cadia valley present 2012

Cadia ValleyPeter Smith

Executive General Manager Australian Operations

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Disclaimer

Forward Looking Statement

These materials include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs..

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the company’s business and operations in the future. The company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the company or management or beyond the company’s control.

Although the company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be anticipated, estimated or intended, and many events are beyond the reasonable control of the company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

Ore Reserves and Mineral Resources Reporting Requirements

As an Australian company with securities listed on the Australian Securities Exchange (“ASX”), Newcrest is subject to Australian disclosure requirements and standards, including the requirements of the Corporations Act and the ASX. Investors should note that it is a requirement of the ASX listing rules that the reporting of ore reserves and mineral resources in Australia comply with the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”) and that Newcrest’s ore reserve and mineral resource estimates comply with the JORC Code. As a company listed on the Toronto Stock Exchange (“TSX”), Newcrest is subject to certain Canadian disclosure requirements and standards, including the requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (“NI 43-101”). In accordance with NI 43-101, Newcrest reports its ore reserves and mineral estimates in compliance with the JORC Code, along with a reconciliation for any material differences between the JORC Code and the applicable definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM Definition Standards). There are no material differences between the definitions of Measured, Indicated and Inferred Mineral Resources, and Proven and Probable Reserves, under the CIM Definition Standards and the equivalent or corresponding definitions in the JORC Code.

Exploration Target

The potential quantity and grade related to any Exploration Targets referred to in this presentation is conceptual in nature as there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource. Refer to Newcrest’s detailed exploration summary on our website at www.newcrest.com.au and on www.sedar.com.

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Cadia Valley - Australia

Long life, low cost, organic growth

• FY13 production guidance– 400 to 500koz gold– 53 to 58kt copper

• 5 year outlook– 700 to 800koz gold a year– 80 to 90kt copper a year

• >30 year reserve life

• Cadia East ramp up

CVO Gold Moz Copper Mt

Resource1 43.2 7.97

Reserve1 26.6 4.27

1 Refer Newcrest Annual Statement of Mineral Resources & Ore Reserves as at December 31, 2011.

2 Annual gold production range: gold bar designates up to low end of range, blue signifies high end of range

Gold production2

CVO, Australia

FY12 FY13 FY17

473koz400 to 500koz

700 to 800koz

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• First quartile gold producer• Cadia East capital targeting high returns

– ~$1.3bn expansion over 5 year plan period– ~$100m development spend per year

thereafter• Cadia East to deliver:

– Mining costs $5 to 6/tonne– Unit cash costs post credits ~$200/oz2

Cadia Valley FY12

Cash cost post credits A$423 per ounce

Production cost post credits A$663 per ounce

EBIT margin 40%

Return on net assets 13%(27% excluding CE WIP)

1 Source: GFMS, accessed 25 September 20122 Assumes US$2.50/lb and AUD:USD 0.85

Unit cash cost per ounce1

4

-1,000

-500

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D$/

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Cadia

Current cash cost

Target cash cost

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Cadia Valley: long life, low cost, organic growth

“Production 400 to 500koz– transition year”• Cadia East commercial production - rate steps-up• Process stockpiles, RWD at 8mtpa • Plants commissioned

“Increase production to 700 to 800koz gold plus 80 to 90kt copper”• 100% Cadia East ore• Optimise cave performance• Drive cash costs lower and stabilise capital• Studies to drive 30 to 35mtpa processing

“Production sustained for 30+ years• Broader province exploration options• Near mine supplementary ore supply• Seamless mining and processing factory

• Highly automated, high technology, low cost long life

FY13

5 years

15 years

Future mine

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Cadia Valley Province in central NSW Australia

