NCMGF - Earnings call transcript Q4 2022

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Operator

Thank you for standing by and welcome to the Newcrest Mining Full Year Financial Results Call. [Operator Instructions] I would now like to hand the conference over to Mr. Tom Dixon, Head of Investor Relations. Please go ahead.

Tom Dixon

Thank you, operator. to FY welcome results full and call. conference morning Newcrest ‘XX Mining’s year Good Dixon, Investor Head Tom is This of Relations Newcrest. for is call XXXX. being today, Friday, This August recorded XX,

and entity is Just XXXX. the to With Sandeep June now after U.S. CEO, to will the a the and references are all hand Any that, our prior U.S. slides a I today dollar Newcrest Managing over XX, dollar the reminder, dollars. XX in references ended Director reporting Biswas. to period months

Sandeep Biswas

Thanks, good us everyone, Sherry questions. take thanks today. be results Officer. you and With Chief year operations is full give Today, and our will Tom very call an and morning happy and the we for overview we will to me joining on Duhe, of Financial the then

please note a both year company’s the very FY perspective. important from a been ‘XX I Before begin, has successful strategic operational and disclaimers.

total of I and we for the a share. million of cash and million than strongly in $X,XXX Following $X.X improvements dividends the financial released on the final focus per of ounce. dividend gold announce half, a ounces just maintenance per more franked fully producing year sustaining $X.XXX share, billion. at and with set operating an statutory We our first Board cost per our profit am underlying bringing to results $XXX pleased of determined to very strong flows all-in that has $X.XX year of productivity under of the a finished today X

to comfortable the disciplined our this commitment our we exceeds policy, by are targeted payout this While capital management. reflects dividend

portfolio. billion of over in Resources excellent Pretium have and liquidity, our flexibility us Our balance ample $X giving access growth acquisition fund the to to remains following we shape, completion well in sheet

works expected FY Lihir our steady portfolio We ‘XX. Havieron reach advance continue to Cadia, in Red all Chris, to with key across and milestones

very outlook a well completed Resources positions over cash increasing critical the said, March, the compelling successfully Copper In we transaction, is a world. exposure of the our metal immediate in previously to term. decarbonizing substantial group. for Pretium generating flows a have and production longer us the copper we As with future

Brucejack progress a we well program range being and of opportunities is with progressing pursued. made considerable at new have transformation Our

On the to safety however our report we a tremendous of pleased to have It’s X front, now to years embedded year that I relation We people how nearly to am and into rates. did in fatalities. are a injury culture. safety our testament is credit far free challenging

predominantly and were no low working in severity is on incurred injuries injury the acceptable hard nature, While prevention. we are

made this We year. psychologically a building and culture high-performing, workplace have safe inclusive inroads into

returned instability the to and we ventilation We million aimed preventing and feels and to everyone from XXA I full even of in processing and tons workforce to underground great FY the against are harassment note to ensuring our plant to progress approval Stage the the the projects commissioning for Cadia, the important and absolutely at feasibility motor, the Works during now respected workplace. mill Lihir achieved been concentrate look as of the safe, also mining one Work capacity. Havieron regulatory on months. forging Red Cadia remediate permitted Respect and in forward milestones Block at these progress for sexual sexual stage our global and X Cave, increase advancing the and X-X, ‘XX. moly assault activities has PC moly will capacity per completed including coming updates of Cadia first over upgrade annum. rises SAG And program our eliminating is have valued. been stronger shipment Phase our XX some across year, replacement and focused that Chris and the through made has We aspirations providing Newcrest of successful new

job operations, expected a have this done the potential the we impacts surface has of no to result. team to fantastic Our while focused realizing seen to as a production stabilize continue material At year this full unique rise. the our completing on necessary Lihir, remain And we works asset.

be Red Ridge outside Chris of feasibility and amount producing is with underway initial of of low-cost Cave evident to to the journey Red copper benefits quality investment expect sustained FY quarterly an at long-life, mineralization into to mines our we performance. and quarter and study material the June to estimate. mining last expand of ‘XX. of the release study to expect we program open capable the be resource We The expected delivering beyond continues mining we in operating movement Chris finalize Lihir’s Drilling deposit, our findings also of the a feasibility at East record the Phase continue quarter for to program released its have stripping cash The which Block in the continue as on PFS a mineral attractive results ‘XX improvement and to gold higher improvement next expectation rates pit and with Chris on mine. a XXA FY very turn the in continue were highlighted the year is Red the cave. margins. block work significant been October

also the team underground pit to extensional open cutback life. Our continuing underway progressing we both and to is extend well Telfer opportunities the is to further Telfer’s The operation. and assess are Dome plans of extend West life

to the Havieron be The venture determined by We price exercising was Havieron option process $XX million X% option based have X% project. an to an interest agreement. be independent valued JV acquire on in additional out the in announced the we today that not set will joint our

exploration We rates Tier FY the very financial scheduled leading expenditure towards now a An bodies And we with The expect work not in decline, to activities, interest. of Newcrest are feasibility delivery including which transaction very compared Havieron gold in $XX significant expected continues ore study. to global the X% earlier the with with excited to peers. triangle. XX% the comfortable long including our X store we exposure to improvement in hurdle were earned life forward its pre-feasibility have as this ‘XX. the end to the XX% positions and this of release mine continue with return is Newcrest Columbia’s JV requirements British golden we X The and to year, December team quarter. accelerate of portfolio The year. mine $XX meet advantage for and saw million early study, a through the first million development to through interest steady a the current add additional Brucejack works our the our does our moving

