Newcrest Mining Limited – Quarterly Report for the three months ended 30 September 2020

- October 28th, 2020

Q1 in line with expectations as shareholder growth pursued in the Americas September quarter in line with expectations and on track for meeting annual guidance following completion of major planned maintenance in the quarter: Group gold production of 503koz and copper production of 35kt Group AISC of $980 per ounce, delivering a robust AISC margin of 46% or $847 per ounce Cadia records lowest ever quarterly AISC at …

(figures are unaudited and in US$ except where stated)

Q1 in line with expectations as shareholder growth pursued in the Americas

  • September quarter in line with expectations and on track for meeting annual guidance following completion of major planned maintenance in the quarter:
    • Group gold production of 503koz (1) and copper production of 35kt
    • Group AISC of $980 ( 1 ) per ounce, delivering a robust AISC margin of 46% or $847 (2) per ounce
    • Cadia records lowest ever quarterly AISC at $113 per ounce
  • Gold and copper production expected to increase in the December quarter
  • Successful secondary listing on the Toronto Stock exchange supports Newcrest’s growth strategy in the Americas and broadens its access to the large North American capital pool
  • Cadia and Lihir growth projects moved into execution phase with attractive rates of return and short payback
  • Lihir clay management studies improve confidence in production plan deliverability; mine optimisation study on track for completion by end December 2020
  • Havieron potential continues to grow as drill results return best intercepts to date; Initial Inferred Mineral Resource expected in December 2020 quarter (see Quarterly Exploration Report released today)
  • Industry-leading TRIFR steady at 2.6 and no interruption to operations due to COVID-19

Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas said “Consistent with prior years we executed a number of planned shutdown events across our operations in the September quarter, which is reflected in our production and All-In Sustaining Cost per ounce. We expect production to be higher in the December quarter and the Company is on track to meet its FY21 production guidance. Our world-class Cadia asset continues to impress, reporting its lowest ever quarterly All-In Sustaining Cost of $113 per ounce, equating to an AISC margin of $1,724 per ounce for the quarter. This showcases the strength of Newcrest’s unique technical capability as one of the few mining companies globally able to do block cave mining, which underpins Cadia’s performance.”

“In line with our strategy of pursuing growth in the Americas, we listed on the Toronto Stock Exchange in October. We believe that this secondary listing will improve the global visibility of the Company and broaden our access to the large North American capital pool following our acquisition of 70% of the Red Chris mine in Canada , our equity investments in Ecuador and our expanding portfolio of exciting exploration and early stage entry prospects in the Americas.”

“In October, the Board approved Stage 2 of the Cadia Expansion Project and the Lihir Front End Recovery Project to the execution phase. The Cadia expansion is expected to increase plant capacity to 35mtpa, enabling an increase in gold and copper recoveries, an increase in production and a reduction in unit costs. The Lihir Front End Recovery Project is expected to deliver additional production through an improvement in life of mine gold recoveries.”

“It’s evident that the difficult near-term operating conditions we highlighted at Lihir earlier this year adversely impacted our recent share price performance, so I’m pleased to report that the ongoing Lihir studies have improved our confidence in production plan deliverability and our first quarter performance across the Group is in line with expectations. Lihir is a uniquely large, long-life asset and I remain confident we are on track to realise its full potential.”

“Newcrest has uniquely long-life, low-cost production and an exciting pipeline of expansion and exploration projects. Our Quarterly Exploration Report, also released today, further highlights the potential of the Havieron project as it continues to expand its mineralisation and reports its best high-grade intercept to date.”

“As we continue to deliver against the strongly value-accretive opportunities across our portfolio, including production growth to come from Havieron and Red Chris, I believe the considerable upside we see will be more broadly recognised” said Mr Biswas.

Overview ( 3 )

Gold production was 12% lower than the prior period across all operations. In line with prior years, a series of planned shutdown events reduced throughput rates at Cadia, Lihir and Telfer. Additionally, production was also impacted by lower grades at Cadia, Lihir and Red Chris, the impact of unplanned outages and autoclave availability at Lihir and lower recovery rates at Telfer, Red Chris and Lihir. These impacts were partially mitigated by an improvement in gold head grades at Telfer. Included within gold production for the September 2020 quarter is 30koz relating to Newcrest’s 32% equity interest in Lundin Gold Inc which owns the Fruta del Norte mine.

Newcrest’s AISC for the September 2020 quarter of $980 ( 1 ) per ounce was $102 per ounce higher than the prior period. The 12% increase in AISC per ounce was primarily driven by the impact of a strengthening Australian dollar and Canadian dollar on the operating costs of Cadia, Telfer and Red Chris, lower gold production, an increase in stripping activity at Lihir and lower copper sales volumes. These impacts were partially offset by a higher realised copper price and the timing of sustaining capital expenditure.