Cadia Valley

Newcrest EL

Newcrest ML

EL Application

EL - Active

Tenement Legend

nn 2011 Gold Resource (Moz Au) – Newcrest interest basis

Marsden Project

1

43McPhillamys

Cowal4.5 Moz Au#

4.1 Moz Au#

2.3 Mt Cu 1.6 Moz Au, 640 kt Cu#

Northparkes

Copper Hill Mine

3 Moz Au, 60 kt Cu#

Bathurst

Marsden

Orange

Cowra

Parkes

Cadia Valley Operations

50 km

Peak Hill1 Moz Au historical production #

MineralisedCorridor

CADIAPLANT

Gooleys

Willow Park

Big Cadia

Cadia East

3.4 Moz Au

5.4 Moz Au

0.55 Moz Au

Cadia Hill

33 Moz Au

Ridgeway

Newcrest EL

Newcrest ML

EL Application

EL - Active

Tenement Legend

Target areas

Cadia Extended0.93 Moz Au

50 km

# externally reported figuresRefer Newcrest Mineral Resource & Ore Reserve Explanatory Notes issued

15 August 2011

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Newcrest Owned Land Operational Area Mining Lease

CVO land position is secure

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CVO site well established footprint

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18700 Mega litres of site storage2 years without refill

Northern Tails

Southern Tails

Upper Rodds Creek Dam

CVO well set up for water supplies

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Open community relations practised

• Employee awareness

– Inductions and participation

• Open days, site tours, newsletters

• 24 hour community hotline

• Regular consultation forums

Environmental impact monitoring and management includes:

• Noise: operational & traffic• Blasting and vibration• Air quality, soil and water• Meteorological monitoring• Rehabilitation & biodiversity• Aboriginal and historical heritage


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RESOURCE

Resource Reserve

43.2 Moz Au 8 Mt Cu 26.6 Moz Au 4.3 Mt Cu

Ridgeway

Cadia East

Big Cadia

CadiaExtended

CadiaHill

1000 m

Pit outline

Mine Grid

Cadia ValleySydney

Ridgeway

Cadia East

Big Cadia

CadiaExtended

CadiaHill

F

F

1000 m

F

F

Resource

Stage 4

150 Mt @0.71 g/t Au &0.37 % Cu

3.3 Moz Au0.54 Mt Cu

2011 RIDGEWAYRESOURCE(1)

2.3 Bt @0.44 g/t Au &0.28 % Cu


2011 CADIA EASTRESOURCE(1)

560 Mt @0.38 g/t Au &0.15 % Cu


2011 CVO OTHERRESOURCE(1)

1.2 Bt @0.58 g/t Au &0.31 % Cu


2011 CADIA EASTRESERVE(1)

93 Mt @0.82 g/t Au &0.36 % Cu


2011 RIDGEWAYRESERVE(1)

130 Mt @0.51 g/t Au &0.20 % Cu


2011 CVO OTHERRESERVE(1)

(1) Newcrest Annual Statement of Mineral Resources & Ore Reserves as at December 31, 2011.

Long projection (looking mine grid north)

Plan view

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CVO operations are in a transition phase from open pit to all underground• Cadia Hill open cut: care and maintenance on 30th June 2012 • Ridgeway underground mine: Newcrest’s first Block Cave mine, hitting targets• Cadia East Project on schedule for commercial production in December quarter• Ore processing facility: fully commissioned


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CVO future production dominated by Cadia East (CE)• Transition phase: from open cut (CH) and underground to all underground• RWD (RW) operating at 8mtpa, pushing to 9mtpa• Cadia East ramping to 26mtpa capability

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CE Mill Tonnes RW Mill Tonnes CH Mill TonnesCH Stockpile Mill Feed Gold Produced mid point estimate koz


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RWD – learning & perfecting how to block cave• RWD is a single level block cave mine

- Feasibility design of 5.6mtpa- Now operating at 8mtpa- Static panel layout – reserves of 100mt- Material handling system max capability of

9-10mtpa• Demonstrated technical capability to build

and operate deep block cave mine in CVO conditions

• Managed secondary break out of critical path• Remote / automated bogging tested• Demonstrated electric loaders can compete• Introduce link to SAOC All learnings lead to CE


SLC

Lift 1

Lift 2

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Cadia East: the largest underground mine in Australia

• Panel Cave mine- Depth: 1200m – 1500m

• 1.2bn tonnes ore in total• 26mtpa production capacity• ~$5 to $6/tonne mining costs

