final september 2011 quarterly results presentation · toguraci resource at mantap ... pp g target...
TRANSCRIPT
DisclaimerForward Looking Statements
These materials include forward looking statements. Forward looking statements inherently involve subjective judgement and analysisand are subject to significant uncertainties, risks and contingencies, many of which are outside of the control of, and may be unknownto the company Actual results and developments may vary materially from those expressed in these materials The types ofto, the company. Actual results and developments may vary materially from those expressed in these materials. The types ofuncertainties which are relevant to the company may include, but are not limited to, commodity prices, political uncertainty, changes tothe 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 applicableflaw 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 suchstatement is based.
Ore Reserves and Mineral Resources Reporting Requirements
A A t li ith iti li t d th A t li S iti E h (“ASX”) N t i bj t t A t liAs an Australian company with securities listed on the Australian Securities Exchange (“ASX”), Newcrest is subject to Australiandisclosure 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 is based on information compiled by Colin Moorhead, EGMMinerals for Newcrest Mining Limited who is a Fellow of The Australasian Institute of Mining and Metallurgy, and a full-time employee ofNewcrest Mining Limited. Mr Moorhead has sufficient experience which is relevant to the styles of mineralisation and types of depositsunder consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of theunder 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 andcontext 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
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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.
September Quarter Key Points
Full year production and cost guidance maintainedFull year production and cost guidance maintained
Gold production 587,296 ounces
Copper production 19,228 tonnes
Cash margin increased by 19% to A$1 029 per ounce Cash margin increased by 19% to A$1,029 per ounce
– Realised gold price A$1,623 oz
– Cash costs A$594 oz
C di E t d Lihi MOPU j t i t k Cadia East and Lihir MOPU projects remain on track
Continued strong exploration results
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Operations – September Quarter
Cadia Valley– Consistent production (150koz) at lower cost– Increased gold production from Ridgeway
Lihir– Planned 14 day total plant shutdown extended to 19 daysPlanned 14 day total plant shutdown extended to 19 days– MOPU project equipment “tie-ins” undertaken– Heavy rainfall in September restricted access to Lienietz pit
TelferLower gold grade in the open pit from stage 7– Lower gold grade in the open pit from stage 7
– Scheduled plant shutdown for SAG mill reline– Preparation of stage 4 cutback and West Dome pit ongoing
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p g p g g
Operations – September Quarter
Gosowong– Expected lower gold grade reflects lower percentage of K2 ore– Plant shut down and permit delays
Waste mo ement contin ed in Goso ong open pit– Waste movement continued in Gosowong open pit
Hidden Valleyy– Overland conveyor belt returned to operations during September– Increased silver production contributed to lower cash costs
Bonikro– Production returning to normal; lower unit cash costsProduction returning to normal; lower unit cash costs
Queensland Operations
6
– Consistent production in line with plan
Strong Margins
Cash MarginA$/A$/oz1,750
1,250
1,500
750
1,000 A$1,029A$867A$886A$944A$850
250
500
0
Sep 2010 Dec 2010 Mar 2011 Jun 2011 Sep 2011
7Cash Margin Cash Cost
Cash Costs
Recent elevated costs moreQuarterly Cash Costs - A$M
(pre by-product credits) Recent elevated costs more activity than price driven– Telfer open pit stage 7
Bonikro operations600
700
(pre by product credits)
572534 – Bonikro operations
– Hidden Valley ore haulage– Plant shutdowns400
500 484 484 503
534
Overall cost to plan, lower production due to shut downs200
300
Unit cash costs expected to decline as production increases
‐
100
FY11 Q1 FY11 Q2 FY11Q3 FY11Q4 FY12 Q1over remainder of year
FY11 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY12 Q1
Total Cash Costs Mining (net of stripping)Ore Processing Site AdministrationRealisation &Ro alties
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Realisation & Royalties
Cadia East
Capex committed A$1.7 billion
Cave development progressing to plan– >50% initial block hydrofractured
blast pre conditioning commenced– blast pre-conditioning commenced
1st conveyor belt commissioned (1.6kms)
All major flotation cells in place