Production Highlights

Metric

Sep 2020 Qtr

Jun 2020 Qtr

FY20

FY21 Guidance ( 4 )

Group ( 1 ) – gold

oz

503,089

573,175

2,171,118

1,950-2,150koz

– copper

t

34,763

40,196

137,623

135-155kt

– silver

oz

214,412

252,205

983,431

Cadia           – gold

oz

196,504

236,705

843,338

680-760koz

– copper

t

25,329

27,634

96,042

95-105kt

Lihir             – gold

oz

177,337

207,233

775,978

720-820koz

Telfer           – gold

oz

86,452

113,797

393,164

360-420koz

– copper

t

2,384

4,162

16,278

10-20kt

Red Chris (5) – gold

oz

12,636

15,440

38,933

45-55koz

– copper

t

7,050

8,401

25,302

25-30kt

Gosowong (6) – gold

oz

103,282

Fruta del Norte ( 1 ),(7) – gold

oz

30,160

0

16,422

95-110koz

Fatalities

Number

0

0

0

TRIFR (8)

mhrs

2.6

2.6

2.6

All-In Sustaining Cost ( 1 ),(9)

$/oz

980

878

862

All-In Cost (10)

$/oz

1,275

1,108

1,044

All-In Sustaining Cost margin ( 2 )

$/oz

847

768

668

Realised gold price (11)

$/oz

1,837

1,646

1,530

Realised copper price ( 11 )

$/lb

2.97

2.47

2.57

Realised copper price ( 11 )

$/t

6,548

5,445

5,666

Average exchange rate

AUD:USD

0.7147

0.6557

0.6715

Average exchange rate

PGK:USD

0.2872

0.2898

0.2927

Average exchange rate

CAD:USD

0.7504

0.7210

0.7452

All figures are shown at 100% unless stated otherwise.

Operations
Cadia, Australia

Highlights

Metric

Sep 2020 Qtr

Jun 2020 Qtr

FY20

FY21 Guidance

TRIFR

mhrs

3.6

6.1

4.9

Total production    – gold

oz

196,504

236,705

843,338

680-760koz

– copper

t

25,329

27,634

96,042

95-105kt

Head Grade          – gold

g/t

1.02

1.09

1.14

– copper

%

0.40

0.39

0.39

Sales                     – gold

oz

195,146

236,980

848,959

– copper

t

24,596

26,924

96,437

All-In Sustaining Cost

$/oz

113

170

160

All-In Sustaining Cost margin

$/oz

1,724

1,476

1,370

Cadia’s gold production of 197koz was 17% lower than the prior period driven by a 10% reduction in throughput and a 6% reduction in gold head grade. The lower throughput in the period was primarily due to planned maintenance shutdown events in July and September. The lower gold grade in the period was in line with expectations.

Cadia’s AISC of $113 per ounce is its lowest on record, primarily driven by a higher realised copper price and timing of sustaining capital expenditure. These benefits were partially offset by lower gold production, an increase in operating costs associated with the planned shutdowns, the impact on operating costs from the strengthening of the Australian dollar against the US dollar and lower copper sales volumes.

As previously announced on 9 October 2020 , the Board approved Stage 2 of the Cadia Expansion Project to the execution phase. Stage 2 of the Expansion Project is expected to increase plant capacity to 35mtpa, enable higher gold and copper recoveries, drive an increase in production and reduce unit costs. The estimated capital cost is expected to be $175 million (12) , which is $5 million lower than the estimate announced in October 2019 . The project is expected to be completed in late FY22.

Engineering and geotechnical verification work for the Pre-Feasibility Study (PFS) for the repair of the Northern Tailings Storage Facility (NTSF) was concluded in the quarter. Prior to finalisation, the PFS is undergoing a Competent Independent Review (CIR) process. Subject to the outcomes of that review process, commencement of the Feasibility Study is expected in the first half of calendar 2021. The estimated cost of the preferred ‘go-forward’ option remains below A$100 million , though the estimated time to complete the repair has been extended to the second half of 2023 (prior to any contingency in timing for approvals, weather and technical delays) primarily as a result of changes in volumes of material to be moved to effect the repair.

To date, Cadia has not experienced any COVID-19 related disruptions to the supply of goods or services or to its workforce. Cadia is primarily a residential workforce and otherwise largely draws on resources from within the State of New South Wales .

Lihir, Papua New Guinea

Highlights

Metric

Sep 2020 Qtr

Jun 2020 Qtr

FY20

FY21 Guidance

TRIFR

mhrs

0.5

0.8

0.6

Production                    – gold

oz

177,337

207,233

775,978

720-820koz

Head Grade                  – gold

g/t

2.34

2.46

2.38

Sales                             – gold

oz

210,831

193,851

760,724

All-In Sustaining Cost

$/oz

1,283

1,352

1,206

All-In Sustaining Cost margin

$/oz

554

294

324

Gold production of 177koz was 14% lower than the prior period primarily due to lower throughput, grade and recovery. Mill throughput was 9% lower than the prior period reflecting the impact of the planned maintenance shutdowns and unplanned downtime due to crusher outages. Gold head grades were 5% lower than the prior period reflecting a lower proportion of higher grade ex-pit ore feed. Gold recovery of 72.6% was 1% lower than the prior period driven by lower feed grade and an increase in flotation due to a reduction in autoclave availability following planned and unplanned downtime.

Clay management studies have allowed an increased understanding of the argillic ores within the overall distribution of argillic ores that have recently unfavourably impacted plant performance. Importantly, these studies also identified reduced quantities of these argillic ores which has informed ore scheduling and process plant upgrade studies and has improved confidence in FY21 production plan deliverability. Additionally, conveyor and chute modifications were completed during the September 2020 smart shutdown to improve the handling of these ores.

The mine optimisation study remains on-track to be completed in December 2020 . The study is focused on improving ore presentation to the processing plant, accounting for clay management study outcomes and optimising the integration sequence of the seepage barrier project with the mine schedule.

Lihir’s AISC was $69 per ounce lower than the prior period primarily driven by timing of sustaining capital expenditure and higher gold sales in the period from the sale of lower cost inventory on hand. This was partially offset by an increase in stripping activities in Phases 15 and 16 and higher royalties associated with the higher gold sales and higher gold price.

