Newcrest Mining : Half Year Results FY22

Half Year Results FY22

17 February 2022

(figures are in US$ except where stated)

Newcrest advances profitable growth agenda1,2,3,4,5

∙ Creating a brighter future for people through safe and responsible mining

	o More than six years fatality free
	o	Development of the Group Net Zero Emissions Roadmap is currently in progress
only
	o Rollout of Respect@Work program continues under a dedicated project team
∙ On track to deliver Group FY22 guidance6
	o Statutory profit and Underlying profit of $298 million7,8
	o All-In Sustaining Cost (AISC) of $1,194/oz8,9 delivering an AISC margin of $502/oz8,10
	o Cash flows from operating activities of $423 million
use∙ Advancing Newcrest's global organic growth portfolio
	o Newcrest Board approved the Cadia PC1-2, Red Chris Block Cave, Havieron Stage 1 and Lihir Phase
		14A Pre-Feasibility Studies to the Feasibility Stage with works advancing on all projects
	o Approval received for Cadia to increase its permitted processing capacity to 35Mtpa11
	o West Dome Stage 5 cutback underway, supporting the continuity of operations at Telfer
	o Major increases across Mineral Resources and Ore Reserves separately announced today, including an
		increase in gold Ore Reserves by 10% to 54 million ounces12,13
∙ Newcrest to acquire Pretium Resources Inc., owner of the Brucejack mine in British Columbia14
	o Addition of a Tier 1 large scale, long life, low cost mine to Newcrest's unrivalled portfolio of assets
	o Immediate increase in Newcrest's gold production by 300koz pa to well above 2Moz6,12,15,16
	o Accretive to Newcrest's EBITDA and cash flow
	o Immediate operational and financial diversification in a Tier 1 jurisdiction
	o Growth in a region where Newcrest already operates and has strong existing relationships
	o	Significant near mine and district-scale exploration opportunity with exciting potential to realise resource
personal	and reserve growth
	o Transaction approved by Pretivm securityholders, with completion expected in the March 2022 quarter14
∙	Strong balance sheet and delivering strong shareholder returns
For

o Strong balance sheet well within financial policy targets, with net debt of $469 million, leverage ratio of 0.2 times and a gearing ratio of 4.5% at 31 December 2021

o Significant liquidity at 31 December 2021 with $3.2 billion in cash and committed undrawn bank facilities o Sale of royalty asset portfolio generated $37.5 million

o Total dividends paid in the current period of US 40 cents per share o Fully franked interim dividend of US 7.5 cents per share

Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said "We have taken a big step forward in our profitable growth agenda during the first half of FY22. The depth and quality of our global organic growth portfolio was demonstrated through the announcement of the findings of the Cadia PC1-2, Red Chris Block Cave, Havieron Stage 1 and Lihir Phase 14A Pre-Feasibility Studies. Each of these studies indicate excellent rates of return

Newcrest Mining Limited - Results for the 6 months to 31 December 2021

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and we are projecting a material growth in our operating margin and cash flow over the next decade. Progressing each one of these studies makes compelling financial sense and we are excited by the significant potential beyond the base case projections."

"Strategic, value-adding M&A has been a feature of our growth in recent years and we are also looking forward to completing the Pretium Resources transaction this quarter and adding the world class Brucejack mine to our unrivalled portfolio of assets. The addition of Brucejack will drive a material increase in Mineral Resources, Ore onlyReserves, annual gold production and cash flows, enhancing the quality of our portfolio for many years to come. We will have exposure to six Tier 1 orebodies, five of which will be operating and, pleasingly, we will continue to maintain

our long reserve life advantage compared to our peers."

"The transaction will enable Newcrest to expand in one of the premium gold districts in the world and increase our production to well over two million ounces of gold per year until at least 2030. We are confident that our long life, high margin production will be delivered at an extremely competitive All-In-Sustaining Cost."