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Lihir MOPU
Capex committed ~ US$1 billion
Construction team at peak numbers
Barge mounted power station in position Barge mounted power station in position
Project on track for Dec 2012 completion
13
Exploration HighlightsWafi-Golpu Drilling to support future reserve upgrade continues Exploration drilling extends the system at depth
Gosowong First ore intersected in Toguraci
underground mine
Tandai
Gosowong
Lihir
Hidd
Manus Island
W fi G l
Mineralisation confirmed 600m north of Toguraci resource at Mantap 14 highly prospective regional exploration
targets identified
Lihir New zone of high grade
mineralisation identified at Kapit NE, confirming
Mt KasiNamosi
HiddenValley
Wafi-GolpuTandai and Manus IslandGrassroots exploration activities ongoing
mineralisation extends well beyond current resource
Telfer
Cadia ValleyMarsden
Cracow Mt Rawdon
Burkina FasoBurkina FasoMaliMali Burkina FasoMali
Namosi Potential for larger higher
grade system at depth Cadia Valley
YamoussoukroYamoussoukro
CÔTE D’IVOIRECÔTE D’IVOIRECÔTE D’IVOIRECÔTE D’IVOIRE
Yamoussoukro
CÔTE D’IVOIRECÔTE D’IVOIRETelfer Reef style mineralisation
intersected at West Dome 700m south of existing resources Drilling at Main Dome confirms
demonstrated at Wainualo
AbidjanAbidjanBonikroBonikro
LiberiaLiberia100 km100 km
AbidjanBonikro
Liberia100 km
Bonikro
extension of the VSC
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Mining Operation
Advanced Project
Greenfields Exploration
Bonikro Drill testing of the highly prospective 17,000km2
regional tenement package commenced Extensive in-ground exploration completed in the
Bonikro district with encouraging results
PNG, Lihir – Growth
New zone of high grade mineralisation identified
PLAN VIEW
Exploration2011 LIHIRDDHL1937 162 @ 2 7 /t A mineralisation identified
at Kapit NE
K it NEPacific
ExplorationTarget
DDHL1930 246m @ 4.7g/t AuDDHL1931 234m @ 4.6g/t AuDDHL1932 176m @ 3 6g/t Au2011 LIHIR
830 Mt @2.1 g/t Au
56Moz Au
RESOURCE(1) DDHL1937 162m @ 2.7g/t AuDDHL1938 112m @ 3.5g/t AuDDHL1942 164m @ 2.9g/t Au
Mineralisation confirmed 750 metres beyond the current
Kapit
Coastal
Kapit NE DDHL1932 176m @ 3.6g/t Au
400 Mt @2.4 g/t Au
31Moz Au
2011 LIHIRRESERVE(1)
DDHL1927154m @ 2.9g/t Au
yresource
Open towards the northLIHIRLienetz
Open towards the north and east
InferredResourceboundary
PLANT
Minifie
Drilling ongoing
1000 m
16 (1) Newcrest Annual Statement of Mineral Resources & Ore Reserves to June 30, 2011.
1000 m
PNG, Wafi-Golpu Project – Exploration Potential
Drilling to support future reserve PLAN VIEW WR315 (reported previously)
525m @ 0.34g/t Au, 0.08% Cu incl. 94m @ 0.8g/t Au, 0.2% Cu g pp
upgrade and pre-feasibility studies continues
OPEN MiapilliPorphyry
Latest drilling extends the system at depth
Porphyry
OPEN
- WR406(2) 861m @ 1.51g/t Au, 1.48% Cu including 199m @ 2.87g/t Au and 2.57% Cu from
21,000mN
NewGold Zone
Nambonga(1)
Golpu(1)
19.3Moz Au9.0Mt Cu
WR406
1286m
System remains openDiatreme
1.0Moz Au
WR406(2)
861m @ 1.51g/t Au, 1.48% Cu
System remains open
20,000mN
500
Wafi(1)
6.2Moz Au
17 (1) Newcrest Annual Statement of Mineral Resources & Ore Reserves to June 30, 2011. Resource figures quoted on 100% basis.(2) Incomplete intersection reported.
500 m 20,000mE * hole in progress
Indonesia, Gosowong – Toguraci Second Mining Front
First ore intersected in SCHEMATIC LONG SECTION(looking west) 2011 TOGURACI
RESOURCE(1)
Toguraci underground mine
1.3Mt @21g/t Au
0.9Moz AuPreviously MinedToguraci Pit
0 5M G ld
Mineralisation confirmed 600m north of Toguraci resource
0 m
0.5Moz GoldNTD017(reported Q4 FY11)3.6m @ 174g/t AuMantap
TSD0191.4m @ 69g/t Au
of Toguraci resource
Epithermal veins
ExplorationTarget-500 m
ExplorationTarget
NTD025
BOD0982.7m @ 11g/t Au
intersected south and west of Toguraci
NTD0252.4m @ 18g/t Au
High grade mineralisation500 m
3.0 kilometres
18 (1) Newcrest Annual Statement of Mineral Resources & Ore Reserves to June 30, 2011.
WA, Telfer – Brownfields Exploration
Reef style SCHEMATIC LONG SECTION(looking south west)
mineralisation intersected at West Dome 700m south
WRC179021m @ 9.4g/t Au,2m @ 10g/t Au & 1.3m @ 20g/t Au
Main Dome(1)
8.2Moz AuWest Dome(1)
6.0Moz AuPreviously
Mined
of open pit mining
Deeper drilling in
5200 mRL
Main DomeDecline
West Domedecline design Deeper drilling in
progress to testWest Dome Deeps
West DomeVSC(1)
Telfer Deeps(1)
2.5Moz Au
decline design
Drilling at Main Dome confirms extension of VSC
3200 mRL
VSCExploration
Target
West DomeExploration
TargetMUC16918 6m @ 1.2g/t Au & 0.16% CuMUC16920 8m @ 1.1g/t Au & 0.35% CuMUC16923 23m @ 0 7g/t Au & 0 26% Cu
1.3Moz Au
extension of VSCMUC16923 23m @ 0.7g/t Au & 0.26% Cu
1.0 km
19 (1) Newcrest Annual Statement of Mineral Resources & Ore Reserves to June 30, 2011.
