Brett Fletcher Executive General Manager PNG & Indonesian Operations

Transcription

1 Lihir Brett Fletcher Executive General Manager PNG & Indonesian Operations

2 Disclaimer Forward Looking Statement These materials include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as may, will, expect, intend, plan, estimate, anticipate, continue, and guidance, or other similar words and may include, without limitation statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the company s actual results, performance and achievements to differ materially from any future results, performance or achievements. 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 the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are based on the company and its management s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the company s business and operations in the future. The company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the company s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the company or management or beyond the company s control. Although the company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be anticipated, estimated or intended, and many events are beyond the reasonable control of the company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based. Ore Reserves and Mineral Resources Reporting Requirements As an Australian company with securities listed on the Australian Securities Exchange ( ASX ), Newcrest is subject to Australian disclosure requirements and standards, including the requirements of the Corporations Act and the ASX. Investors should note that it is a requirement of the ASX listing rules that the reporting of ore reserves and mineral resources in Australia comply with the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code ) and that Newcrest s ore reserve and mineral resource estimates comply with the JORC Code. As a company listed on the Toronto Stock Exchange ( TSX ), Newcrest is subject to certain Canadian disclosure requirements and standards, including the requirements of National Instrument Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ( NI ). In accordance with NI , Newcrest reports its ore reserves and mineral estimates in compliance with the JORC Code, along with a reconciliation for any material differences between the JORC Code and the applicable definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM Definition Standards). There are no material differences between the definitions of Measured, Indicated and Inferred Mineral Resources, and Proven and Probable Reserves, under the CIM Definition Standards and the equivalent or corresponding definitions in the JORC Code. Exploration Target The potential quantity and grade related to any Exploration Targets referred to in this presentation is conceptual in nature as there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource. Refer to Newcrest s detailed exploration summary on our website at and on 2

3 Newcrest in Papua New Guinea Largest miner in PNG Papua New Guinea ~40% FY13 gold production from PNG Potential future 2Moz a year province post Golpu Invested approx $11.5bn in PNG assets Significant exploration activity Circa 3,900 employees and 4,400 contractors 3

4 Newcrest s PNG leadership team Competent PNG leadership team Peter Aitsi PNG Country Manager Chairman of Lihir Gold Limited Karl Spaleck General Manager Lihir Operations Bevan Jones General Manager Hidden Valley Operations 4

5 Newcrest PNG s contribution to the PNG economy Approximately 1.4B Kina contributed to PNG economy in calendar 2011 National Govt. taxes, tax credits scheme & production levy 25% Royalties Employment 5% 4% 22% Lihir Contractors Community Benefits 8% PNG Goods & Services 14% 22% PNG Contractors 5

6 Lihir Operations Simberi 4.7 Moz 57 Airport Malie Is Kavieng Frieda 14.8 Moz Porgera 14 Moz 17 Moz Yandera Ok Tedi Wafi/Golpu (1) Lae 13 Hidden Valley (1) 3 Port Moresby Tolukuma Lihir Panguna +28 Moz Misima 2.7 Moz Huniho Volcano Mine Village Kapit Plant Site Lienetz Minifie Luise Volcano Kinami Volcano Cairns 2011 Gold Resource (Moz Au) Newcrest interest basis 400 km 5 km Lihir (Niolam) Is LIHIR, PAPUA NEW GUINEA Lihir Group of Islands (1) Resource figures quoted on Newcrest interest basis 6

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8 World class gold deposit, long life, expanding operation FY13 production guidance to 900 koz 5 year outlook: 1.2 to 1.3Moz a year Studies to achieve 1.4Moz within 5 years Reliability improvement program in place ~90% PNG workforce, ~33% Lihirian Lihir, Papua New Guinea Gold production 2 Lihir Gold Moz Resource Reserve Refer Newcrest Annual Statement of Mineral Resources & Ore Reserves as at December 31, Annual gold production range: gold bar designates up to low end of range, blue signifies high end of range 604koz 700 to 900koz 1,200 to 1,300koz FY12 FY13 FY17 8

