Newcrest Quarterly Report - Three Months Ended 31 March 2022

Brucejack added to the portfolio as operating performance improves

  • Creating a brighter future for people through safe and responsible mining
  • Reduction in injury rates reflecting strong focus on safety
  • Development of the Group Net Zero Emissions Roadmap progressing well
  • New Community Support Fund approved to commence in July 2022
  • Stronger performance in the March 2022 quarter1
  • Gold production of 480koz2 and copper production of 31kt
  • All-In Sustaining Cost (AISC) of $1,008/oz2
  • AISC margin of $809/oz3
  • Production expected to further increase in the June 2022 quarter4
  • Acquisition of Pretium Resources completed on 9 March 2022; Group FY22 guidance updated
  • Addition of a Tier 1 mine in a world class jurisdiction to Newcrest's unrivalled asset portfolio
  • Three phase transformation program initiated to optimise operations, realise full uplift potential and deliver Mineral Resource and Ore Reserve growth
  • Intensive drilling program continues to explore significant near mine and district-scale opportunities, with excellent drilling results released today
  • Advancing Newcrest's global organic growth portfolio
  • Cadia PC1-2, Red Chris Block Cave and Havieron Stage 1 Feasibility Studies on track, with works advancing on all projects
  • Lihir Phase 14A and Cadia PC1-2 Feasibility Studies expected to be released during the September 2022 quarter4
  • Strong drilling results at Red Chris and Havieron continue to expand the higher grade footprint

Melbourne, Australia--(Newsfile Corp. - April 27, 2022) - Newcrest (ASX: NCM) (TSX: NCM) (PNGX: NCM) Managing Director and Chief Executive Officer, Sandeep Biswas, said, "Newcrest delivered an excellent operational and safety performance during the quarter, building momentum for a strong finish to the financial year and positioning us well to meet our updated Group FY22 guidance, which reflects the addition of Brucejack and our operating and financial performance to date. With the Cadia SAG mill motor operating at full capacity and an improved performance at Lihir, gold and copper production increased for the third consecutive quarter, driving the continued decline in our All-In Sustaining Cost. It was also very pleasing to see further reductions in our injury rates and progress made against our sustainability commitments."

"In March 2022, we completed the Pretium acquisition, adding the world class Brucejack mine to our already exceptional asset portfolio, generating immediate gold production and cash flows this quarter. We have commenced the early stages of our three phase transformation program at Brucejack to maximise its long-term potential and unlock further value for our shareholders. We are also focused on exploring the significant near mine, extensional and district-scale opportunity across the Brucejack district. The excellent drilling results released today already support the potential for significant resource growth beyond the Valley of the Kings deposit, as well as expanding the footprint of high-grade mineralisation at Golden Marmot," said Mr Biswas.

Overview

Gold production was 10% higher than the prior period5 driven by higher mill throughput at Cadia following completion of the SAG mill motor replacement and upgrade in the December 2021 quarter, the addition of production from Brucejack following completion of the transaction on 9 March 2022, and improved gold head grade and recovery at Lihir.

Newcrest has updated its Group guidance for FY22 following completion of the Pretium transaction on 9 March 2022. Higher gold production and a lower All-In Sustaining Cost is now anticipated, with production stripping and major capital expenditure expected to be lower due to COVID-19 related disruptions to projects and reduced activity at Lihir4. Refer to page 9 for an updated Group guidance table for FY22.

Lihir is expected to deliver around the bottom of its original production guidance range (~700koz) for FY22 with a strong fourth quarter anticipated due to lower planned maintenance and improved pumping capacity in Phase 14 which is expected to increase delivery of higher grade ore to the mill4.

Newcrest's AISC for the March 2022 quarter of $1,008/oz2 was 10% lower than the prior period, reflecting a higher realised copper price, higher gold and copper sales volumes, lower sustaining capital expenditure and the benefit of a weakening Australian dollar against the US dollar on Australian dollar denominated operating costs.

Injury rates continued to decrease in the quarter reflecting a strong focus on visible felt safety leadership. The Safe Hands intervention program is now underway to focus on reducing the risk of hand injuries.


MetricMar
2022 Qtr
Dec
2021 Qtr
Sep
2021 Qtr
YTD
FY22
YTD
FY21
FY22
Guidance6
Group2
- gold 
oz479,839436,085396,2141,312,1381,550,9901,925 - 2,025koz

- coppert31,03526,41824,52781,979104,354125 - 130kt

- silveroz215,461187,677174,555577,693673,724
Cadia
- goldoz149,568115,362109,005373,936570,138540 - 610koz

- coppert23,28718,20715,21356,70778,29785 - 95kt
Lihir
- goldoz169,486163,937141,089474,512560,741~700koz
Telfer
- goldoz96,388112,726100,993310,107290,535390 - 440koz

- coppert3,5213,5363,83810,8968,492~15kt
Brucejack7
- goldoz17,001--17,001-95 - 115koz
Red Chris8
- goldoz8,4639,52710,67428,66335,10740 - 42koz

- coppert4,2264,6755,47514,37617,56523 - 25kt
Fruta del Norte2,9- goldoz38,93334,53334,452107,91894,469140-145koz
  







FatalitiesNumber00000
TRIFR10mhrs2.73.13.83.22.4
All-In Sustaining Cost2$/oz1,0081,120111,269111,12795311,12
All-In Cost13$/oz1,5291,8651,9491,7731,291
All-In Sustaining Cost margin3$/oz809588406611838
Realised gold price14$/oz1,8281,7431,7221,7671,801
Realised copper price14$/lb4.544.374.244.393.36
Realised copper price14$/t10,0099,6349,3489,6787,408
Average exchange rateAUD:USD0.72370.72850.73540.72930.7390
Average exchange ratePGK:USD0.28400.28490.28460.28450.2857
Average exchange rateCAD:USD0.78920.79340.79440.79240.7684

 

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.