Fiji, Namosi – 2nd Porphyry System at Waivaka
Drilling within the WaivakaPLAN VIEW 2011 WAISOI
RESOURCE(1)
2 2Bt @ Drilling within the Waivaka Corridor confirms continuity of higher grade mineralisation
PORPHYRYPORPHYRY
2.2Bt @0.33% Cu &0.11 g/t Au
7.3 Mt Cu7.4 Moz Au
Wainabama
Waisoi
Potential for larger higher grade system at depth demonstrated at
PORPHYRYPORPHYRYSYSTEMSYSTEM
system at depth demonstrated at Wainaulo
D illi t d W i l d
94Mt @0.72% Cu &0 12g/t Au
2011 WAINAULORESOURCE(1)
NVD037789 @ 0 41% C & 0 04 /t A
Waivaka West
Drilling to advance Wainaulo and additional Waivaka Corridor targets remains high priority
0.12g/t Au
670Kt Cu & 350Koz Au
789m @ 0.41% Cu & 0.04g/t AuIncl. 242m @ 0.74% Cu & 0.10g/t Au
Copper/gold
NavuaPacific Harbour
Suva
Viti Levu
FIJI
SPL1420
5 km
20 (1) Newcrest Annual Statement of Mineral Resources & Ore Reserves to June 30, 2011. Resource figures quoted on 100% basis.
pp gtarget area
Su a50 km
Côte d’Ivoire, Bonikro – Regional Exploration
Regional program commencedBurkina FasoBurkina FasoMaliMali
17,000 square kilometres of highly prospective ground
GuineaGuinea
Portfolio of high quality targets, drilling of the 17 kilometre long
Timbe / Bouake
Côte d’IvoireCôte d’IvoireGuineaGuinea
2011 BONIKRORESOURCE(1)
Mankano
Bouafle gold soil anomaly underway
Timbe / Bouake
Yamoussoukro
55Mt @1.2g/t Au
2.0Moz AuOume(1)
Bouafle
At Bonikro, extensive near mine exploration completed with encouraging intersectionsBonikro
LiberiaLiberia
GhanaGhana
Hire(1)
0.6Moz Au
0.2Moz Au
Côte with encouraging intersections drilled
AbidjanBonikroCôte
d’Ivoire
100 k
21 (1) Newcrest Annual Statement of Mineral Resources & Ore Reserves to June 30, 2011. Resource figures quoted on 100% basis.
AFRICA 100 km
Côte d’Ivoire, Bonikro – Near Mine Exploration
Large Gold system >3Moz discovered to
PLAN VIEW
2011 OUME >3Moz discovered to date within 20kms of process plant
5.6Mt @1.3g/t Au
0.2Moz Au
2011 OUMERESOURCE(1)
At Bonikro, extensive near mine exploration
BRRC139 3m @ 11g/t AuBRRC196 8m @ 1.5g/t Au
near mine exploration completed with encouraging intersections drilled
5.8Mt @3.1g/t Au
2011 HIRERESOURCE(1)
intersections drilled
Potential for additional BONIKRO
PLANT
0.6Moz Au
55Mt @1.2g/t Au
2011 BONIKRORESOURCE(1)
resources to the southPLANT
Anomalous surface gold geochemistry 5 km
2.0Moz Au
22 (1) Newcrest Annual Statement of Mineral Resources & Ore Reserves to June 30, 2011. Resource figures quoted on 100% basis.
Anomalous surface gold geochemistry 5
Other Items
Divestment of Cracow & Mt Rawdon– Proposed purchase approved by Catalpa & Conquest shareholders– All other conditions satisfied or waived– Sale completion expected early November 2011– Sale completion expected early November 2011– Preparation for transition of assets well underway
Credit Ratings established - access to longer term US debt markets– BBB+ stable outlook from S&P– Baa2 stable outlook from Moody’sBaa2 stable outlook from Moody s
Bilateral debt facilities increased to US$2 billion– Facility increased with existing eight relationship banks– US$1.4 billion remains undrawn (September 2011)
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Appendix: Production Summary – Sept Quarter
Tonnes Mill d
Gold G d
Copper G d
Gold P d ti
Copper ProductionMilled
(000’s)Grade (g/t)
Grade (%)
Production (oz)
Production(t)
Cadia Valley 5,483 1.05 0.24 150,277 11,763
Telfer 5,215 0.98 0.18 137,229 7,465
Lihir 1,229 4.35 - 134,685 -
Gosowong 128 19.84 - 79,798 -
Hidden Valley (50%) 415 2.11 - 25,461 -
Bonikro 436 1.73 - 22,740 -
Mt Rawdon 886 0.78 - 18,551 -
C (70%) 93 6 75 18 555Cracow (70%) 93 6.75 - 18,555 -
Sept 2011 Quarter 13,885 1.56 0.21 587,296 19,228
Jun 2011 Quarter 14 139 1 82 0 23 700 124 20 127
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Jun 2011 Quarter 14,139 1.82 0.23 700,124 20,127