pipeline

Gosowong Expansion

Concept &Prefeasibility Feasibility Execution

Lihir MOPU Expansion

Cadia East Mine

Operation

Ridgeway Block Cave

Hidden Valley Mine

Bonikro Hire Mine

Wafi - Golpu

OCallaghans

Hidden Valley Expansion

Namosi

Two major projects, Two major studies


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Cadia East Project A Snapshot

Current Mineral Resource 33.2 Moz Gold, 6.6 Mt Copper

Current Ore Reserve 20.7 Moz Gold, 3.4 Mt Copper

Mine Life > 30 years

Capital Expenditure Project establishment capital A$1.91 Billion.

Production timeline Ramp-up during CY2012

Annual Production (first 10 years)Cadia East gold grade > 1g/t during first 10 yearsCVO prod. 700 to 800 koz Au & 75 to > 100 kt Cu

Cost profile for the first 10 yearsSite costs < A$20 per tonneCash costs < A$100 per ounce 1

Production costs < A$250 per ounce 1

1

Costs after by product credits, which assumes copper production of 75kt,copper price US$2.00 / lb and AUD1=USD0.75


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Cadia East Panel cave

EiffelTower317m


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Cadia East Project

Engineering design substantially complete (95%)All major equipment and contracts awardedIn excess of $1.5B committed (contingency intact)Ball Mill commissioned in March to scheduleDecline conveyor installation commenced


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Cadia East Mine Development

Mining development 50% completeCave preconditioning hydro-fracturing commencedCave preconditioning blasting trialledConveyor decline broken throughTracking to production ramp-up CY2012


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Lihir Million Ounce Production Upgrade (MOPU)

Design complete and construction team mobilisedProgress to schedule and budgetProgressive handovers planned as follows

General Process Plant Upgrades during 2012 Oxygen and Pressure Oxidation end of 2012 Production Ramp-up during 2013


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Lihir Initial Optimisation

1,000

1,230

820

450 450 450

940

1,2701,330

1,200

800

670

2011-2015 2016-2020 2021-2025 2026-2030 2031-2035 2036-2040

22Moz

31Moz

Average annual production old profile

Average annual production new profile

Cumulative production old profile

Cumulative production new profile

Average Annual Production (koz)

N.B. 2012 & 2013 of the old profile may not have been achievable due to the project schedule.Probable impact of 200 to 300 kozs.


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Exploration

1. PNG

2. Indonesia

3. Fiji

4. Telfer

Port Moresby

Lae

Lihir

Wafi/Golpu

Hidden Valley

Kavieng

Madang

200 km

Manus Is

New Britain

New Ireland

Bougainville

TandaiJV

Gosowong

200 km

Manado

Jakarta

Medan

Vanua Levu

Viti Levu

100 kmSuva

Namosi

Mt Kasi

OperationAdvanced Project

ExplorationEmerging Project

PerthBrisbane

Melbourne

TelferMt Rawdon

Cadia Valley

Cracow

Jakarta


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1. PNG, Wafi-Golpu

Exceptional Golpudrill results lead to afurther upwardsrevision of the Wafi-Golpu ExplorationTarget (2) to:

+ 40Moz Auand 15Mt Cu

(1) Represents 100% of the Mineral Resource, refer Newcrest Annual Statement of Mineral Resources &Ore Reserves to June 30, 2010

(2) Refer note on slides 2 and 19 in relation to Exploration Target

200 m

PLAN VIEW

Slice through Resourcemodel at 750m RL

Drillhole legend

>0.3% Cu

>1% Cu

O P E N

501Mt @0.54g/t Au &0.95% Cu

8.8Moz Au

& 4.8Mt Cu

2010 GOLPURESOURCE (1)

WR377883m @ 2.23g/t Au,2.15% Cu

595m @ 1.65g/t Auand 2.03% Cu

WR363 (Q2 2010-11)

799m @ 1.43g/t Au

and 1.90% Cu

WR347 (Q1 2010-11)


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RESOURCES TONNES GRADES CONTAINED METALDeposit Mt Au (g/t) Cu (%) Au Moz Cu MtGrasberg 4,855 0.7 0.8 111.5 39.9Lihir 640 2.4 - 48.5 -

Wafi-Golpu 1200 - 1700 1.0 1.0 40.0 15.0

Frieda 1,385 0.3 0.6 13.5 8.0Bougainville 1,064 0.4 0.3 12.7 3.5Porgera 103 2.7 - 8.9 -Hidden Valley 103 1.7 - 5.6 -Ok Tedi* 113 1.1 0.8 4.1 0.9Yandera (Cu-Mo) 1,639 0.1 0.3 3.7 5.3Cadia East 2,347 0.4 0.3 33.2 6.6* Reserves reported Data source: Company Reports

1. PNG, Wafi-Golpu

300 km

Lae

Port Moresby

Grasberg

Ok Tedi

Frieda

Porgera

Yandera

Lihir

Bougainville

WAFI-GOLPUHidden Valley

1 Refer note on slides 2 and 19 in relation to Exploration Target

Exploration Target 1


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1. PNG, Wafi-Golpu Exploration Potential

Drill hole WR392intersects 85m @ 3.18g/tAu from 302m downholeof Wafi StyleMineralisation

Located immediatelyWest of Golpu

Represents newexploration target

500 m

PLAN VIEW

NAMBONGA

WAFI

Diatreme

WR377883m @ 2.23g/tAu, 2.15% Cu

WR377883m @ 2.23g/tAu, 2.15% Cu

GOLPU

Exploration Target

WR39285m @ 3.18g/t Au

WAFI


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Zimake

Bavaga

Zenapu

Mt Tonn

Pekumbe

Kesiago

Hekeng

B a b w a

f C o n

g l o m e r a t e

4 km

Nambonga

A,B,Link Zone

Miapilli

Golpu

W a f i - T

r a n s f e

r Z o n e

PLAN VIEW

(1) Refer note on slides 2 and 19 in relation to Exploration Target.