Operations

Cadia, Australia

HighlightsMetricMar
2022 Qtr
Dec
2021 Qtr
Sep
2021 Qtr
YTD
FY22
YTD
FY21
FY22
Guidance6
TRIFR10mhrs4.16.79.27.27.4
Total production
- gold  
oz149,568115,362109,005373,936570,138540 - 610koz

- coppert23,28718,20715,21356,70778,29785 - 95kt
Head Grade
- gold g/t0.860.830.820.840.97

- copper%0.400.380.350.380.40
Sales- gold oz126,441119,314105,541351,295564,624

- coppert19,58118,22614,88652,69376,405
All-In Sustaining Cost$/oz(205)(19)203(19)(13)
All-In Sustaining Cost margin15 $/oz2,0331,7621,5191,7861,814

 

Cadia TRIFR of 4.1 recordable injuries per million hours was an improvement on the prior period with visible felt safety leadership and other improvement plans continuing to be an ongoing focus.

Gold production of 150koz was 30% higher than the prior period, driven primarily by higher mill throughput with the SAG mill returning to full capacity in December 2021 following its successful replacement and upgrade in the prior period.

Gold head grade also increased in the quarter with a higher proportion of high grade stockpile fed to the mill to reduce stockpile levels following the SAG mill motor replacement in the prior period. Mining rates were also impacted by a scheduled underground shutdown in March 2022.

Cadia's AISC of negative $205/oz was significantly lower than the prior period driven by higher gold and copper sales volumes and a higher realised copper price. Copper concentrate shipments were disrupted by the partial closure of the rail network in New South Wales following significant rainfall during the quarter. The rail network reopened in late March 2022 with additional rail services being utilised to transport the copper concentrate backlog to port. Heavy rainfall continues in the region, however stock levels are expected to return to normal volumes during the June 2022 quarter4.

Commissioning of the Molybdenum Plant was completed during the period with the focus now on ramping up mill throughput and improving recovery. The first molybdenum concentrate shipment is scheduled for the June 2022 quarter, which will deliver an additional revenue stream for Cadia and a by-product credit to AISC4.

In March 2022, Cadia commenced early consultation with the community for a proposed modification to the footprint of the Southern and Northern Tailings Storage Facilities. The modification also includes construction of a new access road, realignment of an existing road and other minor infrastructure changes. In addition, it includes an option to potentially restart the Ridgeway underground mine, which could provide further optionality of ore supplies pending further studies, reviews and assessments16.

The two-stage Cadia Expansion Project is on track for completion during the September 2022 quarter with key activities well progressed including the development of Panel Cave 2-3, increasing mill capacity to 35Mtpa17, improvements to enhance gold and copper recovery, and other associated infrastructure4. Although the project remains on track, COVID-19 related disruptions continue to impact resourcing and costs remain under pressure due to inflation.

In April 2022, Newcrest settled an insurance claim in relation to the Northern Tailings Storage Facility slump on 9 March 2018. The settlement amount of US$75 million is expected to be received during the June 2022 quarter.

Lihir, Papua New Guinea

HighlightsMetricMar
2022 Qtr
Dec
2021 Qtr
Sep
2021 Qtr
YTD
FY22
YTD
FY21
FY22
Guidance6
TRIFR10mhrs1.40.60.80.90.3
Production - gold
oz169,486163,937141,089474,512560,741~700koz
Head Grade
- goldg/t2.332.172.322.272.38
Sales- goldoz162,271161,877135,582459,730575,495
All-In Sustaining Cost$/oz1,5331,6791,9861,7181,35312
All-In Sustaining Cost margin15$/oz29564(264)49448

 

Lihir TRIFR of 1.4 recordable injuries per million hours was higher than the prior period, mainly driven by a number of minor hand related injuries. The Safe Hands intervention program is now underway to focus on reducing the risk of hand injuries, supported by visible safety leadership across the site.

Gold production of 169koz was 3% higher than the prior period, largely driven by higher head grade and recovery, reflecting an increase in higher grade expit ore feed from Phase 15 as mining progressed into the orebody. This was partly offset by lower mill throughput, due to planned and unplanned shutdowns.

There was a significant improvement in mined volumes in Phase 14 compared to the prior period despite heavy rain continuing throughout the quarter. Additional pumping capacity is now operating effectively at the bottom of the pit along with an improved set-up of the mining benches and other successful water diversion strategies to enable access to higher grade ore. Lihir have also commissioned two new shovels and the truck re-build program is nearing completion, which will further improve equipment availability and increase mining rates.

During the June 2022 quarter, mining will continue to focus on Phase 14 and Phase 15 to increase delivery of higher grade ore to the mill, which is well supported by resource definition drilling in these targeted ore zones. Mill throughput is also expected to improve in the June quarter following completion of a scheduled plant shutdown in March 2022. Together with the increased mining rates, higher gold head grade and lower maintenance schedule, Lihir is expected to deliver around the bottom of its original production guidance range (~700koz) for FY224.

Lihir's AISC of $1,533/oz was 9% lower than the prior period mainly due to lower site operating costs. This was partly offset by higher sustaining capital expenditure and inventory movements associated with an increase in gold-in-circuit and lower stockpile feed during the quarter.

The number of COVID-19 cases at Lihir decreased during the period with the site successfully moving to the 'endemic' phase of COVID-19, resulting in reduced isolation requirements and improved productivity on site. There were no material COVID-19 related disruptions to production, although some project activities experienced interruptions with efforts being made to minimise their impact on the overall cost and schedule.

