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Newcrest Mining Limited – Quarterly Report for the Three Months Ended 31 December 2020

Strong quarterly production, safety and unit cost records, progress on growth Strong operating performance in the December 2020 quarterGold production of 535koz and copper production of 35kt All-In Sustaining Cost of $968oz, delivering an AISC margin of 46% or $836oz Cadia records lowest ever quarterly AISC at negative $6oz Safety Transformation Plan delivering resultsRecord low TRIFR outcomes for Red Chris and …

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

Strong quarterly production, safety and unit cost records, progress on growth

  • Strong operating performance in the December 2020 quarter(1)
    • Gold production of 535koz(2) and copper production of 35kt
    • All-In Sustaining Cost (AISC) of $968/oz(2), delivering an AISC margin of 46% or $836/oz(3)
    • Cadia records lowest ever quarterly AISC at negative $6/oz
  • Safety Transformation Plan delivering results
    • Record low TRIFR outcomes for Red Chris and Telfer
    • Overall Group TRIFR of 1.6, an equal record low for a quarter
  • Growth agenda advanced with significant progress made at the Havieron Project
    • Initial Inferred Mineral Resource estimate of 3.4Moz of gold and 160kt of copper(4)
    • Early works construction underway in relation to the box cut and exploration decline
  • Renewable energy transition progressed with Cadia renewable energy Power Purchase Agreement
    • Expected to help deliver a ~20% reduction in Newcrest’s greenhouse gas emissions from 2024
    • A significant step towards achieving Newcrest’s target of a 30% reduction by 2030(5)
  • New compensation, relocation and benefits sharing agreements signed at Lihir
  • Environment Permit granted for Wafi-Golpu Project

Newcrest Mining Limited (ASX: NCM) (TSX: NCM) Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said, “Our results for the December quarter were underpinned by a strong operational and safety performance together with significant advancements in our growth agenda and sustainability commitments.”

“Newcrest’s quarterly gold production was 6% higher than the prior period reflecting a stronger performance from Lihir and Telfer combined with a reduction in scheduled maintenance events in the quarter. Our world-class Cadia asset continues to break records, reporting its lowest ever quarterly All-In Sustaining Cost of negative $6/oz, which equates to an All-In Sustaining Cost margin of $1,821/oz on its almost 200,000 ounces in the quarter.”

“At Lihir, we are on track to release the outcomes of the mine optimisation study with our Half Year Results in February. The continued improvement of the handling and processing of the argillic ores has contributed to an increase in throughput and recovery, and culminated in a 13% increase in gold production in the quarter. We recently announced the signing of a new compensation, relocation and benefits sharing agreement with the mining lease area landholders, building on the strong relationships we have developed over recent years.”

“Red Chris and Telfer also achieved new safety records in the quarter, reporting their lowest ever injury rates. This fantastic achievement demonstrates the success of Newcrest’s Safety Transformation Plan and highlights the commitment and dedication of all our people in embedding the safety culture in our workplace.”

“In December 2020, we took a major step towards defining the potential of the Havieron Project with the announcement of an initial Inferred Mineral Resource estimate. In January 2021, the Board approved funding to construct the box cut, exploration decline and associated infrastructure, following receipt of the necessary regulatory approvals to commence these activities. With work now well underway at the Project, we see the potential of achieving commercial production from Havieron within the next three years.”

“During the period we also entered into a landmark renewable energy power purchasing agreement to secure a significant part of the future energy requirements at Cadia. This agreement is expected to help deliver a ~20% reduction in Newcrest’s greenhouse gas emissions, assist in maintaining competitive energy costs and is a significant step in achieving our target of a 30% reduction in emissions intensity by 2030.”

“Progress was also made at the Wafi-Golpu Project with the granting of the Environment Permit in December 2020, which is a prerequisite for the grant of a Special Mining Lease under the Mining Act,” said Mr Biswas.

Highlights Metric Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
YTD
FY20
FY21 Guidance
TRIFR(6) mhrs 1.6 2.6 2.2 2.3
Group production(2) – gold oz 535,477 503,089 1,038,566 1,062,751 1,950-2,150koz
– copper t 34,557 34,763 69,320 62,468 135-155kt
All-In Sustaining Cost(2),(7) $/oz 968 980 974 877(8)
Realised gold price(9) $/oz 1,815 1,837 1,826 1,446
All-In Sustaining Cost margin(3) $/oz 836 847 842 569

Overview

Gold production was 6% higher than the prior period primarily driven by a reduction in scheduled maintenance events in the quarter, combined with a stronger operational performance from Lihir and Telfer. Gold production for the December 2020 quarter includes 31koz relating to Newcrest’s 32% equity interest in Lundin Gold Inc which owns the Fruta del Norte mine.

Newcrest’s AISC for the December 2020 quarter of $968/oz(2) was $12/oz lower than the prior period. The marginal improvement in Newcrest’s AISC/oz was primarily driven by the benefit of a higher realised copper price, higher copper sales volumes at Cadia and a reduction in the amount of production stripping. These benefits were largely offset by timing of gold sales volumes at Lihir, timing of sustaining capital expenditure and the impact of a strengthening Australian and Canadian dollar on operating costs.

Metric Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
YTD
FY20
FY21 Guidance(10)
Group(2) -gold oz 535,477 503,089 1,038,566 1,062,751 1,950-2,150koz
-copper t 34,557 34,763 69,320 62,468 135-155kt
-silver oz 230,769 214,412 445,181 470,567
Cadia -gold oz 194,088 196,504 390,592 411,452 680-760koz
-copper t 26,643 25,329 51,972 45,423 95-105kt
Lihir -gold oz 200,173 177,337 377,510 381,500 720-820koz
Telfe -gold oz 98,855 86,452 185,307 182,464 360-420koz
-copper t 2,443 2,384 4,826 7,273 10-20kt
Red Chris(11) -gold oz 11,375 12,636 24,012 11,294 45-55koz
-copper t 5,471 7,050 12,521 9,773 25-30kt
Gosowong(12) -gold oz 76,040
Fruta del Norte(2),(13) -gold oz 30,986 30,160 61,146 95-110koz
Fatalities Number 0 0 0 0
TRIFR(6) mhrs 1.6 2.6 2.2 2.3
All-In Sustaining Cost(2),(7) $/oz 968 980 974 877(8)
All-In Cost(14) $/oz 1,349 1,275 1,310 1,029
All-In Sustaining Cost margin(3) $/oz 836 847 842 569
Realised gold price(9) $/oz 1,815 1,837 1,826 1,446
Realised copper price(9) $/lb 3.26 2.97 3.12 2.66
Realised copper price(9) $/t 7,187 6,548 6,878 5,864
Average exchange rate AUD:USD 0.7303 0.7147 0.7225 0.6846
Average exchange rate PGK:USD 0.2853 0.2872 0.2862 0.2940
Average exchange rate CAD:USD 0.7667 0.7504 0.7585 0.7575

All figures are shown at 100% unless stated otherwise.

Operations

Cadia, Australia

Highlights Metric Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
YTD
FY20
FY21 Guidance
TRIFR mhrs 7.5 3.6 5.5 4.3
Total production – gold oz 194,088 196,504 390,592 411,452 680-760koz
– copper t 26,643 25,329 51,972 45,423 95-105kt
Head Grade – gold g/t 0.95 1.02 0.98 1.18
– copper % 0.39 0.40 0.39 0.40
Sales – gold oz 194,183 195,146 389,329 398,648
– copper t 26,477 24,596 51,073 44,170
All-In Sustaining Cost $/oz (6) 113 54 167([15])
All-In Sustaining Cost margin $/oz 1,821 1,724 1,772 1,279

Gold production of 194koz was 1% lower than the prior period due to lower grade and recovery, largely offset by the realisation of a number of debottlenecking initiatives in Concentrator 1 which, together with a reduction in scheduled maintenance events, culminated in a 7% increase in mill throughput.

Gold recovery was 2% lower than the prior period reflecting a reduction in mineral liberation and flotation residence time which was a consequence of the higher throughput rates. The completion of Stages 1 and 2 of the Cadia Expansion Project is expected to deliver increased recoveries at the higher throughput rates, as well as further increasing plant capacity to 35mtpa. The lower gold grade in the period was in line with expectations.

Mill throughput in the March 2021 quarter will be lower than the current period reflecting planned shutdowns for Concentrator 1 and the material handlings system.

Cadia has set a new quarterly record, reporting an AISC for the period of negative $6/oz which reflects a higher realised copper price, higher copper sales volumes and timing of sustaining capital expenditure. These benefits were partially offset by the impact on operating costs from the strengthening of the Australian dollar against the US dollar and higher royalty and concentrate treatment, refining and transporting costs.

Newcrest announced in December 2020 that it had entered into a 15 year renewable Power Purchase Agreement (“PPA”) with Tilt Renewables Limited, the owner and developer of the Rye Park Wind Farm, to secure a significant portion of Cadia’s future projected energy requirements. The PPA, together with the forecast decarbonisation of electricity generation in New South Wales, is expected to deliver a ~20% reduction in Newcrest’s greenhouse gas emissions and is a significant step towards the achievement of Newcrest’s targeted 30% reduction by 2030(16). The PPA will act as a partial hedge against future electricity price increases and will provide Newcrest with access to large-scale generation certificates which Newcrest intends to surrender to achieve a reduction in its greenhouse gas emissions.

In December 2020, Newcrest submitted the statement of environmental effects to the Department of Planning, Industry and Environment for Modification 14. The Modification seeks approval from the Department to increase Cadia’s current processing capacity from 32mtpa to 35mtpa and includes the proposal for the repair of the slumped section of the Northern Tailings Storage Facility (“NTSF”) together with a minor change to the footprint of the NTSF and Southern Tailings Storage Facility to allow for a change from upstream to centreline lift design.

The Molybdenum Plant is on track to be fully commissioned in the fourth quarter of FY21. The Molybdenum Plant is expected to deliver an additional revenue stream for Cadia in the form of a molybdenum concentrate which will be recognised as a by-product credit to AISC.

Lihir, Papua New Guinea

Highlights Metric Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
YTD
FY20
FY21 Guidance
TRIFR mhrs 0.0 0.5 0.2 0.5
Production – gold oz 200,173 177,337 377,510 381,500 720-820koz
Head Grade – gold g/t 2.27 2.34 2.30 2.38
Sales – gold oz 170,308 210,831 381,139 362,955
All-In Sustaining Cost $/oz 1,438 1,283 1,352 1,154
All-In Sustaining Cost margin $/oz 377 554 474 292

Gold production of 200koz was 13% higher than the prior period driven by an increase in throughput and recovery, partially offset by lower grade.

The higher throughput in the December quarter reflects the completion of scheduled maintenance events which commenced in the prior quarter, together with a reduction in unplanned downtime. Mill throughput also benefited from improved blending and operational practices combined with modifications to chutes and conveyors which improved the ability to process argillic ores.

Gold recovery improvements were realised through improved flotation performance notwithstanding gold head grades were 3% lower than the prior period as a result of lower mined ore and stockpile grades.

Additional modifications are planned in the March 2021 shutdown to manage the processing of argillic ores, including trommel spray upgrades, which will further increase confidence in managing the increased proportion of these ores.

Newcrest expects to announce the findings of its Lihir mine optimisation study in its Half Year Results which will be released on 11 February 2021. The mine optimisation study was focused on improving ore presentation to the processing plant, accounting for clay management study outcomes and optimising the integration sequence of the seepage barrier project with the mine schedule.

In accordance with Lihir’s bi-annual shutdown strategy, a planned shutdown will be executed in the March 2021 quarter which will result in a reduction in mill throughput when compared to the December 2020 quarter.

Lihir’s AISC was 12% higher than the prior period primarily driven by the timing of gold sales volumes and the timing of sustaining capital expenditure.

On 22 December 2020, Newcrest announced that it had signed new compensation, relocation and benefits sharing agreements with the mining lease area landholders at Lihir. It is expected that these new agreements will enhance socio-economic development outcomes for mining lease area landholders and enable benefits to be distributed directly to their intended beneficiaries. The agreements also enable the efficient and transparent distribution of compensation and benefits without a material increase in quantum.