"The outlook for the commodities that we mine is strong, and we have additional opportunities to further enhance our gold and copper production profile. Our team continues to pursue the potential for further open pit and underground useopportunities to extend the life of Telfer, the development of Wafi-Golpu and potentially Namosi, all of which represent

upside opportunity to our current base case projections."

"We have also progressed plans to expand Cadia during the period, Red Chris and Havieron continue to deliver exceptional drilling results, and we are already working with the Pretivm team to drive further shareholder value at Brucejack. We also safely delivered the replacement and upgrade of the SAG mill motor at Cadia, which is now operating at full capacity, setting us up for a strong second half of FY22 and beyond for Cadia."

"Safety remained our top priority with zero fatalities recorded, we progressed our sustainability agenda and continued personalto deliver initiatives as part of our ambition to build an inclusive workplace culture, where all our people can thrive nd excel, including through the rollout of our Respect@Work program. Our balance sheet remains strong and we

are well positioned to both support our growth projects and deliver shareholder returns during this growth phase."

"Following a solid start to the financial year, Newcrest is well placed to deliver a strong second half, to continue to pursue profitable growth, and to progress our Forging an Even Stronger Newcrest plan," said Mr Biswas.

For

Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne, Victoria 3004 - www.newcrest.com

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Summary of Operating and Financial Results

											For the 6 months ended 31 December
					Endnote		UoM	2021		2020			Change		Change %
		TRIFR		17			mhrs	3.5		2.2		1.3		59%
only		Group production	- gold		9			oz			832,298			1,038,566			(206,268)			(20%)
	Group production	- copper					t	50,945		69,320		(18,375)		(27%)
		Revenue						$m			1,715			2,172			(457)			(21%)
		EBITDA		8			$m	740		1,146		(406)		(35%)
		EBIT			8			$m			448			826			(378)			(46%)
		Statutory profit		7			$m	298		553		(255)		(46%)
		Underlying profit			8			$m			298			553			(255)			(46%)
		Cash flows from operating					$m	423		992		(569)		(57%)
use		activities
		Free cash flow			8			$m			(303)			439			(742)			(169%)
		EBITDA margin		8		%		43.1		52.8		(9.7)		(18%)
		EBIT margin			8			%			26.1			38.0			(11.9)			(31%)
		All-In Sustaining Cost	8,9,18			$/oz	1,194		972		222		23%
		All-In Sustaining Cost margin		8,10			$/oz			502			842			(340)			(40%)
personal		Realised gold price		19			$/oz	1,733		1,826		(93)		(5%)
	Realised copper price		19			$/lb			4.31			3.12			1.19			38%
						AUD:USD	0.7319		0.7225		0.0094		1%
		Average exchange rate
		Average exchange rate					PGK:USD			0.2848			0.2862			(0.0014)			(0%)
		Average exchange rate					CAD:USD	0.7939		0.7585		0.0354		5%
		Closing exchange rate					AUD:USD			0.7256			0.7702			(0.0446)			(6%)
		Earnings per share (basic)					US$ cents	36.4		67.7		(31.3)		(46%)
		Earnings per share (diluted)					US$ cents			36.3			67.5			(31.2)			(46%)
		Dividends paid per share					US$ cents	40.0		17.5		22.5		129%

								As at		As at
			Endnote		UoM		31 Dec		30 Jun		Change		Change %
							2021		2021
	Cash and cash equivalents		$m	1,231		1,873		(642)		(34%)
	Net debt or (net cash)				$m			469			(176)			645			366%
	Gearing	%		4.5		(1.8)		6.3		350%
	Total equity			$m	9,982		10,124		(142)		(1%)

ForRefer to the Company's "ASX Appendix 4D and Financial Report" released on 17 February 2022, and the Management Discussion and Analysis in particular, for more detail on the Company's financial results.

Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne, Victoria 3004 - www.newcrest.com

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Dividend Policy

Newcrest looks to pay ordinary dividends that are sustainable over time having regard to its cash flow generation, its reinvestment options in the business and external growth opportunities, its financial policy metrics and its balance sheet strength. Newcrest targets a total annual dividend payout of 30-60% of free cash flow generated for the financial year, with the annual total dividends being at least US15 cents per share on a full year basis.