As previously announced on 9 October 2020 the Board approved Lihir’s Front End Recovery Project to the execution phase. This project is expected to deliver additional production through an improvement in gold recoveries over the life of the mine.

In August 2020 , Newcrest confirmed that it was managing its first positive case of COVID-19 in its isolation and treatment facility at Lihir Island. The individual, a PNG national, tested positive whilst in quarantine following his arrival on the island. Though asymptomatic, he was further quarantined in a separate isolation facility at Lihir until he made a full recovery. Lihir’s early detection and controls effectively detected the virus and prevented a potential spread to others at Lihir.

To date, Lihir has not experienced any COVID-19 related disruptions to the supply of goods or services or disruption to operations. To manage the potential impacts of COVID-19 to production, Lihir has increased its key inventory holdings to mitigate against disruptions to the supply chain, implemented longer rosters and regularly engages with key service providers.

National travel restrictions to reduce the risk of COVID-19 have been in place since March 2020 . Having obtained the necessary approvals, Lihir received its first incoming flight allowing a change of workforce on 13 June 2020 . All incoming passengers are screened using health declarations and a new thermal imaging camera installed at the airport. Passengers are then transported to a dedicated isolation camp and tested before undergoing a compulsory 14-day isolation period, which includes COVID-19 Polymerase Chain Reaction (PCR) testing on days 0, 5 and 14.

Lihir – Material Movements

Ore Source

Metric

Sep 2020 Qtr

Jun  2020 Qtr

FY20

Ex-pit crushed tonnes

kt

1,236

1,468

5,445

Ex-pit to stockpile

kt

1,610

1,162

6,585

Waste

kt

6,269

3,965

18,055

Total Ex-pit

kt

9,115

6,595

30,085

Stockpile reclaim

kt

2,192

2,133

8,250

Stockpile relocation

kt

3,306

2,860

13,599

Total Other

kt

5,498

4,993

21,850

Total Material Moved

kt

14,613

11,588

51,935

Lihir – Processing

Equipment

Metric

Sep 2020 Qtr

Jun 2020 Qtr

FY20

Crushing

kt

3,426

3,601

13,696

Milling

kt

3,255

3,580

13,798

Flotation

kt

2,780

2,773

10,414

Total Autoclave

kt

1,592

1,951

7,319

Telfer, Australia

Highlights

Metric

Sep 2020 Qtr

Jun 2020 Qtr

FY20

FY21 Guidance

TRIFR

mhrs

4.6

2.9

4.9

Production                 – gold

oz

86,452

113,797

393,164

360-420koz

– copper

t

2,384

4,162

16,278

10-20kt

Head Grade               – gold

g/t

0.86

0.83

0.90

– copper

%

0.09

0.11

0.14

Sales                         – gold

oz

85,096

115,747

391,339

– copper

t

2,311

4,831

16,283

All-In Sustaining Cost

$/oz

1,797

1,215

1,281

All-In Sustaining Cost margin (13)

$/oz

40

431

249

Telfer’s gold production was 27koz lower than the prior period driven by the impact of planned maintenance shutdowns reducing mill throughput and higher sulphur grades from the West Dome pit lowering gold recovery. This was partially mitigated by a 4% improvement in gold head grades which was due to the realisation of higher grade blocks in the Open Pit following completion of waste stripping activity together with grade control drilling in the Underground converting development material to ore.

AISC per ounce was higher than the prior period primarily driven by the impact of lower gold production, an increase in site operating costs associated with the planned shutdowns, the impact on operating costs from the strengthening of the Australian dollar against the US dollar, the timing of sustaining capital expenditure and lower copper sales volumes. These impacts were partially offset by lower production stripping costs as waste stripping activities near completion and the benefit of a higher realised copper price.

To date, Telfer has not experienced any COVID-19 related disruptions to the supply of goods or services, to its workforce or to its operation. The Telfer workforce is primarily from Western Australia and all interstate employees and contractors continue to be required to complete a 14-day isolation period when entering Western Australia as required by the Western Australian Government. In response to the COVID-19 pandemic Newcrest has implemented rostering and flight amendments, as well as pre-flight screening protocols which include rapid blood tests. Telfer has recently reintroduced the availability of 8/6 rosters for its Western Australian workforce.

At the Havieron Project, located 45km east of Telfer, permitting activities for the exploration decline are currently underway. Newcrest expects to commence construction of the exploration decline by the end of calendar year 2020 or in early 2021.

Red Chris, Canada

Highlights ( 14 )

Metric

Sep 2020 Qtr

Jun 2020 Qtr

FY20

FY21 Guidance

TRIFR

mhrs

11.1

10.5

12.7

Production                – gold

oz

12,636

15,440

38,933

45-55koz

– copper

t

7,050

8,401

25,302

25-30kt

Head Grade              – gold

g/t

0.40

0.50

0.39

– copper

%

0.46

0.61

0.54

Sales                        – gold

oz

11,834

15,607

37,271

– copper

t

6,642

8,736

24,432

All-In Sustaining Cost

$/oz

2,621

1,536

1,703

All-In Sustaining Cost margin

$/oz

(784)

110

(173)

The Newcrest Safety Transformation plan continues to yield benefits at Red Chris. Despite the 6% increase in TRIFR in the quarter the severity of injuries decreased, demonstrating the ongoing improvements in Red Chris’ safety performance. Red Chris continues to build on its safety reporting culture and incident investigation.