Lihir – Material Movements

Ore Source Metric Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
YTD
FY20
Ex-pit crushed tonnes kt 1,918 1,236 3,154 2,614
Ex-pit to stockpile kt 615 1,610 2,225 4,051
Waste kt 4,793 6,269 11,063 9,471
Total Ex-pit kt 7,326 9,115 16,440 16,137
Stockpile reclaim kt 1,765 2,192 3,957 3,853
Stockpile relocation kt 2,884 3,306 6,190 7,293
Total Other kt 4,649 5,498 10,147 11,146
Total Material Moved kt 11,975 14,613 26,587 27,283

Lihir – Processing

Equipment Metric Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
YTD
FY20
Crushing kt 3,683 3,426 7,109 6,467
Milling kt 3,691 3,255 6,946 6,645
Flotation kt 2,835 2,780 5,615 4,729
Total Autoclave kt 1,998 1,592 3,590 3,658

Telfer, Australia

Highlights Metric Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
YTD
FY20
FY21 Guidance
TRIFR mhrs 1.8 4.6 3.6 4.3
Production – gold oz 98,855 86,452 185,307 182,464 360-420koz
– copper t 2,443 2,384 4,826 7,273 10-20kt
– gold g/t 0.94 0.86 0.90 0.91
– copper % 0.09 0.09 0.09 0.15
Sales – gold oz 87,992 85,096 173,089 185,470
– copper t 2,152 2,311 4,463 6,998
All-In Sustaining Cost $/oz 1,560 1,797 1,676 1,380
All-In Sustaining Cost margin(17) $/oz 255 40 150 66

Telfer’s TRIFR outcome of 1.8 injuries per million hours worked is its lowest reported quarterly safety outcome on record. This significant achievement demonstrates the success of Newcrest’s Safety Transformation Plan in embedding safe practices and behaviours at its operations, reflecting strong visible safety leadership, proactive hazard reporting and a workforce committed to improve the safety culture at their workplace.

Gold production of 99koz was 14% higher than the prior period, driven by the completion of planned maintenance in the prior quarter enabling an increase in mill throughput, a 9% increase in gold grade, the injection wells pilot which has positively contributed to an increase in the realisation of Dump Leach ounces in the period and higher recovery. The 9% increase in gold grade reflects a higher proportion of underground ore feed with the 2% improvement in gold recovery attributable to the optimisation of sulphur grades through successful blending strategies.

Telfer’s AISC of $1,560/oz was 13% lower than the prior period reflecting lower site costs due to lower open pit mining activity and maintenance shutdown timing, the benefit to site operating costs from the 14% increase in gold production, a reduction in freight costs and a higher realised copper price. These benefits were partially offset by the impact on operating costs from the strengthening of the Australian dollar against the US dollar, gold and copper sales volumes being below production due to rain affected delays to shipping, timing of sustaining capital expenditure and an increase in exploration activities.

Red Chris, Canada

Highlights(18) Metric Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
YTD
FY20
FY21 Guidance
TRIFR mhrs 1.8 11.1 6.7 16.9
Production – gold oz 11,375 12,636 24,012 11,294 45-55koz
– copper t 5,471 7,050 12,521 9,773 25-30kt
Head Grade – gold g/t 0.42 0.40 0.41 0.28
– copper % 0.45 0.46 0.46 0.45
Sales – gold oz 12,641 11,834 24,475 9,789
– copper t 6,072 6,642 12,714 8,679
All-In Sustaining Cost $/oz 3,278 2,621 2,961 2,323([19])
All-In Sustaining Cost margin $/oz (1,463) (784) (1,135) (877)

Red Chris’ TRIFR outcome of 1.8 injuries per million hours worked is its lowest reported quarterly safety outcome since Newcrest acquired its 70% interest and became operator of the Red Chris mine. This significant milestone highlights the success of Newcrest’s Safety Transformation Plan in transforming on-site safety behaviours and improved working conditions. Red Chris continues to build on its safety reporting culture and incident investigation with a particular focus on hazard identification and mitigation through sound pre-task planning and on-task assessment.

Gold production of 11koz was 10% lower than the prior period primarily driven by lower mining and throughput rates. Mining in the open pit was impacted by excessive melt water from a higher than average winter snow pack and unseasonal rain in the quarter which flooded both open pits and caused extended periods of adverse road conditions. This delayed ore release from Phase 4 and led to material handling issues in the primary crusher, coarse ore stockpile and mill feed systems. These impacts were partially offset by the benefit of a higher residence time in the circuit which improved gold recovery and a higher feed grade.

Red Chris’ AISC of $3,278/oz was 25% higher than the prior period driven by higher operating costs in the open pit due to unseasonably high rainfall, lower copper sales volumes and the impact to site operating costs from a strengthening Canadian dollar against the US dollar. These impacts were partially mitigated by a higher realised copper price and lower sustaining capital expenditure.

Over the course of FY21, Red Chris is planning to implement a number of additional improvement initiatives across the site including a new fleet management system, the replacement of the conventional CAT 793 truck tubs with high performance trays to realise payload benefits and a number of throughput and recovery related projects.

The latest drilling results for Red Chris are included in the December 2020 Quarterly Exploration Report which was also released today. Newcrest expects to commence the construction of the box-cut for the exploration decline later this quarter, subject to regulatory approvals.

Fruta Del Norte, Ecuador

As announced on 30 April 2020, Newcrest acquired the gold prepay and stream facilities and an offtake agreement in respect of Lundin Gold Inc’s Fruta del Norte mine for $460 million. In the December 2020 quarter, Newcrest received net pre-tax cash flows of ~$26 million from these financing facilities.

Included within Newcrest’s gold production for the December 2020 quarter is 31koz relating to Newcrest’s 32% equity interest in Lundin Gold Inc, the owner of the Fruta del Norte mine.

Project Development

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 with Greatland Gold plc.

In December 2020, Newcrest released an initial Inferred Mineral Resource Estimate for the Havieron Project of 52Mt @ 2.0g/t Au and 0.31% Cu for 3.4Moz Au and 160kt Cu(20). Mineralisation remains open in multiple directions outside of the initial Inferred Mineral Resource estimate, which indicates the possibility that the resource could continue to grow over time with additional planned drilling activity.

Additionally, on 13 January 2021 Newcrest announced that its Board had approved funding of A$146 million (~US$112 million(21)) for the construction of the box cut, exploration decline and associated surface infrastructure at the Havieron Project. This followed receipt of the necessary regulatory approvals to commence these construction activities.

Work is ongoing to finalise the Water Management Plan for the early works program and to progress the necessary approvals and permits that are required to commence the development of an operating underground mine and associated infrastructure at the Project(22).

The latest drilling results for the Havieron Project are included in the December 2020 Quarterly Exploration Report which was also released today.

Wafi-Golpu, Papua New Guinea

In December 2020, following a rigorous environmental impact assessment, the Papua New Guinean Conservation and Environment Protection Authority approved, and the Director of Environment issued, the Environment Permit for the Wafi-Golpu Project. The Environment Permit is required under the Papua New Guinean Environment Act and is a pre-requisite for the grant of a Special Mining Lease under the Mining Act.

Newcrest, together with its WGJV partner Harmony, looks forward to re-engaging with the State of Papua New Guinea and progressing discussions on the Special Mining Lease for the Wafi-Golpu Project.

Molybdenum Plant, Cadia, Australia

The Molybdenum Plant is on track to be fully commissioned in the fourth quarter of FY21. The Molybdenum Plant is expected to deliver an additional revenue stream for Cadia in the form of a molybdenum concentrate which will be recognised as a by-product credit to AISC.

Exploration

See the separately released “Quarterly Exploration Report” for the December 2020 quarter.

COVID-19 Update

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

Newcrest is managing a number of positive COVID-19 cases at its Red Chris mine in British Columbia and on Lihir Island, Papua New Guinea. Comprehensive testing, quarantine and precautionary contact tracing procedures continue to be enforced across all Newcrest sites with the cases identified to date at Lihir and Red Chris being largely asymptomatic or presenting minor symptoms.

The Lihir and Red Chris operations remain unaffected by the positive cases with strict hygiene, social distancing and other COVID-19 management protocols in place. As previously highlighted, all of Newcrest’s operations have business continuity plans and contingencies in place to minimise disruptions to the operations in the event of a significant number of operational employees and/or contractors contracting the virus. It is expected that these plans will enable the operations to continue producing in line with the production schedule, and if there are any material impacts, Newcrest will inform the market in line with its continuous disclosure obligations.

Costs associated with managing COVID risks in FY21 are now expected to be higher than anticipated at the start of the year due to more extensive testing, longer quarantining periods, roster and other labour costs, and other preventative actions. This has resulted in costs associated with managing COVID of approximately $30 million in the first half to end December 2020. The full year estimate is expected to be in the order of $60-70 million, up from the original estimate of $30-40 million.

Corporate

Community Support Fund

Newcrest’s A$20 million Community Support Fund strives to help its host communities in Papua New Guinea, Australia, Canada (British Columbia) and Ecuador cope with the challenges associated with COVID-19. A number of initiatives, ranging from immediate health assistance to livelihood restoration and economic recovery, have been funded to date.

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

Toronto Stock Exchange Listing

On 13 October 2020, Newcrest listed its common shares on the Toronto Stock Exchange (TSX) under the symbol “NCM”. Newcrest retains its primary listing on the Australian Securities Exchange and its secondary listing on PNGX Markets. Newcrest’s listing on the TSX supports its pursuit of growth in the Americas following the 70% acquisition of the Red Chris mine in Canada, its investments in Ecuador and its expanding portfolio of exciting exploration and early stage entry prospects in the Americas.

Modern Slavery Statement

On 21 December 2020, Newcrest submitted its first Modern Slavery Statement to the Australian Department of Home Affairs in compliance with the 2018 Australian Modern Slavery Act. The Report sets out Newcrest’s public commitments to assess and address modern slavery risks in its global operations and supply chains, including due diligence and remediation processes. Newcrest’s Modern Slavery statement can be located within the Corporate Governance section of its website (www.newcrest.com).

Sustainability Report

On 4 November 2020, Newcrest released its 2020 Sustainability Report which outlines Newcrest’s performance against its public sustainability targets for FY20 together with its expanded suite of sustainability targets for FY21. Newcrest’s Sustainability Report for FY20 can be located within the Sustainability section of its website (www.newcrest.com).

Interactive Analyst CentreTM

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

Sandeep Biswas
Managing Director and Chief Executive Officer

Gold Production Summary

December 2020
Quarter
Mine
Production
Tonnes
(000’s)(23)
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 1 763
Cadia East Panel Cave 2 6,304
Cadia East Panel Cave 2-3 284
Cadia(24) 7,352 8,246 0.95 77.2 194,088 194,183 (6)
Telfer Open Pit 11,051 3,502 0.84 75.3 70,774
Telfer Underground 611 579 1.52 85.0 23,775
Telfer Dump Leach 4,305
Telfer 11,662 4,081 0.94 77.5 98,855 87,992 1,560
Lihir 7,326 3,691 2.27 74.2 200,173 170,308 1,438
Red Chris 5,508 1,530 0.42 55.5 11,375 12,641 3,278
Fruta del Norte(25) 30,986 30,986 810
Total 31,848 17,549 1.18 75.4 535,477 496,110 968

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

Copper Production Summary

December 2020
Quarter
Copper Grade
(%)
Copper Recovery
(%)
Concentrate
Produced

(tonnes)
Metal Production
(tonnes)
Cadia 0.39 82.1 112,087 26,643
Telfer Open Pit 0.06 52.8 12,676 1,050
Telfer Underground 0.27 88.2 13,144 1,393
Telfer 0.09 68.5 25,820 2,443
Red Chris 0.45 79.6 24,922 5,471
Total 0.29 80.6 162,829 34,557

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

Silver Production Summary

December 2020
Quarter
Tonnes Treated
(000’s)
Silver Production
(oz)
Cadia 8,246 167,864
Telfer 4,081 28,047
Lihir 3,691 10,126
Red Chris 1,530 24,733
Total 17,549 230,769