Newcrest continued to progress the Phase 14A Feasibility Study during the period with significant activities including completion of shotcrete trials, upper drainage, shotcrete and ground support works, key project team and contractor mobilisation and procurement of specialised civil engineering equipment and materials. As previously announced, Phase 14A will bring forward higher grades to improve gold production and operational flexibility by establishing an additional independent ore source at Lihir4. The findings of the Feasibility Study are expected to be released during the September 2022 quarter4.

Lihir - Material Movements

Ore SourceMetricMar
2022 Qtr
Dec
2021 Qtr
Sep
2021 Qtr
YTD
FY22
YTD
FY21
Ex-pit crushed tonneskt1,3631,2736043,2414,560
Ex-pit to stockpilekt2,3576101,0374,0042,919
Wastekt4,8137,0588,60120,47218,029
Total Ex-pitkt8,5338,94210,24227,71725,508
Stockpile reclaimkt1,7111,8811,7815,3735,523
Stockpile relocationkt2,9812,2402,8318,0539,329
Total Otherkt4,6924,1214,61213,42614,851
Total Material Movedkt13,22513,06314,85441,14240,359

 

Lihir - Processing

EquipmentMetricMar
2022 Qtr
Dec
2021 Qtr
Sep
2021 Qtr
YTD
FY22
YTD
FY21
Crushingkt3,0743,1542,4508,67910,082
Millingkt2,9753,2412,5848,8019,781
Flotationkt2,2712,5412,1076,9207,685
Total Autoclavekt1,7631,8141,3544,4795,232

 

Telfer, Australia

HighlightsMetricMar
2022 Qtr
Dec
2021 Qtr
Sep
2021 Qtr
YTD
FY22
YTD
FY21
FY22
Guidance6
TRIFR10mhrs3.35.06.75.14.2
Production  - gold
oz96,388112,726100,993310,107290,535390 - 440koz

- coppert3,5213,5363,83810,8968,492~15kt
Head Grade
- gold g/t0.720.790.760.760.89

- copper%0.100.090.100.100.10
Sales
- goldoz78,016107,78797,653283,455275,537

- coppert2,5693,3763,8589,8037,462
All-In Sustaining Cost$/oz1,4111,3531,3581,3711,607
All-In Sustaining Cost margin15$/oz417390364396194

 

Telfer TRIFR of 3.3 recordable injuries per million hours was lower compared to the prior period, reflecting the focus on visible felt safety leadership and introduction of the Safe Hands intervention program to reduce injury rates and improve safety performance.

Gold production of 96koz was 14% lower than the prior period, driven by lower gold head grade due to a higher proportion of lower grade open pit mill feed during the period and lower mill throughput, with reduced mill availability following unplanned outages.

This was partly offset by higher recoveries in the quarter due to various recovery improvement initiatives and favourable mineralogy.

Telfer's AISC of $1,411/oz was 4% higher than the prior period driven by lower gold and copper sales volumes, partly offset by a higher realised copper price and lower sustaining capital expenditure.

Telfer continued to manage the rising COVID-19 case numbers in Western Australia with no material impacts to production during the quarter. Risk-based COVID-19 management plans are in place including regular and robust screening, testing and isolation protocols.

Brucejack

On 9 March 2022, Newcrest completed the acquisition of Pretium Resources Inc. (Pretium). Pretium owns the Brucejack mine in the highly prospective Golden Triangle region of British Columbia, Canada. Brucejack began commercial production in July 2017 and is one of the highest-grade operating gold mines in the world.

Newcrest has identified a range of opportunities to maximise the long-term potential and value of the Brucejack mine and associated district-scale potential. A three phase transformation program has commenced, which includes a range of initiatives that will leverage Newcrest's experience and expertise to deliver long term value for all stakeholders.

As part of this transformation program, Newcrest is assessing the potential to increase the process plant capacity from the current permitted processing rate of 3,800 tonnes per day to between 4,500 to 5,000 tonnes per day16. Newcrest has also commenced plans to roll-out its highly successful Newcrest Safety Transformation Plan including the NewSafe training program and Critical Control Management program for high risk tasks with a focus on eliminating life changing injuries and fatalities at Brucejack.

For the March 2022 quarter, Newcrest has reported production results from the acquisition date to the end of the March 2022 of 17koz7. Gold production for the full March 2022 quarter of 62koz (including ownership by Pretium from 1 January 2022 to 8 March 2022, and ownership by Newcrest from 9 March 2022 to 31 March 2022) was impacted by lower gold head grade during the period and a significant power outage in January 2022. Refer to the Brucejack production summary on page 13 for further details.

Brucejack guidance for Newcrest's ownership period in FY22 is outlined below4:

For the period 9 March 2022 to 30 June 2022MetricFY22 Guidance6
Gold productionkoz95 - 115
All-In Sustaining Cost$m130 - 150
- Sustaining capital$m~20
- Non-Sustaining capital$m~15
Total capital expenditure $m~35
Exploration expenditure$m~12
Depreciation and amortisation$m~60

 

Refer to page 9 for an updated Group guidance table which includes Brucejack guidance for Newcrest's ownership period in FY22.

The intensive exploration drilling program continued during the quarter, with drilling results expanding the footprint of the higher grade mineralisation at the new Golden Marmot discovery, which is located outside of the Brucejack Mineral Resource estimate and remains open in all directions. Further high grade intercepts were also identified at North Block and 1080 Level East, confirming the potential for resource growth at the Valley of the Kings deposit. The latest drilling results for Brucejack are included in the March 2022 Quarterly Exploration Report which was also released today.

