Newcrest Mining Limited – Quarterly Report for the Three Months Ended 31 March 2021

Lower costs, on track to deliver FY21 guidance and growth options advanced Operating performance in line with expectationsGold production of 512koz and copper production of 35kt Improved All-In Sustaining Cost of $891oz, delivering an AISC margin of 49% or $854oz Cadia records lowest ever reported quarterly AISC of negative $160oz On track to deliver FY21 guidance Advancing multiple organic growth options Box cut …

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

Lower costs, on track to deliver FY21 guidance and growth options advanced

  • Operating performance in line with expectations(1)
    • Gold production of 512koz(2) and copper production of 35kt
    • Improved All-In Sustaining Cost (AISC) of $891/oz(2), delivering an AISC margin of 49% or $854/oz(3)
    • Cadia records lowest ever reported quarterly AISC of negative $160/oz
    • On track to deliver FY21 guidance
  • Advancing multiple organic growth options
    • Box cut and surface infrastructure construction progressing well at Red Chris and Havieron
    • Newcrest’s initial Mineral Resource estimate for Red Chris released, supporting the potential development of a high margin underground block cave(4)
    • Cadia Molybdenum Plant commissioning commenced, with first commercial production expected in September 2021 Quarter(5)
    • Lihir Phase 14A Pre-Feasibility Study on track and expected to be released in June 2021 quarter(6)
  • Balance sheet further strengthened with debt reduction and bank debt facility extension
    • Early repayment of the remaining 2022 Corporate Bonds using available cash
    • Maturity dates extended on undrawn bilateral bank debt facilities

Newcrest Mining Limited (ASX: NCM) (TSX: NCM) Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said, “Our world-class Cadia asset set a new record during the March 2021 quarter, reporting its lowest ever quarterly All-In Sustaining Cost of negative $160oz. This record, along with unit cost reductions at all other sites, delivered a 7% reduction in our All-In Sustaining Cost per ounce for the quarter and a strong All-In Sustaining Cost margin of $854oz.”

“As part of our plan to forge an even stronger Newcrest, we continue to progress multiple organic growth options across our gold and copper assets with a number of key project milestones delivered during the period. At Red Chris and Havieron, box cut and surface infrastructure construction is progressing to plan, while at Lihir we are on target to deliver the findings of our Phase 14A Pre-Feasibility Study in the June 2021 quarter.”

“In March 2021 we released our initial Mineral Resource estimate for Red Chris, which confirmed the potential we saw in this orebody and further supports our belief that this could be a Cadia-style development. We remain on track to report the findings of our block cave Pre-Feasibility Study by the end of September 2021. We also commenced commissioning of Cadia’s Molybdenum Plant, with commercial production expected in the September 2021 quarter.”

“We are very well positioned to fund our organic growth opportunities, with a strong balance sheet and long-dated debt maturity profile, further enhanced through the early repurchase of outstanding corporate bonds and the maturity extension of our existing undrawn bilateral bank debt facilities.”

“Pleasingly we have experienced no material disruption to production or operations to date as a result of COVID-19. We have further strengthened our COVID-19 controls at Lihir and continue to work closely with all relevant government stakeholders in Australia and Papua New Guinea to manage the risks associated with the virus,” said Mr Biswas.

Overview

Gold production was 4% lower than the prior period, reflecting the impact of planned shutdown events at Cadia and Lihir as foreshadowed in the December 2020 quarterly report. This was partially offset by a 6% increase in gold production at Telfer driven by higher throughput rates and gold recovery improvements.

Newcrest’s AISC for the March 2021 quarter of $891/oz(2) was$72/oz lower than the prior period. The 7% improvement includes the benefit of a higher realised copper price, higher gold sales volumes at Lihir and Telfer, and the timing of sustaining capital expenditure at Lihir and Red Chris. These benefits were partially offset by the impact of a strengthening Australian dollar against the US dollar which resulted in an increase to operating costs together with lower copper sales volumes at Red Chris and Cadia.


Metric Mar 2021
Qtr
Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
YTD
FY20
FY21
Guidance
(7)
Group(2) – gold oz 512,424 535,477 503,089 1,550,990 1,581,521 1,950-2,150koz
– copper t 35,034 34,557 34,763 104,354 97,427 135-155kt
– silver oz 228,543 230,769 214,412 673,724 731,226
Cadia – gold oz 179,546 194,088 196,504 570,138 606,633 680-760koz
– copper t 26,324 26,643 25,329 78,297 68,409 95-105kt
Lihir
– gold oz 183,231 200,173 177,337 560,741 568,745 720-820koz
Telfer – gold oz 105,228 98,855 86,452 290,535 279,368 360-420koz
– copper t 3,666 2,443 2,384 8,492 12,117 10-20kt
Red Chris(8)
– gold oz 11,095 11,375 12,636 35,107 23,493 45-55koz
– copper t 5,044 5,471 7,050 17,565 16,901 25-30kt
Gosowong(9) – gold oz 103,282
Fruta del Norte(2),(10) – gold oz 33,324 30,986 30,160 94,469 95-110koz








Fatalities Number 0 0 0 0 0
TRIFR(11) mhrs 2.6 1.6 2.6 2.4 2.6
All-In Sustaining Cost(2),(12) $/oz 891 963([13]) 980 944 856([14])
All-In Cost(15) $/oz 1,253 1,349 1,275 1,291 1,020(14)
All-In Sustaining Cost margin(3) $/oz 854 836 847 846 633
Realised gold price(16) $/oz 1,751 1,815 1,837 1,801 1,489
Realised copper price(16) $/lb 3.86 3.26 2.97 3.36 2.61
Realised copper price(16) $/t 8,510 7,187 6,548 7,408 5,754
Average exchange rate AUD:USD 0.7729 0.7303 0.7147 0.7390 0.6765
Average exchange rate PGK:USD 0.2846 0.2853 0.2872 0.2857 0.2937
Average exchange rate CAD:USD 0.7896 0.7667 0.7504 0.7684 0.7536

All figures are shown at 100% unless stated otherwise.

Operations

Cadia, Australia

Highlights Metric Mar 2021
Qtr
Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
YTD
FY20
FY21
Guidance
TRIFR mhrs 11.3 7.5 3.6 7.4 4.5
Total production – gold oz 179,546 194,088 196,504 570,138 606,633 680-760koz
– copper t 26,324 26,643 25,329 78,297 68,409 95-105kt
Head Grade – gold g/t 0.94 0.95 1.02 0.97 1.15
– copper % 0.41 0.39 0.40 0.40 0.39
Sales
– gold oz 175,295 194,183 195,146 564,624 611,979
– copper t 25,332 26,477 24,596 76,405 69,512
All-In Sustaining Cost $/oz (160) (6) 113 (13) 156
All-In Sustaining Cost margin $/oz 1,911 1,821 1,724 1,814 1,333

Gold production of 180koz was 7% lower than the prior period primarily driven by lower throughput. As highlighted in the December 2020 quarterly report, mill throughput was lower in the period due to scheduled maintenance of Concentrator 1 and the materials handling system.

A higher realised copper price and a marginally higher proportion of copper sales to gold sales drove a significant decrease in Cadia’s AISC, which at negative $160/oz is a new quarterly record. Cadia’s AISC also reflects mobile fleet purchases and end-of-life rebuilds driving higher sustaining capital expenditure, the impact on operating costs from the strengthening of the Australian dollar against the US dollar, lower copper sales volumes and the impact to unit costs from lower gold sales volumes.