to Following performance see make to continue completion, of has improve Brucejack NewSafe on the now safety team with was great further safety our progress proud the to our program. to well program safety three-phase our continued transformation particularly strengthen culture. I underway

over has estimates. few months the team synergy worked past Our our validate to extensively

are today goals. to benefits We to very our pleased path increase these surpass clear with expected pre-acquisition a

efficient focus at to of additional kicked between off turnaround program year. and expected Brucejack are CADXX mine savings million has more operations. stope an flow opportunities CADXX cash on these pursue Together, million also deliver EDGE to with initial time programs to per Our

throughput study increase in capacity debottlenecking at progressing the target also are an Brucejack. to mill concept We

in a quarter the application We in be expect coming to this March with the expected follow quarter. completed permit to

Kings a high-grade of We so at we in and new further forward the directions. drilling a uncover much opportunities Golden and potential in for beyond have exciting Marmot, and months, results results of also mineral look growth. for value to recent at located to exceptional remains the Brucejack this adjacent providing with mineralization Pretium seen all a the as significant of drilling expanded have some Deposit. discovery is resource asset very footprint growth Brucejack outside updates potential the supporting we estimate the resource The additional open

So approaching our the been years growth this FY been strategy Newcrest. range for very And for see I ‘XX our you milestones in and the of through year said, now. profitable we can as have important significant several has progress near-term. it’s objectives slide, a a on made on growth Delivering busy

now to let’s sustainability. So, move

a sector peers. by goal emissions zero We carbon of have our many XXXX, alongside of

has to underpins Our zero group emissions goal. roadmap our working team this that net develop dedicated been hard

our investigating starting from XX% is Newcrest Chris and Cadia, agreement we journey with power in assets Rye to are Cadia’s onwards with of reduction and And to Red good technologies of technologies provide focus Brucejack use we the Cadia at being to energy reduce PPAs. around in a a and will hydropower. At medium-term, renewable zero place, the specific increase Lihir. the emissions applications through net expected from program Park of further In energy. place further power to on processing the purchase plan wind and renewable farm XXXX with one have emissions long-term, on carbon focus the on we emerging such site efficiencies the advanced

for playing We will over are I year. a committed through Sherry performance and roadmap now the the transition to global the zero forward to in updates financial run providing role further positive who look net a to future progresses. to Newcrest’s as will pass

Sherry Duhe

$XXX I an FY everyone. we good you ounce or per all-in an $XXX cost and first and XX%. profit stage In such time margin very for at healthy of present for the ‘XX, Sandeep am Thanks, of Newcrest. to pleased sustaining delivered morning underlying to exciting million a it’s

Our external and We shape per of chain Lihir. our a pleased lower to the the supply of with Cadia. is projects sustaining FY costs expectations lowest face of across Despite half and all-in the financial production our mill solid at of year and ounce. of invested of Cadia $XXX $XXX performance operating we excellent across COVID-XX, challenges the notable the motor trending see in range our lower ‘XX, upgrade rainfall growth the SAG in particularly exciting exploration following remain progress the other ever second The result cost headwinds, negative impacts business, and were achieved and including replacement was its line issues million agenda. significant activities. number our we ongoing in almost annual planned major related to a Cadia in to In capital at

remains sheet strong balance I Our following which in slides. liquidity, the will touch with significant on

strong debt long-dated to profile. and sheet maintain its continues very balance maturity Newcrest

We pipeline retain access Our us execute Havieron $X.X balance capacity and be to sheet and organic in considerable Chris, to for volatility Cadia, to at our liquidity. Red foundation growth. resilient growth Lihir of provides strength billion projects market a through with enables

not a due corporate is next bond only average coupon of and X.X%. repayment we have Our until bond XXXX weighted rate low

will prices to the cycle. are not a strong maintain high we to on growth. fund continue reliant sheet pleasingly, future And We balance gold through our

within we key policy of comfortably all As see, remain our financial you can targets.

gearing our below Our leverage remains less XX.X% our target of X.Xx below is target well being and well less of XX%. being than than EBITDA of of ratio Xx our

also our and We to markets credit us grade good when all continue retain investment if needed. which access to capital gives rating,

of the per determined brings dividend year earlier, final mentioned for $X.XX a Board Sandeep As fully-franked our to has share. total $X.XXX share. per dividend the This

this by comfortable dividends capital to we exceeds pipeline us, remain attractive to Even our committed this policy, ahead shareholders our the very opportunities reflects While are our throughout dividend of the of paying commitment the we payout targeted with disciplined growth cycle. management. to

rising consumables increase Newcrest the these for outlook equipment inflationary driven by Ukraine/Russia and A a we of higher and by impact largely additional influenced and by estimate our though instability around the by gas higher demand, will chain range of short-term influenced base include inflation supply pressures cost FY tight X% cost forecast across few X% by cost to of the a ‘XX, labor to cost continues cost, the globally. electricity In market, wages geopolitical unpredictable. constraints. oil, monitor prices remains rising driven examples war natural cost pressures

Through has We through continuous in also higher appropriate competition high to And infrastructure for capital EDGE various culture this protection business, inflationary exposures identifying ensuring instrumental mechanisms been aim strategies performance we and pressure our innovation, have from costs and us and managing improvement. been prices. implemented. mitigation program, our across projects Newcrest on drive expect a given labor continued steel of impacts

reduce this to exposure We in have protections a place number our to of already volatility.