• 5 year capital: $1.3bn

• Intense preconditioning of cave• Mine infrastructure capability

• Crushers • Belts • Processing

• Operating systems tuned at RWD

CadiaHill Open Pit

600m

700m

825m

PC2‐S2

PC2‐S1

PC1‐S1

PC1‐S2

400m

1,225m 1,475m


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• Production has commenced• Cave propagating well • Main crusher on track • PC2 on track• Infrastructure commissioned• Future state design complete• SAOC imbedded


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FY13 cave layout: currently 27 drawbells fired and 28 ready (drilled)


Note: 2 drawpoints for each drawbell

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Undercut moving to plan: grey = fired, blue = drilled


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FY13

Cave development over the next 3 years: FY13


PC1‐S1

PC2‐S1

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PC1‐S1

PC2‐S1

21



PC1‐S1

PC2‐S1

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To compare: this is the size of RWD

We are now here

Unlike RWD – CE is a dynamic multi panel multi level layout

Cadia East future sequencing -“Macro Blocks” (LOM Au Grade)


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Feasibility Feasibility Optimised

Panel cave 2 extraction level layout optimised


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Panel cave 1 phase 2 crusher chamber progressing to plan


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Isometric View(looking towards West)


4670 PC1 Undercut

4650 PC1 Extraction

The cave has started to propagate very well

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Recorded Seismicity 11th‐24th September 2012

4670 PC1 Undercut Level

4650 PC1 Extraction Level

Top of Undercut Drilling

Cave Back Open Monitoring Holes

PC1 Cave Shape

Drawbells fired and connected to Undercut

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Assumes 2 pathways

Nomogram

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)

Red Orange Yellow Green

Cave Back Interpretation September 2012• Caved Stock: 430,000 Tonnes• Caved Stock Available: 50,000 Tonnes• 9 m average air gap (25 m max)• Next 6 UC firings to the North• To create caving and filling of gap


Daily monitoring and reporting tools in place

Isometric View(looking towards West)

4670 PC1 Undercut

4650 PC1 Extraction

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There is potential to drive processing to 35mtpa1


BASE CASE

26Mtpa

MID CASE

30Mtpa

Leverage assets upper limits

Step changeNew technologies

HIGH CASE

35Mtpa

Leverage assets upper limits

Execute the plan

1. Subject to regulatory approvals.

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Emerging Cadia Step ChangesGetting higher productivities from what we have

• Exploit finer, engineered cave material

– Ridgeway showing fine material as cave matures– Cadia East additionally has ‘intensive preconditioning’– Low grade segregation before processing

• Adopt semi-continuous cave production

– Fine tuning ore transfer system productivities– Working with Codelco– Field trialling mobile breaker units at Cadia

• Macro block value sequencing

– Refining draw column value assessment processes– Understanding ‘cave engineered’ design parameters

• front ended grade & metal by sequencing value better

→ Sustained, low cost 30-35Mtpa ‘Mining Factory’

Finer ‘Engineered’ Cave Ore

Higher productivity from asset

High Productivity Transfer Systems

Macro Block Value Re-sequencing


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Future State

Sites

Site Asset Operations Centres (Tier 1)

Collaboration Hub -Operations Excellence (Tier 3)

Excellence (Tier 3)

Collaboration Hub -Expert Tune Up (Tier 2)

Shared context in real-timeContinuous mines, safe delivery of plan

Rapid, quality ‘short interval’ decision making

Drive on-going operational improvement

Establish Newcrest ops plans and improvement priorities

CVO performance will be underpinned by the company's integrated operating philosophy

31

Cadia Valley: long life, low cost, organic growth

“Production 400 to 500koz– transition year”• Cadia East commercial production - rate steps-up• Process stockpiles, RWD at 8mtpa • Plants commissioned

“Increase production to 700 to 800koz gold plus 80 to 90kt copper”• 100% Cadia East ore• Optimise cave performance• Drive cash costs lower and stabilise capital• Studies to drive 30 to 35mtpa processing

“Production sustained for 30+ years• Broader province exploration options• Near mine supplementary ore supply• Seamless mining and processing factory

• Highly automated, high technology, low cost long life

FY13

5 years

15 years

Future mine

32

Cadia Valley operations at the dawn of greatness


The future is here

cadia valley present 2012

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