Newcrest Mining : 2020 Tax Contribution Report

Tax Contribution Report 2020

Message from our Chief Financial Officer

I am pleased to present the Tax Contribution Report for Newcrest Mining Limited and its controlled entities (Newcrest) for the Financial Year ending 30 June 2020 (FY20).

This report elaborates our tax position for FY20 whilst highlighting the taxes and royalties paid in Australia and globally.

In a year in which the COVID-19 pandemic had such a profound impact on the daily lives of people across the world, Newcrest stayed true to its values and its aspiration to be the Miner of Choice for our people, shareholders, host communities, partners and suppliers. Our commitment to the health and safety of our people, contributing positively to the livelihoods of our host communities and the economies of our host countries, and our responsible management of environmental impacts remains steadfast and guided our actions in relation to the pandemic.

In FY20, Newcrest paid US$561 million in taxes and royalties (FY19: US$420 million) and had a global effective tax rate of 36% (FY19: 33%). Between FY16-20, Newcrest contributed approximately US$1.86 billion globally in taxes and royalties to local governments; of which approximately 65% was paid in Australia, 22% in Papua New Guinea (PNG), 11% in Indonesia and 2% in the Americas.

Newcrest understands the important role tax transparency plays in improving community confidence in the tax system, and this transparency is not possible without the support of governments. The taxes and royalties paid by Newcrest make a key contribution to the economies where we operate. Across the industry we are seeing an increased focus on transparency and

the public sharing of corporate information. Investors, governments, communities and customers are seeking increased details about more aspects of our performance. By openly sharing information about the taxes and royalties we pay, we have the opportunity to build increased trust with our communities. We believe that strengthening and maintaining that trust over the long term is key to building a sustainable, resilient and profitable business.

This transparency initiative supplements our annual Sustainability Report which outlines our economic, environmental, social and governance performance in detail.

We are a supporting member of the Extractive Industries Transparency Initiative (EITI), a global coalition of governments, companies and societies working to improve openness and accountable management of revenue from natural resources. We support the efforts of governments of EITI member countries in which we operate to improve transparency of the flow of revenues to government and other benefits generated by the resources sector.

We hope this publication contributes to a well-informed community understanding of Newcrest's tax contributions and its approach to taxes.

Gerard Bond

Finance Director and

Chief Financial Officer

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About Newcrest

Newcrest's principal activities are exploration, mine development, mine operations and the sale of gold and gold/copper concentrate and other precious metals such as silver. Newcrest is the largest gold producer listed on the Australian Securities Exchange (ASX) and one of the world's largest gold producers.

During FY20, Newcrest had mining operations in Australia, PNG, Canada (Red Chris mining operations acquired in August 2019) and Indonesia (Gosowong mining operations divested in March 2020). Newcrest also has a number of development projects around the globe including our near-term growth options of Havieron (Australia), the Red Chris Block Cave (Canada) and Wafi-Golpu (PNG). In December 2019, Newcrest increased its interest in Lundin Gold Inc. (Lundin Gold) from 27.1% to 32%. In April 2020, Newcrest acquired the financing facilities in respect of Lundin Gold's Fruta del Norte mine in Ecuador.

Newcrest has a proud history of exploration, discovery, development and operation of gold mines. We focus on long- term value creation for our shareholders.

OUR VISION

To be the Miner of Choice:

• Valued by our people and communities
• Respectedbyourpartners,customers,suppliersandpeers
• Celebrated by our owners

OUR PURPOSE

Creating a brighter future for people through safe and responsible mining

Our values

Caring about	Integrity &	Working	Innovation &	High
people	honesty	together	problem solving	performance
Keeping people	Doing what we say	Having shared	Challenging	Seeking high
safe and healthy	we will do and doing	goals and helping	convention and	performance
and respecting our	the right thing.	one another to	finding a better way.	in ourselves
communities and		achieve them.		and others.
the environment.

OUR EDGE	OUR STRATEGY
Collaboration, innovation and an	Forging an even stronger Newcrest
owner's mindset

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Newcrest by 2025: Our Aspirations

We are a safe and sustainable business

• Zero fatalities or life-changing injuries
• Top decile TRIFR
• No repeat SPIs
• Achieving our Greenhouse Gas emission intensity reduction and water efficiency targets
• Top decile performance for Metals & Mining in the Dow Jones Sustainability Index

We have the best people

• Top decile Organisational Health
• Top half of industry diversity metrics
• Year on year improvement in Organisational Health inclusion measures
• At least 50% of our appointments are internal candidates

We are outstanding	We are a leader in
operators	innovation & creativity

• Consistently meet or exceed Budget
• Performance v industry benchmarks and technical limits
• Top quartile Overall Equipment Effectiveness (OEE)
• Lowest quartile AISC per ounce
• No major unplanned operational interruptions

• No major unexpected geotechnical events
• 15 Moz eq of innovation driven Reserve growth
• 20% improvement in operational efficiency and sustainability measures
• $1 Bn of incremental NPV added through breakthroughs

We grow profitably

• Add to our portfolio of Tier 1 and Tier 2 orebodies 2 - 3 greenfield discoveries
• Havieron in production
• Red Chris block cave nearing production
• Wafi-Golpuproject approved and in development

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FY20 results1

Newcrest reported a full-year profit after income tax of US$635 million in FY20, underpinned by annual production of 2.2 million ounces of gold and 138 thousand tonnes of copper. Free cash flow before M&A activity for the year was US$670 million. Please refer to our 2020 Annual Report that is available on our websitefor further details.

Our operating assets as at 30 June 2020

Cadia

Located in central west New South Wales, 25 kilometres south-west of Orange and 250 kilometres west of Sydney, Cadia has one of the deepest panel caves in the world and is 100 percent owned by Newcrest.

Lihir

One of the world's largest gold deposits, Lihir is 100 percent owned by Newcrest and located on the island of Niolam which is part of the Lihir group of islands, 900 kilometres north-east of Port Moresby in the New Ireland Province of PNG.

Telfer

The Telfer gold-copper mine is located in the Great Sandy Desert in Western Australia, approximately 400 kilometres south-east of Port Hedland, and is 100 percent owned by Newcrest.

Red Chris

The Red Chris gold-copperopen-pit mine is located in north west British Columbia, Canada, 1,700 kilometres from Vancouver. In August 2019, Newcrest acquired a 70 percent ownership interest and operatorship of Red Chris in a joint venture with Imperials Metals Corporation.

1. All data relating to operations is shown at 100%, with the exception of Red Chris which is shown at 70%. Profit also includes losses attributable to non-controlling interests.

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