contracts extended are we Cadia of financial at example, For Lihir long-term place FY year. fixed until the oil at hedging for price ‘XX. the our contract in electricity end And current

guidance certain or and structures, measures to It’s pricing in FY We managing that we steel, less meaning pressures volatility and well through exposed market important energy expectations ammonia note are our manage are as cost formula ‘XX to on through environment. our to price fluctuations. as this protections our also actions incorporates inflationary

negotiations in and and as seeing and cost. from address more we We to such in detailed Other also through to levers operating the to are efficiencies have like inventory identified inflationary capital levers levers increase pressures approaches use market place. supplier for of and management. demand of the enablers the an our shifting mitigate array These range digital are management contract traditional both

highlighted the cost key that of I We successes and market ‘XX power, some remain seriously cost pressures as FY projects. reduce of right such recent guidance in We fuel, have minimizing across to to global note pleased am examples our forecasting and slide. FY And some beyond. this and our shipping the context, in is focused assets In on for that I present ‘XX. portfolio steel

Fruta which other year year that sites. continue X sustaining to to come. Norte production of fantastic cost at at anticipate is Chris. compared produce for the driven from and higher a year Pleasingly, production of this well FY is driven Cadia. Brucejack highlighted for Newcrest del year, expected XX of increase slight solid cost reflecting from operating production ‘XX mining additional million another our to last continuing low Lihir the As in is on over and months, milling despite copper million increase this should addition We Red ‘XX, and a and by inflation, expected expecting I by a slide, Cadia, all-in volumes Brucejack largely is to highlight in FY and dollar ounces full in had gold, year to our throughput

‘XX be easing Sandeep. cost to on pass Canadian in to U.S. offset I in back dollars. pressure and will We dollar now a expect FY Australian weaker this it by

Sandeep Biswas

Sherry. Thanks,

So our investing future. we are and in is conclusion, strategy track on in our

ounces many years portfolio come. gold an million of outstanding of have We organic capable growth more producing to for X than

margins Our sustaining expected and prices. a all-in cost, at lower gold long-life profits be which production profile at means is strong competitive to delivered even

relentlessly maintain to building and continue our across safety, and We exposure inclusive have our empowered an developing we increasing We a focused long to substantial our peers. copper credentials life remain business. compared and reserve to our advantage and culture on sustainability

for Our future. a are bright FY well we clear priorities ‘XX and placed are very for very

take So, much to that, are very for and happy thank listening. any with I have. you Sherry so you questions And might

Operator

Your Instructions] Stanley. comes [Operator question from Morgan you. Anand Thank first go Rahul Please ahead. with

Rahul Anand

pickup the to with rates to Sandeep Hi, for and you I in from that pointed good potential the of X.XX you did a annum. current morning per the around if expansion of start thanks bit Brucejack, the be tons to terms Perhaps to million million likely opportunity. throughput mining a out That’s tell constraints million X.X we rates X.X you million in in side. X.X ‘XX. are FY the

Thanks. throughput? of of the scope What And the be? can extra the will understand that? achieve So, would the what for CapEx getting come that work perhaps like help us able then of back second. you going to to terms in look terms in I And is strategy what’s being

Sandeep Biswas

good question. a Rahul. Yes. It’s Thanks,

is get X,XXX under a of to is where So, sort tons, majority to that tons principally and work day it order odd, the up that’s mining of X,XXX X,XXX going. focused the in

more plan efficient So, we on what alluded lot to what directed a out stopes are do mining efficiency about relation it actually – towards to and tonnages. I or predictive of our we to make how more that in of do how about get talked comes the our enable efficiencies the and the all

expect things other have to part we will be major, here the be mean, to piece tweak that of the to operations. but mean, we is course, that the we there I doing. is And expect I piece study have permitting. certain there. second the The and are to on this debottlenecking of some surface is don’t

position in the next or like we application point have April be to in to permit less completed We a submit to have the more study a year, where that. can something or March

you And permit. what and if and makes so obviously, that the continue parallel. would FSSs And will we PFSs have with submit we it sense, in

get we when to ready go. do we then a are So permit,

kind of broad that’s the outline. So,

Rahul Anand

Okay.

debottlenecking more basically? than exercise sounds a and lot it efficiency developing like So rather a like something type doing

Sandeep Biswas

Yes, absolutely.

like mining milling we the rate to efficiencies build or new with lot around going are a how It’s up. and We debottlenecking around line not do mine a that anything that. get

Rahul Anand

Perfect.

Okay.

factor in geographies. you costs. few are and seeing then around you to on studies. of you does you feasibility delaying obviously just have terms is inflation look, wanted And to the it flagged impacts in considering in? environment, Lihir? that merit some in Australia, question mentioned Canada, Second also today in are And on your current of for can I in Like in XX% are several trying inflationary CapEx release that a number times the that side? inflation projects feel How – a you happening a terms a operating if get growth in of undertaking break that perhaps what’s bit light of what you there down the

Sandeep Biswas

you few then am pretty chip So, let a me comments. big there question in. I will give Sherry, It’s sure a and

geography, certainly of the of it And release, in So we where it we of looked are. looked to in that terms delineated studies haven’t relation in depends have at inflation. in it we but terms kind to the expect where you at have

therefore Lihir, a you in shortage Whereas is hedged that elsewhere issue. of more the for is although a inflation labor key – you in will have attract – fuel, that to going obviously will that energy we component For example, are a are WA, in see seaborne from type sense. and more

there more see inflation will potentially. you So

and at And So issues. broad talk important it is the level that’s point. own and rather of it a BC depends. its But kind would has about why Canada an we CapEx

these projections. that these of mean relevant. on make some there actually key in during time of ‘XX/XX, escalation and feasibility lot the sure a current costs are some we but spending of estimates of start things are that’s inflation I that we input expect will are our FY easing studies why also that’s So to on