Newcrest commenced commissioning of its Molybdenum Plant in March 2021, with first commercial production expected in the September 2021 quarter(17). The Molybdenum Plant is expected to deliver an additional revenue stream for Cadia in the form of a molybdenum concentrate which will also be recognised as a by-product credit to AISC.

In August 2020, Newcrest announced that it had deferred the replacement of the SAG mill motor to July 2021. Newcrest now expects the replacement to take ~19 weeks(17), 3 weeks less than its original estimate. Newcrest will implement a SAG bypass for the duration of the SAG mill motor replacement and Concentrator 1 will operate at a reduced capacity of approximately 60% during this time.

Newcrest is currently progressing its Pre-Feasibility Study for the development of the PC1-2 cave. The Pre-Feasibility study is on track to be completed in calendar year 2021.

Lihir, Papua New Guinea

Highlights Metric Mar 2021
Qtr
Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
YTD
FY20
FY21
Guidance
TRIFR mhrs 0.4 0.0 0.5 0.3 0.5
Production – gold oz 183,231 200,173 177,337 560,741 568,745 720-820koz
Head Grade
– gold g/t 2.58 2.27 2.34 2.38 2.35
Sales
– gold oz 194,356 170,308 210,831 575,495 566,873
All-In Sustaining Cost $/oz 1,293 1,438 1,283 1,332 1,156
All-In Sustaining Cost margin $/oz 458 377 554 469 333

Gold production of 183koz was 8% lower than the prior period driven by lower throughput, partially mitigated by grade and recovery improvements. As highlighted in the December 2020 quarterly report, throughput was impacted by a scheduled total plant shutdown in March 2021 together with shut overruns and unplanned outages. Gold head grade was 14% higher than the prior period reflecting a higher proportion of high grade expit ore feed from Phase 14 in addition to an increase in stockpile feed grade. The 4% improvement in gold recovery was driven by an increase in higher grade ore feed and improved flotation performance.

Lihir’s AISC of $1,293/oz was 10% lower than the prior period driven by higher gold sales volumes and timing of sustaining capital expenditure. These benefits were partially offset by higher site operating costs, reflecting the total plant shutdown and associated overruns together with an increase in production stripping activities in Phase 15.

Newcrest expects to release the findings of its Phase 14A Pre-Feasibility Study in the June 2021 quarter(18). As previously announced, study work has identified 20Mt at 2.4g/t Au (including 13Mt at 3g/t Au) of Indicated Mineral Resource that, if accessed, has the potential to increase the average mill feed grade between FY23-25 and could result in an additional ~400-600koz(19) of contained gold in mill feed during that period.

Lihir – Material Movements

Ore Source Metric Mar 2021
Qtr
Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
YTD
FY20
Ex-pit crushed tonnes kt 1,407 1,918 1,236 4,560 3,977
Ex-pit to stockpile kt 695 615 1,610 2,919 5,423
Waste kt 6,967 4,793 6,269 18,029 14,090
Total Ex-pit kt 9,068 7,326 9,115 25,508 23,490
Stockpile reclaim kt 1,566 1,765 2,192 5,523 6,118
Stockpile relocation kt 3,139 2,884 3,306 9,329 10,739
Total Other kt 4,705 4,649 5,498 14,851 16,857
Total Material Moved kt 13,774 11,975 14,613 40,359 40,346

Lihir – Processing

Equipment Metric Mar 2021
Qtr
Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
YTD
FY20
Crushing kt 2,973 3,683 3,426 10,082 10,094
Milling kt 2,835 3,691 3,255 9,781 10,218
Flotation kt 2,070 2,835 2,780 7,685 7,641
Total Autoclave kt 1,642 1,998 1,592 5,232 5,368

Telfer, Australia

Highlights Metric Mar 2021
Qtr
Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
YTD
FY20
FY21 Guidance
TRIFR mhrs 5.2 1.8 4.6 4.2 5.5
Production – gold oz 105,228 98,855 86,452 290,535 279,368 360-420koz
– copper t 3,666 2,443 2,384 8,492 12,117 10-20kt
Head Grade – gold g/t 0.88 0.94 0.86 0.89 0.93
– copper % 0.12 0.09 0.09 0.10 0.16
Sales
– gold oz 102,449 87,992 85,096 275,537 275,592
– copper t 3,000 2,152 2,311 7,462 11,452
All-In Sustaining Cost $/oz 1,489 1,560 1,797 1,607 1,308
All-In Sustaining Cost margin(20) $/oz 262 255 40 194 181

Gold production of 105koz was 6% higher than the prior period, driven by higher throughput and recovery, partially offset by lower head grade and a reduction in dump leach ounces. The 10% increase in mill throughput reflects improved mill utilisation rates, with the 2% improvement in gold recovery driven by the success of sulphur blending strategies together with other recovery improvement initiatives that were delivered in the period. Head grade was 7% lower than the prior period which was driven by a higher proportion of lower grade open pit mill feed.

Telfer’s AISC of $1,489/oz was 5% lower than the prior period driven by higher gold and copper sales volumes 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, together with higher concentrate sales volumes driving higher treatment, refining and transportation costs. Adverse weather conditions continue to impact shipments leaving Telfer with YTD gold and copper sales volumes lower than production. Newcrest expects to reduce its inventory on hand by the end of the financial year.

Red Chris, Canada

Highlights(21) Metric Mar 2021
Qtr
Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
YTD
FY20
FY21 Guidance
TRIFR mhrs 4.1 1.8 11.1 6.0 15.5
Production – gold oz 11,095 11,375 12,636 35,107 23,493 45-55koz
– copper t 5,044 5,471 7,050 17,565 16,901 25-30kt
Head Grade – gold g/t 0.42 0.42 0.40 0.41 0.35
– copper % 0.43 0.45 0.46 0.45 0.51
Sales
– gold oz 10,778 12,641 11,834 35,253 21,663
– copper t 4,988 6,072 6,642 17,702 15,696
All-In Sustaining Cost $/oz 2,169 3,278 2,621 2,719 1,824(22)
All-In Sustaining Cost margin $/oz (418) (1,463) (784) (918) (335)

Gold production of 11koz was in line with the prior period. In February 2021, a major power outage during an extreme winter weather event caused some mill infrastructure to freeze which damaged the Vertimill upon restart and adversely impacted recovery.

Red Chris’ AISC of $2,169/oz was 34% lower than the prior period driven by timing of sustaining capital expenditure, a higher realised copper price, lower operating costs and a decrease in production stripping expenditure due to positioning in Phase 5. These benefits were partially offset by lower gold and copper sales volumes and the impact to operating costs from a strengthening Canadian dollar against the US dollar.

Also included in Red Chris’ AISC are investments in 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 and a number of throughput and recovery related projects. These initiatives are currently contributing to Red Chris’ elevated AISC outcome but are expected to help deliver a reduction in the unit costs of the site in the longer term.

On 31 March 2021, Newcrest released its initial Mineral Resource estimate(23) for Red Chris which comprised:

  • A Measured and Indicated Mineral Resource estimate of 980Mt @ 0.41g/t gold and 0.38% copper for 13Moz contained gold and 3.7Mt contained copper
  • An Inferred Mineral Resource estimate of 190Mt @ 0.31g/t gold and 0.30% copper for 1.9Moz contained gold and 0.57Mt contained copper

Newcrest’s initial Mineral Resource estimate will support the potential development of a high margin underground block cave(24) and is a key input into the Red Chris block cave Pre-Feasibility Study which is expected to be released by the end of September 2021(25). Newcrest also expects to release its initial Ore Reserve estimate for Red Chris within the same timeframe.

