Newcrest Mining Limited - Financial Results for the 12 months ending 30 June 2014

MELBOURNE, Australia, Aug. 18 2014

This market release is a summary document and readers are directed to the full text of the release which is filed on SEDAR at www.SEDAR.com and Newcrest's website at www.newcrest.com.au. This market release contains non-IFRS financial information that is not subject to external audit. For definitions, reconciliations and rationale of use of the non-IFRS information refer to the notes on pages 5 to 7. See also the disclaimer in note 7 on page 8 regarding forward looking statements.

Key points

• Statutory loss¹ of A$2,221 million and Underlying profit² of A$432 million
• Significant items representing a net loss after tax of A$2,653 million, due primarily to A$2,353 million of asset impairments at Lihir, Telfer, Bonikro and Hidden Valley
• EBITDA² of A$1,514 million and EBIT² of A$821 million
• Gold production of 2,396,023 ounces and gold sales of 2,405,163 ounces was 14% and 17% higher than the prior year
• Free cash flow² was an inflow of A$133 million compared with a net outflow of A$1,417 in the prior year, with all operations free cash flow positive in the current year except Hidden Valley
• Cash flow from operating activities was an inflow of A$1,037 million
• All-In Sustaining Cost² of A$976 per ounce (US$897 per ounce at an A$:US$ exchange rate of $0.9187) was 24% (32%) lower than the prior year
• Gearing³ of 33.8% at 30 June 2014
• A$1,808 million⁴ in cash and undrawn, committed bank facilities at 30 June 2014
• No dividend for the twelve months ended 30 June 2014

Newcrest Chief Executive Officer, Sandeep Biswas said: "The Company's improved operating performance in FY14 shows progress in productivity improvements and cost reductions. These initial improvements enabled the company to maintain its underlying profit² and profit margins notwithstanding a lower gold price, and deliver free cash flow² of $133 million for the year."

"Asset value impairments of $2.4 billion after tax were the major drivers of a statutory loss for the year of $2.2 billion. The most significant component of the write downs related to Lihir," he said.

"While we have realised some initial operating improvements, I am not satisfied with either the current operating performance or the cash generation of the business."

"Looking ahead, the Company is firmly focused on realising the potential of its assets. A Company-wide improvement program has been initiated, which includes a major review at Lihir. We expect Group production this year to be similar to that in financial year 2014 as we ramp up Cadia East and make improvements at Lihir which will lay the foundations for future production growth," Mr Biswas said.