So a very you taking deliver we lot holistic we are and of look them. a can to? what doing robust estimates on forward put have to make you sure just do that are analysis the that and we and Sherry, statistical want

Sherry Duhe

Yes, look just notes a well mentioned of different that, Rahul. and we categories. And through it in thanks go comments that my number of and couple cost briefly across speaker for a methodically I really as

different we and we place broad else in We go then macroeconomic have XX can and spend. what help in internal kind do. of we about offset what mechanisms are our at and is three would after are contract or And indicators it what identified say be we really that external whether look there to categories go that

which traditional just a you typical page, of levers is would consolidation sourcing are do. commercial contracts, two other us demand cost important I and to and first that if things discounts, couple But The those. rate are low around levers. in not country categories, mentioned around of of volume-based this then them equally, using all innovation the and and in more but also standardization, for the technology specification help

have we back cost add projects, already those spend. with of for ‘XX. environment. And confident and are in those we apply make impacts place of approach the in capital have to to have that, we these categories very muting in comment to have we they levers have this will returns to competitive vigorously we that in are on, pursue the successes other inflationary those do going to the in Maybe again, projects of looking very we sure disciplined rates hurdle our across that some to terms and we got just We a make continue will our to of that tools screening a is only had number I’d continue and ‘XX even

Rahul Anand

those on you that just Sherry, able hurdle something share that rates the be or call? discuss don’t perfect. want you Okay, to would is to

Sherry Duhe

I am the team. over looking mean... at I

Sandeep Biswas

what So talking about. it projects depends, Rahul, are kind of we

Brownfield you typically said lower. a X-stage double-digit to and in do one plus Greenfield for projects, I doing look just after for I the stages. On So we XX% so are XX% past, typically, pathways two they or look project, We are we as have plus projects for if or we look returns. – through

that’s past. Now the been how it’s in

numbers good, have have at of seen XXA we we to going some of we these a Now are and right? on do our of look got PC as all in out and have are the pretty projects But our projects. the And you. pre-feas what have that X-X unprecedented you times, preliminary

rates So in I’d they on but we wait the the or and Greenfield. Brownfield are the based at sort see, it’s whether of range looked of

Rahul Anand

very will on. Thank helpful, much. That’s it team. pass you Perfect. I very

Operator

Thank you.

Global Radclyffe comes next Research. Please with question Mining go Your David from ahead.

David Radclyffe

and Sandeep morning, good Hi, team.

I Brucejack. just So follow-up questions on couple have got of a actually

are of of obviously own lot time acquisition, the the geological still estimate. model Yet your confidence of at working a reserve, in looking you deposit. had So at the resource on your you

do to So feel model has drilling been you confidence have estimate. the and got there, since done just that There expectations? last your up you wondering it’s of still in holding lot a

I if wondering, just firstly, a was you So color bit more provide could there?

Sandeep Biswas

what first happened numbers of are similar to very any unless Well, one the at estimates, they own JORC our Chris. We right. can’t quote Red is

now we do Chris, a JORC So estimate. with because it’s Red that

Now the said we have going estimates, able itself, and having selective, way to what’s it once you the are be equipment to to the JORC by unlock we predict what mine are to that is got can has trying more the more some to each And results course, opposed be in terms that Pretium tonnages be estimate that’s in some results results the talking a published and the start in less but be body just the of higher to stope drilling have got updating Brucejack, that about release then have program into out summer our you due we the smoothing in for will just we right of secret selective the you is. far. underway drill so our flow. seen of because will a the And seen ore of as itself. have we how will well, we But – model on predictability of have part that’s

for board in happy at you acquisition So tell that fact very I I that one for can and are with time. a the this point

David Radclyffe

Then Brilliant. grades down, maybe following history throughputs up. come of the a to the guess, you I concept, That’s hear. the on debottlenecking gone of kind just the deposit, great up got

when at it you sort lower you of a think of a or operating think do putting seeing concept, about sort just So cutoff similar your grade sort given then ore it what out? this interested about and sorting? comments you I think grade we of to am lowering are do about bulking the maybe through of now I trialing am really here

Sandeep Biswas

Yes.

mean, I look, me, know makes am safely, money us to the going So I you do what right. most

example, with there, the between. you And we think options all it have, just into But small can too. think It’s have test and you always options anywhere all you doing harder, the of can which you if that what as – more can that’s make as be Nirvana – with But these cake money. go work a eat can have debottlenecking would that’s of and in remain think study question I I mentioned got then on. in much. if a – if works tonnage, we how is are like only going so and not do What we installed concept are you it your increasing you open. you to sweat grade – efficiencies, up such for out, So, is as – can you you if the and we that sort are up the well, I capital

in have We preliminary and BC some we done test have work. got work

that set to samples the sending work last ore, over progress. are with we have progressing, there a it some Sydney but I as said in ours to of time, is – We test up to all rig so suppliers got is