Gold production was 3koz lower than the prior period reflecting a higher proportion of lower grade stockpile material being fed to the mill due to unseasonal rainfall impacting the availability of higher grade ex-pit material. This lower grade mill feed adversely impacted recovery rates. These impacts were partially offset by a 13% increase in mill throughput as a result of process control improvements and a higher proportion of stockpile material with characteristics that enabled increased processing rates.

Red Chris’ AISC of $2,621 per ounce was higher than the prior period driven by increased sustaining capital expenditure, higher operating costs due to seasonal benefits allowing increased activities to be scheduled, together with the impact of a strengthening Canadian dollar against the US dollar and lower copper sales volumes. These impacts were partially offset by the benefit of a higher realised copper price.

Over the course of FY21, Red Chris is planning to implement a number of additional improvement initiatives across the site including a new fleet management system, the replacement of the conventional CAT793 truck tubs with high performance trays to realise payload benefits and a number of throughput and recovery related projects.

To date, Red Chris has not experienced any COVID-19 related disruptions to the supply of goods or services, to its workforce or to its operations.

Red Chris drilling results are included in the September 2020 Quarterly Exploration Report which is also released today. Permitting activities for the exploration decline are currently underway. Newcrest expects to commence construction of the exploration decline in early 2021.

Fruta Del Norte, Ecuador

As announced on 30 April 2020 , Newcrest acquired the gold prepay and stream facilities and an offtake agreement in respect of Lundin Gold Inc’s Fruta del Norte mine for $460 million . Newcrest received net cash flows of ~$9 million from the stream facility and offtake agreement in the September 2020 quarter. Repayments under the gold prepay facility commence on 31 December 2020 .

Included within Newcrest’s gold production for the September 2020 quarter is 30koz relating to Newcrest’s 32% equity interest in Lundin Gold Inc which owns the Fruta del Norte mine.

Project Development

Wafi-Golpu, Papua New Guinea

Newcrest, together with its WGJV partner Harmony, looks forward to re-engaging with the State of Papua New Guinea (PNG) and progressing discussions on the Special Mining Lease for the Wafi-Golpu Project. Newcrest is encouraged by the Prime Minister of PNG stating that Wafi-Golpu is a priority project and that it will be advanced within the existing legal parameters of PNG.

Exploration

See the separately released “Quarterly Exploration Report” for an exploration update for the September 2020 quarter.

Corporate

Toronto Stock Exchange Listing

On 13 October 2020 , Newcrest listed its common shares on the Toronto Stock Exchange (TSX) under the symbol “NCM”. Newcrest retains its primary listing on the Australian Securities Exchange and its secondary listing on PNGX Markets.

Newcrest’s listing on the TSX supports its pursuit of growth in the Americas following the 70% acquisition of the Red Chris mine in Canada , its investments in Ecuador and its expanding portfolio of exciting exploration and early stage entry prospects in the Americas.

Community Support Fund

As announced on 7 April 2020 , Newcrest established a A$20 million Community Support Fund to help host communities in Papua New Guinea , Australia , Canada ( British Columbia ) and Ecuador cope with the challenges associated with COVID-19.

A number of initiatives, ranging from immediate health assistance to livelihood restoration and economic recovery, have been funded to date. Notable initiatives in the period included the provision of emergency humanitarian relief to host communities in Ecuador and Papua New Guinea . Newcrest was proud to contribute to funding the first refuge centre for victims of domestic violence in Orange, located near its Cadia operation. In recognition of the mental health impact of the pandemic, Newcrest supported  the “Gotcha4Life Program” which focuses on building mental health fitness and is expected to benefit around 10,000 people in the Central West region of New South Wales, Australia .

Newcrest continues to work with its partners, host governments, communities and Indigenous Peoples to prioritise and deliver programs under the Fund in the most effective manner.

Interactive Analyst Centre TM

Newcrest’s financial and operational information can now be viewed via the Interactive Analyst Centre TM which is located under the Investor tab on Newcrest’s website ( www.newcrest.com ). This interactive tool  allows users to chart and export Newcrest’s current and historical results for further analysis.

Sandeep Biswas
Managing Director and Chief Executive Officer

Gold Production Summary

September 2020

Quarter

Mine Production Tonnes

(000’s) ( 15 )

Tonnes Treated

(000’s)

Head

Grade

(g/t Au)

Gold Recovery

(%)

Gold Production (oz)

Gold Sales (oz)

All-In Sustaining Cost

($/oz) ( 1 )

Cadia East Panel Cave 1

633

Cadia East Panel Cave 2

6,724

Cadia East Panel Cave 2-3

286

Cadia ( 16 )

7,643

7,701

1.02

78.8

196,504

195,146

113

Telfer Open Pit

13,637

3,620

0.77

74.9

67,574

Telfer Underground

344

309

1.92

83.2

15,883

Telfer Dump Leach

2,995

Total Telfer

13,982

3,929

0.86

76.4

86,452

85,096

1,797

Lihir

9,115

3,255

2.34

72.6

177,337

210,831

1,283

Red Chris

5,467

1,944

0.40

50.8

12,636

11,834

2,621

Fruta del Norte ( 17 )

30,160

30,160

810

Total

36,206

16,829

1.16

74.9

503,089

533,067

980

All figures are shown at 100%, except for Red Chris which is shown at Newcrest’s 70% share and Fruta del Norte which is shown at Newcrest’s 32% attributable share through its 32% equity interest in Lundin Gold Inc.

