NEWCREST MINING Quarterly Report
For the three months ended 30 September 2023
(figures are unaudited and in US$ except where stated)
Shareholders approve Newmont transaction
-
September quarter planned maintenance safely completed across operations1 o Gold production of 454koz2 and copper production of 31kt
o All-In Sustaining Cost (AISC) of $1,397/oz2,3, delivering an AISC margin of $470/oz4 - Newmont transaction
- Newcrest shareholders and Newmont stockholders have voted in favour of Newmont Overseas Holdings Pty Ltd, a wholly owned subsidiary of Newmont Corporation, acquiring 100% of the issued shares of Newcrest by way of a scheme of arrangement (Scheme).
- Newmont has confirmed all government regulatory approvals that are conditions precedent to the Scheme have been obtained.
- Newcrest will seek approval of the Scheme by the Federal Court of Australia on 17 October 2023, and if such approval is obtained, it is expected that the Scheme will become effective on 18 October 2023 and Newcrest shares will be suspended from trading on the ASX from the close of trading 26 October 2023.
- Implementation of the Scheme is expected to occur on 6 November 2023.
- Newcrest Directors have determined to pay a fully franked Special Dividend of US$1.10 per Newcrest share held on the Special Dividend Record Date, which is 7pm (AEDT) on 19 October 2023.
Newcrest Interim Chief Executive Officer, Sherry Duhe, said, "The September quarter delivered gold production of 454koz and copper production of 31kt following routine planned maintenance activities across our operations.
"In October, Newcrest shareholders and Newmont stockholders voted in favour of the proposed acquisition of Newcrest by Newmont by way of a scheme of arrangement. If the scheme is approved by the Federal Court of Australia today, it is expected to become effective on 18 October 2023 and be implemented on 6 November 2023.
"The Newcrest Directors have also determined to pay a fully franked Special Dividend of US$1.10 per Newcrest share held, subject to the scheme becoming effective. The dividend is expected to be paid on 27 October 2023.
"On behalf of the Board and management team I would like to extend our sincere thanks to all our stakeholders for their outstanding contributions to the success of Newcrest. Leading the Newcrest team has been a great privilege, and as the next chapter of Newcrest's story unfolds, I very much look forward to seeing the growth and development of our world-class portfolio of gold and copper assets as part of the combined group," said Ms Duhe.
Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne - www.newcrest.com- Quarterly Report to 30 September 2023 | 1 |
Overview
Gold production was 18% lower than the prior period5 following planned maintenance shutdowns during the quarter, consistent with prior years. Gold production was also impacted by lower gold head grade at Cadia, Telfer, Brucejack and Red Chris, partly offset by higher gold head grade at Lihir.
Newcrest's AISC of $1,397/oz2,3 for the quarter was 18% higher than the prior period, driven by lower production across all sites during the quarter resulting in a decrease in gold and copper sales volumes for the Group, as well as the impact of a lower realised copper price. This was partly offset by lower sustaining capital expenditure at Lihir and Cadia, and the benefit of a weakening Australian dollar against the US dollar on operating costs.
The recordable injury rate was higher than the prior period, driven by an increase in injuries at Brucejack, Lihir and Telfer during the quarter, which was partly offset by an improved safety performance at Cadia and Red Chris. Newcrest is addressing this increase with a focus on systematic Critical Control verifications and its NewSafe safety culture program.