David Radclyffe

Okay, brilliant. Thanks. pass I That’s my will two. on. it

Operator

you. Thank

ahead. comes Matt Suisse. Greene Your Please next go with Credit question from

Matt Greene

the Hi, for I color more bit the could – hedges the Sherry. there. just just on putting start a profile presentation. on oil was Sandeep in the hoping to good and get I morning, actual If thanks

last got XX% you’ve consumption ‘XX say XX% year XX% ranges you you of year, your the between financial recall, calendar I So consumption. briefing of XX% it as had of and your book, If your hedged. and

So you around December XX% financial it’s do half, hedged the got second half XX%? of as interpret year, the this the I and

Sherry Duhe

a Matt. just how slight oil of given the volatility No, in we terms was applied in It just hedging nuance the policy, prices.

all going seen have it here few that What we in across and the the average, that months last up we X at what not Every just a what mandate to basis. forward. is versus go quarters. or do closer way rolling to that the on months our XX%. doing forward on have months, to were X go the want look XX% a we XX% budget we is on then actually we’re a a rolling quarter premises in it us curve or again, a allows because And do whether out to side go and and another we So we grab in basis, particular

Matt Greene

Okay. Got it. Thanks.

you’re mean financial end hedged to lower clear up just XX% begun the if then, near-term, the back be does year? the amount you have that hedging to the So over towards of

Sherry Duhe

all I way go from months an most catch the it We the doing see the or the go to economic XX%. XX%, can sense always to correct, if as up perspective. If the question what understood think we’ve in but low future as can makes mandate up curves got go the we No. period future we we

Matt Greene

if fair focus Okay. the Sandeep, underground Brucejack But on the my That’s question, great. it touched of X just second of the there up optimizing there. on a Thanks. I the on you to And on Phase plants, and just Is This the that like there mill debottlenecking. case grind then just size minimal just get sounds is to is X,XXX spend the consumption. reagent the level. X,XXX tons to observation?

Sandeep Biswas

be will of There upgrading have equipment. some to

fine in tons, As debottlenecking to – all the example, away to be whatever but lead that mill, mean at think, bits doesn’t the mill you the is know, that for it. I and going from

there do So or second part innovation be And we our at to as and will some like as that, efficiencies the a can, of opportunities elsewhere it’s flagging at be some experience next the a we we’ve of involved. not knowledge. whole Brucejack guess look and a to our of but what debottling. a Newcrest. I’m is line anything great got want kind the in I modeling. there this We well CapEx in lot holistic upgrade yes, major of some processing from the may We’ve the step that is because IP sure got we take like make

Matt Greene

Thanks color. very the Appreciate much. Okay.

Operator

Thank you.

Kate from McCutcheon next comes Your question Citi. ahead. with Please go

Kate McCutcheon

and good X-X Are mining news terms in Sandeep, at team’s Cadia. to through Hi, of just has event. that recently? that And rebuild clarify fixed that’s the for are just you you good rise development mine? in maybe of geotechnical the the recommenced the be PC comfort the to morning, event so the the talk those Thanks. able feeding stability stockpiles of able nature been of you’ve that life to for going And

Sandeep Biswas

Yes.

the as now priority what know, moved which risk, done sure and one, everyone’s we’re can we So faced. make to imagine, root is we’ve what you as literally our close that a everything safety, look, now. secure, our circumstances is priority having And always make you the mind the will to turn sure we cause. contain And led very what we to that’s to we that as

So flexibility we’re at doing lot a else part will that doing else. at reopening or rise somewhere investigation. we There assess And also of Cadia. something as not of or we then look is that, whether

look review other So well full will to ventilation options. at we a do as

take PC year anything. critical is And do want on you. expansion before this will to X-X will make for continue, current we and we’re going later have sure the next well, stock come to But not situation what this The really, say PC we out of path study the what we the X-X. So just steps. works is

Kate McCutcheon

Okay, right.

So you’re evaluating? still

Sandeep Biswas

and Yes right. that’s investigating,

So the up running. the development. and mine any is raise – not the for critical is path vent on This

the So as about go considered priority in been to we’ve time has the it I got said, people. way. the But a all through

made grade have some of the higher of of happen terms The In chewed stockpiles. up the back. time mine we stockpiles be to yes, of some because they stockpiles, than the run were

imagine. increase we what to as can processing match up and Will build mining our the that you between So we again? see that is. will them was very We helpful, and rates just as have

over focus right not the see time, will now. We but that’s

Kate McCutcheon

you And What so I to XXA rate? material expecting. second But a that on And bit June bit? of just run when need back there? things of the happen than quarter, And Lihir, were timing that million Great. this asset think this for get great do can look, year out get had Okay. little was $XXX to ounces the numbers we the study mine. that total you lower at question a has are pushed to

Sandeep Biswas

be complete, on the is say it’s this but what study Well, to point. yet track is I’ll at

QX, in a got deliver So the three is, stripping, mining face rates. we’ve the get to predicted, right? one. increase to sure things rates start happen step the have mining made the So one, good the we to etcetera, positions that pointed to And and we to out, have that’s grades as we’ve and we make continue want that to you as

on And we The in plant. relist come piece availability the but Phase will that’s one and the got is on in So time. track. to fixed the the XX, around other that’s reliability project,

So more just that’s it. key they you’ll through focused more rates – got, treat because the stockpiles in the tons to the able the that we’re are the and And we’ve and improve delivering of availability of the drivers absolutely utilization on on. mill, we that be kind do can three mining then to

got plant. on program the released And year. NFS improvement, So this to focusing you got which XXA we’ve project be mine the got we’ve happening. later see our what asset the then is management We’ve

Kate McCutcheon

Okay. Thank you.