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

All-In Sustaining Cost – December 2020 Quarter

3 Months to 31 December 2020
Units Cadia Telfer Lihir Red Chris Corp/
Other
Group(26)
Gold Produced oz 194,088 98,855 200,173 11,375 504,491
Mining $/oz prod. 166 779 236 1,951 355
Milling $/oz prod. 306 433 456 1,154 409
Administration and other $/oz prod. 111 179 314 1,340 233
Lease adjustments $/oz prod (3) (24) (6) (8)
Third party smelting, refining and transporting costs(27) $/oz prod. 170 100 3 732 102
Royalties $/oz prod. 102 53 44 68 69
By-product credits $/oz prod. (1,014) (167) (1) (3,797) (509)
Ore inventory adjustments(28) $/oz prod. 25 (35) 83 87 37
Production stripping adjustments(28) $/oz prod. (131) (417) (61)
AOD adjustments(28) $/oz prod. 21 4
Net Cash Costs $/oz prod. (137) 1,339 998 1,118 631
Gold Sold oz 194,183 87,992 170,308 12,641 465,125
Adjusted operating costs(29) $/oz sold (131) 1,355 1,034 1,263 615
Corporate general & administrative costs(30),(31) $/oz sold 57 57
Reclamation and remediation costs $/oz sold 5 5 12 56 9
Production stripping $/oz sold 154 375 67
Advanced operating development $/oz sold (24) (5)
Capital expenditure (sustaining) $/oz sold 115 164 228 1,580 14 219
Exploration (sustaining) $/oz sold 2 19 2 (49) 4
Leases (sustaining) $/oz sold 3 41 8 53 13
All-In Sustaining Cost $/oz sold (6) 1,560 1,438 3,278 71 979
Growth and development costs(31) $/oz sold 7 7
Capital expenditure (non-sustaining)(32) $/oz sold 568 109 302 11 297
Exploration (non-sustaining) $/oz sold 2 409 52 64
Leases (non-sustaining) $/oz sold 6 2
All-In Cost $/oz sold 568 1,562 1,547 3,989 141 1,349
Depreciation and amortisation(33) $/oz sold 259 250 374 1,178 12 336

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

All-In Sustaining Cost – Six months to 31 December 2020

6 Months to 31 December 2020
Units Cadia Telfer Lihir Red Chris Corp/ Other Group
Gold Produced oz 390,592 185,307 377,510 24,012 977,421(34)
Mining $/oz prod. 173 848 247 1,635 365
Milling $/oz prod. 312 463 545 1,060 449
Administration and other $/oz prod. 102 194 277 1,223 215
Lease Adjustments $/oz prod (3) (28) (5) (9)
Third party smelting, refining and transporting costs(35) $/oz prod. 159 113 3 649 102
Royalties $/oz prod. 97 52 47 64 69
By-product credits $/oz prod. (927) (171) (1) (3,623) (493)
Ore inventory adjustments(36) $/oz prod. 12 (15) 79 93 35
Production stripping adjustments(36) $/oz prod. (151) (789) (77)
AOD adjustments(36) $/oz prod. 10 2
Net Cash Costs $/oz prod. (75) 1,466 1,041 312 658
Gold Sold oz 389,329 173,089 381,139 24,475 968,032
Adjusted operating costs(37) $/oz sold (79) 1,478 1,031 276 645
Corporate general & administrative costs(38),(39) $/oz sold 46 46
Reclamation and remediation costs $/oz sold 5 5 10 64 9
Production stripping $/oz sold 150 774 78
Advanced operating development $/oz sold (11) (2)
Capital expenditure (sustaining) $/oz sold 122 146 155 1,809 10 192
Exploration (sustaining) $/oz sold 3 14 1 4
Leases (sustaining) $/oz sold 3 44 5 38 12
All-In Sustaining Cost $/oz sold 54 1,676 1,352 2,961 56 984
Growth and development costs(39) $/oz sold 6 6
Capital expenditure (non-sustaining)(40) $/oz sold 524 76 290 9 257
Exploration (non-sustaining) $/oz sold 3 382 50 61
Leases (non-sustaining) $/oz sold 6 2
All-In Cost $/oz sold 584 1,679 1,428 3,633 121 1,310
Depreciation and amortisation(41) $/oz sold 252 253 363 1,163 12 330

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.

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Simplified Lihir Pit Material Flow – December 2020 Quarter

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Simplified Lihir Process Flow – December 2020 Quarter

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Corporate Information

Board

Peter Hay Non-Executive Chairman
Sandeep Biswas Managing Director and CEO
Gerard Bond Finance Director and CFO
Philip Aiken AM Non-Executive Director
Roger Higgins Non-Executive Director
Sally-Anne Layman Non-Executive Director
Vickki McFadden Non-Executive Director
Peter Tomsett Non-Executive Director


Company Secretaries

Maria Sanz Perez and Claire Hannon

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

Stock Exchange Listings

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


Forward Shareholder Enquiries to:

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

Canada:
AST Trust Company (Canada)
P.O. Box 700, Station B
Montreal, Quebec, H3B 3K3
Canada
+1 800 387 0825
inquiries@astfinancial.com
www.astfinancial.com

Substantial Shareholder(s)(42) at 31 December 2020

BlackRock Group 10.2%
Allan Gray / Orbis Group 9.9%
Van Eck Associates Corporation 5.1%
The Vanguard Group 5.0%


Issued Share Capital

At 31 December 2020, Newcrest’s issued capital was 816,556,534 ordinary shares.

Quarterly Share Price Activity

High Low Close
A$ A$ A$
Oct – Dec 2020 32.00 25.78 25.78

Forward Looking Statements

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

These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause Newcrest’s actual results, performance and achievements or industry results to differ materially from any future results, performance or achievements, or industry results, expressed or implied by these forward-looking statements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which Newcrest operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. For further information as to the risks which may impact on Newcrest’s results and performance, please see the risk factors included in the Annual Information Form dated 13 October 2020 lodged with ASX and SEDAR.

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

Non-IFRS Financial Information

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

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

Technical and Scientific Information

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

Competent Persons’ Statement

The information in this document that relates to Mineral Resources has been extracted from the release titled “Initial Inferred Mineral Resource estimate for Havieron of 3.4Moz of gold and 160Kt of copper” dated 10 December 2020 and which is available to view at www.asx.com.au under the code “NCM” (the original release) and on Newcrest’s SEDAR profile. Newcrest confirms that it is not aware of any new information or data that materially affects the information included in the original release and that all material assumptions and technical parameters underpinning the estimates in the original release continue to apply and have not materially changed. Newcrest confirms that the form and context in which the competent persons’ findings are presented have not been materially modified from the original release.

Authorised by the Newcrest Disclosure Committee

For further information please contact

Investor Enquiries

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

Ben Lovick
+61 3 9522 5334
+61 407 269 478
Ben.Lovick@newcrest.com.au

North American Investor Enquiries

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

Media Enquiries

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

Annie Lawson
+61 3 9522 5750
+61 409 869 986
Annie.Lawson@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 production Metric Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
Gold production – Newcrest operations oz 504,491 472,929 977,421
Gold production – Fruta del Norte (32%)(43) oz 30,986 30,160 61,146
Gold production oz 535,477 503,089 1,038,566

All-In Sustaining Cost Metric Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
All-in Sustaining Cost – Newcrest operations $m 455 498 953
All-in Sustaining Cost – Fruta del Norte (32%)(43),(44) $m 25 14 39
All-In Sustaining Cost $m 480 512 992
Gold ounces sold – Newcrest operations oz 465,125 502,907 968,032
Gold ounces sold – Fruta del Norte (32%)(43),(44) oz 30,986 19,891 50,877
Total gold ounces sold oz 496,110 522,798 1,018,908
All-In Sustaining Cost – Newcrest operations $/oz 979 990 984
All-In Sustaining – Fruta del Norte (32%)(43),(44) $oz 810 728 778
All-In Sustaining Cost $/oz 968 980 974

All-In Sustaining Margin Metric Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
Realised gold price(45) $/oz 1,815 1,837 1,826
All-In Sustaining Cost – Newcrest operations $/oz 979 990 984
All-In Sustaining Cost margin $/oz 836 847 842


1See information under heading “Non-IFRS Financial Information” on Page 18 of this report for further information.

2Includes 31koz andanestimated reduction of $11/oz based on Newcrest’s 32% attributable shareof Fruta del Norte. Refer to the Appendix for calculation andfurther details.

3Newcrest’s AISC margin has been determined by deducting the All-In Sustaining Cost attributable to Newcrest’s operations from Newcrest’s realised gold price.Refer to the Appendix for details.

4The initial Inferred Mineral Resource estimate is presented on a 100% basis. As announced on 30 November 2020, Newcrest has now met the Stage 3 expenditure requirement (US$45 million) and is entitled to earn an additional 20% joint venture interestin addition to its existing 40% interest, resulting in an overall joint venture interest of 60% (Greatland Gold 40%).

5Per tonne of ore treated and compared to a baseline of FY18 emissions. Subject to market and operating conditions in respect of Cadia and the Rye ParkWind Farm

6Total Recordable Injury Frequency Rate (injuries per million hours). TRIFR for FY20 includes safety results for Red Chris from acquisition.

7Due to the negligible impact of Fruta del Norte on Newcrest’s Group AISC for FY20 it has been excluded from the FY20 calculation.

8AISC for the period ending 31 December 2019 has been restated to reflect adjustments applied to Red Chris following the completion of acquisition and year end processes.

9Realised metal prices are the US$ spot prices at the time of sale per unit of metal sold (net of Telfer gold production hedges), excluding deductions related to treatment and refining charges and the impact of price related finalisations for metals in concentrate. The realised price for the September and December quarters and for FY20 and FY21 has been calculated using sales ounces generated by Newcrest’s operations only (i.e. excluding Fruta del Norte).

10The achievement of guidance is subject to market and operating conditions. Newcrest’s guidance for Fruta del Norte is an annualised figure based on Lundin Gold Inc’s production guidance for 1 July 2020 to 31 December 2020. See Appendix for further details.

11The figures shown represent Newcrest’s 70% share of the unincorporated Red Chris JV.Production outcomes for FY20 are reported from the date of acquisition (15 August 2019).

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

13The figures shown represent Newcrest’s 32%attributable share, through its 32% equity interest in Lundin Gold Inc.

14From Newcrest’s operations only and does not include Newcrest’s 32% attributable share of Fruta del Norte through its 32%equityinterest in Lundin Gold Inc.

15Subsequent to the release of the December 2019 Quarterly Report, an audit adjustment was applied which reduced gold sales by ~6koz, copper sales by ~49kt and AISC by $5/oz respectively.

16Per tonne of ore treated and compared to a baseline of FY18 emissions. Subject to market and operating conditions in respect of Cadia and the Rye Park Wind Farm.

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

18The figures shown represent Newcrest’s 70% shareof the unincorporated Red Chris JV. Productionand financial outcomesfor FY20 are reported fromthe date of acquisition (15 August 2019).

19AISC reported for the six month period to 31 December 2019 has been restated to reflect adjustments applied following the completion of acquisition and year end processes.

20The initial Inferred Mineral Resource estimate is presented on a 100% basis. As announced on 30 November 2020, Newcrest has now met the Stage 3 expenditure requirement (US$45 million) and is entitled to earn an additional 20% joint venture interest in addition to its existing 40% interest, resulting in an overall joint venture interest of 60% (Greatland Gold 40%).

21 On a 100% basis and converted to US$ using an exchange rate of 0.77, which was the spot rate on the date of the initial announcement..

22 In addition, the development of any underground mine at the Havieron Project will also be subject to the completion of a successful exploration program and further studies, market and operating conditions, Board approvals, and a positive decision to mine.

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

24 Includes development tonnesfrom the Cadia East PC2-3 project. Costs associated with this production were capitalised and are not included in the AISC calculation in this report.

25Due to timing of Lundin Gold’s December quarterly report, Newcrest has estimated its 32% attributable share, through its 32% equity interest in Lundin Gold Inc,of Fruta del Norte’s All-In Sustaining Cost for the quarter. For the purposes of All-In Sustaining Cost, Newcrest has assumed that production is equal to sales. Refer to the Appendix for further details.

26Group AISC is for Newcrest’s operations only and does not include Newcrest’s 32% attributable share of Fruta del Norte.

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

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

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

30 Corporate general & administrative costs includes share-based remuneration

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

32Represents spend on major projects that are designed to increase the net present value of the mine are not related to current production. Significant projects in the current period include key expansion projects at Cadia (including PC2-3 developmentand the molybdenum plant)and Lihir (Seepage Barrier feasibilitystudy, front end recovery and HV upgrade).

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

34Group AISC is for Newcrest’s operations only and does not include Newcrest’s 32% attributable share of Fruta del Norte.