Red Chris, Canada

Highlights8MetricMar
2022 Qtr
Dec
2021 Qtr
Sep
2021 Qtr
YTD
FY22
YTD
FY21
FY22
Guidance6
TRIFR10mhrs3.710.08.97.76.0
Production- gold oz8,4639,52710,67428,66335,10740 - 42koz

- coppert4,2264,6755,47514,37617,56523 - 25kt
Head Grade
- gold g/t0.360.330.340.340.41

- copper%0.410.390.390.400.45
Sales
- goldoz9,2228,93311,30629,46235,253

- coppert4,6514,2135,81714,68017,702
All-In Sustaining Cost$/oz1,5371,6221,0711,3842,719
All-In Sustaining Cost margin15$/oz291121651383(918)

 

Gold production of 8koz was 11% lower than the prior period, driven by lower recovery and mill throughput following unplanned downtime to the SAG mill during the quarter combined with freezing of a tailings line. This was partly offset by higher grade as expected in the mine plan.

Red Chris' AISC of $1,537/oz was 5% lower than the prior period driven by higher gold and copper sales volumes, a higher realised copper price and lower sustaining capital expenditure.

Drilling continues to expand the footprint and continuity of the higher grade mineralisation at East Ridge, which is outside of Newcrest's initial Mineral Resource estimate and strike extents of this prospect remain open to the east and at depth. The latest drilling results for Red Chris are included in the March 2022 Quarterly Exploration Report which was also released today.

Fruta Del Norte, Ecuador

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 in April 2020.

In the March 2022 quarter, Newcrest received net pre-tax cash flows of ~$32 million from these financing facilities, and has received a total of ~$191 million net pre-tax cash flows since acquisition of the facilities.

Included within Newcrest's gold production for the March 2022 quarter is 39koz relating to Newcrest's 32% equity interest in Lundin Gold Inc, the owner of the Fruta del Norte mine.

Guidance Update6,18

Newcrest has updated its Group guidance for FY22 following completion of the Pretium transaction on 9 March 2022 and to reflect its operating and financial performance to date.

Key changes to Group guidance are outlined below:

  • Gold production is expected to be higher, reflecting the addition of Brucejack for Newcrest's period of ownership and the expectation that Lihir will deliver around the bottom of its original production guidance range (~700koz) for FY22. Production from Fruta del Norte is also expected to be higher, reflecting actual performance for the nine months to 31 March 2022 and Newcrest's estimated attributable production for the June 2022 quarter (based on Lundin Gold's CY22 guidance6).

  • All-In Sustaining Cost is expected to be lower, reflecting the benefits of a higher realised copper price and the weakening Australian dollar against the US dollar on Australian dollar denominated operating costs. This is partly offset by the addition of Brucejack for Newcrest's period of ownership in FY22.

  • Production stripping (sustaining and non-sustaining) is expected to be lower due to reduced activity at Lihir and Red Chris.

  • Major capital (non-sustaining) and exploration expenditure is also expected to be lower, mainly due to COVID-19 related disruptions which have impacted project activity.

Guidance for the 12 months ending 30 June 2022


Original GroupBrucejack7Updated Group
Production


Gold - koz1,800 - 2,00095 - 1151,925 - 2,025
Copper - kt 125 - 130-125 - 130
All-In Sustaining Cost (AISC) - Includes production stripping (sustaining) and sustaining capital


AISC - $m1,840 - 2,040130 - 1501,850 - 1,950
Capital Expenditure ($m)


- Production stripping (sustaining)165 - 175-145 - 155
- Production stripping (non-sustaining)50 - 70-45 - 50
- Sustaining capital440 - 490~20470 - 490
- Major capital (non-sustaining)890 - 990~15775 - 825
Total Capital Expenditure1,545 - 1,725~351,435 - 1,520
Exploration and Depreciation ($m)


Exploration expenditure150 - 160~12120 - 125
Depreciation and amortisation (including depreciation of production stripping700 - 750 ~60700 - 720

 

Project Development

Red Chris, Canada

Newcrest continued the development of the Block Cave during the March 2022 quarter with the exploration decline now progressed to 1,225 metres as at 20 April 2022.

Surface infrastructure installation continued during the period with substantial completion expected in the June 2022 quarter. Key contracts for the Red Chris Block Cave Feasibility Study are also expected to be awarded in the next quarter, with the Feasibility Study on track for completion in the second half of FY234.

The latest drilling results at Red Chris are included in the March 2022 Quarterly Exploration Report which was also released today.

Havieron, Western Australia

The Havieron Project is located 45km east of Newcrest's Telfer operation and is operated by Newcrest under a Joint Venture Agreement (JVA) with Greatland Gold plc.

Newcrest holds a 70% interest in the Havieron Project and has an option to acquire an additional 5% joint venture interest at fair value. Newcrest continued to progress the process to determine the option price for the 5% interest in accordance with the JVA during the period.

The development of the exploration decline continued to experience poor ground conditions during the quarter with 313 metres complete as at 20 April 2022. Advance rates have been significantly impacted by unfavourable geotechnical and hydrogeological conditions requiring extensive local and surface dewatering, pre-excavation ground treatment and substantial ground support installation. Changes in the design of the decline have been made bringing the first downward spiral to the current chainage which will allow the decline to transition into better ground conditions at depth sooner. As a result of this change development rates are expected to improve towards the end of the next quarter. First ore is now expected in the second half of FY244 (previously anticipated during FY24). Work is ongoing to understand the impact on the overall project schedule, as well as assessing options to recover some of these delays and minimise the associated cost increases. Newcrest is also reviewing the impact of inflationary pressures on future capital expenditure and operating costs as part of the Feasibility Study. Further updates will be provided once this work is complete.

Drilling of the blind bore shaft is now complete and liners have been installed to design depth. This milestone marks a significant reduction in risk to shaft stability during construction.

Key contracts for the Havieron Feasibility Study have been awarded and works to progress the necessary approvals and permits required to commence the development of an operating underground mine and associated infrastructure are ongoing.

The growth drilling program continued during the period with further high grade crescent style mineralisation identified within extensions of the Eastern Breccia. The latest drilling results for the Havieron Project are included in the March 2022 Quarterly Exploration Report which was also released today.

