Managing Director’s Review
Newcrest has been free of fatalities for seven years now. It is an outcome that is only possible because of the tireless and enduring efforts of everyone across our global workforce. Ensuring people get home from work and to their families requires a relentless, persistent focus on both safety and wellbeing. It is work that does not end and where there is no place for complacency. That is why we remain steadfastly committed to continuing to enhance safety across our company.
Across FY22, we saw 4.01 recordable injuries per million hours worked throughout the year, largely driven by minor hand injuries and other low severity incidents. In response, education and intervention programs are being implemented across the company to maintain a strong focus on workplace safety alongside our NewSafe program.
Considerable inroads have been made this past year into building a high performing, inclusive and psychologically safe workplace, alongside our resolute determination to prevent any form of sexual assault or sexual harassment in the workplace. Disturbing and shocking stories have emerged regarding sexual assault and harassment in the mining industry. For us, there is only one acceptable number of such incidents – and that is zero. We have mobilised a team to strengthen our systems and frameworks across all operations so we are well-positioned to support our people and ensure everyone knows there is no place for disrespectful or harmful behaviour at Newcrest.
Ultimately, we know that having a safe, diverse and inclusive workplace where every person can thrive and excel will help attract new talent and retain the highly skilled workforce we have today. Beyond this, it positions us to innovate from the ground up, be outstanding operators, and grow and sustain our business.
Delivering value-accretive growth positions our company well for future success. Earlier this year, we saw Newcrest complete the acquisition of the Brucejack mine in British Columbia. The result is that we have now gained exposure to our sixth Tier 1 orebody across the world. As one of the highest‑grade operating gold mines globally, it is an exciting addition to an already unrivalled portfolio, rich with large-scale, long-life and low‑cost assets.
As well as adding to the Group’s production profile, Brucejack has also contributed financially for shareholders. In just four months of ownership, it has provided $109 million in EBITDA and $88 million of free cash flow. Our three-phase transformation program of the asset has already made solid progress and is expected to optimise operations, realise full uplift potential, and deliver Mineral Resource and Ore Reserve growth to unlock further long-term value.
The financial year saw Newcrest produce solid operational and financial performance, with production of both gold and copper steadily increasing over the last four quarters. In total, 1.96 million ounces of gold was produced at an All-In Sustaining Cost (AISC) of $1,043 an ounce. Our disciplined financial management has seen four consecutive quarters of lower group costs, resulting in a statutory and underlying profit of $872 million.
These outcomes were achieved while we confronted the ongoing impacts of COVID-19, border closures, floods, worldwide supply chain and inflationary cost pressures, and major maintenance activities. We did not experience any material pandemic-related disruptions to production in FY22. This would not have been possible without the unwavering commitment of all our people.