The latest drilling results for Red Chris are included in the March 2021 Quarterly Exploration Report which was also released today.

Fruta Del Norte, Ecuador

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 March 2021 quarter, Newcrest received net pre-tax cash flows of ~$25 million from these financing facilities, and a total of $62 million net pre-tax cash flows received since Newcrest acquired the facilities.

Included within Newcrest’s gold production for the March 2021 quarter is 33koz relating to Newcrest’s 32% equity interest in Lundin Gold Inc, the owner of the Fruta del Norte mine.

Project Development

Red Chris, Canada

Box cut and surface infrastructure construction is progressing well following receipt of the necessary regulatory approvals during the period with achievements as at 28 April 2021 including:

  • Box cut excavation is over 50% complete
  • First bench completed with blasting and excavation on the lower bench in progress
  • Surface earthworks are ~15% complete
  • Offices in place with the remainder of infrastructure in progress

Regulatory approval for construction of the exploration decline at Red Chris is nearing completion.

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.

Box cut, surface infrastructure and portal and decline establishment are progressing to plan with achievements as at
28 April 2021 including:

  • Box cut excavation is ~90% complete
  • Shotcreting of Portal Face has commenced, with ground support complete
  • Batch Plant is fully commissioned
  • Surface earthworks are ~85% complete

Activities to finalise the Water Management Plan for the early works program are ongoing. Newcrest is also progressing the necessary approvals and permits that are required to commence the development of an operating underground mine and associated infrastructure at the Project(26).

The latest drilling results for the Havieron Project are included in the March 2021 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 Guinea 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 Guinea Environment Act and is a pre-requisite for the grant of a Special Mining Lease under the Mining Act.

Subsequently, the Governor of Morobe Province and the Morobe Provincial Government have commenced legal proceedings in the National Court in Papua New Guinea seeking judicial review of the decision to issue the Environmental Permit. The participants in the Wafi-Golpu Joint Venture are not defendants to the proceedings. The National Court is yet to hear and determine this judicial review application. At this stage, project and permitting activities can still progress.

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

Newcrest commenced commissioning of its Molybdenum Plant in March 2021, with first commercial production expected in the September 2021 quarter(27). The Molybdenum Plant is expected to deliver an additional revenue stream for Cadia in the form of a molybdenum concentrate which will also be recognised as a by-product credit to AISC.

Exploration

See the separately released “Quarterly Exploration Report” for the March 2021 quarter.

COVID-19 Update

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

Newcrest continues to work with the Governments of Australia and Papua New Guinea, and other relevant authorities to manage both the escalation of COVID-19 cases across Papua New Guinea and related travel restrictions between Papua New Guinea and Australia.

There has been an increase in the number of cases that have tested positive for COVID-19 at Lihir, with the majority of these cases being asymptomatic. Newcrest continues to provide care and support to its quarantined patients until they are free from the virus.

Newcrest has further strengthened its existing COVID-19 controls at Lihir, with a focus on spread containment through extensive contact tracing and isolation procedures. Tracking devices that record close contacts and enable rapid contact tracing have been widely distributed and further controls to segregate the workforce have been implemented.

No material impacts to gold production at Lihir have occurred. However, the ability to attract labour, the travel restrictions and contact tracing and associated isolation requirements has resulted in an impact to total material mined. Should these conditions persist or worsen, there is the potential for production to be impacted.

As previously highlighted, all of Newcrest’s operations have business continuity plans and contingencies in place which seek to minimise disruptions to the operations in the event 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.

As previously announced, costs associated with managing COVID-19 risks in FY21 are expected to be higher than anticipated at the start of the year due to more extensive testing, longer quarantining periods, additional accommodation, rostering and other labour costs, and other preventative actions. For the first half of the financial year Newcrest incurred ~$30 million in COVID-19 management costs. The full year costs are expected to be in the order of $60-70 million.

Corporate

Repurchase of Outstanding 2022 Bonds

On 28 April 2021, Newcrest completed the mandatory redemption and cancellation of its outstanding US$380 million 4.200% Senior Guaranteed Notes, otherwise maturing 1 October 2022. The total redemption price paid was
US$400 million which included US$20 million for the make-whole payment. The make-whole payment will be expensed and categorised as “Debt extinguishment and related costs” in the “Finance costs” section of the FY21 income statement, and is expected to be treated as a Significant Item.

Bilateral Bank Debt Facilities

On 2 March 2021, Newcrest announced that it had renewed its unsecured bilateral bank lending facilities and extended the maturity dates.

The renewed facilities are with Newcrest’s existing 13 bank lenders, with each bank committing approximately
US$154 million in facilities for an overall unchanged quantum of US$2 billion, on similar commercial terms.

The facilities have tenors of three or five years, the aggregate of which is as follows:

  • US$1,077 million of facilities maturing in FY24
  • US$923 million of facilities maturing in FY26

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.

In line with the global vaccine rollout, the Fund is now primarily focused on supporting vaccination programs in host jurisdictions. Newcrest is one of three Founding Members of the UNICEF Australia COVID Vaccination Alliance which is committed to delivering COVID-19 vaccines to vulnerable communities worldwide. The Alliance brings together Australian organisations, companies and philanthropists to help deliver equitable access to COVID-19 vaccines to most at-risk communities.

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

March 2021
Quarter
Mine Production Tonnes
(000’s)(28)
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 1,036





Cadia East Panel Cave 2 7,470





Cadia East Panel Cave 2-3 274





Cadia(29) 8,780 7,873 0.94 76.2 179,546 175,295 (160)
Telfer Open Pit 10,407 4,007 0.75 76.5 73,354

Telfer Underground 532 496 1.94 89.6 27,725

Telfer Dump Leach



4,149

Telfer 10,939 4,503 0.88 79.7 105,228 102,449 1,489
Lihir 9,068 2,835 2.58 77.8 183,231 194,356 1,293
Red Chris 6,121 1,514 0.42 54.3 11,095 10,778 2,169
Fruta del Norte(30)



33,324 33,324 800
Total 34,908 16,726 1.15 76.8 512,424 516,202 891

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

March 2021
Quarter
Copper Grade
(%)
Copper Recovery
(%)
Concentrate
Produced

(tonnes)
Metal Production
(tonnes)
Cadia 0.41 82.5 110,206 26,324
Telfer Open Pit 0.08 59.4 21,776 1,976
Telfer Underground 0.37 90.9 16,466 1,690
Telfer 0.12 70.7 38,242 3,666
Red Chris 0.43 77.0 24,088 5,044
Total 0.30 80.3 172,536 35,034

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

Silver Production Summary

March 2021
Quarter
Tonnes Treated
(000’s)
Silver Production
(oz)
Cadia 7,873 158,453
Telfer 4,503 38,457
Lihir 2,835 7,536
Red Chris 1,514 24,096
Total 16,726 228,543

