Today the Newcrest Board approved two projects moving to the Execution phase, being Stage 2 of the Cadia Expansion Project and the Lihir Front End Recovery Project.
Lihir Front End Recovery Project
The Lihir Front End Recovery Project aims to increase the overall Lihir processing plant gold recovery by improving grinding classification and reducing gold losses through the flotation circuits, through the installation of flash flotation and additional cyclone capacity on the High Grade Ore One (HGO1) circuit, as well as cyclone efficiency upgrades of the Flotation Grade Ore (FGO) circuit.
The flash flotation and cyclone upgrades target the following process improvements: Implement flash flotation to reduce mineral fines generated from overgrinding and send the highergrade concentrate stream to the autoclaves
Improve cyclone efficiency to achieve a reduction in unliberated coarse mineral particles entering the cyclone overflow, which are not recovered in conventional flotation.
Forward Looking Statements
This release includes forward-looking information and forward-looking statements under applicable securities laws. Forwardlooking information and forward looking statements can generally be identified by the use of words such as 'may', 'will', 'expect', 'intend', 'plan', 'estimate', 'anticipate', 'continue', 'outlook' and 'guidance', or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. The Company continues to distinguish between outlook and guidance. Guidance statements relate to the current financial year. Outlook statements relate to years subsequent to the current financial year.
Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance and achievements to differ materially from statements in these materials. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.
Forward looking statements are based on the Company's good faith assumptions as to the financial, market, regulatory and other relevant environments that will exist and affect the Company's business and operations in the future. The Company does not give any assurance that the assumptions will prove to be correct. There may be other factors that could cause actual results or events not to be as anticipated, and many events are beyond the reasonable control of the Company. Readers are cautioned not to place undue reliance on forward looking statements, particularly in the current economic climate with the significant volatility, uncertainty and disruption caused by the outbreak of COVID-19. Forward looking statements in these materials speak only at the date of issue. Except as required by applicable laws or regulations, the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in assumptions on which any such statement is based.
Non-IFRS Financial Information
Newcrest results are reported under International Financial Reporting Standards (IFRS). This release includes non-IFRS financial information, including All-In Sustaining Cost and All-In Cost (both determined in accordance with the updated World Gold Council Guidance Note on Non-GAAP Metrics which was released in November 2018). These measures are used internally by management to assess the performance of the business and make decisions on the allocation of resources and is included in this release to provide greater understanding of the underlying performance of the Company's operations. When reviewing business performance, this non-IFRS information should be used in addition to, and not as a replacement of, measures prepared in accordance with IFRS, available on Newcrest's website and on the ASX platform. Non-IFRS information has not been subject to audit or review by Newcrest's external auditor. Newcrest Group All-In Sustaining Costs and All-In Costs will vary from period to period as a result of various factors including production performance, timing of sales, the level of sustaining capital and the relative contribution of each asset.
Ore Reserves and Mineral Resources Reporting Requirements
As an Australian Company with securities listed on the Australian Securities Exchange (ASX), Newcrest is subject to Australian disclosure requirements and standards, including the requirements of the Corporations Act 2001 and the ASX. Investors should note that it is a requirement of the ASX listing rules that the reporting of ore reserves and mineral resources in Australia comply with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) and that Newcrest's ore reserve and mineral resource estimates comply with the JORC Code. Newcrest has been conditionally approved for listing on the Toronto Stock Exchange (TSX). Newcrest will be subject to certain Canadian disclosure requirements and standards, including the requirements of National Instrument 43-101 (NI 43-101). Investors should note that it is a requirement of Canadian securities law that the reporting of mineral reserves and mineral resources in Canada and the disclosure of scientific and technical information comply with NI 43-101. We note that the Annual Mineral Resources and Ore Reserves Statement referenced in this report was prepared prior to Newcrest's listing on the TSX and accordingly was prepared and presented in accordance with the JORC Code and not presented in accordance with NI 43- 101. The mineral resource estimates set out in the Annual Mineral Resources and Ore Reserves Statement differ from mineral resource estimates disclosed in accordance with NI 43-101. In particular, NI 43-101 does not allow for inferred resources to be added to other mineral resource categories and the mineral resource estimates in the Annual Mineral Resources and Ore Reserves Statement include inferred mineral resources in the total resource figures.
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