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

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

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

38 Corporate general & administrative costs includes share-based remuneration

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

40Represents spend on major projects that are designed to increase the net present value of the mine are not related to current production. Significant projects in the year include key expansion projects at Cadia (including PC2-3 feasibility study and the molybdenum plant) and Lihir (Seepage Barrier feasibility study, front end recovery and HV upgrade).

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

42As notified to Newcrest under section 671B of the Corporations Act 2001

43The All-In Sustaining Cost and gold ounces sold outcomes for Fruta del Norte for the September 2020 quarter have been restated following the release of Lundin Gold’s September quarterly report on 9 November 2020. Newcrest’s All-In Sustaining Cost outcome of $980/oz for the September quarter remains unchanged.

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

45Realised metal prices are the US$ spot prices at the time of sale per unit of metal sold (net of Telfer production hedges), excluding deductions related to treatment and refining charges and the impact of price related finalisations for metals in concentrate. The realised price for the September and December quarters and for FY21 has been calculated using sales ounces generated by Newcrest’s operations only (i.e. excluding Fruta del Norte).

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Lihir Phase 14A PFS indicates potential for growth and large scale, long life, low cost production Confirms Lihir’s pathway to become a 1Moz+ gold producer for at least 10 years from FY241 $179m investment projected to deliver outstanding return metrics of 37% IRR & 2.6 year payback2,3,4 Increases Lihir’s Ore Reserves by 1 million ounces5 Project implementation to enhance operational flexibility and risk management …

  • Lihir Phase 14A PFS indicates potential for growth and large scale, long life, low cost production
  • Confirms Lihir’s pathway to become a 1Moz+ gold producer for at least 10 years from FY241
  • $179m investment projected to deliver outstanding return metrics of 37% IRR & 2.6 year payback2,3,4
  • Increases Lihir’s Ore Reserves by 1 million ounces5
  • Project implementation to enhance operational flexibility and risk management
  • Potential to deploy Phase 14A mining techniques in other parts of the mine to unlock more value
  • Feasibility Study expected to be completed in the second half of FY226

Newcrest Mining Limited (ASX: NCM) (TSX: NCM) (PNGX: NCM) is pleased to announce that the Newcrest Board has approved the Lihir Phase 14A Pre-Feasibility Study (the Phase 14A Study), enabling the commencement of the Feasibility Study and Early Works Program.

The Study focuses on extending the Phase 14 cutback and safely steepening the walls of the pit utilising civil engineering techniques to access existing Indicated Mineral Resources that would have otherwise been inaccessible through standard mining techniques. The Study integrates Phase 14A’s future mine design and sequence into Lihir’s mine plan and establishes the expected costs, schedule and sustainable production rate.

Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said “The findings of our Lihir Phase 14A Pre-Feasibility Study accelerate the realisation of our aspiration for Lihir to be a 1 million ounce plus per annum producer from FY24, which will benefit landowners, all Lihirians and PNG. Phase 14A increases Lihir’s Ore Reserves, brings forward gold production and improves operational flexibility by establishing an additional independent ore source. The Study also highlights the opportunity for Phase14A techniques to be applied to future cutbacks at Lihir, potentially unlocking more value. We have also confirmed the deferral of the need for the Seepage Barrier to Q2 FY26, with the potential to further defer the timing of the barrier.”

Summary of Phase 14A Study Findings2,3,7

The Phase 14A Study has identified the following:

  • Estimated project capital expenditure of $179 million
  • Internal Rate of Return (IRR) of 37% (real, after tax)
  • Payback of 2.6 years4
  • Net Present Value (NPV) of $284 million[8]
  • Mill feed increase of 483koz contained gold, with ~400koz of additional gold produced from FY23 to FY26
  • Additional Life of Mine (LOM) gold production of 965koz

The Feasibility Study is expected to be completed in the fourth quarter of FY226, with the expenditures and study scope expected to include:

  • Early Works expenditure of $47 million for fleet procurement and initial bench establishment
  • Trial works for ground support anchors to validate design, costs and schedule
  • Additional drilling and test work to validate ore deposit knowledge

The Lihir Ore Reserves estimate has been updated to include the conversion of the Phase 14A Indicated Mineral Resource to Probable Ore Reserves, increasing Lihir’s Total Ore Reserves by 1Moz to 23Moz as at 30 June 20215.

Mining of Phase 14A is expected to take place between FY22 and FY26. Ore mined from this Phase will replace lower grade ore feed to the processing plant, with an initial 13Mt of high and medium grade ore from Phase 14A planned to be fed between FY22 and FY26. Lower grade material will be stockpiled and fed progressively over the remaining LOM. This is expected to deliver an additional 965koz of gold production over the LOM.

In addition, Newcrest has completed its Seepage Barrier Feasibility Study, which enables further definition of the expected construction costs and schedule. The findings from the project field trials indicate that the Seepage Barrier can be constructed using hydromill cutters and grouting methods. Approval of the Seepage Barrier Feasibility Study to move to Execution has been deferred until FY23, in line with the findings of the Lihir Mine Optimisation Study (LMOS) which established that the eastern limits of Phases 16 and 17 could be moved further east, deferring the need for the Seepage Barrier by ~18 months to Q2 FY26.

Table 1: Key Phase 14A Study Findings7

Study Outcomes
Area Measure Unit Phase 14A2,3 LOM9
Production Ore milled / milling rate (max) Mtpa 15.5 15.5
Ore milled Mt 310
LOM Years 5[10] 22
Ore mined Mt 20.5 236
Average gold grade g/t 2.4 2.3
Gold produced Moz 1.0 19
Capital Production stripping (capitalised) US$m (real) 111
Sustaining capital US$m (real) 69
Total capital US$m (real) 179
Economic assumptions Gold price US$/oz 1,500
Financials11 NPV8 US$m (real) 284
IRR % (real) 37
Payback period4 Years 2.6

Phase 14A Overview2

In February 2021, Newcrest announced the findings of the LMOS which included the identification of a new, essentially brownfield opportunity called Phase 14A. The Phase 14A Study focused on extending the Phase 14 cutback and safely steepening the walls of the pit by utilising civil engineering techniques to access existing Indicated Mineral Resources which would have otherwise been inaccessible through standard mining techniques. The Phase 14A cutback is expected to provide an additional mining front enabling further flexibility for fresh competent ore feed. The Phase 14A cutback is fully permitted and is within the existing mine lease.

Field trials of the wall support technology are planned for the December 2021 quarter6, with long lead materials to be ordered and the engagement of specialist contractors in progress.

The addition of Phase 14A into the Lihir mine plan accelerates Newcrest’s aspiration for Lihir to be a 1Moz+ per annum producer from FY24.

Mining of Phase 14A is expected to take place from FY22 to FY26 and include:

  • Total ex-pit mining of 34Mt, including 13Mt of high and medium grade ore at an average of 3g/t, which will displace lower grade ore (mostly stockpile) that would otherwise have been processed in the mill
  • An uplift in the total mill feed grade and an additional 483koz of gold in feed and 400koz recovered gold over FY23 – FY263
Material Class Tonnage (Mt) Au Grade (g/t)
High Grade (HG) 4.5 4.5
Medium Grade (MG) 8.5 2.2
Low Grade (LG) 7.5 1.3
Waste 13.5
Total 34
Stripping Ratio (Waste: Ore) 0.66

Table 2: Phase 14A Inventory Summary3

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Figure 1: Phase 14 Mining ore production by financial year3

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Backfilling the cutback will occur after the completion of mining and will act as a buttress supporting long-term stability of the highwall.

A program of infill resource definition drilling and trial installations of the ground anchors is underway and will be completed in FY22. This program is expected to improve resource definition, further reducing project risk.

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Figure 2: Lihir Mine cutbacks including Phase 14A

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The Phase 14A design utilises civil engineering techniques, in conjunction with existing mining practices, to increase pit wall angles. The upper Argillic horizons without ground support typically have an unsupported slope angle of ~45° which has been increased to ~77° using soil anchors to provide stability. The soil anchors will be installed in the upper benches of the cutback to support the steeper wall angles in these areas. The slope angles of the lower benches will be similar to the existing walls in Phase 14. The increase in pit wall angle enables access to ore within the current permitted pit shell.

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Figure 3: Phase 14A design showing current vs supported design slopes

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The soil anchors provide ground support in the form of multi-strand anchors with shotcrete and/or high tensile wire mesh as face support in the Argillic and upper Epithermal zones.

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Figure 4: Phase 14A wall stabilisation design

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To integrate with the civil construction, mining will be conducted by a dedicated mining fleet which will comprise a small excavator and dump trucks mining 3m flitches. The 3m flitches are required to provide a working platform for installation of soil anchors at 3m vertical spacings.

The Lihir base case gold production schedule projects mining rates to increase up to 50Mtpa over the coming years and an average milling rate of 15.5Mtpa9. Ore from Phase 14A is expected to be mined between FY22-26 and will be processed over the LOM.

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Figure 5: Lihir LOM indicative gold production profile9

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Base Case Expit Mining to 50Mtpa

Mining rates for Lihir are expected to increase (as identified in the LMOS) over the coming years through a combination of equipment capacity and mining efficiency projects. Additional mining capacity is expected to be delivered through increased truck availability as a result of a program of truck re-builds and the replacement of primary dig units. This program is currently underway and is scheduled to be completed by December 20216.

Mine efficiency improvements identified in the Study include improved fleet utilisation, which is expected to be achieved by increasing operator availability and improving dispatch tactics to reduce equipment delays.

Process Plant Improvements12

Newcrest is currently implementing numerous throughput improvement initiatives which are targeting the achievement of a process plant throughput rate of 15.5Mtpa from FY24. Lihir has previously demonstrated annualised milling performance rates of ~16Mtpa during Q4 FY18 and Q4 FY19.

Recovery Improvements

Recovery improvements are expected to be achieved through a combination of increasing mill feed grades, improved feed blends and recovery improvement projects that are currently in progress. Phase 14A is expected to provide additional fresh ore to the mill, offsetting lower grade and lower performing recovery material types.

The Front End Recovery project is expected to deliver increased recoveries from the beginning of FY23, with further studies assessing recovery improvements underway.

Project Investment

The Phase 14A Project requires a total capital investment of $179 million and comprises:

Activity $m2,7
Study and trial costs 22
Mining and ancillary fleet
(Excluding contractor ground support equipment)
46
Production stripping cost (capitalised) 111
Total 179

Production Stripping

Pre-production stripping of Phase 14A waste material is expected to commence in the second half of FY226. Due to the initial civil works requirements and available bench space, there is expected to be a ramp up of the mining rate to a peak of ~1Mtpa per month through FY23 and FY24.

Phase 14A has a very low strip ratio of 0.66 and as such will start producing HG and MG ore within six months from the commencement of mining. This is expected to provide significant HG mill feed through FY24 and FY25, lifting intended production rates to 1Moz+ per year from FY24, prior to completion of pre-stripping in Phase 179.

Indicative Mine Production Profile (Includes Phase 14A)9,13,14,15

Year Sources Total Material Movement (Mt)[16] Waste (Mt) Tonnes to Stockpile
(Mt)
Ex-Pit
Tonnes
Fed (Mt)
Stockpile
Tonnes
Fed (Mt)
Plant
Feed
(Mt)
17
Average
Gold Grade (g/t)
FY22-24 Lienetz, medium/low grade stockpiles and pre-strip 200 – 220 100 – 120 15 – 25 25 – 35 10 – 20 40 – 50 2.4 – 2.6
FY25-27 Lienetz, Kapit, medium/low grade stockpiles and pre-strip 210 – 230 90 – 110 25 – 35 25 – 35 10 – 20 40 – 50 2.8 – 3.0
FY28-30 Lienetz, Kapit, low grade stockpiles and pre-strip 160 – 180 80 – 100 5 – 15 10 – 20 30 – 40 40 – 50 2.4 – 3.0
FY31-33 Lienetz, Kapit, Minifie and low grade stockpiles 140 – 160 40 – 60 20 – 30 25 – 35 10 – 20 40 – 50 2.6 – 3.0
FY34-36 Lienetz, Kapit, Minifie and low grade stockpiles 130 – 150 50 – 70 10 – 20 25 – 35 10 – 20 40 – 50 2.0 – 2.3
FY37-39 Minifie and low grade stockpiles 50 – 70 0 – 10 0 – 10 0 – 10 40 – 50 40 – 50 1.3 – 1.5
FY40-42 Minifie and low grade stockpiles 30 – 50 0 – 10 0 – 10 0 – 10 25 – 35 25 – 35 1.2 – 1.3
FY43+ Remaining Reserves subject to ongoing study

Metal Price and Exchange Rate Sensitivity Analysis2,3,7

The IRR of the Phase 14A Project will vary according to the gold prices realised. Base case assumptions include a gold price of $1,500/oz.