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

All-In Sustaining Cost – March 2021 Quarter

3 Months to 31 March 2021
Units Cadia Telfer Lihir Red Chris Corp/
Other
Group(31)
Gold Produced oz 179,546 105,228 183,231 11,095 479,100
Mining $/oz prod. 176 709 265 1,571 359
Milling $/oz prod. 364 417 550 1,098 464
Administration and other $/oz prod. 118 213 366 1,443 265
Lease adjustments $/oz prod (3) (32) (6) (8) (11)
Third party smelting, refining and transporting costs(32) $/oz prod. 181 135 4 645 114
Royalties $/oz prod. 101 62 47 94 72
By-product credits $/oz prod. (1,228) (247) (3,843) (604)
Ore inventory adjustments(33) $/oz prod. (15) (38) 77 (96) 14
Production stripping adjustments(33) $/oz prod. (240) (302) (99)
AOD adjustments(33) $/oz prod. 10 2
Net Cash Costs $/oz prod. (306) 1,229 1,063 602 576
Gold Sold oz 175,295 102,449 194,356 10,778 482,878
Adjusted operating costs(34) $/oz sold (339) 1,269 988 714 560
Corporate general & administrative costs(35),(36) $/oz sold 56 56
Reclamation and remediation costs $/oz sold 6 4 10 65 8
Production stripping (sustaining)(37) $/oz sold 165 311 74
Advanced operating development $/oz sold (11) (2)
Capital expenditure (sustaining) $/oz sold 168 151 124 1,028 14 180
Exploration (sustaining) $/oz sold 2 31 1 7
Leases (sustaining) $/oz sold 3 45 5 51 14
All-In Sustaining Cost $/oz sold (160) 1,489 1,293 2,169 70 897
Growth and development costs(36) $/oz sold 5 5
Capitalised stripping (non-sustaining)(37) $/oz sold 61 24
Capital expenditure (non-sustaining)(38) $/oz sold 650 78 439 12 290
Exploration (non-sustaining) $/oz sold 3 3 808 15 35
Leases (non-sustaining) $/oz sold 6 2
All-In Cost $/oz sold 499 1,492 1,432 3,416 102 1,253
Depreciation and amortisation(39) $/oz sold 258 223 311 1,639 11 314

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 – Nine months to 31 March 2021

9 Months to 31 March 2021
Units Cadia Telfer Lihir Red
Chris
Corp/
Other
Group(40)
Gold Produced oz 570,138 290,535 560,741 35,107 1,456,521
Mining $/oz prod. 174 798 253 1,615 363
Milling $/oz prod. 328 447 547 1,072 454
Administration and other $/oz prod. 107 201 306 1,293 231
Lease Adjustments $/oz prod (3) (30) (6) (3) (9)
Third party smelting, refining and transporting costs(41) $/oz prod. 166 121 3 648 106
Royalties $/oz prod. 98 55 47 73 70
By-product credits $/oz prod. (1,022) (199) (3,693) (529)
Ore inventory adjustments(42) $/oz prod. 4 (23) 78 34 28
Production stripping adjustments(42) $/oz prod. (180) (635) (85)
AOD adjustments(42) $/oz prod. 10 2
Net Cash Costs $/oz prod. (148) 1,380 1,048 404 631
Gold Sold oz 564,624 275,537 575,495 35,253 1,450,909
Adjusted operating costs(43) $/oz sold (160) 1,400 1,016 410 617
Corporate general & administrative costs(44),(45) $/oz sold 50 50
Reclamation and remediation costs $/oz sold 6 5 10 64 8
Production stripping (sustaining)(46) $/oz sold 155 633 77
Advanced operating development $/oz sold (11) (2)
Capital expenditure (sustaining) $/oz sold 136 148 145 1,570 11 187
Exploration (sustaining) $/oz sold 2 20 1 5
Leases (sustaining) $/oz sold 3 45 5 42 13
All-In Sustaining Cost $/oz sold (13) 1,607 1,332 2,719 61 955
Growth and development costs(45) $/oz sold 6 6
Capitalised stripping (non-sustaining)(46) $/oz sold 21 8
Capital expenditure (non-sustaining)(47) $/oz sold 563 77 336 10 268
Exploration (non-sustaining) $/oz sold 1 2 512 38 52
Leases (non-sustaining) $/oz sold 6 2
All-In Cost $/oz sold 557 1,609 1,430 3,567 115 1,291
Depreciation and amortisation(48) $/oz sold 254 242 345 1,309 11 325

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 – March 2021 Quarter

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Simplified Lihir Process Flow – March 2021 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)(49) at 31 March 2021
Allan Gray / Orbis Group 9.9%
BlackRock Group 9.1%
The Vanguard Group 5.1%

Issued Share Capital
At 31 March 2021, Newcrest’s issued capital was 817,289,692 ordinary shares.

Quarterly Share Price Activity

High Low Close
A$ A$ A$
Jan – Mar 2021 25.25 23.24 24.42

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 at Red Chris has been extracted from the release titled “Newcrest announces its initial Mineral Resource estimate for Red Chris” dated 31 March 2021 and which is available to view at www.asx.com.au under the code “NCM” (the original Red Chris release) and on Newcrest’s SEDAR profile. The information in this document that relates to Mineral Resources at Lihir is based on the release titled “Annual Mineral Resources and Ore Reserves Statement as at 31 December 2020” dated 11 February 2021 and which is available to view at www.asx.com.au under the code “NCM” (the Annual Statement) 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 Red Chris release and the Annual Statement and that all material assumptions and technical parameters underpinning the estimates in such releases 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 Red Chris release and the Annual Statement.

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 Mar 2021
Qtr
Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
Gold production – Newcrest operations oz 479,100 504,491 472,929 1,456,521
Gold production – Fruta del Norte (32%) oz 33,324 30,986 30,160 94,469
Gold production oz 512,424 535,477 503,089 1,550,990

All-In Sustaining Cost Metric Mar 2021
Qtr(50)
Dec 2020
Qtr(51)
Sep 2020
Qtr(52)
YTD
FY21
All-in Sustaining Cost – Newcrest operations $m 433 455 498 1,386
All-in Sustaining Cost – Fruta del Norte (32%) $m 27 26 14 67
All-In Sustaining Cost $m 460 481 512 1,453
Gold ounces sold – Newcrest operations oz 482,878 465,125 502,907 1,450,909
Gold ounces sold – Fruta del Norte (32%) oz 33,324 33,981 19,891 87,196
Total gold ounces sold oz 516,202 499,105 522,798 1,538,105
All-In Sustaining Cost – Newcrest operations $/oz 897 979 990 955
All-In Sustaining – Fruta del Norte (32%) $oz 800 747 728 763
All-In Sustaining Cost $/oz 891 963 980 944

All-In Sustaining Cost margin Metric Mar 2021
Qtr
Dec 2020
Qtr
Sep 2020
Qtr
YTD
FY21
Realised gold price(53) $/oz 1,751 1,815 1,837 1,801
All-In Sustaining Cost – Newcrest operations $/oz 897 979 990 955
All-In Sustaining Cost margin $/oz 854 836 847 846


[1]See information under heading “Non-IFRS Financial Information” on Page 17 of this report for further information.

[2] Includes 33koz and an estimated reduction of $6/oz based on Newcrest’s 32% attributable share of Fruta del Norte. Refer to the Appendix for calculation and further details.

[3]Newcrest’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.

[4] The development of a block cave mine at Red Chris is subject to the completion of a successful exploration program and further studies, market and operating conditions, regulatory approvals and Board approvals.

[5]Subject to market and operating conditions and potential delays due to COVID-19 impacts.

[6]Subject to Board approval and potential delays due to COVID-19 impacts.

[7]The 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.

[8]The 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).

[9] 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.

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

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

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

[13]AISCfor the December 2020 quarter has been restated following the release of Lundin Gold’s 2020 Annual Report on 15 March 2021.This had a $5/oz benefit to Newcrest’s previously reported AISC outcome for the December 2020 quarter.

[14]The prior period AISC and AIC has been restated to reflect adjustments applied to Red Chris following the completion of acquisition and year end processes.

[15]From 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.

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

[17] Subject to market and operating conditions and potential delays due to COVID-19 impacts.

[18]Subject to Board approval andpotential delays due to COVID-19 impacts.

