Investor Centre / Annual Report 2020

Key Achievements for FY20

Profit and Cash Flow

Statutory profitof

$647m

Underlying profit2,3 of

$750m

EBITDA margin2 of

46.8%

EBIT2
margin of

30.4%

Cash flow from operating
activities of

$1,471m

Free cash flow before
M&A activity2 of

$670m

Balance Sheet

Leverage ratio2 of

0.3 times

at 30 June 2020

Gearing5 of

6.8%

at 30 June 2020

Cash and undrawn committed
facilities at 30 June 2020 of
approximately

$3.5bn

Extended and smoothed maturity
profile on Newcrest’s corporate
bonds following debt refinance

Successful equity raising 

A$1.2bn

Total Dividends for FY20

US25cps

  • Underlying profit2, 3

$750m

  • Copper production

138kt

  • EBIT2, 4 ($m)

$1.2bn

  • Gold production

2.2moz

Progress on our aspirations

Safety

Zero fatalities and industry leading TRIFR6 by end of 2020

  • Over 5 years free of fatalities and a low TRIFR of 2.6 per million hours worked 

Organisational Health

First Quartile Organisational Health by end of 2020

  • Achieved first quartile organisational health score in the 2019 survey

Operational Performance

First Quartile AISC per ounce by end of 2020

  • First quartile All-In Sustaining Cost (AISC)2,7 of $862 per ounce

  • AISC margin of $668 per ounce

Technology and Innovation

5 breakthrough successes by end of 2020

Achieved 5 breakthroughs:

  • High draw, deep caving, material increase in draw height and depth

  • Selective refractory ore oxidation reduces oxygen requirement at Lihir

  • Coarse ore flotation, reducing grinding energy intensity and improving recovery at Cadia

  • Successful completion of undercutless caving trial at Telfer

  • Successful trialling of a new generation of high temperature electronic detonators at Lihir

Growth

Exposure to 5 Tier One orebodies by end of 2020

  • Tier One orebodies
    • Cadia
    • Lihir
    • Red Chris (70% ownership with potential to be a Tier 1 orebody)
    • Wafi-Golpu (50% ownership)
    • Fruta del Norte (32% equity ownership and acquisition of financing facilities8)

 

Profit and Cash Flow

All-In Sustaining Cost2,7
($/ounce)
 

EBITDA2,4
($M)
 

Statutory Profit1
($M)
 

Cash Flow from Operating Activities
($M)

FY20 Results at a glance9,10

12 Months to
30 June 2020

12 Months to
30 June 2019

%
Change

Gold produced11

ounces

2,171,118

2,487,739

(13%)

Copper produced

tonnes

137,623

105,867

30%

Realised gold price

$ per ounce

1,530

1,269

21%

Realised copper price

$ per pound

2.57

2.78

(8%)

Average exchange rate

AUD:USD

0.6715

0.7156

(6%)

Sales revenue

$ million

3,922

3,742

5%

EBITDA

$ million

1,835

1,670

10%

EBIT

$ million

1,191

924

29%

Statutory profit

$ million

647

561

15%

Underlying profit

$ million

750

561

34%

Cash from operating activities

$ million

1,471

1,487

(1%)

Net cash outflow from investing activities

$ million

(2,092)

683

206%

Free cash flow

$ million

(621)

804

(177%)

Return on capital employed (ROCE)

percent

13.8

11.2

23%

Leverage ratio

times

0.3

0.2

50%

Gearing

percent

6.8

4.9

39%

Total dividends

cents per share

25.0

22.0

14%

  1. Statutory profit is profit after tax attributable to the owners of the Company.
  2. For this reference and other references to non-IFRS financial measures throughout this annual report, refer to the information in the Operating and Financial Review within the Directors’ Report regarding the inclusion and definitions of non-IFRS financial measures.
  3. Underlying profit is profit after tax before significant items attributable to the owners of the Company.
  4. EBITDA is ‘Earnings before interest, tax, depreciation and amortisation and significant items’. EBIT is ‘Earnings before interest, tax and significant items’. EBITDA and EBIT are used to measure segment performance and have been extracted from Note 4 of the Financial Statements on page 121 in the full report.
  5. Gearing is calculated as net debt divided by net debt and total equity as at 30 June.
  6. Total Recordable Injury Frequency Rate (per million hours worked).
  7. AISC per ounce is determined in accordance with the updated World Gold Council Guidance Note on Non-GAAP Metrics released in November 2018. Newcrest fully adopted the updated Guidance Note from 1 July 2019, following the adoption of the updated leasing standard (IFRS 16) in its financial statements.
  8. Comprising the Gold Prepay Credit Agreement, the Stream Credit Facility Agreement and the Offtake Agreement in respect of Lundin Gold Inc’s Fruta del Norte mine.
  9. All financial data presented in the Annual Report is quoted in US dollars unless otherwise stated.

  10. EBIT, EBITDA, Underlying profit, All-In Sustaining Cost (AISC), Free cash flow, ROCE, Gearing and Leverage Ratio are non-IFRS financial information and have not been subject to audit by the Company’s external auditor. Refer to the information in the Operating and Financial Review in the Director’s Report regarding non-IFRS measures.

  11. Includes Newcrest’s attributable share of ounces from Fruta del Norte.

Chairman’s Report