The table below outlines how the estimated Base Case Phase 14A Project IRR of 37% varies using different price assumptions:

Scenario Assumption IRR
Gold price ($/oz) 1,200 22%
1,800 51%

Seepage Barrier Feasibility Study Update18

The development of the Kapit orebody requires construction of a seepage barrier to cut off ocean water inflows from Luise Harbour to the open pit as shown in Figures 6 and 7.

The LMOS defined a base case for the Lihir mine plan which found that through further geotechnical analysis, the eastern limits of Phases 16 and 17 could be moved further east, deferring the need for the Seepage Barrier by
18 months to Q2 FY26 to coincide with mining Phase 18.

Additional mining studies are underway to identify further options to delay timing and/or alter the scope for the Seepage Barrier, including:

  • Kapit Pit Slope Optimisation (steepening of pit walls using conventional methods)
  • Installation of a mini seepage barrier to access Phase 18 without the need for the full seepage barrier
  • Combined pit slope steepening with a mini seepage barrier

The Seepage Barrier Feasibility Study has further defined the technical elements, cost and execution of the Seepage Barrier. It has determined:

  • A cut-off wall can be constructed in line with the designed method using standard hydromill cutters and grouting methods with a sea water slurry cooling system and confirmation of the concrete mix
  • An expected capital cost of US$569 million7
  • Construction duration of approximately 72 months

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Figure 6 & 7 – Cut of wall Alignment and Seepage Barrier / Kapit Pit at EOM

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Estimated Development Capital Profile7,18

FY23 FY24 FY25 FY26 FY27 FY28 FY29 Total
Stage 1 – Cut-Off Wall ($m) 30 74 194 52 350
Stage 2 – Seepage Control Berm ($m) 35 95 70 19 219
Total ($m) 30 74 194 87 95 70 19 569

Lihir Mineral Resource19

The Lihir Mineral Resource has been updated for mining depletion to 30 June 2021 from that reported in the Annual Mineral Resources and Ore Reserves Statement as of 31 December 2020. All other assumptions remain unchanged. A summary of material assumptions is included in Appendix 1, JORC Table 1. It is reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 (JORC Code). Mineral Resources are reported inclusive of Ore Reserves. Mineral Resources that are not Ore Reserves do not have demonstrated economic viability.

Mineral Resource Gold
Mt g/t Moz
Measured Mineral Resource 63 2.0 4.0
Indicated Mineral Resource 530 2.3 39
Total Measured and Indicated 590 2.2 43

Mineral Resource Gold
Mt g/t Moz
Inferred Mineral Resource 67 2.3 4.9

Lihir Ore Reserve19

A summary of material assumptions is provided below and included in Appendix 1, JORC Table 1. There are no material differences between the definitions of Probable Ore Reserves under the JORC Code and the equivalent definitions under the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves.

Ore Reserve Gold
Mt g/t Moz
Proved Ore Reserve 63 2.0 4.0
Probable Ore Reserve 250 2.4 19
Total Ore Reserve 310 2.3 23

Material Assumptions for Ore Reserves

Lihir is an operating open pit mine on Lihir Island, and the Study incorporates learnings from operational execution to date. Work is progressing on a Feasibility Study for the Phase 14A cutback and any adjustments to the Ore Reserves statement will be made following the completion of the Feasibility Study.

Ore Reserve Classification

All of the in-situ Probable Ore Reserve is based on Indicated Mineral Resources. The Proved Ore Reserve is based on Measured Mineral Resources defined for known and quantified low grade stockpiles. The in-situ resource classification is based on an assessment of geological confidence as a function of geological and mineralisation continuity.

Mining Method

Current mining activity at Lihir is via conventional truck and shovel operation, with offshore barge disposal of waste rock and land based and in-pit stockpiling and reclaim of lower grade ore.

Ore Processing

Ore processing at Lihir involves the main operations of crushing, grinding, flotation, pressure oxidation, leaching and electrowinning to recover gold from relatively high-grade sulphide feed producing gold doré. The Lihir process plant utilises proven technology that is widely used in the gold industry for this style of mineralisation. The ore processing facility has been operating since it was commissioned in 1996 and upgrades took place during 2011 and 2012. Comminution circuit operating optimisations and minor upgrades are planned to achieve a 15.5Mtpa plant capacity12.

The metallurgical recovery assumption for ore feed to the autoclave is dependent on the gold and sulphide sulphur grades, and dependent on sulphur to calcium ratio and proportion of aged stockpile feed for flotation material. Overall metallurgical recovery is reconciled with historic production data, laboratory test samples for stockpiled ore and reflects a partial oxidation metallurgical operating strategy. Average life of mine gold recovery is modelled to be 81-82%.

Cut-Off Grade

Lihir open pit employs a grade based cut-off, taking into account gold price, metallurgical recovery assumptions and site operating costs. The site operating costs include transport and refining costs, royalty charges, mining and processing costs, relevant site general and administration costs and relevant sustaining capital costs. These costs equate to a break even cut off value of US$38/t milled used to define the ultimate pit shell and a marginal cut off value of US$33/t milled or 1.0 g/t gold used to define ore and waste material within the ultimate pit shell.

The marginal site cost is based on an end of mine life low grade stockpile reclaim strategy, reducing the site activity and long term cost base. The mining cost in the marginal site cost represents the stockpile reclaim cost.

Estimation Methodology

Estimation of the Lihir Ore Reserve involved standard steps of mine optimisation, mine design, production scheduling and financial modelling. Factors and assumptions have been based on operating experience and performance at the Lihir operations. The Ore Reserve has been evaluated through a financial model. All operating and capital costs as well as Ore Reserve revenue factors stated in this document were included in the financial model. A discount factor of 4.5% real was applied. This process demonstrated that the Lihir Ore Reserve has a positive NPV. Sensitivities were conducted on the key input parameters including commodity prices, capital and operating costs, ore grade, discount rate, exchange rate and recovery which confirmed the estimate to be robust.

Material Modifying Factors

The resource estimation process allows for ore dilution and recovery to be built into the resource model based on the assumption of the selective mining unit (SMU) as the block size. The SMU assumption is based on the mining fleet size and is consistent with a high mill throughput/bulk mining strategy. Due to the Localised Uniform Conditioning (LUC) approach adopted in the resource model no additional mining dilution or recovery factors have been applied to the Ore Reserve estimate.

This assumption is supported by the actual reconciliation between resource model and mill performance at Lihir to date being within an acceptable uncertainty range for the style of mineralisation under consideration.

The pit optimisation takes into account Inferred Mineral Resources, however only Measured and Indicated Mineral Resources are reported in the Ore Reserve estimate. The Inferred Mineral Resource represents a small portion of material within the ultimate pit design and both the design and financial model are insensitive to the exclusion of this material.

Civil engineered wall support is required for the Phase 14A cutback to allow access to the orebody. The cutback design also requires mining by a fleet of small equipment owing to the narrow ramp configuration required. Allowances for these activities are included in the preparation of the Ore Reserve estimate.

Other Modifying Factors

Lihir Gold Limited and the Lihir Open Pit are in material compliance with all legal and regulatory requirements. Naturally occurring risks that might have a material impact upon the Lihir ore reserve are discussed in the risks section of Newcrest’s Operating and Financial Review (in the Appendix 4E and Financial Report for the year ended 30 June 2021 which is available to view at www.asx.com.au under the code “NCM” and on Newcrest’s SEDAR profile) and include the potential impacts of seismic activity.

Environmental permitting for the Phase 14A Project has been assessed and approved by the Conservation and Environment Protection Authority (CEPA).

The known legal, political, environmental or other risks that could materially affect the potential development of the mineral resources or ore reserves are identified in Sections 3 and 4 of Appendix 1.

Appendix 1

JORC Table 1 – Lihir (100% Newcrest)

Section 1: Sampling Techniques and Data

Criteria Commentary
Sampling techniques Lihir is located in an active geothermal area and procedures have been developed to ensure that all drilling activities are conducted in a safe manner which is appropriate for when zones of high pressure steam are intersected. Data used for the resource estimation is obtained by two main drilling methods – diamond coring and reverse circulation (RC) drilling. All available diamond drill holes are sampled by cutting the core in half with a diamond saw with sample intervals being either 1m or 2m in length. Half the cut core is placed in a calico bag with a sample number and sent to the laboratory for assaying. All RC drilling was sampled at 1m intervals collected via a cyclone and split with a riffle splitter. The riffle split sample size of 4-5kg is placed in a calico bag with a sample number and sent to the laboratory for assaying.
Drilling techniques Drilling is the primary source of data for Mineral Resource estimation at Lihir. Data is obtained from two main drilling methods-diamond coring and RC drilling. The majority of drilling for the resource estimation is diamond drill core (93%), comprising PQ (84.8 mm core diameter), HQ (63.5 mm core diameter) and NQ (47.6 mm core diameter). Very little core orientation is performed on site as the structurally complex and geothermal conditions make it very difficult to obtain accurate orientations. Minor (~7%) of resource drilling is RC (5 1/4′” diameter) completed prior to 2002 used both vertical and angled holes. Since 2002 all resource drilling has been comprised of diamond core. Stockpile drilling is campaigned using an RC rig with a 4″ bit. Hole lengths are routinely 36m.
Drill sample recovery Core recovery is recorded and stored in an acQuire software database. There are only minor zones of core loss or poor core recovery. Core recovery is generally excellent with average core recoveries around 99%. There is no identified relationship between core loss and grade and the style of mineralisation suggests this is unlikely. There are no records of RC sample recovery.
Logging All diamond drill holes are geologically logged. Due to the nature of the intense alteration core is qualitatively logged for lithology and alteration and quantitatively logged for structure and geotechnical parameters. All core is logged and photographed after marking up metre intervals and prior to cutting and sampling. Logging data are entered into the acQuire database via a laptop computer or historically via manual data entry.
Sub-sampling techniques and sample preparation The sampling technique used is considered appropriate for the assessment of Lihir mineralisation. At the completion of drill core logging, the geologist defines which intervals of a drill hole are to be cut for analysis. All recent drilling is analysed on 2m intervals on the metre mark. PQ and HQ sized drill core is sampled by cutting the core in half with a diamond blade saw when intact and competent. The left hand half is placed in a calico bag marked with the appropriate sample number and sent to the assay laboratory for analysis. Where the core is too soft to be cut with a diamond saw, a knife is used to cut the core in the core tray. Where the core is too broken or brittle to be cut by the saw, the fragments are manually sampled. NQ sized core is not cut in half as the entire section is sampled so that sample support is maintained. The standard sampling interval is 2m but has varied over time from 1m to 2m. The remaining half core is stored in the original trays on pallets at the core processing facility.

Lihir has a sample preparation facility at the mine and up to January 2015 there are records for crusher duplicates. Drill core was crushed and RC and blast hole samples were dried and loaded into the pulverisers without laboratory splitting. After 2015 there was a reduction in core sampling and all samples were transferred directly to a bank of 6 * LM5 pulverisers without crushing or splitting. There are two standby jaw crushers with a small single deck riffle splitter which are rarely used.

Sample preparation for analysis is as follows: Samples are crushed if required to 10mm maximum diameter and split to a nominal weight of 2.5 – 3kg using a riffle splitter. Split samples are dried in an oven at 105°C until dry. Each sample is pulverised using a Labtechnics LM5 pulverizing mill to specified grind parameters of 95% passing 106µm. A 200g sub-sample is collected for analysis and submitted to the assay laboratory. Pulp replicates (not duplicates) are routinely undertaken. Crushed and pulp duplicates are collected at the Orange laboratory.

The sample preparation and size is considered appropriate for assessment of bulk tonnage mineral deposits of this type.

Quality of assay data and laboratory tests The Lihir onsite laboratory has been the primary laboratory used for assaying, with some more recent assaying completed at the Newcrest Services laboratory (Orange, NSW).