[19]At current milling rates. The estimate of an additional ~400-600koz of contained gold in FY23-25 is subject to the successful completion of the Phase 14A Pre-Feasibility Study and assumes the successful conversion of 20Mt of existing Indicated Mineral Resource to Probable Ore Reserves. The estimate represents the difference between the indicative mine plan base case (inclusive of the outcomes of the Lihir Mine Optimisation Study) and any potential uplift that Phase 14A could provide as a result of the replacement of ~11Mt of low grade ore feed with higher grade during this period. The estimate of ~20Mt of Indicated Mineral Resource underpinning the estimate of ~400-600koz of contained gold has been prepared based on an annualised ~15mtpa mill feed rate, expit TMM range of 41-63mtpa, from which 6-12mtpa is allocated to Phase 14A, mill recovery of 75-82%, inter-ramp slope design of approximately 79 degrees in the upper argillic rock benches supported by long cables with mesh and shotcrete to enable safe steepening of the existing unsupported slopes of 20-35 degrees, and the lower unsupported benches at historical 62 degree slopes. The estimate of ~20Mt of Indicated Mineral Resource has been prepared in accordance with the requirements in Appendix 5A of the ASX Listing Rules by a Competent Person. For further information as to the total Indicated Mineral Resources for Lihir of which the 20Mt of Indicated Mineral Resources is part, see the release titled “Annual Mineral Resources and Ore Reserves Statement – 31 December 2020” which is available to view at www.asx.com.au under the code “NCM” and on Newcrest’s SEDAR profile.

[20] AISC margin calculated with reference to the Group average realised gold price.

[21]The 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).

[22]Prior period AISC has been restated to reflect adjustments applied following the completion of acquisition and year end processes.

[23]Newcrest’s initial Mineral Resource estimate for Red Chris is presented at 100%. Newcrest’s joint venture interest in the Mineral Resource estimate is 70%.

[24]The development of a block cave mine at the Red Chris project is subject to the completion of a successful exploration program and further studies, market and operating conditions, regulatory approvals and Board approvals.

[25]Subject to Board approval and potential delays due to COVID-19 impacts.

[26] 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.

[27]Subject to market and operating conditions and potential delays due to COVID-19 impacts.

[28] Mine production for open pit and underground includes ore and waste.

[29] 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.

[30]Due to timing of Lundin Gold’s March 2021 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.

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

[32] Includes deductions related to treatment and refining charges for metals in concentrate.

[33] Represents adjustment for ore inventory movements, removal of production stripping costs and movement in Advanced Operating Development costs.

[34] Adjusted operating costs represents net cash costs adjusted for finished goods inventory movements, divided by ounces sold.

[35] Corporate general & administrative costs includes share-based remuneration.

[36] 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.

[37]In accordance with World Gold Council Guidance stripping campaigns can be classified as non-sustaining expenditure if they are expected to take at least 12 months and are expected to deliver ore production for more than five years. Newcrest has determined that Phase 16 at Lihir satisfies this criteria and has reported spend in relation to this campaign as capitalised stripping (non-sustaining).

[38]Represents spend on major projects that are designed to increase the net present value of the mine are not related to current production. Significant projects in the 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).

[39] 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.

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

[41] Includes deductions related to treatment and refining charges for metals in concentrate.

[42] Represents adjustment for ore inventory movements, removal of production stripping costs and movement in Advanced Operating Development costs.

[43] Adjusted operating costs represents net cash costs adjusted for finished goods inventory movements, divided by ounces sold.

[44] Corporate general & administrative costs includes share-based remuneration.

[45] 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.

[46]In accordance with World Gold Council Guidance stripping campaigns can be classified as non-sustaining expenditure if they are expected to take at least 12 months and are expected to deliver ore production for more than five years. Newcrest has determined that Phase 16 at Lihir satisfies this criteria and has reported spend in relation to this campaign as capitalised stripping (non-sustaining).

[47]Represents spend on major projects that are designed to increase the net present value of the mine are not related to current production. Significant projects in the 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).

[48] 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.

[49]As notified to Newcrest under section 671B of the Corporations Act 2001.

[50]Due to timing of Lundin Gold’s March 2021 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 March quarter. The AISC estimate was derived by taking the mid-point of Lundin Gold’s CY21 AISC guidance of $770-830/oz (released 15 March 2021). For the purposes of AISC, Newcrest has assumed that production is equal to sales. Newcrest will restate its March quarter AISC outcome in June once the outcomes for Fruta del Norte’s March quarter are known. On the basis of materiality, Newcrest has not restated its FY21 guidance for Fruta del Norte. 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.

[51]The All-In Sustaining Cost and gold ounces sold outcomes for Fruta del Note for the December 2020 quarter have been restated following the release of Lundin Gold’s December quarterly report on 15 March 2021. This had a $5/oz benefit to Newcrest’s previously reported All-In Sustaining Cost outcome for the December quarter.

[52]The 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.

[53]Realised 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, December and March quarters and for FY21 has been calculated from sales ounces generated by Newcrest’s operations only (i.e. excluding Fruta del Norte).

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Featured
Global News
federal reserve symbol
Lotus_studio / Shutterstock

"The Fed still has an enormous amount of capacity to raise interest rates without killing the economy," said Jeffrey Christian of CPM Group.

Jeffrey Christian: Fed Can Hike a Lot Further, How Gold and Silver Will Perform youtu.be

The US Federal Reserve is moving to fight inflation, and two rate hikes are in the bag so far this year.

Many market participants are skeptical about how much further the central bank can go, but Jeffrey Christian, managing partner at CPM Group, believes it can go "a lot further."

Speaking to the Investing News Network at the recent Vancouver Resource Investment Conference (VRIC), he said that rates can go much higher before real demand and borrowing start to hurt.

read more Show less
mining cart in a tunnel

Driven by foreign investment, mining has become one of Argentina's fastest-growing sectors; Australian companies make up a particularly large segment of this industry.

Mining in Argentina has become one of the fastest-growing sectors in the nation’s economy. Argentina’s ample and comparatively underexplored gold and precious metals resources are a valuable opportunity, and will likely drive considerable growth in the country’s mining sector in the coming years.

In comparison to its neighbour Chile, Argentina’s mining sector has a lot of room to grow. Attractive incentives, including favourable mining policies, competitive mining investment laws and mineral-rich geology, have been seen as positive steps towards a strong Argentinian mining industry.

Mining giants are definitely attracted. Barrick Gold (TSX:ABX,NYSE:GOLD) has staked a claim in Argentina alongside its partner Shandong Gold Mining (HKEX:1787), extending the life of the country's largest gold mine, Valadero, with a US$75 million investment. On the other hand, Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO), the second largest metals and mining company in the world, recently acquired the Rincon lithium project. Formerly owned by Rincon Mining, the undeveloped lithium brine project is situated in Argentina's Salta province. It represents the latest in a series of acquisitions and developments in the region by Australian businesses.


Mining in Argentina: A brief history 

Unlike other regions, Argentina's mining sector doesn’t have a particularly long history. A 2016 study released by KPMG International notes that the Argentina mining sector's first significant milestone was the 1813 enactment of the Mining Promotion Law. Designed to encourage exploration, research and production of the country's extensive mineral wealth, this law ultimately laid the foundation for modern-day Argentina's welcoming attitude towards mining.

Argentina went on to adopt the Argentine Mining Code in 1887, a regulatory framework that established state ownership of the country's subsoil while still allowing for private exploration. The fledgling industry developed slowly over the next several years. Although it received some benefits due to increased demand and mineral prices during the First and Second World Wars, this was not enough to inspire significant growth.

