Newcrest is Australia’s largest gold producer and one of the world’s top 10 gold mining companies by production, reserves and market capitalisation.
Newcrest has a portfolio of low cost, long life operating mines, a strong pipeline of growth projects and highly prospective brown and greenfield exploration projects. The company has a substantial reserve and resource base combined with a long reserve life. As at 30 June 2009, it had gold reserves of 42.8Moz and copper reserves of 4.67Mt and gold resources of 80.0Moz and copper resources of 14.36Mt.
Following the completion of the hedgebook buy-back in June 2008 Newcrest is now an unhedged gold producer. Low gearing and a strong balance sheet places the company in a good position to fund major development projects and to capitalize on external growth opportunities.
The company’s current activities include six operating mines: Cadia Valley Operations, comprising Cadia Hill and Ridgeway (near Orange, NSW), Telfer Open Pit and Telfer Underground (Pilbara Region, Western Australia), Cracow (Gladstone Region Central Queensland) and Kencana (Indonesia). The company has an extensive development pipeline of projects including Cadia East, Ridgeway Deeps, Gosowong Extension Project and Hidden Valley.
In addition, Newcrest is currently exploring for gold and gold-copper deposits in Australia, Indonesia, Fiji, the United States, Canada and Peru. The world class exploration team has an enviable track record of discovery as all Newcrest’s mining projects were discovered by the company. Metals Economic Group ranked Newcrest as the most successful company at discovering major gold deposits between 1992 – 2005.
For the financial year ended 30 June 2009, Newcrest produced 1.63 million ounces of gold at a cash cost of A$468 per ounce (US$350 per ounce), placing it in the lowest quartile of the global cost curve. In addition, the company produced 89.9 kilo tonnes of copper. For 2009-2010, Newcrest is targeting gold production of 1.81-1.91 million ounces and copper production of 83 – 87 kilo tonnes.
Headquartered in Melbourne, Australia, Newcrest is among the top 20 companies listed on the Australian Stock Exchange by market capitalisation. The Company has around 5,100 employees and long term contractors.
The origins of Newcrest date back to 1966, when Newmont Mining Limited established an Australian subsidiary, Newmont Australia Limited. In 1990, Newmont Australia Limited acquired Australmin Holdings Ltd, and subsequently merged with BHP Gold Limited in late 1990, changing its name to Newcrest Mining Limited. The Company has been listed on the ASX since 1987 (initially as Newmont Australia Limited).