Operator

Thank you.

ahead. next question go Daniel Barrenjoey. from Morgan Please comes Your with

Daniel Morgan

didn’t on are option of the and you you would Can get return to this were team, I in grow? note And would X%. need Thank I with the note that of the this had everything to assumptions hurdles, process clearly key an extra about about just is question little do I which your exercise that Hi, the why I uncomfortable some isn’t going imagine this past, have you bit talked – talk option you Havieron. for? only you’ve in thought broader, value the through X% paying you. you it. Sandeep And talk what a

Sandeep Biswas

Yes.

and excellent I shareholders We lot to to. a the sort the and we’ve look an Sherry – need you you it do to from to as got a $XX to capital in also didn’t else. returns that got in got we million, investment. projects expect And the know as company. it, of is said, think putting allocation which So alluded – very didn’t an cost first context, to, mindset would rigorous as of that our it program. somewhere returns XX% thinking allocate think about our if well, this $XX compared shareholders capital as we’ve of deliver the owner’s make well. We’ve obviously, at of And sort And our million didn’t

Daniel Morgan

and Thank up Material hear quarter, want about Can needed you for just is and I below beyond, your in we about to that Lihir. been ton And you material that Do just equipment movements material June movements people... the while, to plan? had which huge year get that. XX which plan then returning through delivering step have the you. get have million that more to but to to confidence a movement a that

Sandeep Biswas

something, I One to whatever or swallow make agree. summer quarter crate is the a doesn’t or

coming And been have of site doing that is to the And and through to our mine, to rates place way. start that. that But rates we’re see and team thing flagged those to plans to priority. of the a machines was the them considerably, results plans. implementing them starting COVID getting the up to the just great is the sort that to that, of keep for the now getting it a we FY we’re expect I and that right I’ve continue slow we to And ‘XX on in job had see progress need. we’re we improve we’ve that out now in that people getting which before. while. was it However, did healthy particularly mean starting planning important

of lot a minimal what and stuff sort So making fundamental – there That’s important their of time lower here. do there at straightening and is have are them bread to no to things going stuff. for is operating weren’t maybe that into weeds jobs, roads now just is important – and butter delays operator you, easier and out so rates. It’s in roots but magic the grass so the bullet training

Daniel Morgan

Okay, thank you for your perspectives.

Operator

Thank you.

Livon Please next is now ahead. Pauline, comes live, FactSet. question Your Pauline go with your line please ahead. go from

Levi Spry

that Would Levi be Spry?

Operator

your now line is live. Levi, Yes.

Levi Spry

the was you. of I the at why queue? Thank Awesome. Wondered bottom

Sandeep Biswas

Levi. Levi,

Levi Spry

that that can like Telfer? what do question when to the and look well Dan’s around the make underground. out? need put as like in Havieron FY on does production looks hub online as pretty How context decisions plan, these on it’s in you Sandeep. think about to some Havieron, production Thanks, pit So Telfer, we you at opposed ‘XX which the do of laid a and

Sandeep Biswas

Yes.

So out the year, will way what of the – course study the of come the Havieron course. in

X it production Phase middle or In decision or for to X. in is for the next up need X so. to next to make which on terms beyond of determine the we months decision, going Phase Stage so not And of next come further decision is X approved. step The us Telfer a probably strip, it, that in the we is the do to do

Levi Spry

Thank the Great. of bulk valuations. you. okay. back months, just Cadia. it’s And X Next Obviously, to

categorically, Kate’s grades even processing you are so higher, the did are development shaft, fee? no So on question higher the from on than mine of PC impact you stockpiles X, so the X and say

Sandeep Biswas

feed obviously Yes. that run-of-mine gone work of to Yes, is again. or try back. X at will the But be obviously the mine’s there within back to X-X we’ve on full X weeks. for were. they PC a production I peg stopped we clear, But delay because things, we because scheme mean and

Levi Spry

Okay.

‘XX So the guidance... FY

Sandeep Biswas

to activity weeks. that stopped risk we for and personnel to absolutely is there sure X underground make no All

everything, stopped underground. than we obviously, everything So the to clear. Other be just mill,

Levi Spry

– The X you. the the for ground then on weeks X stockpiles weeks and of thank okay,

Sandeep Biswas

Great.

Operator

[Operator question with Please next Thank go Steba ahead. CIBC. Instructions] you. comes Your from Mohamed

Anita Soni

associates. from CIBC. in Hi, I It’s my dialed think Soni I under Anita

questions two for So and Sandeep Sherry.

one, respect capital The the at Chris. think, with is and numbers Havieron to first Red I

spend technical look the the we in a was or I for last were higher X think CapEx that reports Havieron. when at X months, there released

was Chris, it it on think XX% probably basis. around I to guys similarly, should closer million, $XXX at you lower. are materially $XXX million Red and been a have And

have? that and pressures So of easier? that I is the a trying guess, of taking capital Is sort a efforts are, part it your there little you to reason bit you reduction mitigate inflationary that

Sandeep Biswas

No.

decline. we’re that saying we rate primarily what Havieron, you’re – Don will think the at delay said, the due be than on in to if I that spending lower a

That’s overall if decline than conditions it and slows make encountered other all what as in doing I come that it phase and your through that the we tough past, we’re we’re the estimate around As down, obviously, the up. with. you some we to the slows the Permian. that way initial flagged and easing other really have CapEx see really, up CapEx our the the pieces starting bits jumbos in rates now, But development worked

was question the what Red that’s Havieron. And So on Chris?