17km of highly prospectiveground

Largely unexplored

Regional projects advancedat Bavaga, Zenapu, Zimakeand Mt Tonn

1. PNG, Wafi Transfer Zone

+ 40Moz Au and 15Mt Cu

WAFI-GOLPUEXPLORATION TARGET (1)


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24 (1) refer Newcrest website, market release LGL Resources, 26 August, 2009.(2) refer Newcrest website, market release LGL Reserves, 29 October, 2009.

Lienetz

Minifie

Kapit

C a l d e

r a r i m

1000 m

Link

Inferred Resource boundary

LIHIRPLANT

PLAN VIEW

Coastal Exploration

Target 331Mt @2.71g/t Au

28.8Moz Au

2010 LIHIRRESERVE (2)

641Mt @2.35g/t Au

48.5Moz Au

2010 LIHIRRESOURCE (1)

Borefields

Coastal

1. PNG, Lihir Resource & Reserve Growth

DDHL 1862118m @ 2.33g/t AuDDHL 1862118m @ 2.33g/t Au



DDHL187288m @ 3.37g/t Au70m @ 2.22g/t AuDDHL1873126m @ 2.35g/t Au

DDHL187288m @ 3.37g/t Au70m @ 2.22g/t AuDDHL1873126m @ 2.35g/t Au


Kapit NE

Kapit NE Exploration

Target

New zone of highgrademineralisationidentified at CoastalDomain

Mineralisationextends 500m eastof existing resource

Kapit drill resultslikely to increasethe Reserve


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2. Indonesia, Tandai Joint Venture

LaisArgamakumur

Niru

2.8 Mt @ 15.4g/t Au, 167g/t Ag1.4 Moz Au, 15 Moz Ag(1)

15 km

gold deposit >1Moz

prospectgold deposit

TANDAI GOLD PROJECT

Bengkulu Utara Gold IUP

PLAN VIEW

TANDAI

LEMBONG

DONOK

Aust.

Jakarta

1000 km

Indonesia

Taliwang JV

TandaiJV

(1) Sumatra Copper Gold - Independent Technical Report, 2009.

Joint Venture withSumatra Copper &Gold on the Tandai

project formalised

Ability to earn 70%by spending US$12Mover 5 years

Drilling poised tocommence

Option to take up25% of Tembangproject not exercised


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3. Fiji, Vanua Levu Mt Kasi

Newcrest selectedby Fiji Governmentas preferredapplicant to exploreMt Kasi

SPL application of

approx 624km2

Historical shallowopen pit goldfield

Porphyry &epithermal potential

Savusavu

Madivakarua

PLAN VIEW

10 km

SPL application

Vanua Levu

Viti Levu

100 kmSuva

Nandi

FIJI

Mt Kasi

Namosi

VANUA LEVU

MT KASI

Highly prospective

Mt Kasi trend

prospect

(1) Mt Kasi Tender documents

>300Koz Au

MT KASIPAST PROD. /RESOURCE (1)


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27(1) refer Newcrest Resources and Reserves statement, 2010.

4. WA, Telfer Vertical Stockwork Corridor

NORTHSOUTH

SCHEMATIC LONG SECTION(looking west)

11,200mN

4,000mRL

4,400mRL

11,600mN

Higher grademineralisation

Sub-level Cave

Inferred Resource boundary

M a i n D o m e D e

c l i n e

200 m

22Mt @1.2g/t Au &0.50% Cu

0.9Moz Au &0.1Mt Cu

2010 VSCRESOURCE (1)

Exploration Target

MUC1691018m @ 1.4g/t Au & 0.3% Cu

MUC169098m @ 1.5g/t Au & 0.97% Cu& 13m @ 4.7g/t Au & 0.89% Cu

Limit of drilling

Drilling in progress MUC16911

20m @ 7.68g/t Au & 0.99% Cu

Drilling continuesto extend VSCmineralisation tothe north

Continuity shown300m North ofResource

Drilling ongoing


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4. WA, Telfer Brownfields Exploration

First phase ofdrilling

completebeneath WestDome Pits

Initial resultsdemonstratecontinuity inreefs

Deeper drillingto commencenext quarter

5200 mRL

3200 mRL

NORTHSOUTH

SCHEMATIC OBLIQUE LONG SECTION(looking south west)

Sub-levelCave

Main Dome

Decline

Main Dome Pit West Dome Pits

VSC

Exploration Target Highly prospective West Dome

target

West DomeDecline Design

1 km

Planned drillhole


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Newcrest


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Performance Relative to Gold & Silver Index

Newcrest

Philadelphia Gold & Silver Index

Source: Bloomberg


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Newcrest Total Shareholder Return

0

20

40

60

80

100

120

1Yr 2Yr 3Yr 4Yr 5Yr

Holding Period

P e r c e n

t ( % )

Total Shareholder Return based on the value of an investment in NCM as at 21April 2011 assuming all dividends reinvested.


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Conclusions

1. Maximum leverage to gold price (unhedged & low cost)

2. Impressive growth profile

3. Ongoing increases in Reserves

Continued Equity Performance

Newcrest Mining Ltd - CEO Presenttn - May 2011 - Global Metals and Mining Conf

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