Copper Production Summary

September 2020 Quarter

Copper Grade

(%)

Copper Recovery

(%)

Concentrate Produced

(tonnes)

Metal Production

(tonnes)

Cadia

0.40

83.1

102,830

25,329

Telfer Open Pit

0.07

61.4

17,963

1,586

Telfer Underground

0.28

92.0

7,112

798

Total Telfer

0.09

69.1

25,076

2,384

Red Chris

0.46

78.8

31,314

7,050

Total

0.29

81.1

159,220

34,763

All figures are shown at 100%, except for Red Chris which is shown at Newcrest’s 70% share.

Silver Production Summary

September 2020 Quarter

Tonnes Treated

(000’s)

Silver Production

(oz)

Cadia

7,701

150,666

Telfer

3,929

23,607

Lihir

3,255

8,000

Red Chris

1,944

32,140

Total

16,829

214,412

All figures are shown at 100%, except for Red Chris which is shown at Newcrest 70% share.

All-In Sustaining Cost – September 2020 Quarter

3 Months to 30 September 2020

Units

Cadia

Telfer

Lihir

Red Chris

Corp/

Other

Group ( 18 )

Gold Produced

oz

196,504

86,452

177,337

12,636

472,929

Mining

$/oz prod.

179

927

260

1,351

377

Milling

$/oz prod.

317

498

645

976

491

Administration and other

$/oz prod.

94

211

236

1,117

196

Lease Adjustments

$/oz prod

(3)

(32)

(5)

(9)

Third party smelting, refining and transporting costs (19)

$/oz prod.

149

128

3

575

102

Royalties

$/oz prod.

92

51

51

61

68

By-product credits

$/oz prod.

(842)

(177)

(1)

(3,468)

(475)

Ore inventory adjustments (20)

$/oz prod.

8

75

99

32

Production stripping adjustments ( 20 )

$/oz prod.

(173)

(1,124)

(95)

AOD adjustments ( 20 )

$/oz prod.

(2)

Net Cash Costs

$/oz prod.

(14)

1,612

1,091

(413)

687

Gold Sold

oz

195,146

85,096

210,831

11,834

502,907

Adjusted operating costs ( 21 )

$/oz sold

(27)

1,605

1,028

(778)

674

Corporate general & administrative costs (22),(23)

$/oz sold

36

36

Reclamation and remediation costs

$/oz sold

5

5

9

73

8

Production stripping

$/oz sold

146

1,200

90

Advanced operating development

$/oz sold

2

Capital expenditure (sustaining)

$/oz sold

129

129

96

2,053

6

166

Exploration (sustaining)

$/oz sold

3

9

52

4

Leases (sustaining)

$/oz sold

3

47

4

21

12

All-In Sustaining Cost

$/oz sold

113

1,797

1,283

2,621

42

990

Growth and development costs ( 23 )

$/oz sold

6

6

Capital expenditure (non-sustaining) (24)

$/oz sold

481

49

277

6

220

Exploration (non-sustaining)

$/oz sold

3

355

48

57

Leases (non-sustaining)

$/oz sold

6

2

All-In Cost

$/oz sold

600

1,800

1,332

3,253

102

1,275

Depreciation and amortisation ( 25 )

$/oz sold

246

256

354

1,147

11

325

All figures are shown at 100%, except for Red Chris which is shown at 70%. AISC and AIC may not calculate based on amounts presented in these tables due to rounding.

All-In Sustaining Cost – Twelve months to 30 June 2020

12 Months to 30 June 2020

Units

Cadia

Telfer

Lihir

Red Chris

Goso-wong ( 26 )

Corp/ Other

Group

Gold Produced ( 27 )

oz

843,338

393,164

775,978

38,933

103,282

2,154,696

Mining

$/oz prod.

145

703

243

1,522

520

325

Milling

$/oz prod.

265

380

545

1,200

166

399

Administration and other

$/oz prod.

90

172

225

695

329

176

Lease Adjustments

$/oz prod

(2)

(40)

(4)

(10)

Third party smelting, refining and transporting costs (28)

$/oz prod.

133

145

3

668

6

92

Royalties

$/oz prod.

72

47

37

68

89

55

By-product credits

$/oz prod.

(660)

(241)

(1)

(3,602)

(19)

(368)

Ore inventory adjustments (29)

$/oz prod.

(2)

(11)

36

(89)

6

9

Production stripping adjustments ( 29 )

$/oz prod.

(83)

(121)

(531)

(68)

AOD adjustments ( 29 )

$/oz prod.

18

3

Net Cash Costs

$/oz prod.

41

1,090

963

(69)

1,097

613

Gold Sold

oz

848,959

391,339

760,724

37,271

104,449

2,142,741

Adjusted operating costs ( 30 )

$/oz sold

42

1,088

961

(76)

1,087

608

Corporate general & administrative costs (31),(32)

$/oz sold

38

38

Reclamation and remediation costs

$/oz sold

4

4

5

90

24

7

Production stripping

$/oz sold

83

124

555

68

Advanced operating development

$/oz sold

(18)

(3)

Capital expenditure (sustaining)

$/oz sold

111

55

111

1,075

125

8

126

Exploration (sustaining)

$/oz sold

1

22

1

6

28

6

Leases (sustaining)

$/oz sold

2

47

4

53

12

All-In Sustaining Cost

$/oz sold

160

1,281

1,206

1,703

1,264

46

862

Growth and development costs ( 32 )

$/oz sold

64

6

8

Capital expenditure (non-sustaining) (33)

$/oz sold

236

73

22

6

127

Exploration (non-sustaining)

$/oz sold

1

4

280

41

46

Leases (non-sustaining)

$/oz sold

2

1

All-In Cost

$/oz sold

399

1,285

1,279

2,069

1,264

99

1,044

Depreciation and amortisation ( 34 )

$/oz sold

192

215

388

1,268

315

10

301

All figures are shown at 100%, except for Red Chris which is shown at 70%. AISC and AIC may not calculate based on amounts presented in these tables due to rounding.