Anita Soni

think And closer the Yes, basis, $XXX technical mean a million so reports, you this on at Red to Chris, the million dollars. year. had life. showing PFS $XXX the around I technical closer U.S. to if I report even for look XXX% like

spend. rate So I’m of just the why wondering lower

Sandeep Biswas

reason other and profile the of Yes. the to timing probably the be No than readjustment of spend. just the

Sherry Duhe

but front in has Yes, exactly. We in would us, just of the have don’t that what would it report materially report. pacing of because changed be that versus activity not seen scope sitting have you

Sandeep Biswas

key I about in fact, is we’re slightly advance mean the which path, which the of schedule. It’s is happy is thing proceeding. decline ahead critical very the is

is for critical weather the part. bold us the that’s So

Anita Soni

X,XXX it like is seemed been it’s you now, shaft to declined. a all this A of to Brucejack ton Pretium times And I up – surface, – Okay. is, my as a I’m your at move Would the recall, per question, about it’s once up things that would at concentrate it the you sorry, pretty And right X,XXX then glacier. get then about couple asset. day curious narrow, wonder need having myself, ventilation second to I couple twisty, over shipping you’ve out got mean an of I issue. winding there? there a

of that government be BC about allowed? the whether to yet or talked you have would shipping So not amount

Sandeep Biswas

to footprint to. this is Well, million vent we – and XX we a X I under remember that particularly Cadia, the shaft shaft ventilation permit a thing process. tons. million part at tons. will not very not further we these put Brucejack’s a used will mean like and what different is do with the studies, extensional mine the mines be scale we’re where mine to mean that mine of in. all It’s It’s the a And But – we further will vent we expand have obviously, I put things. as in, we

we’re to everything grocer have concerns as all it’s manage and need shipping with or got we it’s straightforward a do, we’ve terms do. the going should any the whether no well, we in our once know of to permit government, we’ve that and of what we’ve do corn that. we traffic – homework we absolutely, what or But confidence have got So you. to gives submit relatively that them the to considered But

Anita Soni

a to Cadia guess right think, what is know line comparing comment I from it it’s it, like my it just the on different Yes. now. mine now. as I such it’s Cadia’s, I seems just exists

seems it’s capital, to bit there, going like time get work the... be to a not but of maybe lines, but it only So

Sandeep Biswas

But than rather where for It like very do vein Brucejack earlier narrow later, permit to or mine. we – work get is years mined underground want is. the similar to we like And there there. we that, that’s Gosowong, to we’ve the why got to but but submit XX something

you of Pretium. we’ve and the picked mined within can of significant the company. team up at Brucejack that of of. resides So And one almost the Newcrest kind body the we obviously, any about type from experience ore think expertise things And is

Anita Soni

thank Okay, you.

Operator

you. Thank

Please next go Scotiabank. Your Jakusconek from with ahead. question Tanya comes

Tanya Jakusconek

Hi, my great. two taking morning, everyone. for questions. Good you Thank

$XX guidance. clarification. First in one barrel is on just you’re need a using your see costs. I some that I

to on a trying $X for for the just all-in sensitivity? understand I is move I’m an ounce $XX a So am $X in ballpark your to barrel sustaining,

Sherry Duhe

we to will a know let will get we Do question and us minutes want the come your give and do couple you Tanya. calcs to next back that, that? you of Well, to

Tanya Jakusconek

Yes.

percentage you want just I know on I’m structure keen it’s employees. just your actually is labor. of just costs. that still of versus have that to So cost contractors what is XX%

to trying at out most X% to XX%. seeing X% and are XX% why others figure to you’re Just inflation

understand component. contractor trying to Just the

Sandeep Biswas

well, wage I mean what to escalation as mine kind angles, contract simple whether it’s think that contractors, way whatever the of contractors. the the project, say it we’ve all is I that we – got at from middle the in employees looked yes, sort got now we’re we’re Well, it’s well, – we’ve project of contractors, we’ve and of contract expect seeing. rates

component you’ve fixed-price to is. what contracts, labor the are chase Some got

Some are cost plus.

taken we’ve the our estimate has data, that’s up exposure up. to we’ve broader kind external seeing come So done analysis, and is with where advice with. well this of We’ve and people come as a to are as they what what

Tanya Jakusconek

costs, just on just these still And Alright. some... Okay.

Sherry Duhe

I can maybe Tanya, just that. just comment into add one

you cost people first and you’ve ‘XX starts what look their ‘XX, down some already different looking think other we’re we’re got came a in of course that the already ‘XX, of in you to then that part to slow picking of I period saying, of when stuff to those in, going in compare it at lot XXXX, when too, the at where what calendar up at reporters it, a inflation are when that are they where look of across part see categories.

Tanya Jakusconek

Okay.

