Newcrest delivers record free cash flow, lifts dividend and
identifies opportunity to unlock significant value at
Lihir(1),(2),(13),(21)

? Strong operating performance and gold price underpins record free cash flow in December half
o Statutory profit and Underlying profit of $553 million(3),(4), up 134% and 98% respectively
o Earnings per share 121% higher than prior period
o All-In Sustaining Cost (AISC) margin of $842 per ounce, up 48%(4),(5)
o Record December half year free cash flow of $439 million(4)
? A safe and sustainable business
o Zero fatalities and life-changing injuries, together with industry-leading(6) low injury rates
o Second year in a row of an increasing score in the Dow Jones Sustainability Index (DJSI) Australia
Metals & Mining Index
o Cadia renewable energy contract signed – on track for 30% reduction in emissions intensity by 2030(7)
? New dividend policy and increase in shareholder returns
o New dividend policy targets 30-60% of annual free cash flow to be paid in dividends (was 10-30%)
o Interim dividend of US$ 15 cps, fully franked, 100% higher than the prior year
? Lihir mine improvements and potential to unlock additional high grade mineralisation(8)
o Improved understanding of treating argillic ores and their likely volume and distribution in ore feed
o New mine plan has a higher average gold grade feed to mill, with a lower proportion of argillic mill feed
o Potential for additional ~1.4Moz of contained gold(9) to be available as mill feed in FY22 to FY34
o Seepage Barrier and associated capital costs deferred by 18 months
o Opportunity identified to access additional existing high grade Indicated Mineral Resource adjacent to
existing Phase 14, which has the potential to deliver an additional ~400-600koz of contained gold(10) in
FY23-25. This is currently being evaluated in a Pre-Feasibility Study which is expected to be completed
in the coming months
o Together, the above underpins an aspiration for Lihir to be a 1 Moz+ per annum producer for
~10-12 years from FY23 onwards at a milling rate of around 15 mtpa
? Organic growth options progressing well
o Stage 2 of Cadia Expansion Project approved, underway and on track
o Initial Inferred Mineral Resource estimate for Havieron of 3.4Moz of gold and 160kt of copper(11),(12),(13)
o Early works construction underway in relation to the box cut and exploration decline at Havieron
o Red Chris box cut commenced and funding approved for exploration decline
o Environment Permit granted for Wafi-Golpu Project
? Forging an Even Stronger Newcrest
o New Company Purpose: “Creating a brighter future for people through safe and responsible mining”
o Refreshed aspirations for the next five years under our five main pillars
Newcrest Mining Limited – Level 8, 600 St Kilda Road, Melbourne, Victoria 3004 – www.newcrest.com 2
Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said “In 2018 we set ourselves some
ambitious targets to Forge a Stronger Newcrest. Our progress and achievements over the past three years has put
us in a very strong position to not just weather the global uncertainty associated with COVID-19, but to keep our eyes
firmly on our future growth agenda. We have a fabulous position in our industry, with a long reserve and resource
life, a unique set of technical skills, a very strong balance sheet, numerous organic growth options in progress and
an exciting exploration pipeline.”
Today we announce our plan entitled Forging an Even Stronger Newcrest, which outlines our aspirations and
measures for the next five years in line with our new company purpose, to create a brighter future for our stakeholders
through safe and responsible mining. This year we lived that purpose through our success in managing the
COVID-19 risk to our workforce and local communities; through the compensation, relocation and benefits sharing
agreements we signed with the landowners at Lihir; through our renewable energy agreement that will help
significantly reduce our carbon footprint; and in our progress in developing new mines at Havieron and Red Chris.”
"The strong financial results for the half year show how much the increase in gold price has translated into improved
profitability, record half year free cashflow and an increase in returns to shareholders in the form of a fully franked
interim dividend of US$ 15 cents per share, 100% higher than last year,” said Mr Biswas.
“The Board has approved a new dividend policy that retains the minimum dividend of 15 cents per share per annum
but more than doubles the target percentage of free cash flow to be paid in dividends to 30-60%. This change in
policy allows shareholders to benefit from the stronger free cash flows that result from higher gold prices and is
supported by Newcrest’s robust balance sheet with its minimal near-term debt obligations.”
“This year we have leveraged our technical capabilities to establish a pathway to unlock significant value from Lihir.
I am particularly pleased with the work done in the period to better understand and manage the argillic clays together
with the finalisation of an optimised mine plan that is expected to reduce the levels of argillic mill feed presentation
in the future. Our approach to mining Phase 14 has the potential to bring a considerable amount of high grade
mineralisation from resource into production in the very near future, which in turn has the potential to significantly
increase gold production and increase profitability and free cashflow. We are progressing a study with an aspiration
for Lihir to be a 1 million ounce plus producer each year for around 10-12 years from FY23 at around 15 mtpa milling
rates,” said Mr Biswas.
Summary of Operating and Financial Results
For the 6 months ended 31 December
Endnote UoM 2020 2019 Change Change %
TRIFR 14 mhrs 2.2 2.3 (0.1) (4%)

see & read more on
https://www.newcrest.com/sites/default/files/2021-02/210211_Newcrest%20FY21%20Half%20Year%20Results%20%E2%80%93%20Results%20Release.pdf