Samples are routinely assayed for gold and sulphur. Gold analysis is by fire assay with 25g charge and Atomic Absorption Spectroscopy (AAS) finish and detection limit of 0.01ppm (g/t), which is considered complete. Sulphide sulphur is by Labfit method where the sample is ignited at high temperature in a stream of oxygen. The resulting sulphur dioxide is measured by an infra-red detector using a Carbon/Sulphur analyser.

A detailed Quality Assurance/Quality Control (QAQC) program is in place for on-going assessment of sampling and analytical procedures. The process currently involves analysis of blind submissions of certified reference material (standards) to Lihir laboratory, duplicates from the LM5 pulveriser pulp, assayed during the same batch, blind resubmission of pulps to Lihir laboratory, replicate submissions of pulps to an alternative laboratory for analysis, submission of coarse blank samples (non-Lihir Island barren rock samples), checks on grind and crush size from the sample preparation steps and laboratory inspections and monthly QA/QC meetings. A monthly report is prepared detailing QA/QC performance to support the Mineral Resource estimate. There have been 30 standards used, not all of which were certified for sulphur. The first 16 standards were commercially available standards. Since 2008, there have been 14 standards used, all matrix-matched.

Data suggests that during the period between 2007 and 2012 there was a positive bias of between 5 and 20% in sulphide sulphur analysis conducted at Lihir laboratory data acquisition compared to standards reference materials. This suggests the Lihir method during this period reflects a total sulphur assay rather than the sulphide sulphur of the certified reference materials. In 2013 alternative sulphide sulphur techniques were introduced at Lihir which have improved the method accuracy. A further sulphide sulphur methodology improvement was implemented in 2016, with the installation of the Leco Infrared combustion analytical equipment.

Verification of sampling and assaying All data and interpretative inputs to Mineral Resource estimates are checked and verified in accordance with a range of Newcrest standard operating procedures. Procedures were also in place for all historical drilling programs at Lihir. Diamond drill core samples are processed in-house using a dedicated core processing facility, sample preparation and analytical laboratory. All resource logging data is automatically uploaded to the resource database via logging notebook computers. Newcrest employs a centralised resource drill hole database team to check, verify and validate new data and to ensure the integrity of the total resource database. Day-to-day management of the resource data is undertaken by the database administrator on site using the acQuire database system. Prior to resource estimation a centralised resource team conducts further data checks to ensure data integrity prior to estimation.

Regular internal and external reviews of all geological and Mineral Resource estimation processes are conducted to check the quality and integrity of these procedures. No adjustments have been made to assay data.

Location of data points The grid applied is a local Mine Grid that has it based on AMG Zone 56.

The original topography surface is a Light Detection and Ranging (LIDAR) surface created pre-mining. Mining activities are surveyed each month and incorporated into a topographic surface model for depletion purposes.

All completed drill hole collars are surveyed by the mine surveyors.

A variety of methods have been used to measure down hole deviation (dip and azimuth), including conventional borehole camera, electronic single shot and gyroscopic methods. The majority of the holes have been surveyed using conventional borehole camera methods.

Data spacing and distribution Historical drilling has been nominally on 35m eastings, but noting the orebody is generally insensitive to drill orientation due to complex mineralisation events.

The Mineral Resource has been classified into Indicated and Inferred Mineral Resource after assessing the following factors: drill hole spacing (only areas drilled to 70m x70m drill density have been classified as Indicated Resource), style of mineralisation and geological continuity, data quality and associated QA/QC, grade continuity and proposed mining selectivity and scale of mining. Refer Section 3 Resource Classification for further details.

The data spacing and distribution is sufficient to establish geological and grade continuity appropriate for Mineral Resource estimation and classification and supported by historical reconciliation with actual production results.
Samples for estimation purposes have been taken, but no physical compositing of samples has occurred during the analysis process.

Orientation of data in relation to geological structure Gold mineralisation in the Luise Caldera is hosted within volcanics, intrusives, and breccias which have undergone extensive alteration. Two major alteration episodes have been identified which have destroyed much of the original host rock lithologies, and due to this an “ore type” classification has been developed based largely upon various combinations of alteration, hardness, the degree of brecciation and/or leaching of matrix material, and the presence of late stage anhydrite veining. The deposit is generally sub-horizontal.

The nature of the mineralisation distribution is such that it is insensitive to drill orientation with a wide variety of orientations having been used. Diamond holes prior to 2002 are predominantly vertical, with angled holes used subsequently to define the Mineral Resource. RC holes completed prior to 2002 used both vertical and angled holes.

Sample security Samples were transported from drill site to core shed and to site laboratory, all within the operational security zone of the mine. Sample dispatches are reconciled against Laboratory samples received and discrepancies reconciled by geology staff.
Audits or reviews An independent review of assaying and QAQC in September 2012 concluded: “The historic assay bias for gold has now been rectified at Lihir, sulphur from sulphide has not been assayed correctly at Lihir laboratory during some stages of the life of operation. Assaying precision for gold is considered consistent with industry standards but lacking for sulphide sulphur. Overall the quality of the Lihir laboratory is now well controlled.”

Section 2: Reporting of Exploration Results

Criteria Commentary
Mineral tenement and land tenure status Mining and ore processing operations at Lihir are conducted pursuant to a mining development contract with the State of Papua New Guinea and the related special mining lease, and a series of granted mining leases, exploration licenses, leases for mining purposes and mining easements, and associated environmental and other approvals. The granted tenements and permits cover all infrastructure in the immediate vicinity of the mine site, including the open pit, accommodation, plant site, power station, waste-rock and tailings disposal, and bore fields. All infrastructure is in place for the continued operation of Lihir.

Current tenements granted under the PNG Mining Act comprise Special Mining Lease (SML) 6, two granted Mining Leases (MLs) and one granted Exploration Licence (EL), plus a number of miscellaneous mining purpose and easement leases. The total area under lease/licence is approximately 250 km2. The Mineral Resource lies entirely within SML 6. The registered holder for all tenure is Lihir Gold Limited, a wholly-owned subsidiary of Newcrest Mining Limited since late 2010. SML 6 expires 16 March 2035 and EL485 expired on 31 March 2020. Process for a new renewal from 1 April 2020 to 31 March 2022 was delayed by COVID-19 restrictions and will be lodged for EL485. The two MLs are current to July 2025.

Exploration done by other parties The first systematic mineral exploration in the area was by the PNG Bureau of Mineral Resources and the Geological Survey of PNG between 1969 and 1974. In their report (which was released in 1982), it detailed the hydrothermal alteration and thermal activity on Lihir Island and suggested that it was a favourable geologic environment for epithermal gold mineralisation.

The Ladolam gold deposit was initially discovered in 1982 by joint venture between Kennecott Exploration and Niugini Mining. A feasibility study was completed by Kennecott Mining in March 1992. In the mid 1990’s a joint venture was formed between Kennecott Mining and Rio Tinto. Lihir Gold Limited (LGL) was subsequently formed to hold the Mining Development Contract, the Special Mining Lease and associated tenure. Mining operations commenced at Lihir in 1997.

In 2005 Rio Tinto sold its interest in LGL, then, in late 2010, Newcrest Mining Limited acquired LGL by scheme of arrangement.

Geology Exploration has identified several adjacent and partly overlapping mineral deposits in the Luise Caldera, which are collectively called the Ladolam Deposit. The principal component deposits are called Lienetz, Minifie, Coastal and Kapit. Gold mineralisation in the Luise Caldera is contained in a hydrothermally-altered porphyry gold system with the gold hosted in volcanic, intrusive and breccias within the caldera. Two major alteration episodes have been identified which have destroyed much of the original host rock lithologies, and due to this an “ore type” classification has been developed based largely upon various combinations of alteration, hardness, the degree of brecciation and/or leaching of matrix material, and the presence of late stage anhydrite veining. The majority of the gold is contained in sulphides.

The limits of the mineralisation have not been completely defined and the deposit remains are open at depth, along strike and to the east (currently limited by the Pacific Ocean).

Drill hole Information No exploration has been reported in this release, therefore there is no drill hole information to report. This section is not relevant to this report on Ore Reserves and Mineral Resources.

Comments relating to drill hole information relevant to the Mineral Resource estimate can be found in Section 1 – “Sampling techniques”, “Drilling techniques” and “Drill sample recovery”.

Data aggregation methods No exploration has been reported in this release, therefore there are no drill hole intercepts to report. This section is not relevant to this report on Ore Reserves and Mineral Resources.

Comments relating to data aggregation methods relevant to the Mineral Resource estimate can be found in Section 1 – “Sampling techniques”, “Drilling techniques” and “Drill sample recovery”.

Relationship between mineralisation widths and intercept lengths No exploration has been reported in this release, therefore there are no relationships between mineralisation widths and intercept lengths to report. This section is not relevant to this report on Ore Reserves and Mineral Resources.
Diagrams No exploration has been reported in this release; therefore no exploration diagrams have been produced. This section is not relevant to this report on Ore Reserves and Mineral Resources.
Balanced reporting No exploration has been reported in this release, therefore there are no results to report. This section is not relevant to this report on Ore Reserves and Mineral Resources.
Other substantive exploration data Previously reported drilling results have confirmed the extension of geological and grade continuity beyond the current Mineral Resource seaward constraint.
Further work A concept study of mining beyond the current seaward constraint of the Mineral Resource is required to assess the reasonable prospects for eventual economic extraction of identified mineralisation outside the current Mineral Resource seaward constraint.

Section 3: Estimation and Reporting of Mineral Resources

Criteria Commentary
Database integrity Data is stored in a SQL Server database known as acQuire. Assay and geological data are electronically loaded into acQuire and the database is replicated in Newcrest’s centralized database system. Regular reviews of data quality are conducted by site and corporate teams prior to resource estimation, in addition to external reviews.
Site visits The Competent Person for the Lihir Mineral Resource is part of the operational management team for Lihir Mine.
Geological interpretation Gold mineralisation in the Luise Caldera is hosted within volcanics, intrusives, and breccias which have undergone extensive alteration. Two major alteration episodes have been identified; an earlier and deeper “porphyry style” event resulting in potassic alteration grading laterally into propylitic alteration, and a later and higher level epithermal event producing argillic, advanced argillic, phyllic, and lower temperature potassic alteration. This intensive alteration has destroyed much of the original host rock lithologies, and due to this an “ore type” classification has been developed based essentially upon various combinations of alteration, hardness, the degree of brecciation and/or leaching of matrix material, and the presence of late stage anhydrite veining. The ore types are roughly sub-horizontal in occurrence and form a fairly consistent vertical sequence of clay-rich rock, grading into white mica-feldspar rock, then feldspar-biotite and, at depth, into feldspar-biotite-anhydrite rock. Within and at the boundaries of the ore types, geological structure is also a major influence on the localization of higher gold grades in the orebodies.
Dimension The maximum extent of the Mineral Resource is 3km x 1km x 350m. The deposit is generally sub-horizontal with the reporting of the Mineral Resource extent limited by a seaward constraint. An exploration target known as Kapit North East is a seaward extension outside the Mineral Resource.
Estimation and modelling techniques The Lihir resource estimate contains estimates for gold, arsenic, silver, copper, carbonate, molybdenum and sulphide sulphur. Gold is the primary economic metal with sulphur and carbonate estimates required for autoclave feed management. Estimates of minor elements are required to assist with overall plant performance management.

The estimation for each element was undertaken using the non-linear estimation method of Localised Uniform Conditioning (LUC) and is based on an underlying ‘diffusion’ model, where, in general, grade tends to trend from lower to higher values and vice versa in a relatively continuous way. Raw data was composited to 12m intervals for gold and all other elements. Uniform Conditioning (UC) was used to estimate gold and sulphide sulphur within 100x100x12m panels. The UC model was converted to a LUC model into 20m x 20m x 12m blocks that define the selective mining unit (SMU). Ordinary Kriging (OK) was used for the local estimation of density into the SMU blocks. All other elements (arsenic, silver, copper, carbonate, molybdenum and calcium) were estimated into the SMU. All elements are estimated independently of each other.

In 2017 the estimation domains were updated for geologically interpreted fault blocks as well as geometallurgical domains. These were assessed and validated using contact analysis. Nine estimation domains were used for gold (used also for sulphide sulphur, carbonate, silver, arsenic, copper and molybdenum). Top cutting of extreme values for each element was done on a domain basis by examining the histogram of data such that the top 1% samples were cut so that they contained approximately 10% or less of total metal (for example this ranged from 4 to 30 g/t for gold domains).