So appreciate do Okay, – I you capital would have Which be And different, seeing next capital done? you’re located just because are and at you of they Havieron increases slowdown we’re and where which Lihir. Chris, to big be Each as one huge got putting capital year? in your know. sensitive do and more has of one Red is to inflation I you it. spend, cost go into a as think what

Sandeep Biswas

downs all think move is place. are for your more say, and whereas you operating studies. a In And upfront two CapEx would going – set put Block to it projects, then can where they I as and to very you FS like one an as the expenses the And to you’ve got I up, over think we’re very too. ups just your wait all case, Havieron have it’s difficult Tanya. you It of different to you a in Cave mine go, model. once scale

scale but much it’s – So bigger project. a

mines, I materiality, probably just So at there bigger because is in project. exposure on Chris on for percentage a same of Red now. can a more dollars whole say it’s that’s the both And all

Tanya Jakusconek

Okay.

guidance. go is question, just So which to just last then I’ll on my on

for guidance. a helpful quarterly it at some if fiscal will Cadia would like be have QX looking perspective, we weaker. quarterly from Just be can very Looks

that us helpful. per on expecting So would in the maybe That and quarters? mine very any be maintenance remind just you’re various weakness

Sandeep Biswas

March, maintenance Lihir fixed sort the Well, shutdowns is we’ve on of which it and we April. for has – of been September, in where got – I its a years. doing usual mean, you’ve October in Cadia then period see again regimen cycle

like think something I mill XX that. the realigns every XX or weeks,

changed nothing’s So Cadia. at

Tanya Jakusconek

this a we Okay. expect But period? maybe a weaker because you QX were down bit in

Sandeep Biswas

– are you’re not vent the expected if impact We that’s to production. about rise, talking our

Tanya Jakusconek

Alright.

but it’s at just maintenance, on relatively maybe looking being you’re stable? some of when everything fluctuations weaker periods those Lihir So else otherwise looks it, in

Sandeep Biswas

year. it have happens be It periods plant will every shutdowns, at what because others, typically, kind those than but weaker of we that’s obviously,

Tanya Jakusconek

take as it will I Okay. that.

great. Okay, you. Thank

Sherry Duhe

of that give published, terms we’re be Tanya, think to I question to dollars to going that level going looking per back granularity have what of unit you’re and in the for at sensitivities, your we we’ve looking on don’t been able consumed. you

think about to are strategies will that that given energy the that from cause we assumed have the price in, the even because we you hedge just fluctuations to careful be markets. put think currently Lihir, I in applied in place have you that volatility

help can’t number. with specific I sorry So that you further

Tanya Jakusconek

Okay. you. thank Great,

Operator

Thank you.

Harvey Al Please from JPMorgan. ahead. comes question with next Your go

Al Harvey

morning, helpful. with Yes. mining will seeing wanted you’re unfold, assuming and continuation are on negotiations an Sandeep, license easier me. elections get there to of the but Tom, the after update would there update government, I Good it just be existing one from how just little a Wafi-Golpu, recent very going Sherry the that how and be the a general

Sandeep Biswas

Yes, there. the update

I – various election maybe so etcetera. go period. the to around and ministers, So and discussions it’s was the back April a say period, there during state Harmony a between ourselves March, to when But to and that obviously of Newcrest team and and the flurry election, prior comes the we negotiating standstill activity if ourselves,

get Minister cabinet hopeful haven’t out he’s the and there and Minister and like that no once team etcetera, moment, Now that yet etcetera, recommence his Prime ready, – at on as but the reengagement reelected has his to going. ready. Wafi the gold to we’re the It’s I they Prime valuable we those that going think, a would as sets been developers. copper more benefit select discussions are we’re is the I and soon I and is commodities. it’s people, to in communities great still project, And P&G to it for country, the of, the where the the world do and obviously, and with time, the it’s headed only become want mean get the

Al Harvey

got I you guess you’ve also do copper. there what portfolio. Maybe asset in the the Sandeep. guess, differently about the to in Namosi follow-up about thanks, quick Yes, just your portfolio a given Does I recent comment that think make short-term? on transactions, with anything, in

Sandeep Biswas

file we’ve thinking – not In on lot term, the you’re mean, that. the a mean, the I off But I’m I dusting short we’re on. moment, slowly at got

I gold. think not basically can C priority. the I imminently. because in at think and I thing, size little But last copper level of in happen of of ignored But I it’s given couple that mine concept Nothing a whole and time, right this be forever. woods headed. at our It’s the where that neck with – be its of a of nothing bit a it’s think a now, location the prices are we first will relooking to So said going is

Al Harvey

Yes. No Sandeep. worries. Thanks,

Operator

you. Thank

from Mohamad next question is CIBC. ahead. Your follow-up with Sitab a Please go

Anita Soni

the Anita – doing see – just It’s delayed this filed. to Is Or we not at one that didn’t time you’re again. expect just book or – Hi. this the it curious, is do I around? I it briefing quarter? want was I

Sherry Duhe

this We lot had that make and book, Anita. sense to that question, to around. we briefing didn’t a of stuff a again think through It’s update look good time

taken very and a you’d interested slides thought the in of appendix that the we’ve of number into So presentation. be those key put we the

expect additional So this at time. you shouldn’t an document

Anita Soni

Alright.

forward X terms of the just next as applicable maybe to updating or go not for the meaning briefing use in just So X we years? the it, not prior should book

Sherry Duhe

can the that to to, I X what you on stuff website. still say wouldn’t X book sitting briefing I Stuff refer actually that’s years. should to that be when the etcetera, next in that’s get year. related say would the will talked continue to that’s our next we’ve long-term that’s gates updates next see studies, about to on that we the over stage you those

Anita Soni

Alright. you Okay. very much. Thank

Operator

further Thank back Biswas at are time. I’ll remarks. hand you. questions no There this for Mr. now to closing

Sandeep Biswas

for you, joining day thank call, thanks wherever everyone, Well, you maybe. have for and so great the questions, a the much and

Newcrest Mining (NCMGY) 19 Aug 222022 Q4 Earnings call transcript