Highlights6 | Metric | Sep | Jun | FY23 |
2023 Qtr | 2023 Qtr | |||
Group - gold2 | oz | 454,312 | 556,187 | 2,105,068 |
Group - copper | t | 30,624 | 34,978 | 133,149 |
Group - silver | oz | 335,372 | 406,505 | 1,384,969 |
Cadia - gold | oz | 122,663 | 151,955 | 596,879 |
Cadia - copper | t | 21,560 | 25,246 | 98,191 |
Lihir - gold | oz | 141,022 | 182,223 | 670,013 |
Telfer - gold | oz | 83,729 | 91,014 | 348,823 |
Telfer - copper | t | 4,698 | 5,371 | 16,665 |
Brucejack - gold | oz | 63,956 | 79,907 | 286,003 |
Red Chris - gold8 | oz | 7,034 | 9,573 | 39,342 |
Red Chris - copper8 | t | 4,367 | 4,361 | 18,293 |
Fruta del Norte - gold2,9 | oz | 35,908 | 41,514 | 164,008 |
Fatalities | Number | 0 | 0 | 1 |
TRIFR10 | mhrs | 3.57 | 2.8311 | 3.0011 |
All-In Sustaining Cost2,3 | $/oz | 1,397 | 1,187 | 1,092 |
All-In Cost | $/oz | 1,834 | 1,592 | 1,490 |
All-In Sustaining Cost margin4 | $/oz | 470 | 715 | 680 |
Realised gold price12 | $/oz | 1,908 | 1,935 | 1,797 |
Realised copper price12 | $/lb | 3.74 | 3.85 | 3.76 |
Realised copper price12 | $/t | 8,245 | 8,488 | 8,289 |
Average exchange rate | AUD:USD | 0.6552 | 0.6685 | 0.6735 |
Average exchange rate | PGK:USD | 0.2755 | 0.2819 | 0.2833 |
Average exchange rate | CAD:USD | 0.7460 | 0.7443 | 0.7468 |
FY24
Guidance7
2,000 - 2,300koz
120 - 140kt
Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne - www.newcrest.com- Quarterly Report to 30 September 2023 | 2 |
Operations6
Cadia, Australia
Highlights | Metric | Sep | Jun | |
2023 Qtr | 2023 Qtr | FY23 | ||
TRIFR10 | mhrs | 0.88 | 7.06 | 4.09 |
Total production - gold | oz | 122,663 | 151,955 | 596,879 |
Total production - copper | t | 21,560 | 25,246 | 98,191 |
Head grade - gold | g/t | 0.73 | 0.78 | 0.81 |
Head grade - copper | % | 0.38 | 0.40 | 0.40 |
Sales - gold | oz | 116,184 | 152,125 | 612,061 |
Sales - copper | t | 20,141 | 25,154 | 100,701 |
All-In Sustaining Cost | $/oz | 419 | 188 | 45 |
All-In Sustaining Cost margin13 | $/oz | 1,489 | 1,747 | 1,752 |
Cadia TRIFR of 0.88 recordable injuries per million hours was lower than the prior period reflecting a strong focus on safety workplace culture, including deliberate actions to strengthen and empower site leaders and a comprehensive review of tasks and processes completed to identify improvement opportunities.
Gold production of 123koz was 19% lower than the prior period with lower mill throughput primarily impacted by major planned shutdown activities completed during the quarter. Gold head grade also decreased compared to the prior period which was in line with expectations.
Cadia's AISC of $419/oz was higher than the prior period primarily due to lower gold and copper production driving a decrease in gold and copper sales volumes for the quarter, and a lower realised copper price. This was partly offset by lower sustaining capital expenditure and the benefit of a weakening Australian dollar against the US dollar on operating costs.
The PC1-2 project continued to progress during the quarter with development activities commencing in the southern crusher and tipple area, and detailed engineering progressing in line with plan. PC2-3 cave ramp up activities also continued during the quarter.
In August 2023, the New South Wales Environment Protection Authority (EPA) commenced proceedings in the state Land and Environment Court against Cadia, alleging that air emissions from Cadia on or about 1 March 2022 exceeded the standard of concentration for total solid particles permitted under applicable laws due to the use of surface exhaust fans at the mine. On 29 September 2023, Cadia entered a plea of guilty and the Court listed the case for a sentencing hearing on 28 March 2024. In October 2023, the EPA commenced a further four proceedings against Cadia, alleging that Cadia caused air pollution from its tailings storage facilities on 13 and 31 October 2022 and alleging that air emissions from Cadia in November 2021 and May 2023 exceeded the standard of concentration of total solid particles permitted under applicable laws due to the use of surface exhaust fans at the mine. The EPA's investigation regarding the management of air emissions from the mine is ongoing. Cadia continues to work openly and transparently with the EPA and the local community to meet its statutory obligations in a way that is aligned with Newcrest values.
A New South Wales Legislative Council Committee has commenced an inquiry into current and potential community impacts of the gold, silver, lead and zinc mining industries in the state. Newcrest provided a submission to the committee and appeared before a committee hearing in September 2023. A final report is expected to be delivered by the NSW Government in the December 2023 quarter.
Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne - www.newcrest.com- Quarterly Report to 30 September 2023 | 3 |
Lihir, Papua New Guinea
Highlights | Metric | Sep | Jun | |
2023 Qtr | 2023 Qtr | FY23 | ||
TRIFR10 | mhrs | 0.78 | 0.00 | 0.56 |
Total production - gold | oz | 141,022 | 182,223 | 670,013 |
Head grade - gold | g/t | 2.56 | 2.46 | 2.27 |
Sales - gold | oz | 152,223 | 169,174 | 674,080 |
All-In Sustaining Cost | $/oz | 1,786 | 1,555 | 1,466 |
All-In Sustaining Cost margin13 | $/oz | 122 | 380 | 331 |
Lihir TRIFR of 0.78 recordable injuries per million hours was higher than the prior period. Lihir remains focused on the relaunch of Newcrest's NewSafe program with over 1,500 employees and contractors participating in workshops during the quarter.