Wafi-Golpu, Papua New Guinea

Newcrest and its joint venture partner Harmony continue to work with the PNG Government to progress permitting of the Wafi-Golpu Project and obtain a Special Mining Lease. Several meetings have been held between representatives of the PNG Government and the Wafi-Golpu Joint Venture regarding the potential terms of a Mining Development Contract, which is required for a Special Mining Lease. The discussions have covered a range of fiscal and non-fiscal matters and continue to be constructive.

Exploration

See the separately released "Quarterly Exploration Report" for the March 2022 quarter.

Sustainability Update

Newcrest continued to progress its sustainability commitments during the period.

The development of the Group Net Zero Emissions Roadmap continued to progress and will outline the key steps for Newcrest to deliver its goal of net zero carbon emissions by 2050. Scoping and planning for the trials and studies to support the Roadmap are currently underway.

Other key initiatives for FY22 are progressing in line with expectations, including ongoing actions for the site Greenhouse Gas Management and site Water Efficiency plans.

COVID-19 Update

To date, Newcrest has not experienced any material COVID-19 related disruptions to production or to the supply of goods and services.

The number of COVID-19 cases at Lihir decreased during the period with the site successfully moving to the 'endemic' phase of COVID-19 following a thorough risk review, including extensive consultation with the PNG Government and local Lihirian community. Since adopting this approach, case numbers have remained low and productivity has improved with an increase in workforce availability following reduced isolation requirements. While some project activities have experienced a level of disruption, efforts have been made to minimise their impact on the overall cost and schedule.

Newcrest continues to maintain strong COVID-19 controls at Lihir, focusing on containment through testing, contact tracing, isolation procedures and continuation of the vaccine rollout. There remains a risk of COVID-19 further impacting production at Lihir and this continues to be closely managed.

COVID-19 cases have also been recorded at Cadia, Red Chris, Telfer and Brucejack during the quarter with no material impacts to production, however some project activities have been disrupted. As previously highlighted, all of Newcrest's operations have business continuity plans and contingencies in place which seek to minimise disruptions to the operations in the event that a significant number of operational employees and/or contractors contract the virus. It is expected that these plans will enable operations to effectively manage the COVID-19 risk to production schedules and if there are any material impacts, Newcrest will inform the market in line with its continuous disclosure obligations.

As previously announced, Newcrest expects that the total cost of managing COVID-19 for the 2022 financial year will be in the order of $50-60 million, up from the $35-45 million estimated at the start of the financial year. The increase in COVID-19 related costs is driven by Lihir and reflects the impacts of Government restrictions on travel, absenteeism, isolation requirements and logistical challenges.

Corporate

Board Changes

In March 2022, Newcrest announced that Philip Bainbridge has been appointed as an independent Non-Executive Director and a member of the Safety and Sustainability Committee, effective from 1 April 2022. See release titled "Newcrest Board Appointment" dated 28 March 2022 for further information.

Acquisition of Pretium Resources

On 9 March 2022, Newcrest completed the acquisition of Pretium. Newcrest issued 72,316,008 common shares and paid C$1.655 billion (~US$1.304 billion) in cash to former Pretium shareholders as consideration for their shares. Pretium has now been delisted from the New York Stock Exchange and Toronto Stock Exchange.

Community Support Fund

Newcrest's A$20 million Community Support Fund was established in April 2020 in response to the COVID-19 pandemic and is scheduled to end in June 2022. Since its inception it has supported approximately 67 initiatives ranging from immediate health assistance to livelihood restoration and economic recovery across Papua New Guinea, Australia, Canada (British Columbia), Ecuador and Fiji.

During the period, Newcrest has focused on close out of active initiatives as demand for new initiatives has reduced in conjunction with the evolving COVID-19 pandemic. A new Community Support Fund has been approved to commence in July 2022, and will focus on support for improving resilience within Newcrest's operating communities. The new fund will be used to drive strategic social investments in support of the United Nations Sustainable Development Goals.

Interactive Analyst CentreTM

Newcrest's financial and operational information can also be viewed via the Interactive Analyst CentreTM 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

Brucejack Production Summary



Newcrest ownershipPretium ownershipPretium and Newcrest ownershipPretium ownershipNewcrest ownership
HighlightsMetricMar
2022 Qtr7
Mar
2022 Qtr7
Mar
2022 Qtr7
Dec
2021 Qtr7
FY22
Guidance6,7


9 Mar - 31 Mar1 Jan - 8 Mar1 Jan - 31 Mar1 Oct - 31 Dec9 Mar - 30 Jun
Production
- gold
oz17,00145,74262,74391,64495 - 115koz
Head Grade- gold g/t7.716.676.938.06
Sales- goldoz28,31231,76360,07593,722
All-In Sustaining Cost$/oz1,2611,7331,5101,182

 

Newcrest acquired Brucejack on 9 March 2022. For the March 2022 quarter, Brucejack physicals are reported from the date of acquisition to 31 March 2022, which reflects Newcrest's ownership period. Brucejack physicals for the period 1 January 2022 to 8 March 2022 and 1 October 2021 to 31 December 2021 were produced under Pretium ownership and are not reflected in Newcrest's FY22 results. FY22 guidance for Brucejack reflects Newcrest's ownership period from 9 March 2022 to 30 June 2022.