Corporate Information

Board
Peter Hay                   Non-Executive Chairman
Sandeep Biswas        Managing Director and CEO
Gerard Bond              Finance Director and CFO
Philip Aiken AM          Non-Executive Director
Roger Higgins            Non-Executive Director
Sally-Anne Layman    Non-Executive Director (appointed 1 October 2020 )
Xiaoling Liu                 Non-Executive Director (has resigned with effect immediately after Newcrest’s AGM on 11 November 2020 )
Vickki McFadden        Non-Executive Director
Peter Tomsett             Non-Executive Director

Company Secretaries
Maria Sanz Perez and Claire Hannon

Registered & Principal Office
Level 8, 600 St Kilda Road, Melbourne , Victoria, Australia 3004
Telephone:   +61 (0)3 9522 5333
Facsimile:    +61 (0)3 9522 5500
Email: corporateaffairs@newcrest.com.au
Website: www.newcrest.com

Stock Exchange Listings
Australian Securities Exchange (Ticker NCM)
Toronto Stock Exchange           (Ticker NCM)
PNGX Markets Limited              (Ticker NCM)
New York ADR’s                       (Ticker NCMGY)

Forward Shareholder Enquiries to:

Australia:
Link Market Services
Tower 4, 727 Collins Street
Docklands, Victoria , 3008
Australia
Telephone:   1300 554 474
+61 (0)2 8280 7111
Facsimile:     +61 (0)2 9287 0303
Email: registrars@linkmarketservices.com.au
Website:        www.linkmarketservices.com.au

Canada :
AST Trust Company
P.O. Box 700, Station B
Montreal, Quebec , H3B 3K3
Canada
Telephone:     +1 800 387 0825

Email: inquiries@astfinancial.com
Website: www.astfinancial.com

Substantial Shareholder(s)(35) at 30 September 2020
BlackRock Group                                 10.2%
Allan Gray / Orbis Group                       8.9%
Van Eck Associates Corporation           5.1%
The Vanguard Group                             5.0%

Issued Share Capital
At 30 September 2020 , Newcrest’s issued capital was 816,071,894 ordinary shares.

Quarterly Share Price Activity

High

Low

Close

A$

A$

A$

Jul – Sep 2020

36.53

30.69

31.24

Forward Looking Statements

This document includes forward looking statements and forward looking information within the meaning of securities laws of applicable jurisdictions. Forward looking statements can generally be identified by the use of words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe”, “continue”, “objectives”, “targets”, “outlook” and “guidance”, or other similar words and may include, without limitation, statements regarding estimated reserves and resources, certain plans, strategies, aspirations and objectives of management, anticipated production, study or construction dates, expected costs, cash flow or production outputs and anticipated productive lives of projects and mines. Newcrest continues to distinguish between outlook and guidance. Guidance statements relate to the current financial year. Outlook statements relate to years subsequent to the current financial year.

These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause Newcrest’s actual results, performance and achievements or industry results to differ materially from any future results, performance or achievements, or industry results, expressed or implied by these forward-looking statements. 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 licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which Newcrest operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. For further information as to the risks which may impact on Newcrest’s results and performance, please see the risk factors included in the Annual Information Form dated 13 October 2020 lodged with ASX and SEDAR.

Forward looking statements are based on Newcrest’s good faith assumptions as to the financial, market, regulatory and other relevant environments that will exist and affect Newcrest’s business and operations in the future. Newcrest does not give any assurance that the assumptions will prove to be correct. There may be other factors that could cause actual results or events not to be as anticipated, and many events are beyond the reasonable control of Newcrest. Readers are cautioned not to place undue reliance on forward looking statements, particularly in the current economic climate with the significant volatility, uncertainty and disruption caused by the COVID-19 pandemic. Forward looking statements in this document speak only at the date of issue. Except as required by applicable laws or regulations, Newcrest does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in assumptions on which any such statement is based.

Non-IFRS Financial Information

Newcrest results are reported under International Financial Reporting Standards (IFRS). This document includes non-IFRS financial information within the meaning of ASIC Regulatory Guide 230: ‘Disclosing non-IFRS financial information’ published by ASIC and within the meaning of Canadian Securities Administrators Staff Notice 52-306 – Non-GAAP Financial Measures. Such information includes All-In Sustaining Cost (AISC) and All-In Cost (AIC) as per updated World Gold Council Guidance Note on Non-GAAP Metrics released in November 2018 . AISC will vary from period to period as a result of various factors including production performance, timing of sales and the level of sustaining capital and the relative contribution of each asset. AISC Margin reflects the average realised gold price less AISC per ounce sold.