Gold production of 141koz was 23% lower than the prior period with mill throughput impacted by the scheduled biannual plant shutdown in September 2023, as well as other unscheduled mill downtime events during the quarter. This was partly offset by higher gold head grade compared to the prior period, reflecting additional higher grade ex- pit ore from Phase 15 and Phase 16. Gold recovery also increased during the quarter primarily due to higher front- end recovery resulting from increased mill tonnes directed to the autoclaves and higher flotation recovery.
Lihir's AISC of $1,786/oz was 15% higher than the prior period primarily due to lower gold production driving a decrease in gold sales volumes for the quarter, as well as higher site operating costs mainly relating to the scheduled bi-annual plant shutdown in September 2023. This was partly offset by lower sustaining capital expenditure with long- lead procurement items purchased in the prior period.
Lihir - Material Movements
Ore Sources | Metric | Sep | Jun | |
2023 Qtr | 2023 Qtr | FY23 | ||
Ex-pit crushed tonnes(a) | kt | 2,188 | 2,526 | 9,352 |
Ex-pit to stockpile | kt | 1,329 | 1,738 | 8,433 |
Waste | kt | 4,475 | 2,966 | 21,048 |
Total Ex-pit | kt | 7,993 | 7,231 | 38,833 |
Stockpile reclaim(a) | kt | 242 | 645 | 2,707 |
Stockpile relocation | kt | 2,924 | 2,665 | 11,966 |
Total Other | kt | 3,166 | 3,310 | 14,673 |
Total Material Moved | kt | 11,158 | 10,541 | 53,506 |
- For the September 2023 quarter, ex-pit crushed gold head grade was 2.78g/t and sulphur grade was 7.38%. Stockpile reclaim gold head grade was 1.66g/t and sulphur grade was 4.77%.
Lihir - Processing
Equipment | Metric | Sep | Jun | ||
2023 Qtr | 2023 Qtr | FY23 | |||
Crushing | kt | 2,430 | 3,171 | 12,059 | |
Milling | kt | 2,200 | 3,122 | 11,983 | |
Flotation | kt | 1,663 | 2,487 | 9,216 | |
Autoclave | kt | 1,529 | 1,952 | 7,406 | |
Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne - www.newcrest.com- Quarterly Report to 30 September 2023 | 4 |
Telfer, Australia
Highlights | Metric | Sep | Jun | |
2023 Qtr | 2023 Qtr | FY23 | ||
TRIFR10 | mhrs | 8.48 | 7.19 | 7.83 |
Total production - gold | oz | 83,729 | 91,014 | 348,823 |
Total production - copper | t | 4,698 | 5,371 | 16,665 |
Head grade - gold | g/t | 0.61 | 0.75 | 0.67 |
Head grade - copper | % | 0.12 | 0.15 | 0.12 |
Sales - gold | oz | 80,753 | 91,357 | 352,388 |
Sales - copper | t | 4,790 | 5,809 | 16,667 |
All-In Sustaining Cost | $/oz | 1,667 | 1,595 | 1,633 |
All-In Sustaining Cost margin13 | $/oz | 241 | 340 | 164 |
Telfer TRIFR of 8.48 recordable injuries per million hours was higher than the prior period, driven by an increase in strain and sprain injuries during the quarter. The site is focused on reducing injury rates with several safety programs in progress, including a full refresh of Newcrest's NewSafe program and further upskilling of frontline leaders in safety leadership.
Gold production of 84koz was 8% lower than the prior period, driven by lower gold head grade with a higher proportion of lower grade open pit ore fed to the mill. This was partly offset by higher mill throughput with less unscheduled mill downtime events compared to the prior period, as well as the successful completion of the major maintenance mill shutdown in August 2023. Gold recovery also increased in the quarter driven by increased gravity recovery and various flotation recovery initiatives.
Telfer's AISC of $1,667/oz was 5% higher than the prior period due to lower production driving a decrease in gold and copper sales volumes for the quarter, and a lower realised copper price. This was partly offset by the benefit of a weakening Australian dollar against the US dollar on operating costs.
Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne - www.newcrest.com- Quarterly Report to 30 September 2023 | 5 |
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Newcrest Mining Limited published this content on 16 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 October 2023 21:54:33 UTC.