It was not until near the end of the 20th century that the sector began to flourish. Constitutional reform in 1994 shifted ownership of natural resources from state to province, while a new regulatory framework attracted considerable investment from both Canada and Australia. Notably, from 1990 to 1999, joint production of minerals increased by 104 percent. During this period, the gross domestic product of Argentina's mining industry grew at a rate of between 5 and 7 percent per annum.

Mining in Argentina soon became the primary target of foreign direct investments. The production of common metals such as steel and aluminium were the primary beneficiaries of this surge of investment.

Unfortunately, growth soon slowed to the point of stagnation, the result of several factors. First, the country's mining code was unnecessarily complex and cumbersome to navigate. Second, socioeconomic strife created more risk than some investors were willing to accept. And finally, the introduction of controversial legislation such as the 2002 Glacier Protection Law alienated the mining sector, leading to multiple high-profile exits.

Mining in Argentina: The revitalization

In 2017, Argentina further deepened its trade relationship with Australia, signing a memorandum of understanding that saw the two countries collaborate on building education, research and capacity across multiple sectors. This agreement, which placed particular emphasis on mining, established a strong foundation for any Australian company looking to conduct exploration or production in the country. The 2019 election of a new president only further moved the dial, with President Alberto Fernández swearing to revise the country's mining code and reconsider its Glacier Protection Law.

Moreover, as the world has continued the push for cleaner energy and carbon neutrality, demand for battery materials such as copper and lithium — both of which are abundant throughout the country — has sharply increased.

Because Argentina is currently at the heart of a global lithium rush, it's easy to forget the fact that it also houses significant mineral wealth in both gold and precious metals. These ample, comparatively underexplored resources represent an incredibly valuable opportunity. It is likely that, alongside lithium, they will drive considerable growth in the country's mining sector.

Political instability in Chile may also contribute to Argentina's rise, as investors seek an alternative to its well-developed mining sector. Ultimately, Argentina has set a goal of US$10 billion in mining exports by 2030.

Mining in Argentina: ASX gold companies

Australian mining and exploration companies have a significant presence in Argentina and exert considerable influence over the country's mining industry.

Challenger Exploration (ASX:CEL) has also established itself in the gold-rich province of San Juan with the Hualilan project. Consisting of 15 mining leases and an exploration licence application over 26 square kilometres, Hualilan contains a high-grade historical resource of 627,000 ounces of gold that remains open in all directions.

The company has had nine rigs drilling at the project for almost a year, and is due to release its maiden resource estimate shortly. The project will use the same rail shipping methods as the highly successful Josemaria copper project, recently acquired by Lundin Mining (TSX:LUN,NASDAQ:LUMI).

Another ASX-listed explorer in Argentina, E2 Metals (ASX:E2M), which has the El Rosillo and Conserrat projects in Patagonia, counts Eric Sprott as one of its largest shareholders. This follows his decision to cornerstone a capital raise in March 2022. Sprott is a well-recognized investor with a strong history in mining.

When referring to its efforts to promote mining efforts, San Juan’s mining ministry said, “It has become a state policy. We provide the fiscal conditions, social licences and the legal certainty schemes necessary for the full development of mining. Our territory concentrates 50 percent of the country’s mining potential.”

Finally, Austral Gold (ASX:AGLD,OTC Pink:AGLDF) in 2019 acquired a 100 percent interest in the Casposo silver-gold mine through a share purchase agreement with Troy Resources (ASX:TRY). A combination open-pit and underground mine, Casposo began production in 2011. It is currently undergoing care and maintenance, and a reopening date has yet to be announced.

Takeaway

Despite a troubled political history, Argentina is incredibly well-positioned to turn this around, and the country maintains a strong relationship with Australian mining companies. Favourable mining policies and competitive mining investment laws, combined with mineral-rich geology, have the potential to greatly strengthen the country's mining industry.

This INNSpired article is sponsored by Challenger Exploration (ASX:CEL). This INNSpired article provides information that was sourced by the Investing News Network (INN) and approved by Challenger Exploration in order to help investors learn more about the company. Challenger Exploration is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.

This INNSpired article was written according to INN editorial standards to educate investors.

INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.

The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Challenger Exploration and seek advice from a qualified investment advisor.

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CEL:AU
Tempus Resources Ltd is pleased to announce that in relation to its US-based OTC Markets listing under the symbol "TMRFF", it has now received confirmation from the Depository Trust Company that its common shares are now eligible for electronic clearing and settlement through the DTC in the United StatesTempus Resources President and CEO, Jason Bahnsen, commented "DTC eligibility is a key step in the development of ...

Tempus Resources Ltd ("Tempus" or the "Company") (ASX:TMR), (TSXV:TMRR), (OTCQB:TMRFF) is pleased to announce that in relation to its US-based OTC Markets listing under the symbol "TMRFF", it has now received confirmation from the Depository Trust Company ("DTC") that its common shares are now eligible for electronic clearing and settlement through the DTC in the United States

Tempus Resources President and CEO, Jason Bahnsen, commented "DTC eligibility is a key step in the development of our shareholder base and market presence across the United States. It allows current and prospective shareholders of Tempus Resources a reliable, cost-efficient, and timely method for clearing and settlement of our common shares and positions US investors to participate in the growth of the Company's Americas-based asset suite."

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various commodities atop a laptop
Maxx-Studio / Shutterstock

“As we've seen in Ukraine, war has supercharged a number of these commodity prices,” John Forwood told RIU Resources Round-Up attendees.

Investment strategies for weathering and benefiting from current market trends were a hot topic at Sydney's recent RIU Resources Round-Up, held in early May.

Current opportunities and potential future ones were highlighted in the keynote address offered by John Forwood, chief investment officer at Lowell Resources Funds Management.

Quoting a February report from the head of commodity research at Goldman Sachs (NYSE:GS), Forwood explained to attendees that we have reached a “molecule crisis” in the commodity space and are essentially “out of everything.”


This deficit has only been compounded by the war in Ukraine, which has further weakened supply fundamentals and chains.

“When the (war in) Ukraine started, about a month later the commodities index (represented by Bloomberg commodities index) had its highest one-week spike on record, and that's a record going back over 60 years,” Forwood said. “As we've seen in Ukraine, war has supercharged a number of these commodity prices.”

However, according to the CIO, there is still a considerable amount of upward growth potential.

“In terms of where we are in terms of that commodity basket, we're way behind where we were in 2008, pre the (global financial crisis) and after the mining boom of the 2000s,” he told the crowd.

“And we're way behind where the Dow Jones and equities in general have got to,” Forwood added. “So, we think that there's potential for the commodity sector to be just getting started.”

There are also several other factors that are adding tailwinds to the broad sector, according to Forwood, who cited inflation — which is at 5 percent in Australia and 7-8 percent in the US and UK — as a significant contributor.

Looking at the longer-term fundamentals that have gotten us here, Forwood pointed to lack of investment capital as a main driver.

“I think the big one, the long term one, is under investment,” he said, noting that the early 2000s mining boom led to a lot of investment, which we aren’t seeing today.

“But over the last seven or eight years, we've seen a real dearth of capital going back into the sector. And in fact, we've also seen a dearth of M&A — something that we've been looking out for and it's just not happening.”

In fact, as one of the slides Forwood presented laid out, investment from the resource industry back into itself reached a 19 year low late last year.

Despite the lack of large investment, Australia’s junior resource index was up 16 percent at the end of April compared to the broader market and the Dow Jones Index, which had slipped 9 percent.