Gold Production Summary

March 2022
Quarter
Mine
Production Tonnes

(000's)19
Tonnes Treated
(000's)
Head
Grade
(g/t Au)
Gold Recovery
(%)
Gold
Production (oz)
Gold
Sales (oz)
All-In
Sustaining
Cost

($/oz)2
Cadia East Panel Cave 1596





Cadia East Panel Cave 26,273





Cadia East Panel Cave 2-3219





Cadia207,0886,9950.8677.0149,568126,441(205)
Telfer Open Pit7,7644,1530.6482.470,995

Telfer Underground5695881.2588.620,923

Telfer Dump Leach



4,470

Telfer8,3334,7410.7283.796,38878,0161,411
Lihir8,5332,9752.3375.9169,486162,2711,533
Brucejack7133777.7196.817,00128,3121,261
Red Chris6,6091,4180.3651.98,4639,2221,537
Fruta del Norte21



38,93338,933895
Total30,69616,2061.0877.8479,839443,1941,008

 

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. Newcrest acquired Brucejack on 9 March 2022. Brucejack physicals are reported from the date of acquisition.

Copper Production Summary

March 2022
Quarter
Copper Grade
(%)
Copper Recovery
(%)
Concentrate Produced
(tonnes)
Metal Production
(tonnes)
Cadia0.4083.495,52623,287
Telfer Open Pit0.0769.121,4731,902
Telfer Underground0.3286.315,9331,619
Telfer0.1076.137,4063,521
Red Chris0.4172.619,0454,226
Total0.2880.9151,97731,035

 

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

Silver Production Summary

March 2022
Quarter
Tonnes Treated
(000's)
Silver Production
(oz)
Cadia6,995128,831
Telfer4,74134,890
Lihir2,9755,371
Brucejack77719,927
Red Chris1,41826,442
Total16,206215,461

 

All figures are shown at 100%, except for Red Chris which is shown at Newcrest 70% share. Newcrest acquired Brucejack on 9 March 2022. Brucejack physicals are reported from the date of acquisition.

All-In Sustaining Cost: March 2022 Quarter

3 Months to 31 March 2022

UnitsCadiaTelferLihirBrucejack7Red ChrisCorporate /
Other
Group22
Gold Producedoz149,56896,388169,48617,0018,463-440,906
Mining$/oz prod.2117613907882,702-470
Milling$/oz prod.4244535461481,725-491
Administration and other$/oz prod.1481423166571,510-257
Lease adjustments$/oz prod(4)(44)(6)(25)(118)-(17)
Third party smelting, refining and transporting costs23$/oz prod.1951372181837-120
Royalties$/oz prod.108584536138-71
By-product credits$/oz prod.(1,331)(276)-(52)(5,522)-(620)
Ore inventory adjustments24$/oz prod.(24)13(4)-(20)-(7)
Production stripping adjustments24$/oz prod.-(100)(155)-(1,746)-(115)
AOD adjustments24$/oz prod.-(15)----(3)
Net Cash Costs$/oz prod.(273)1,1291,1341,733(494)-647
Gold Soldoz126,44178,016162,27128,3129,222-404,262
Adjusted operating costs25$/oz sold(476)1,0851,1261,162(95)-592
Corporate general & administrative costs26,27$/oz sold-----6565
Reclamation and remediation costs$/oz sold84513753-18
Production stripping (sustaining)28$/oz sold-124162---89
Advanced operating development$/oz sold-18----3
Capital expenditure (sustaining)$/oz sold25966225771,4717230
Exploration (sustaining)$/oz sold-191---4
Leases (sustaining)$/oz sold454615108-18
All-In Sustaining Cost$/oz sold(205)1,4111,5331,2611,537721,019
Growth and development costs27$/oz sold-----33
Production stripping
(non-sustaining)28
$/oz sold----1,603-37
Capital expenditure
(non-sustaining)29
$/oz sold840-146302,19832406
Exploration
(non-sustaining)
$/oz sold-12-264314357
Leases (non-sustaining)$/oz sold4---6557
All-In Cost$/oz sold6391,4231,6791,3175,8341551,529
   








Depreciation and amortisation30$/oz sold3102824414701,70112412

 

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.

Group AISC shown in this table is for Newcrest's operations only and does not include Newcrest's 32% attributable share of Fruta del Norte.

All-In Sustaining Cost: Nine months to 31 March 2022

9 Months to 31 March 2022

UnitsCadiaTelferLihirBrucejack7Red ChrisCorporate /
Other
Group22
Gold Producedoz373,936310,107474,51217,00128,663-1,204,220
Mining$/oz prod.2567483607882,142-476
Milling$/oz prod.4614616371481,386-548
Administration and other$/oz prod.1761253696571,507-277
Lease adjustments$/oz prod(5)(40)(7)(25)(100)-(17)
Third party smelting, refining and transporting costs23$/oz prod.2151483181806-128
Royalties$/oz prod.102624636100-69
By-product credits$/oz prod.(1,384)(315)(1)(52)(5,010)-(631)
Ore inventory adjustments24$/oz prod.(47)(17)54-(23)-1
Production stripping adjustments24$/oz prod.-(61)(187)-(1,230)-(118)
AOD adjustments24$/oz prod.-(6)----(2)
Net Cash Costs$/oz prod.(226)1,1051,2741,733(422)-731
Gold Soldoz351,295283,455459,73028,31229,462-1,152,255
Adjusted operating costs25$/oz sold(305)1,0781,2841,162(527)-699
Corporate general & administrative costs26,27$/oz sold-----6565
Reclamation and remediation costs$/oz sold85614749-23
Production stripping (sustaining)28$/oz sold-67192---93
Advanced operating development$/oz sold-7----2
Capital expenditure (sustaining)$/oz sold273102220771,7658252
Exploration (sustaining)$/oz sold-181---5
Leases (sustaining)$/oz sold54371597-17
All-In Sustaining Cost$/oz sold(19)1,3711,7181,2611,384731,156
Growth and development costs27$/oz sold-----55
Production stripping
(non-sustaining)28
$/oz sold----1,198-31
Capital expenditure
(non-sustaining)29
$/oz sold1,224-126302,02130507
Exploration
(non-sustaining)
$/oz sold-15-264615066
Leases (non-sustaining)$/oz sold6---6758
All-In Cost$/oz sold1,2111,3861,8441,3175,1311631,773
   








Depreciation and amortisation30$/oz sold3272844244701,40512398

 

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.

