Investor Centre / Annual Report 2020
Key Achievements for FY20
Profit and Cash Flow
Statutory profit1 of
$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 |
12 Months to |
% |
||
---|---|---|---|---|
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% |
- Statutory profit is profit after tax attributable to the owners of the Company.
- 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.
- Underlying profit is profit after tax before significant items attributable to the owners of the Company.
- 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.
- Gearing is calculated as net debt divided by net debt and total equity as at 30 June.
- Total Recordable Injury Frequency Rate (per million hours worked).
- 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.
- 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.
-
All financial data presented in the Annual Report is quoted in US dollars unless otherwise stated.
-
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.
-
Includes Newcrest’s attributable share of ounces from Fruta del Norte.