Having regard to the abovementioned considerations, the Newcrest Board has determined that an interim fully onlyfranked dividend of US 7.5 cents per share will be paid on Thursday, 31 March 2022.

The record date for entitlement is Monday, 28 February 2022.

The financial impact of the interim dividend amounting to $61 million, based on Newcrest's existing issued capital at 31 December 2021, has not been recognised in the Consolidated Financial Statements for the half year. The Company's Dividend Reinvestment Plan remains in place.

The declaration of any future dividend remains at the discretion of the Newcrest Board, having regard to circumstances prevailing at that time.

useCOVID-19 Update

To date, Newcrest has not experienced any material COVID-19 related disruptions to production or to the supply of goods and services. Some project activities have experienced a level of disruption with efforts being made to minimise their impact on the overall cost and schedule. The operating cost of managing COVID-19 risks in the current period was approximately $32 million (of which $27 million was related to Lihir), which included additional costs related to flights, transport, rosters, leave, screening and testing.

personalNewcrest now expects that the total cost of managing COVID-19 for the 2022 financial year will be in the order of $50-60 million, up from the $35-45 million estimated at the start of the financial year. The increase in COVID related

costs is driven by Lihir and reflects the impacts of Government restrictions on travel, absenteeism, isolation requirements and logistical challenges.

There remains a risk of COVID-19 disruptions across all operations and this continues to be closely managed. All of Newcrest's operations have business continuity plans and contingencies in place which seek to minimise disruptions to the operations in the event that a significant number of operational employees and/or contractors contract the virus. It is expected that these plans will enable operations to effectively manage the COVID-19 risk to production chedules and if there are any material impacts, Newcrest will inform the market in line with its continuous disclosure obligations.

Summary of Half Year Financial Results

Statutory profit and Underlying profit were both $298 million in the current period.

Underlying profit of $298 million was lower than the prior period primarily due to the planned replacement and upgrade of the Cadia SAG mill motor (completed in November 2021), and lower production at Lihir due to the Forexpected decline in grade as the mine plan transitioned into Phase 15, heavy rainfall limiting access to high grade

ore (additional pumping has been installed) and major maintenance activity.

The current period reflected lower gold and copper sales volumes (driven by lower production), a lower realised gold price, higher concentrate freight costs due to the global tightness and challenges in the sea freight market, and the unfavourable impact on operating costs from the strengthening of the Australian dollar against the US dollar. Operating costs were also impacted by labour and consumable cost pressures due to rising demand, constrained supply and underlying commodity price increases. Newcrest continues to collaborate with its suppliers to identify ways to manage these cost pressures.

This was partially offset by a higher realised copper price, lower income tax expense as a result of the Company's decreased profitability in the current period, lower overall operating costs due to the lower sales volumes, lower gold price and volume linked costs such as royalties, a lower depreciation expense, and an increase in Newcrest's share of profits from its associates.

Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne, Victoria 3004 - www.newcrest.com

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Underlying profit

				For the 6 months ended 31 December
		US$m	2021	2020			Change			Change %
		Gold revenue	1,296		1,768		(472)		(27%)
only
	Copper revenue	479			469			10				2%
	Silver revenue	8			12		(4)		(33%)
		Less: treatment and refining deductions	(68)			(77)			9				12%
		Total revenue	1,715		2,172		(457)		(21%)
		Operating costs	(986)			(1,029)			43				4%
		Depreciation and amortisation	(283)		(309)		26		8%
		Total cost of sales	(1,269)			(1,338)			69				5%
		Corporate administration expenses	(61)		(62)		1		2%
		Exploration expenses	(34)			(36)			2				6%
		Share of profit of associates	21		4		17		425%
		Other income	76			86			(10)				(12%)
		Net finance costs	(35)		(40)		5		13%
		Income tax expense	(115)			(233)			118				51%
		Underlying profit	298		553		(255)		(46%)
For personaluse

Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne, Victoria 3004 - www.newcrest.com

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