These measures are used internally by Newcrest management to assess the performance of the business and make decisions on the allocation of resources and are included in this document to provide greater understanding of the underlying performance of Newcrest’s operations. The non-IFRS information has not been subject to audit or review by Newcrest’s external auditor and should be used in addition to IFRS information. Such non-IFRS information/non-GAAP measures do not have a standardised meaning prescribed by IFRS and may be calculated differently by other companies. Although Newcrest believes these non-IFRS/non-GAAP financial measures provide useful information to investors in measuring the financial performance and condition of its business, investors are cautioned not to place undue reliance on any non-IFRS financial information/non-GAAP financial measures included in this document. When reviewing business performance, this non-IFRS information should be used in addition to, and not as a replacement of, measures prepared in accordance with IFRS, available on Newcrest’s website and the ASX and SEDAR platforms.

Technical and Scientific Information

The technical and scientific information contained in this document relating to Wafi-Golpu and Lihir was reviewed and approved by Craig Jones , Newcrest’s Chief Operating Officer PNG,  FAusIMM and a Qualified Person as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101) . The technical and scientific information contained in this document relating to Cadia was reviewed and approved by Philip Stephenson , Newcrest’s Chief Operating Officer Australia and Americas,  FAusIMM and a Qualified Person as defined in NI 43-101.

Authorised by the Newcrest Disclosure Committee

This information is available on our website at www.newcrest.com

Appendix

Reconciliation of Newcrest’s Operational Performance including its 32% attributable share of Fruta del Norte through its 32% equity interest in Lundin Gold Inc

Gold production

Metric

Sep 2020 Qtr

Jun 2020 Qtr ( 36 )

FY20

Gold production – Newcrest operations

oz

472,929

573,175

2,154,696

Gold production – Fruta del Norte (32%) (37)

oz

30,160

16,422 (38)

Gold production

oz

503,089

573,175

2,171,118

All-In Sustaining Cost

Metric

Sep 2020 Qtr

Jun 2020 Qtr ( 36 )

FY20 ( 36 )

All-in Sustaining Cost – Newcrest operations

$m

498

493

1,848

All-in Sustaining Cost – Fruta del Norte (32%) ( 37 )

$m

24

All-In Sustaining Cost

$m

522

493

1,848

Gold ounces sold – Newcrest operations

oz

502,907

562,185

2,142,741

Gold ounces sold – Fruta del Norte (32%) ( 37 )

oz

30,160

Total gold ounces sold

oz

533,067

562,185

2,142,741

All-In Sustaining Cost – Newcrest operations

$/oz

990

878

862

All-In Sustaining – Fruta del Norte (32%) ( 37 )

$oz

810

N/A

N/A

All-In Sustaining Cost

$/oz

980

878

862

All-In Sustaining Margin

Metric

Sep 2020 Qtr

Jun 2020 Qtr

FY20

Realised gold price (39)

$/oz

1,837

1,646

1,530

All-In Sustaining Cost – Newcrest operations

$/oz

990

878

862

All-In Sustaining Cost margin

$/oz

847

768

668

(1)

Includes 30koz and an estimated reduction of $10/oz based on Newcrest’s 32% attributable share of Fruta del Norte through its 32% equity interest in Lundin Gold Inc. Please refer to the Appendix for calculation.

(2)

Newcrest’s AISC margin for the September quarter has been determined by deducting the All-In Sustaining Cost attributable to Newcrest’s operations of $9 90/oz from Newcrest’s realised gold price of $1,837/oz.

(3)

See information under heading “Non-IFRS Financial Information” on Page 15 of this report for further information.

(4)

The achievement of guidance is subject to market and operating conditions. Newcrest’s guidance for Fruta del Norte is an annualised figure based on Lundin Gold Inc’s production guidance for 1 July 2020 to 31 December 2020. See Appendix for further details.

(5)

The figures shown represent Newcrest’s 70% share of the unincorporated Red Chris JV. Production outcomes for FY20 are reported from the date of acquisition (15 August 2019).

(6)

The figures shown represent 100%. Prior to the divestment on 4 March 2020, Newcrest owned 75% of Gosowong through its holding in PT Nusa Halmahera Minerals, an incorporated joint venture. Production and financial outcomes for FY20 represent Newcrest’s period of ownership to the divestment date.

(7)

The figures shown represent Newcrest’s 32% attributable share, through its 32% equity interest in Lundin Gold Inc. No production was reported in the June 2020 quarter due to the temporary suspension of operations following concerns of a spread of COVID-19 in Ecuador. Operations were resumed on 5 July 2020.

(8)

Total Recordable Injury Frequency Rate (injuries per million hours). TRIFR for FY20 includes safety results for Red Chris from acquisition. Excluding Red Chris, TRIFR for FY20 was 2.1.

(9)

Due to the negligible impact of Fruta del Norte on Newcrest’s Group AISC for FY20 it has been excluded from the calculation.

(10)

From Newcrest’s operations only and does not include Newcrest’s 32% attributable share of Fruta del Norte through its 32% equity interest in Lundin Gold Inc.

(11)

Realised metal prices are the US$ spot prices at the time of sale per unit of metal sold (net of Telfer gold production hedges), excluding deductions related to treatment and refining charges and the impact of price related finalisations for metals in concentrate. The realised price for the June and September quarters and for FY20 has been calculated using sales ounces generated by Newcrest’s operations only (i.e. excluding Fruta del Norte).

(12)

Stage 2 of the Cadia Expansion Feasibility Study has been prepared with the objective that its findings are subject to an accuracy range of ±10-15%. The findings in the Study and the implementation of the Cadia Expansion Project are subject to all the necessary approvals, permits, internal and regulatory requirements and further works. The estimates are indicative only and are subject to market and operating conditions. They should not be construed as guidance.

(13)

AISC margin calculated with reference to the Group average realised gold price.