9 Second quartile gold producer Lihir FY12 Strong profit margins Future capital investment to target high return projects Improve balance sheet through use of stockpiles Unit cash cost per ounce 1 1,500 Cash cost post credits Production cost post credits A$560 per ounce A$725 per ounce EBIT margin 57% Return on net assets 6% (7% excluding MOPU WIP) 1,000 USD$/oz 500 Lihir 0 0.0% 25.0% 50.0% 75.0% 100.0% -500 Percentile -1,000 1 Source: GFMS, accessed 25 September

10 LGL acquisition remains a mid to long term driver of value: - Resource and reserve has grown since integration - Region remains highly prospectivep - Delivers near term production growth at second quartile cash costs - Near term investment to improve reliability and predictability - Increases Newcrest knowledge of refractory orebodies Gold July 2010 Moz 1 December Increase 2011 Moz 2 Resource % Reserve % 1 Refer LGL Scheme Booklet July Refer Newcrest Annual Statement of Mineral Resources & Ore Reserves as at December 31,

11 FY13 5 years Production 700 to 900koz transition year MOPU Delivered production steps-up Reliability and improved redundancy established Cash costs are anchored Increase production to 1.2 to 1.3Moz per year Flotation upgrade (5mt), grinding optimised Plant reliability improvement and autoclave optimisation Cash costs maintained, capital intensity falls Continue studies to achieve 1.4Moz within 5 years 15 years Production sustained or increased options Coffer Dam strategy implemented Big Pit, hi-tech, flexibility, steady state or step up Future mine Technology driven multiple ore sources multiple options Over half the resource remains 11

12 Safety and environment Zero Three Tasol driving safety culture Delivered health outcomes for workforce and communities Geothermal energy meets up to 40% of operational needs Treated tailings disposed of using DSTP method Waste rock recycled or transported off-shore for submarine disposal 12

13 Sustainable development Commitment to principles of sustainability, local employment, training and community Lihir s contribution to the PNG economy A$467m in FY11 Lihir Agreements Review - Integrated Benefits Package (IBP) - Memoranda of Agreement (MOA) Provides public infrastructure t and health services according to agreements 13

14 FY13 deliverables Million ounce plant upgrade (MOPU) December 2012 Lihir Renew Reliability and Redundancy Commence 5mtpa flotation capacity project Autoclave Throughput Taskforce Kapit development Pre-Feasibility Study 14

15 End cap of new SAG mill Lihir Million Ounce Plant Upgrade (MOPU) Project Capex: ~US$1.3 billion Includes: - Crusher/conveying system - SAG and Ball mill - 4 th Autoclave - Oxygen plant - Neutralisation Cyanidisation Adsorption - Deep sea outfall tunnel Lifts annual gold production to over 1.0Moz Commissioning in December 2012 quarter Construction 97% complete - Commissioning 75% complete 15

16 ReNew: Maintenance Reliability Maintenance systems improvement strategy Mobile fleet reliability Fixed plant reliability Electrical upgrades high voltage Maintenance capability development Dewatering capacity ReNew: System Redundancy NCA 1 replacement Valving, piping, switching Fresh water intake Power generation 16

17 Flotation and grinding upgrade Additional 5mtpa flotation capacity ~US$300m investment across 2 years - FY13 targets flotation upgrade - FY14 targets grinding optimisation Upgrades sulphur and gold grades feed to autoclaves Reduces stockpile build up and total material movement 17

18 Autoclave throughput taskforce Project focus areas include: Multi-disciplinary, dedicated well Autoclave volume resourced team Operating temperatures and pressure Develop world s best practice capability Autoclave feed size and distribution Leverage OEM s Bottleneck study Benchmarking Sulphur analysis Technical and practical competence Autoclave testing and modeling Clear targets, timeframes and deliverables Oxygen mass transfer Carbonate management Surge and feed capacity Heat up cycle reduction Feed density Valving, piping, actuators Operations people and training Maintenance strategy and tactics 18