“So that may represent a rotation from other sectors into the resources sector. And if that is the start of what's happening, that could be very, very significant for resource company prices,” he said, explaining the resource sector is actually very small on a global scale.

“And if you see significant global money flowing into that sector, you know, it's almost the sky's the limit,” Forwood added.

Gold and volatility

While speaking about several commodities, the CIO for Lowell Resource Funds Management took time to highlight how gold could also be positioned for an upward trend, because “commodities do best when inflation is rising, and interest rates are rising.”

He then displayed a chart that indicated gold was the top performer among US stocks and the US greenback during the first six months following the commencement of a Fed rate hike period.

Real interest rates, which are hovering around 0 percent, are likely to have no effect on gold's price because, according to the Forwood, rates would have to be 3 percent or higher to impact gold.

He did warn that stagflation could add more wind to the yellow metal’s sails moving forward.

“We think there's a decent chance of (stagflation) occurring, so what should you buy?” he posited. “If you think that stagflation is on its way, well, the answer is also gold.”

Forwood concluded his address by encouraging attendees to invest in the junior resource space.

“Finally, at the Lowell Fund, we like to invest in junior explorers,” he said.

“Because they're the ones who make the discoveries, and discoveries is where you can really add the most value.”

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

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

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

fine gold bar
Sashkin / Shutterstock

"I'm bearish on the markets, (but) I'm bullish on gold — physical bullion — and farmland right now," said Mercenary Geologist Mickey Fulp.

Mickey Fulp VRIC 2022 youtu.be

With the general markets in turmoil, Mercenary Geologist Mickey Fulp sees few places to turn.

"It's a difficult situation," he said at the recent Vancouver Resource Investment Conference (VRIC). "I am very bearish, not necessarily on commodity prices, but on the whole resource space and the ability of companies to explore, develop, produce — there's a variety of factors against that right now."

Those include resource nationalism, socialism, anti-development initiatives and green agendas, Fulp explained. Meanwhile, mining companies are seeing energy and labor costs pushed up by inflation.

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Tempus Resources

Tempus Resources Ltd is pleased to announce that in relation to its US-based OTC Markets listing under the symbol "TMRFF", it has now received confirmation from the Depository Trust Company that its common shares are now eligible for electronic clearing and settlement through the DTC in the United States.

Tempus Resources Ltd ("Tempus" or the "Company") (ASX:TMR), (TSXV:TMRR), (OTCQB:TMRFF)(ASX:TMR), (TSXV:TMRR), (OTCQB:TMRFF) is pleased to announce that in relation to its US-based OTC Markets listing under the symbol "TMRFF", it has now received confirmation from the Depository Trust Company ("DTC") that its common shares are now eligible for electronic clearing and settlement through the DTC in the United States.

Tempus Resources President and CEO, Jason Bahnsen, commented "DTC eligibility is a key step in the development of our shareholder base and market presence across the United States. It allows current and prospective shareholders of Tempus Resources a reliable, cost-efficient, and timely method for clearing and settlement of our common shares and positions US investors to participate in the growth of the Company's Americas-based asset suite."


The DTC is a subsidiary of the Depository Trust & Clearing Corp. that manages the electronic clearing and settlement of publicly traded companies in the United States, including the Company's OTCQB listing. Tempus Resources' share cusip has been approved for DTC Eligibility allowing holders and their brokers with the ability to process transactions efficiently via Deposit/Withdrawal At Custodian ("DWAC") at the DTC. DTC is a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law and a registered clearing agency with the U.S. Securities and Exchange Commission.

This announcement has been authorised by the Board of Directors of Tempus Resources Ltd.

For further information:

TEMPUS RESOURCES LTD

Melanie Ross - Director/Company Secretary
Phone: +61 8 6188 8181

About Tempus Resources Ltd

Tempus Resources Ltd ("Tempus") is a growth orientated gold exploration company listed on ASX ("TMR") and TSX.V ("TMRR") and OTCQB ("TMRFF") stock exchanges. Tempus is actively exploring projects located in Canada and Ecuador. The flagship project for Tempus is the Elizabeth-Blackdome Project, a high-grade gold past producing project located in Southern British Columbia. Tempus is currently midway through a drill program at Elizabeth-Blackdome that will form the basis of an updated NI43-101/JORC resource estimate. The second key group of projects for Tempus are the Rio Zarza and Valle del Tigre projects located in south east Ecuador. The Rio Zarza project is located adjacent to Lundin Gold's Fruta del Norte project. The Valle del Tigre project is currently subject to a sampling program to develop target geological anomalies identified through geophysical work.

Forward-Looking Information and Statements

This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Tempus's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information and forward-looking statements contained herein may include, but are not limited to, the ability of Tempus to successfully achieve business objectives, and expectations for other economic, business, and/or competitive factors. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Tempus to control or predict, that may cause Tempus' actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein and the other risks and uncertainties disclosed under the heading "Risk and Uncertainties" in the Company's Management's Discussion & Analysis for the quarter and nine months ended March 31, 2022 dated May 16, 2022 filed on SEDAR. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Tempus believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Tempus does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to Tempus or persons acting on its behalf are expressly qualified in its entirety by this notice.

Neither the ASX Exchange, the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Click here to connect with Tempus Resources Ltd (ASX:TMR), (TSXV:TMRR), (OTCQB:TMRFF)(ASX:TMR), (TSXV:TMRR), (OTCQB:TMRFF) to receive an Investor Presentation

Source

TMRR:CA
Winsome Resources CEO Chris Evans

Winsome Resources CEO Chris Evans said, “Canada and the US are working feverishly to develop an internal battery materials supply chain and we think we're going to play a critical role in that.”

Winsome Resources CEO Chris Evans: Sustainable Hardrock Lithium Opportunities in Quebec youtu.be


Winsome Resources (ASX:WR1) CEO Chris Evans joined the Investing News Network to discuss the company and its Cancet lithium project in Quebec, Canada.

"We listed on the ASX on November 30, 2021," he explained. "We're lithium focused but based in Canada, and we've been pretty successful in the last six months — our share price has done well. I think I've been putting this down to the success factors which we possess as a company, including the fact that we're into lithium at a moment with high demand. Any mining company that's associated with lithium has tended to do well.

“Our assets are in Quebec, a fantastic mining jurisdiction for all sorts of reasons. Also, being listed on the ASX — Australian investors tend to like early stage plays a bit better. They've certainly woken up to the electric vehicle and lithium revolution that's occurring in the world. And it's a pleasure having the assets in Canada.”


Next, Evans got into specifics about the company's flagship project. “The Cancet project is our flagship, in the James Bay region of Quebec. All our projects are hard-rock lithium; that's digging the rocks out of the ground and concentrating the lithium in them. Then it gets converted into the final product, which is lithium carbonate or hydroxide, that then goes into electric vehicle batteries,” he explained.

“Cancet’s had about 5,500 metres of drilling done on it historically, so we know that there's a great deposit of lithium at fantastic grades. It outcrops on the surface, the lithium-containing spodumene from the pegmatite rock, where we have 3.7 percent lithium oxide over a 17 metre interval from the surface at our most successful drill hole. We just completed 2,000 metres of drilling ourselves, increasing our knowledge of the orebody that's there, and also looking for extensions to the orebody. We've got 395 claims, and our drilling and exploration is only over about 15 of the claims. So we've got a lot further to look here and a lot more to develop.”