(14)

The figures shown represent Newcrest’s 70% share of the unincorporated Red Chris JV. Production and financial outcomes for FY20 are reported from the date of acquisition (15 August 2019).

(15)

Mine production for open pit and underground includes ore and waste.

(16)

Includes development tonnes from the Cadia East PC2-3 project. Costs associated with this production were capitalised and are not included in the AISC or AIC calculations in this report.

(17)

Due to timing of Lundin Gold’s September quarterly report, Newcrest has estimated its 32% attributable share, through its 32% equity interest in Lundin Gold Inc, of Fruta del Norte’s All-In Sustaining Cost for the quarter. For the purposes of All-In Sustaining Cost, Newcrest has assumed that production is equal to sales. Refer to the Appendix for further details.

(18)

Group AISC is for Newcrest’s operations only and does not include Newcrest’s 32% attributable share of Fruta del Norte.

(19)

Includes deductions related to treatment and refining charges for metals in concentrate

(20)

Represents adjustment for ore inventory movements, removal of production stripping costs and movement in Advanced Operating Development costs

(21)

Adjusted operating costs represents net cash costs adjusted for finished goods inventory movements, divided by ounces sold

(22)

Corporate general & administrative costs includes share-based remuneration

(23)

Costs of this nature were previously reported within Corporate Costs. In accordance with the updated World Gold Council guidance, growth and development costs are now presented in AIC.

(24)

Represents spend on major projects that are designed to increase the net present value of the mine are not related to current production. Significant projects in the current period include key expansion projects at Cadia (including PC2-3 development and the molybdenum plant).

(25)

Depreciation and amortisation of mine site assets is determined on the basis of the lesser of the asset’s useful economic life and the life of the mine.  Life-of-mine assets are depreciated according to units of production and the remainder on a straight line basis. Depreciation and amortisation does not form part of All-In Sustaining Cost or All-in Cost with the exception of amortisation on reclamation and remediation (rehabilitation) assets

(26)

As announced on 4 March 2020, Newcrest divested its 75% interest in the Gosowong mine. Production and financial outcomes represent Newcrest’s period of ownership to the divestment date

(27)

Due to the negligible impact of Fruta del Norte’s AISC on Newcrest’s FY20 AISC, it has been excluded from Newcrest’s calculation. Accordingly, the full year production outcome will differ to that reported on Page 2 (by 16koz, which is Newcrest’s 32% attributable share through its 32% equity interest in Lundin Gold Inc)

(28)

Includes deductions related to treatment and refining charges for metals in concentrate

(29)

Represents adjustment for ore inventory movements, removal of production stripping costs and movement in Advanced Operating Development costs

(30)

Adjusted operating costs represents net cash costs adjusted for finished goods inventory movements, divided by ounces sold

(31)

Corporate general & administrative costs includes share-based remuneration

(32)

Costs of this nature were previously reported within Corporate Costs. In accordance with the updated World Gold Council guidance, growth and development costs are now presented in AIC.

(33)

Represents spend on major projects that are designed to increase the net present value of the mine are not related to current production. Significant projects in the year include key expansion projects at Cadia (including PC2-3 feasibility study and the molybdenum plant).

(34)

Depreciation and amortisation of mine site assets is determined on the basis of the lesser of the asset’s useful economic life and the life of the mine.  Life-of-mine assets are depreciated according to units of production and the remainder on a straight line basis. Depreciation and amortisation does not form part of All-In Sustaining Cost or All-in Cost with the exception of amortisation on reclamation and remediation (rehabilitation) assets

(35)

As notified to Newcrest under section 671B of the Corporations Act 2001

(36)

No production was reported for Fruta del Norte in the June quarter due to the temporary suspension of operations following concerns of a spread of COVID-19 in Ecuador. Operations were resumed on 5 July 2020. Due to the negligible impact of Fruta del Norte on Newcrest’s All-In Sustaining Cost, it was not included in the calculation for the June 2020 quarter or for FY20.

(37)

Due to timing of Lundin Gold’s September quarterly report, Newcrest has estimated its 32% attributable share, through its 32% equity interest in Lundin Gold Inc, of Fruta del Norte’s All-In Sustaining Cost for the quarter. The estimate for All-In Sustaining Cost was derived by taking the mid-point of Newcrest’s guidance range of $810/oz (at Newcrest’s 32% attributable share). For the purposes of AISC, Newcrest has assumed that production is equal to sales. A true-up will be made in the December quarter once the outcomes for the September quarter are known. Newcrest’s guidance with respect to the gold production of Fruta del Norte is based on Lundin Gold’s July to December 2020 guidance of 150,000 – 170,000 ounces which has been annualised on the assumption that production levels will be same for the January to June 2021 period (presented at 32% and rounded to nearest 5koz). With respect to Newcrest’s guidance for AISC, the dollar million range has been derived by multiplying the low end of annualised production of Newcrest’s guidance by the high end of Lundin Gold’s July – December 2020 AISC guidance of $770/oz – $850/oz, and the high end of annualised production of Newcrest’s guidance multiplied by the low end of the same AISC guidance range.

(38)

Newcrest’s attributable share for the quarter ended 31 March 2020.

(39)

Realised metal prices are the US$ spot prices at the time of sale per unit of metal sold (net of Telfer production hedges), excluding deductions related to treatment and refining charges and the impact of price related finalisations for metals in concentrate. The realised price for the September 2020 quarter and for FY20 has been calculated using sales ounces generated by Newcrest’s operations only.

SOURCE Newcrest Mining Limited

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