Group AISC shown in this table is for Newcrest's operations only and does not include Newcrest's 32% attributable share of Fruta del Norte.

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Simplified Lihir Pit Material Flow: March 2022 Quarter

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Simplified Lihir Process Flow: March 2022 Quarter

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Corporate Information

Board

 Peter Tomsett Non-Executive Chairman
 Sandeep BiswasManaging Director and CEO
 Philip AikenAM Non-Executive Director
 Philip BainbridgeNon-Executive Director
 Roger HigginsNon-Executive Director
 Sally-Anne LaymanNon-Executive Director
 Jane McAloonNon-Executive Director
Vickki McFaddenNon-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:
TSX Trust Company
P.O. Box 700, Station B
Montreal, Quebec, H3B 3K3
Canada
+1 800 387 0825
inquiries@astfinancial.com
www.astfinancial.com

Substantial Shareholder(s) at 31 March 202231

BlackRock Group9.1%
Allan Gray / Orbis Group8.5%
State Street Corporation5.0%

 

Issued Share Capital

At 31 March 2022, Newcrest's issued capital was 893,123,247 ordinary shares.

Quarterly ASX Share Price Activity


High
A$
Low
A$
Close
A$
Jan to Mar 202228.2025.2726.74

 

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 in the Appendix 4E and Financial Report for the year ended 30 June 2021 and the Annual Information Form dated 6 December 2021 which are available to view at www.asx.com.au under the code "NCM" and on Newcrest's SEDAR profile.

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's 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 'non-GAAP information' within the meaning of National Instrument 52-112 - Non-GAAP and Other Financial Measures published by the Canadian Securities Administrator.

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.

Ore Reserves, Mineral 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 2001 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 is in accordance with the 2012 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.

Newcrest is also subject to certain Canadian disclosure requirements and standards as a result of its listing on the Toronto Stock Exchange (TSX), including the requirements of National Instrument 43-101 (NI 43-101). Investors should note that it is a requirement of Canadian securities law that the reporting of mineral reserves and mineral resources in Canada and the disclosure of scientific and technical information concerning a mineral project on a property material to Newcrest comply with NI 43-101.

Newcrest's material properties are currently Cadia, Lihir, Red Chris and Wafi-Golpu. Copies of the NI 43-101 Reports for Cadia, Lihir and Wafi-Golpu, which were released on 14 October 2020, and Red Chris, which was released on 30 November 2021, are available at www.newcrest.com.au and on Newcrest's SEDAR profile. Brucejack is expected to be a material property to Newcrest. A NI 43-101 Report on Brucejack dated 9 March 2020 was filed by Pretium on SEDAR (www.sedar.com).

Technical and Scientific Information

The technical and scientific information contained in this document relating to Red Chris and Brucejack was reviewed and approved by Craig Jones, Newcrest's Chief Operating Officer (Americas), 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 and Lihir was reviewed and approved by Philip Stephenson, Newcrest's Chief Operating Officer (Australasia), FAusIMM and a Qualified Person as defined in NI 43-101.

Reliance on Third-Party Information

This document contains information that has been obtained from third parties and has not been independently verified, including estimates and actual outcomes relating to production and AISC for Fruta del Norte. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This document should not be relied upon as a recommendation or forecast by Newcrest.

Authorised by the Newcrest Disclosure Committee

For further information please contact

Investor Enquires
Tom Dixon
+61 3 9522 5570
+61 450 541 389
Tom.Dixon@newcrest.com.au

Rebecca Lay
+61 3 9522 5298
+61 438 355 511
Rebecca.Lay@newcrest.com.au

North American Investor Enquiries
Ryan Skaleskog
+1 866 396 0242
+61 403 435 222
Ryan.Skaleskog@newcrest.com.au

Media Enquiries
Tim Salathiel
+61 3 9522 4263
+61 407 885 272
Tim.Salathiel@newcrest.com.au

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 productionMetricMar
2022 Qtr
Dec
2021 Qtr
Sep
2021 Qtr
YTD
FY22
YTD
FY21
Gold production - Newcrest operationsoz440,906401,552361,7621,204,2201,456,521
Gold production - Fruta del Norte (32%)oz38,93334,53334,452107,91894,469
Gold productionoz479,839436,085396,2141,312,1381,550,990

 

The production outcome for Fruta del Norte are shown at Newcrest's 32% attributable share and have been sourced from Lundin Gold's news releases.

All-In Sustaining CostMetricMar
2022 Qtr21
Dec
2021 Qtr11
Sep
2021 Qtr11
YTD
FY2211,21
YTD
FY2111,12
All-in Sustaining Cost - Newcrest operations$m4124604611,3331,398
All-in Sustaining Cost - Fruta del Norte (32%)$m3525298962
All-In Sustaining Cost$m4474854901,4221,459
  






Gold ounces sold - Newcrest operationsoz404,262397,910350,0831,152,2551,450,909
Gold ounces sold - Fruta del Norte (32%)oz38,93334,71235,714109,35980,050
Total gold ounces sold oz443,194432,623385,7961,261,6131,530,959
  






All-In Sustaining Cost - Newcrest operations$/oz1,0191,1551,3161,156963
All-In Sustaining - Fruta del Norte (32%)$/oz895715804814769
All-In Sustaining Cost $/oz1,0081,1201,2691,127953

 

Due to timing of Lundin Gold's March 2022 quarterly report, Newcrest has estimated its 32% attributable share, through its 32% equity interest in Lundin Gold Inc, of Fruta del Norte's AISC for the March 2022 quarter. The AISC estimate was derived by taking the mid-point of Lundin Gold's CY22 AISC guidance of $860-930/oz (released 23 February 2022). For the purposes of AISC, Newcrest has assumed that production is equal to sales. Newcrest will restate its March quarter AISC outcome once the outcomes for Fruta del Norte's March quarter are known.