19 Kapit development Optimise access to plant matched high grade ore A multi-faceted project: - Orebody access - Depressurisation and geotechnical considerations - Geothermal power impact - Coffer Dam options Pre-Feasibility Study delivery in FY13 19

20 Five year outlook Face position and mining Process plant upgrade, options and gold profile 20

21 Five year outlook: face position FY12 21

22 Five year outlook: face position FY17 22

23 5 year outlook FY12 FY13 MOPU FY14 Flotation II + Grind FY15 FY16 Crushing Primary Crusher Primary Crusher ~8.0 Mt/yr ~16.0 Mt/yr Milling ~8.0 Mt/yr ~14.5 Mt/yr ~16.0 Mt/yr HGO Circuit Sag + Ball Mill FGO Circuit Sag + Ball Mill Mopu HGO Sag + Ball Mill Grinding Optimisation Flotation ~3.5 Mt/yr ~9.5 Mt/yr OK 300 cells Flotation cells Autoclaves ~6.0 Mt/yr ~7.5 Mt/yr ~10.0 Mt/yr Gold Profile Kozs Kozs +1,000 Kozs 1,200 1,300kozs 1,200 1,300kozs 23

24 5 year options FY12 FY13 MOPU FY14 Flotation II + Grind FY15 Stand alone Circuit Crushing Primary Crusher Primary Crusher Primary Crusher ~8.0 Mt/yr ~16.0 Mt/yr ~20.0 Mt/yr FY16 Milling ~8.0 Mt/yr ~14.5 Mt/yr ~16.0 Mt/yr ~20.0 Mt/yr Flotation ~3.5 Mt/yr ~9.5 Mt/yr ~16.0 Mt/yr HGO Circuit Sag + Ball Mill FGO Circuit Sag + Ball Mill Flotation cells Mopu HGO Sag + Ball Mill Grinding Optimisation OK 300 cells LG Stand alone Sag + Ball Mill Autoclaves ~6.0 Mt/yr ~7.5 Mt/yr ~10.0 Mt/yr ~12.0 Mt/yr Gold Profile Kozs Kozs +1,000 Kozs 1,200 1,300kozs 1,300 1,400kozs 24

25 Location of new and potential infrastructure 25

26 Fifteen year outlook Process plant options and gold profile Coffer Dam position and mining sequence 26

27 Lihir Coffer Dam development Similar to: - Diavik (North Canada) - Island Copper (Vancouver) dams Kapit development and depressurisation Pre-Feasibility Study Geotechnical drilling Nominal depth of Coffer Dam: metres Capital stage 1 - ~US$300m to US$500m Installation of the cut-off wall from the south abutment Diavik 27

28 Future Lihir: no Coffer Dam Lower capital spend and complexity Primarily low grade Au & S% material Would not impact gold profile for next 5 years Phase 11 Phase 12 Phase 9 28

29 Future Lihir: advance towards Kapit Extend mine with access to Kapit high grade Requires Coffer Dam 1.6km long Demonstrated engineering Phase 11 Phase 12 Phase 9 29

30 Future Lihir: advance from Kapit Fast track access to higher Kapit grade ore from FY18 20 Phase 11 Phase 12 Phase 9 30

31 Future Lihir: advance from Kapit Access to Coastal Extend Coffer Dam to 1.8km Significant seaward expansion of pits Phase 11 Phase 12 Phase 9 31

32 Future Lihir : processing opportunities Additional pressure oxidisation keep expanding Concentrate and roasting Direct ship concentrate Use of stockpiles in alternate processing stream 32

33 FY13 5 years Production 700 to 900Koz transition year MOPU delivered - production steps up Reliability and redundancy established Cash costs are anchored Increase production to 1.2 to 1.3Moz per year Flotation upgrade (5mt), grinding optimised Plant reliability improvement and autoclave optimisation Cash costs maintained, capital intensity falls Continue studies to achieve 1.4Moz within 5 years 15 years Production sustained or increased options Coffer Dam strategy implemented Big Pit, hi-tech, flexibility, steady state or step up Future mine Technology driven multiple ore sources multiple options Over half the resource remains 33