The resource estimate is validated via visual, geostatistical and production reconciliation methods.

The December 2017 model is the basis of the Lihir December 2020 Mineral Resource.

Moisture All tonnages are calculated and reported on a dry tonnes basis.
Cut-off parameters Lihir open pit employs a grade based cut-off, taking into account metallurgical recovery assumptions, transport costs, refining charges and royalty charges. The site operating costs include mining cost, processing cost, relevant site general and administration costs and relevant sustaining capital costs. These costs equate to a break even cut off value of US$40/t milled used to define the ultimate pit shell and a marginal cut off value of US$35/t milled or 1.0 g/t gold used to define ore and waste material within the ultimate pit shell.

The marginal site cost is based on an end of mine life low grade stockpile reclaim strategy, reducing the site activity and long term cost base. The mining cost in the marginal site cost represents the stockpile reclaim cost.

Mining factors or assumptions The Mineral Resource estimate is reported within a constraining notional pit shell. The Lihir deposit is extracted via a large Open Cut. Consequently, some aspects of the model construction reflect the proposed bulk mining method of open pit mining on 12 m benches with a 20m x 20m selective mining unit.
Metallurgical factors or assumptions Gold extraction is by pressure oxidation of ore from a combination of direct feed and flotation feed sources depending on sulphur levels. The target sulphur content in slurry to the autoclave is in the range 5-10% to ensure auto-thermal operation of the autoclave. Ore blending and flotation plant operation is undertaken in a manner to maintain feed sulphur content in this range. Metallurgical test work and operating experience at site has shown that there are four main rock /alteration domain groups identified as: Argillic Clay, Advanced Argillic, Epithermal and Porphyry.

Gold recoveries recognise float recovery differences between in-situ and stockpile material, and overall neutralisation cyanidation adsorption (NCA) recovery formulae reflect oxidation intensity.

Environmental factors or assumptions Lihir operations comprise an open pit mine, ore processing plant, and associated supporting infrastructure. Higher-grade ore is processed via pressure oxidation and carbon-in-leach cyanidation methods, with lower grade ore stockpiled for later processing. Lihir uses deep sea tailings placement (DSTP). In view of the heavy rainfall typically experienced on Niolam Island, the lack of suitable area for a tailings storage facility and the high seismicity of the region, DSTP was the preferred tailings placement method for Lihir. The plant tailings are premixed with sea water within the confines of the mining lease before being placed offshore. Baseline studies were undertaken prior to the approval by PNG environmental authorities and commencement of the DSTP. Regular monitoring is undertaken to verify the operational performance of the system and is subject to the regulatory criteria established by the PNG CEPA. Waste rock from the mine is either used for construction purposes or transported in barges for off-shore submarine disposal. Submarine disposal is carefully planned and controlled to achieve a continuous rill slope along the steeply dipping sea floor and to prevent uncontrolled slumping triggering a rise in water levels.

The Mineral Resource assumes the continued use of these waste management processes.

Bulk Density All bulk density measurements are carried out in accordance with site standard procedures for Specific Gravity. The physical determination of bulk density is undertaken on solid pieces of core, 10cm in length. Intervals for bulk density determination are selected according to lithology or alteration / mineralisation type (to best represent certain intervals as defined by the geologist). The measurements are performed on site (as part of the logging process), by geological assistants. Measurements are generally taken at 50m intervals down hole, or more frequently if required. This is a dry air method of analysis.

Ordinary Kriging (OK) was used for the local estimation of density into the nine geometallurgical domains.

Classification The in-situ Mineral Resource has been classified into Indicated and Inferred based on grade continuity assessments using the criteria of slope of regression (SOR) and the variogram weighted distance (WTD). For Indicated classification a guideline of SOR > 0.7 and WTD 0.65 and WTD
Audits or reviews The current Mineral Resource estimate has been externally reviewed by SRK in December 2017 and there were no issues or concerns with the Mineral Resource inputs, process and execution. SRK concluded that the Mineral Resource estimate was suitable for reporting in accordance with the requirements of the JORC Code (2012).
Discussion of relative accuracy/ confidence For an Indicated Resource it is considered reasonable for the relative uncertainty to be +/- 15% in tonnage, grade and metal (exclusive of each other, i.e., each variable has to satisfy the criteria) for an annual production volume at a 90% confidence level. Geostatistical evaluations indicate that based on the annual processing throughputs from the pits this criteria is satisfied globally within the deposit. Relative uncertainties and confidence level estimates are only considered for gold as it is the primary economic contributor.

Detailed monthly mine reconciliations have been maintained since production commenced. The mine reconciliations since 2012 confirm that the in-situ tonnage, grade and metal variances are well within the Indicated Resource relative uncertainty band, globally.

Section 4: Estimation and Reporting of Ore Reserves

Criteria Commentary
Mineral Resource Estimate for conversion to Ore Reserves A technical description of the Mineral Resource estimate that provided the basis for the December 2020 Lihir Ore Reserve estimate is presented in the preceding sections to this table.

The Ladolam gold deposit is located within the Louise Caldera, on the eastern side of Lihir Island, New Ireland Province, Papua New Guinea. Gold mineralisation in the Luise Caldera is hosted within volcanics, intrusives, and breccias that have undergone extensive alteration. The ore body is contained in a hydrothermally-altered porphyry gold system with the gold hosted in volcanic, intrusive and breccias within the caldera. The majority of the gold is contained in sulphides.

The Measured and Indicated Mineral Resources reported in the Mineral Resource report are inclusive of those Mineral Resources modified to produce the Ore Reserves Estimate herein.

Site Visits The Competent Person for the Ore Reserve estimate is an employee of Newcrest Mining Limited and at the time of Phase 14A Ore Reserve preparation was the Senior Specialist – Long Term Planning. The CP was based on site from 2015 to 2020 providing long term and strategic planning support for operations and technical studies. This experience has been used to validate technical and operating assumptions used in the preparation of this Ore Reserve estimate.
Study Status Production at Lihir commenced in 1996 and it is now a mature and stable operation with well-established mining and processing performance.
Cut-off Parameters Lihir open pit employs a grade based cut-off, taking into account gold price, metallurgical recovery assumptions and site operating costs. The site operating costs include transport and refining costs, royalty charges, mining and processing costs, relevant site general and administration costs and relevant sustaining capital costs. These costs equate to a break even cut off value of US$38/t milled used to define the ultimate pit shell and a marginal cut off value of US$33/t milled or 1.0 g/t gold used to define ore and waste material within the ultimate pit shell.

The marginal site cost is based on an end of mine life low grade stockpile reclaim strategy, reducing the site activity and long term cost base. The mining cost in the marginal site cost represents the stockpile reclaim cost.

Mining factors or assumptions Estimation of the Lihir Ore Reserve involved standard steps of pit optimisation, mine design, production scheduling and financial modelling. Factors and assumptions have been determined as part of a prefeasibility level study completed in 2020, or are based on operating experience and performance.

Current mining activity at Lihir is via conventional truck and shovel operation, with offshore barge disposal of waste rock and land based and in-pit stockpiling and reclaim of lower grade ore. The current mining activities demonstrate the appropriateness of this mining method as the basis of the Ore Reserve estimate.

Phase 14A design parameters are tabled below:

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Geotechnical slope parameters are based on the detailed analysis of ground conditions and other factors which influence geotechnical performance within the Phase 14A cutback. The Phase 14A slope design parameters are also based on the assumption that a comprehensive system of soil nails, cable anchors, mesh, shotcreting and depressurisation is used to provide additional support to the final wall configuration during cutback development, and that a backfill buttress is used to provide long term support after cutback completion. The design parameters are based on current geotechnical experience and a prefeasibility level study for the cutback mining area.

The Lihir Resource Model utilises LUC to estimate block gold content. This process allows for ore dilution and recovery to be built into the resource model based on the assumption of the selective mining unit (SMU) as the block size. The SMU assumption (20m x 20m x 12m) is based on the mining fleet size and is consistent with a high mill throughput/bulk mining strategy. Due to the LUC approach adopted in the resource model no additional mining dilution or recovery factors have been applied to the Ore Reserve estimate. This assumption is supported by the actual reconciliation between resource model and mill performance at Lihir project to date being within an acceptable uncertainty range for the style of mineralisation under consideration.

The pit optimisation takes into account Inferred Mineral Resource, however only Measured and Indicated Resource is reported in the Ore Reserve estimate. The Inferred Resource represents a small portion of material within the ultimate pit design and both the design and financial model are insensitive to the exclusion of this material.

The selected mining method requires civil engineered wall support as described above to allow access to the Phase 14A orebody. The cutback design also requires mining by a fleet of small equipment owing to the narrow ramp configuration required. Allowances for these activities are included in the preparation of the Ore Reserve estimate.
A backfill buttress required for long term support of the final cutback wall prevents mining of some existing Reserves inventory.

Metallurgical factors or assumptions The Ore Reserve estimate is based on a maximum 15.5Mtpa comminution rate plant producing gold doré. Ore processing at Lihir involves the main operations of crushing, grinding, flotation, pressure oxidation, leaching and electrowinning to recover gold from relatively high-grade sulphide feed. The Lihir process plant utilises proven technology that is widely used in the gold industry for this style of mineralisation.

The ore processing facility has been operating since it was commissioned in 1996 and upgrades took place during 2011/2012. Comminution circuit operating optimisations and minor upgrades are planned to achieve a 15.5Mtpa plant capacity.

The metallurgical recovery assumption for ore feed to the autoclave is dependent on the gold and sulphide sulphur grades, and dependent on sulphur to calcium ratio and proportion of aged stockpile feed for flotation material. Overall metallurgical recovery is reconciled with historic production data, laboratory test samples for stockpiled ore and reflects a partial oxidation metallurgical operating strategy. Average life of mine gold recovery is modelled to be
81-82%.

The potential impact of the presence of low concentrations of copper on leaching efficiency and cyanide consumption has been assessed and is not considered an issue for the Ore Reserve estimate. Copper levels are generally below 500ppm, and historical performance indicates that levels below 1000ppm show no material impact.

Environmental Lihir open pit is an operating mine and has been granted an environmental permit for the mining of the Phase 14A cutback.
Infrastructure The Lihir operation is an operating mine and has the necessary infrastructure in place for its continued operation.
Costs Capital and operating costs have been determined as part of the prefeasibility study based on estimated operating costs for a drilling, shotcreting and cable bolt installation program. Reserve cost estimates are considered to be pre-feasibility level. Provision has also been made for capital expenditure required for a fleet of smaller mining equipment suited to the cutback access configuration. Life of cutback non-sustaining capital is estimated in the range of US$60-70 million.

No cost impact is expected from deleterious elements. It has therefore not been necessary to include additional costs relating to minor elements when preparing the Ore Reserve estimate.

Transport and refining charges have been developed from first principles consistent with the application and input assumptions for these costs used by the current operation. Refining charges and transport costs are estimated to average US$2.24/oz of gold.

A royalty of 2.0% of gold revenue (net of refining and transport costs) is divided between federal, provincial governments and local level governments and landowners. A mining levy of 0.5% (net of refining and transport costs) is also applied in the preparation of this reserve estimate.

Revenue factors Long term metal prices and exchange rate assumptions adopted in the December 2020 Reserve estimation process are US$1,300/oz for gold at a AUD:USD exchange rate of 0.75. These assumptions are consistent with Newcrest metal price guideline for December 2020 Ore Reserve period.
Market assessment Newcrest is a price taker and gold is sold on the open market and subject to price fluctuations. Supply and demand for gold from Lihir is not a constraint in the estimation of the Ore Reserve.
Economic The Ore Reserve has been evaluated through a financial model. All operating and capital costs as well as revenue factors stated in this document were included in the financial model. This process demonstrated the Lihir Ore Reserve to have a positive NPV.

Sensitivities have been conducted on the key input parameters of costs and recovery which confirm the estimate to be robust. The NPV range has not been provided as Newcrest considers this to be commercially sensitive information.

Social Engagement with landowners for affected blocks within the cutback footprint and the local community was undertaken through a series of meetings in conjunction with the Mineral Resources Authority (MRA). Approval for the project has been endorsed by block executives as documented in the engagement meeting minutes.