All-In Sustaining Cost marginMetricMar
2022 Qtr
Dec
2021 Qtr
Sep
2021 Qtr
YTD
FY22
YTD
FY21
Realised gold price14$/oz1,8281,7431,7221,7671,801
All-In Sustaining Cost - Newcrest operations$/oz1,0191,1551,3161,156963
All-In Sustaining Cost margin$/oz809588406611838

 

Endnotes
_______________________

1 See information under heading "Non-IFRS Financial Information" on Page 20 of this report for further information.
2 Includes 39koz and an estimated reduction of $11/oz based on Newcrest's 32% attributable share of Fruta del Norte. Refer to the Appendix for the calculation and further details.
3 Newcrest's AISC margin has been determined by deducting the AISC attributable to Newcrest's operations from Newcrest's realised gold price. Refer to the Appendix for details.
4 Subject to market and operating conditions and potential delays due to COVID-19 impacts.
5 References to the prior period are to the December 2021 quarter.
6 The achievement of guidance is subject to market and operating conditions and potential delays due to COVID-19 impacts. Newcrest's guidance with respect to the gold production of Fruta del Norte has been updated to reflect actual performance for the nine months to 31 March 2022, with the 3 months to 30 June 2022 being an estimate based on the mid-point of Lundin Gold's CY22 guidance of 405-445koz, divided by four and presented at 32%.
7 Newcrest acquired Brucejack on 9 March 2022. Physicals are reported from the date of acquisition to 31 March 2022 to reflect Newcrest's ownership period. Physicals for the period 1 October 2021 to 31 December 2021 and 1 January 2022 to 8 March 2022 were delivered under Pretium ownership.
8 The figures shown represent Newcrest's 70% share of the unincorporated Red Chris JV.
9 The figures shown represent Newcrest's 32% attributable share, through its 32% equity interest in Lundin Gold Inc.
10 Total Recordable Injury Frequency Rate (injuries per million hours).
11 Subsequent to the release of Newcrest's December 2021, September 2021 and March 2021 quarterly reports, gold sales and AISC for the December 2021, September 2021 and YTD FY21 periods have been restated to include Newcrest's 32% share of Fruta del Norte's December 2021 quarterly result on 23 February 2022, their September 2021 quarterly result on 9 November 2021, and their March 2021 quarterly result on 12 May 2021.
12 Subsequent to the release of the June 2021 quarterly report, the AISC and AISC margin for the Group and Lihir were restated due to a retrospective change in the classification of Phase 16 production stripping costs at Lihir.
13 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.
14 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 has been calculated from sales ounces generated by Newcrest's operations only (i.e. excluding Fruta del Norte).
15 AISC margin calculated with reference to the Group average realised gold price.
16 Subject to further studies, all necessary approvals, permits, internal and regulatory requirements and further works.
17 In December 2021, Cadia received approval from the New South Wales Department of Planning, Industry & Environment for a modification to increase its permitted processing capacity from 32Mtpa to 35Mtpa. The modification is subject to conditions including Newcrest commissioning an independent audit report to the satisfaction of the DPIE Secretary in relation to Newcrest's approach to managing and minimising the off-site air quality impacts of the project.
18 The updated guidance assumes a weighted average copper price of $4.44 per pound, AUD:USD exchange rate of 0.73 and CAD:USD exchange rate of 0.79 for FY22. The original guidance assumed a weighted average copper price of $4.20 per pound, AUD:USD exchange rate of 0.75 and CAD:USD exchange rate of 0.80 for FY22.
19 Mine production for open pit and underground includes ore and waste.
20 Includes development tonnes from the Cadia PC2-3 project. Costs associated with this production were capitalised and are not included in the AISC calculation in this report.
21 Due to timing of Lundin Gold's March 2022 quarterly report, Newcrest has estimated its 32% attributable share, through its 32% equity interest in Lundin Gold Inc, of Fruta del Norte's AISC for the March 2022 quarter. The AISC estimate was derived by taking the mid-point of Lundin Gold's CY22 AISC guidance of $860-930/oz (released 23 February 2022). For the purposes of AISC, Newcrest has assumed that production is equal to sales. Newcrest will restate its March 2022 quarter AISC outcome once the outcomes for Fruta del Norte's March 2022 quarter are known. Refer to the Appendix for further details.
22 Group AISC shown in this table is for Newcrest's operations only and does not include Newcrest's 32% attributable share of Fruta del Norte.
23 Includes deductions related to treatment and refining charges for metals in concentrate.
24 Represents adjustment for ore inventory movements, removal of production stripping costs and movement in Advanced Operating Development costs.
25 Adjusted operating costs represents net cash costs adjusted for finished goods inventory movements, divided by ounces sold.
26 Corporate general & administrative costs includes share-based remuneration.
27 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 All-In Costs.
28 In accordance with World Gold Council Guidance stripping campaigns can be classified as non-sustaining expenditure if they are expected to take at least 12 months and are expected to deliver ore production for more than five years. Newcrest has determined that Phase 7 at Red Chris satisfies this criteria and has reported spend in relation to this campaign as Production stripping (non-sustaining).
29 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 period include key projects at Cadia (including PC2-3 development and the Expansion Project), Lihir (Front End Recovery uplift projects), Red Chris Block Cave and Havieron PFS' and Early Works at Red Chris and Havieron.
30 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 AISC or All-in Cost with the exception of amortisation on reclamation and remediation (rehabilitation) assets.
31 As notified to Newcrest under section 671B of the Corporations Act 2001.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/121967

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