As for supply location, and the company's relationship with the international market, Evans said, “We think it's fantastic for us, and our shareholders, that we have assets in Quebec. Roughly 50 percent of the world's hard-rock lithium comes from Australia, where it’s mined and concentrated. The problem is that final conversion into lithium carbonate or hydroxide all occurs at the moment in China ... lithium is on the critical minerals list in Canada, the US and Australia, and Canada and the US are working feverishly to develop an internal battery materials supply chain. We think we're going to play a critical role in that.”

Elaborating on the sustainability industry that drives the battery revolution, he said, “(Nearly) all power in Quebec is generated by hydroelectricity and renewable forms of electricity. That’s very important, because the mining and concentration process for lithium products traditionally produces a large carbon footprint, because it's energy intensive. The EU, from 2024, has mandated that all batteries are labeled with the carbon footprint of all the materials that are contained within them. Then, by about 2026, there's specific targets that batteries have to meet in order to be sold in the EU. If you don't have a renewable source of energy to produce your lithium products that go into those batteries, it's going to severely restrict your markets — and that's another bonus for us being in Quebec.”

Evans said that Winsome Resources’ approach is to develop a mine itself, rather than selling or partnering. “We will approach this as if we are going to be developing the Cancet project, and producing lithium ourselves, in four or so years. And I think that'll best serve our shareholders.” With regards to other ways the company could benefit investors, Evans said, “Being listed on the ASX, and having access to a lot of capital, I think there's a great opportunity for us to acquire other projects in Canada. We're about to start our summer exploration. And we're on the lookout for a new project. So I think the good news is really to come.”

Watch the full interview of Winsome Resources CEO Chris Evans above.

Disclaimer: This interview is sponsored by Winsome Resources (ASX:WR1). This interview provides information that was sourced by the Investing News Network (INN) and approved by Winsome Resources in order to help investors learn more about the company. Winsome Resources is a client of INN. The company’s campaign fees pay for INN to create and update this interview.

INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.

The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Winsome Resources and seek advice from a qualified investment advisor.

This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.

WR1:AU

Where are the silver mines in Australia? You might be surprised to learn that the country is home to one of the world’s top primary silver producers.

Mining is a big part of Australia’s history, and it continues to shape the country’s economy and position in the world today. The nation is one of the world’s top producers and exporters of resources, with coal, uranium, copper and gold being some of its best-known commodities.

Australia is also a key producer of silver — it was the world’s fifth-largest producer of the metal in 2021, tied with Russia, putting out 1,300 MT. Interestingly, most of Australia's silver is produced from silver-bearing galena, but some is also produced from copper and gold mining.

Refined silver comes mainly from the Port Pirie lead smelter and refinery in South Australia, though silver is also refined at gold refineries in Perth, Kalgoorlie and Melbourne.


But where are the silver mines in Australia, exactly? While it’s interesting to know what types of deposits the precious metal is found in, many investors want to know what companies are producing silver and where their mines are located geographically. Read on to find the answers to those questions.

Where are the silver mines in Australia?

Silver has played a role in Australia since the mid-1800s — Wheal Gawler, Australia’s first metal mine, was a silver-lead mine developed in South Australia in the 1840s. And that’s not Australia’s only early silver-mining operation — the Broken Hill deposit in New South Wales and the Mount Isa deposit in Queensland are two other early Australian silver discoveries.

Broken Hill, a lead-zinc-silver deposit, was discovered in 1883 by German immigrant Charles Rasp, and the Broken Hill Proprietary Company was born in 1885; it ultimately merged in 2001 with another mining giant, Billiton, to form BHP Billiton (ASX:BHP,NYSE:BHP,LSE:BLT). BHP Billiton is no longer involved with Broken Hill, but ore is still being extracted there today. Perilya now runs the southern and northern operations.

For its part, Mount Isa was discovered in 1923 by John Campbell Miles, and like Broken Hill is still producing today. It was acquired by Glencore (LSE:GLEN) in 2013 and in addition to silver is also a producer of zinc.

These major early Australian silver discoveries are not the country’s only sources of silver. Other silver mines in Australia include Cannington, one of the world’s top primary silver producers. It’s a fly-in, fly-out mining and processing operation that is owned by South32 (ASX:S32,LSE:S32), a diversified resource company spun out from BHP Billiton in 2015. Cannington also produces lead and zinc.

Australia holds the McArthur River mine as well, which opened in 1995 and is owned by Glencore subsidiary McArthur River Mining. The mine is one of the world’s largest zinc-lead-silver mines, and is located in Australia’s Northern Territory.

Glencore’s 2021 annual report claims total silver production reached 31.519 million ounces for the year, representing a 4 percent drop from 2020. That includes 625,000 ounces from McArthur River.

The Century mine, which previously belonged to MMG (HKEX:1208), shut its doors at the end of 2015, but was a major producer of zinc (and silver) until that time. It was reopened in mid-2018 by New Century Resources (ASX:NCZ) and the company says it now has an estimated annual production capacity of 264,000 tonnes of zinc and 3 million ounces of silver.

Independence Group (ASX:IGO) also produces silver, along with copper and zinc, at its Jaguar operation in Western Australia. Gold producer Silver Lake Resources (ASX:SLR) owns some projects with silver reserves as well. As you can see, there are and have been many silver mines in Australia.

Future silver mines in Australia?

In addition to being home to a slew of large silver mines, Australia also plays host to many companies that are exploring and developing silver projects. Below are a few that have made recent progress.

Please let us know in the comments if we’ve forgotten to mention any Australia-focused silver companies. All companies listed had market caps of at least AU$5 million on May 19, 2022.

Argent Minerals (ASX:ARD) — Argent Minerals’ main asset is its 100-percent-owned Kempfield polymetallic project in New South Wales. In May 2018, the company announced an updated resource estimate for the asset — its silver equivalent contained metal now stands at an estimated 100 million silver equivalent ounces at 120 g/t silver equivalent; that’s approximately double the previous estimate.

In total the company has three projects, with all of them being in New South Wales.

Investigator Resources (ASX:IVR) — Investigator Resources is advancing silver, copper and gold deposits in South Australia. Currently its properties include the Peterlumbo/Paris silver project, the Eyre Peninsula and Stuart Shelf projects and the Northern Yorke Peninsula projects.

The total resource for Paris stands at an estimated 18.8 million tonnes at 88 g/t silver and 0.52 percent lead for 53.1 million ounces of contained silver and 97,600 tonnes of contained lead (at a cut off of 30 g/t silver). The indicated component is 12.7 million tonnes of silver (95 g/t) and represents 73 percent of the total estimated resource ounces.

Horizon Minerals (ASX:HRZ) — Horizon Minerals owns the Nimbus silver-zinc project in Western Australia. Nimbus has a high-grade silver-zinc resource estimate of 255,898 tonnes at 773 g/t silver and 13 percent zinc; the total Nimbus resource stands at 1.21 million tonnes at 52 g/t silver, 0.9 percent zinc and 0.2 g/t gold.

Silver Mines (ASX:SVL) bills itself as a leading Australian silver exploration company, and has spent a considerable amount of time acquiring Australian silver projects. Those include Malachite Resources’ (ASX:MAR) Conrad project and Kingsgate Consolidated’s (ASX:KCN) Bowdens silver project.

While the company’s main focus has been on the Webbs silver project in New South Wales, the Bowdens project represents the largest undeveloped silver project in Australia, and Silver Mines is working to get the project through the feasibility, environmental impact statement and permitting stages.

In a 2018 report, the feasibility study demonstrated an average silver production of 3.4 million tonnes per annum for the project, with 5.4 million during the first three years of operation. Estimations also included 6,900 tonnes of zinc and 5,100 tonnes of lead.

This is an updated version of an article first published by the Investing News Network in 2018.

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

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

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