Environmental permitting for the Phase 14A Project has been assessed and approved by CEPA.

Other Lihir Gold Limited and the Lihir Open Pit are in material compliance with all legal and regulatory requirements.

Naturally occurring risks that might have a material impact upon the Lihir ore reserve are discussed in the risks section of Newcrest’s Operating and Financial Review (in the Appendix 4E and Financial Report for the year ended 30 June 2021 which is available to view at www.asx.com.au under the code “NCM” and on Newcrest’s SEDAR profile) and include the potential impacts of seismic activity.

Classification All of the in-situ Ore Reserve is currently derived from Indicated Resources. This classification is based on the density of drilling, the ore body experience and the mining method employed. The only Proved Ore Reserves derived from Measured Resources are those reported in known and quantified stockpiles.

It is the Competent Person’s view that the classifications used for the Ore Reserves are appropriate.

Audits or reviews Golder Associates Pty Ltd (Golder) was commissioned in 2020 to conduct an independent review of the Ore Reserve estimation processes and results that did not include Phase 14A.

Golder concluded that the Ore Reserve had been prepared using accepted industry practice and is considered suitable and reported in accordance with the JORC Code, 2012 Edition.

A competent independent review of the Phase 14A Ore Reserve estimate has been undertaken by Newcrest group planning with no non-compliances or material issues.

Discussion of relative accuracy/ confidence The accuracy of the estimates within this Ore Reserve is mostly determined by the order of accuracy associated with the geotechnical slope parameters, the Mineral Resource model and the cost factors used.

The Competent Person views the Lihir Ore Reserve a reasonable assessment of the global estimate.

Forward Looking Statements

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

These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause Newcrest’s actual results, performance and achievements or industry results to differ materially from any future results, performance or achievements, or industry results, expressed or implied by these forward-looking statements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which Newcrest operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. For further information as to the risks which may impact on Newcrest’s results and performance, please see the risk factors included in the Operating and Financial Review in the Appendix 4E and Financial Report for the year ended 30 June 2021 which is 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 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 within the meaning of Canadian Securities Administrators Staff Notice 52-306 – Non-GAAP Financial Measures. Such information includes: ‘Free Cash Flow’ (calculated as cash flow from operating activities less cash flow related to investing activities and ‘AISC’ (All-In Sustaining Cost) as per updated World Gold Council Guidance Note on Non-GAAP Metrics released 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. 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 financial information/non-GAAP financial 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, the ASX platform and SEDAR.

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 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 secondary 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, are available at www.newcrest.com and on Newcrest’s SEDAR profile. The Red Chris NI 43-101 report is expected to be submitted within 45 days of the date of this market release.

Competent Person’s Statement

The information in this document that relates to Lihir Ore Reserves is based on and fairly represents information compiled by
Mr David Grigg. Mr David Grigg is the Senior Specialist Long Term Planning and a full-time employee of Newcrest Mining Limited. He is a shareholder in Newcrest Mining Limited and is entitled to participate in Newcrest’s executive equity long term incentive plan, details of which are included in Newcrest’s 2021 Remuneration Report. He is a Member of the Australasian Institute of Mining and Metallurgy. Mr David Grigg has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code. Mr David Grigg consents to the inclusion of material of the matters based on his information in the form and context in which it appears.

The information in this document that relates to Lihir Mineral Resources is based on and fairly represents information compiled by Mr Benjamin Likia. Mr Likia is the Manager – Mining and a full-time employee of Newcrest Mining Limited. He is entitled to participate in Newcrest’s executive equity long term incentive plan, details of which are included in Newcrest’s 2021 Remuneration Report. He is a Member of the Australian Institute of Mining and Metallurgy. Mr Likia has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code. Mr Likia consents to the inclusion of material of the matters based on his information in the form and context in which it appears.

Technical and Scientific Information

The technical and scientific information contained in this document relating to Lihir (including the Mineral Resource and Ore Reserve) was reviewed and approved by Craig Jones, Newcrest’s Chief Operating Officer Papua New Guinea, FAusIMM and a Qualified Person as defined in NI 43-101.

Authorised by a Newcrest Board Committee

For further information please contact

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

Ben Lovick
+61 3 9522 5334
+61 407 269 478
Ben.Lovick@newcrest.com.au

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

Media Enquiries
Tom Dixon
+61 3 9522 5570
+61 450 541 389
Tom.Dixon@newcrest.com.au

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

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Which ASX technology stocks performed the best in 2021? Here’s a look at the five top ASX technology stocks by share price performance.

Australia is home to a thriving tech sector with fresh investment opportunities emerging across a variety of subsectors, such as gaming, fintech, healthcare and cleantech.

The technology sector currently contributes about AU$167 billion to the Australian economy, according to research commissioned by the Technology Council of Australia. This figure has increased by 79 percent from 2016, representing a growth rate that is more than four times that of most industries. In fact, the tech sector is the third largest economic sector in Australia, behind mining and finance/insurance.

Unsurprisingly, many tech stocks on the ASX have performed well in this landscape.


Below the Investing News Network profiles the five best ASX technology stocks in terms of share price performance in 2021. Data for the companies was gathered on December 31, 2021, using TradingView’s stock screener, and all of the best ASX technology stocks listed had market caps above AU$10 million at that time.

1. Novonix

Market cap: AU$4.45 billion; year-to-date gain: 659.5 percent

The first of the best ASX tech stocks on this list is battery technology company Novonix (ASX:NVX), which specializes in developing battery testing equipment for the worldwide lithium-ion battery market. The company was spun out from Dr. Jeff Dahn’s lab at Dalhousie University; Dr. Dahn is one of the pioneers of the lithium-ion battery.

While not yet a revenue generator, the company has benefited from the explosive growth expected out of the fast-moving global electric vehicle (EV) industry.

In December, Novonix announced preliminary results from an environmental impact study; they show the company’s synthetic graphite EV and energy storage system (ESS) battery anode product offers an approximate 60 percent decrease in CO2 emissions, potentially making it “2.5 times better for the environment than Chinese synthetic graphite EV and ESS battery anode material,” as per the Market Herald.

2. Oneview Healthcare

Market cap: AU$114.57 million; year-to-date gain: 488.89 percent

Oneview Healthcare’s (ASX:ONE) interactive software platform offers digital tools to healthcare providers, patients and families to improve point of care outcomes.

This past spring, the global healthcare tech company launched its cloud-based care platform. “Deployed on Microsoft Azure, this platform enables health systems to quickly adopt technology for engaging patients, reducing non-clinical demands on care teams and optimising clinical and operational effectiveness,” notes a press release.

Oneview has signed a number of contracts for the use of this platform, including with Omaha’s Children’s Hospital and Medical Center, Northern Health in Melbourne and Kingman Regional Medical Center in Arizona. In late November, Oneview raised AU$20 million in a private placement with plans to use the funds to further product development, scale its cloud enterprise and strengthen its balance sheet.

3. Emyria

Market cap: AU$105.86 million; year-to-date gain: 318.48 percent

Emyria (ASX:EMD) is a healthcare technology company that specializes in data-backed drug development and operates a network of medical clinics. Using proprietary clinical evidence, the company develops registered treatments for underserved medical needs.

Emyria’s current drug development programs center on cannabidiol (CBD) medicines for mental health, CBD/THC treatments for irritable bowel syndrome and MDMA treatments for post-traumatic stress disorder.

In late November, one of Australia’s largest private investment groups, Tattarang, made a AU$5 million investment in Emyria, which will help the company further advance its drug development work.

4. PlaySide Studios

Market cap: AU$445.38 million; year-to-date gain: 139.13 percent

PlaySide Studios (ASX:PLY) develops mobile games, virtual reality, augmented reality and PC games. The company’s portfolio consists of 52 titles, including original intellectual property games, as well as games developed with the worlds’ largest studios, such as Disney (NYSE:DIS), Warner Bros and Nickelodeon.

PlaySide Studios is Australia’s largest publicly listed gaming technology company, and following its 2020 initial public offering, it generated revenue of AU$10.88 million for the 2021 fiscal year. In November, the company inked a landmark deal with 2K Games, a label of Take-Two Interactive Software (NASDAQ:TTWO).

In the last weeks of 2021, PlaySide signed a number of deals, including a contract with Shiba Inu Games and a partnership with One True King to co-develop a PC-based game, which will also provide access to One True King's 21 million global followers.

5. Universal Biosensors

Market cap: AU$175.98 million; year-to-date gain: 127.59 percent

Last on this list of best ASX tech stocks is medical device technology company Universal Biosensors (ASX:UBI), which develops, manufactures and commercializes diagnostic testing systems for point-of-care providers and at-home use. It has products for blood glucose monitoring, coagulation testing, immunoassays and molecular diagnostics.

“UBI’s biosensor technology platform has been used to deliver more than 10 billion diagnostic tests to patients worldwide generating billions of dollars in sales,” states a company presentation. “We have licensed and partnered new technology and new biosensors with global applications.”

In November, Universal Biosensors signed a three year master collaboration agreement with Mayo Clinic Biopharma Diagnostics. The deal includes work on Universal Biosensors’ Tn antigen cancer biosensor. In late December, the company entered into a global exclusive license agreement with IQ Science for the commercialization of a SARS-CoV-2 N-protein detection test that will use Universal Biosensors' proprietary electrochemical strip and device technology.

Don’t forget to follow us @INN_Australia for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

australian bills with gold coin
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Looking for the best-performing cobalt stocks on the ASX? Here's a look at the three top gainers of 2021.

Cobalt prices have soared this past year, with investors paying more attention to this battery metal.

A large reason for cobalt’s bullish behaviour is that it is used to manufacture lithium-ion batteries, which power electric vehicles (EVs) — as demand for EVs continues to rise, it's likely cobalt demand will remain strong too.

Currently the future of EVs looks bright — the market is growing quickly and is expected to boom over the next decade. In the first half of 2021 alone, EV sales ballooned by 160 percent, and by the end of the year, a total of 15 countries had announced measures to begin transitioning toward an all-electric future.


The three top cobalt-producing countries worldwide are the Democratic Republic of Congo, Russia and Australia — the last of which is investing in ramping up its production of the metal.

With that in mind, which Australian cobalt miners gained the most value in 2021? Read on to learn more about the three best cobalt companies on the ASX by year-to-date share price gains. All information was obtained on December 30, 2021, using TradingView's stock screener.

1. Jervois Global

Year-to-date gain: 63.89 percent; current share price: AU$0.59

Jervois Global (ASX:JRV) is best known for its Finland operations, which produce cobalt for chemical, catalyst, pigment, powder metallurgy and — most significantly — battery applications. The company is currently in the process of launching its new Idaho Cobalt Operations (ICO) and is on track to become the first US cobalt miner.

On December 15, Jervois announced an update on ICO, saying first ore is expected in August 2022, with sustainable production expected by December 2022. The estimated capital expenditure required to stay on schedule has risen to US$99.1 million, up from US$92.6 million, with mine engineering 64 percent complete.

2. Cobalt Blue Holdings

Year-to-date gain: 177.78 percent; current share price: AU$0.50

Cobalt Blue Holdings (ASX:COB) is a rare cobalt-only company, and defines itself by its planned ethical and sustainable extraction and production processes. The firm's flagship New South Wales-based Broken Hill project is slated to produce an average of 3,500 to 3,600 tonnes per year of cobalt once in operation.

In December 2021, Cobalt Blue Holdings announced it has executed a memorandum of understanding with the State of Queensland, acting through the Department of Resources, to assess opportunities for the recovery of cobalt (as well as any coexisting base and precious metals) from mine waste.

3. Australian Mines

Year-to-date gain: 31.25 percent; current share price: AU$0.21

Australian Mines (ASX:AUZ) is aiming to supply metals to the growing EV industry, with a focus on ethical and sustainable production. Its flagship Queensland-based Sconi nickel-cobalt project boasts a mine life of over 30 years and will be capable of processing 2 million tonnes of ore annually.

In late October, Australian Mines reported on its quarterly activities, including an agreement for Korea-based LG Energy Solution, a top global producer of EV batteries, to buy 100 percent of the Sconi project’s nickel-cobalt hydroxide output over an initial six year term. The future agreement indicates that LG Energy Solution will buy a projected 7,000 tonnes of cobalt from Australian Mines over the six year period.

Don’t forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Isabel Armiento, hold no direct investment interest in any company mentioned in this article.