Newcrest Mining Limited Annual Report 2012

A$1,117Mrecord statutory profit for the 2012 financial year

A$1,726Mof operating cash flow generated in the 2012 financial year

Newcrest is entering an exciting period in its history, with major expansion projects at the Companys two most significant operations on track for delivery by the end of 2012. The Cadia East underground mine and the Lihir plant expansion are expected to underpin significant production growth over the next five years.

Contents2 About Newcrest4 Results at a Glance6 Chairmans Report8 Managing Directors Review10 The Board12 Our Business22 Mineral Resources and Ore Reserves32 Corporate Governance 38 Diversity42 Financial Report43 Directors Report45 Management Discussion and Analysis55 Remuneration Report71 Auditors Independence Declaration72 Consolidated Income Statement73 Consolidated Statement of Comprehensive Income74 Consolidated Statement of Financial Position75 Consolidated Statement of Cash Flows76 Consolidated Statement of Changes in Equity77 Notes to the Financial Statements119 Directors Declaration120 Independent Auditors Report122 Shareholder Information124 Five Year SummaryIBC Corporate Directory

newcrest mining annual report 20121

We are the largest gold producer listed on the Australian Stock Exchange

We are one of the top five gold mining companies globally by market capitalisation

About Newcrest

2newcrest mining annual report 2012

74

2

1

8

356

We have interests in six production provinces in four countries, focusing on Australia, the Pacific region and Asia

Our assets are predominantly low-cost, long-life mines and we have a strong pipeline of future growth

1 Cadia Valley2 Telfer3 Lihir4 Gosowong5 Wafi-Golpu6 Hidden Valley7 Bonikro8 Namosi

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FY08

Gold Production (thousand ounces)

FY09

FY10

FY11

FY12

1,781

1,631

1,762

2,527

2,286

FY08

Copper Production (thousand tonnes)

FY09

FY10

FY11

FY12

87

90

87

76

76

FY08

Statutory Profit ($ million)

FY09

FY10

FY11

FY12

134

248

557

908

1,117

Record Statutory Profit up 23% to A$1,117 million

Record Underlying Profit up 2% to A$1,084 million

Full year ordinary dividends increased 17% to 35 cents per share

Operating cash flow exceeded A$1.7 billion

Strong EBITDA and EBIT margins of 49% and 36% respectively

Two major growth projects nearing completion: the Cadia East project and the Lihir plant expansion

Strong financial position with gearing low at 12.5% and undrawn debt facilities of US$780 million as at 30 June 2012

Group Mineral Resources from ongoing operations up 2.6% to 149.7 million ounces of gold and up 0.7% to 20.0 million tonnes of copper

Group Ore Reserves from ongoing operations up 0.3% to 79.1 million ounces of gold and up 1.2% to 8.46 million tonnes of copper

10%decrease

0.5%increase

23%increase

Results at a Glance

4newcrest mining annual report 2012

FY08

Operating Cash Flow ($ million)

FY09

FY10

FY11

FY12

1,018

1,024

1,303

1,729

1,726

FY08

Gearing (%) (Net Debt/Net Debt and Equity)

FY09

FY10

FY11

FY12

8.2

1.9

(4.5)

4.2

12.5

FY08

Ordinary Dividends (cents per share)

FY09

FY10

FY11

FY12

10

15

25

30

35

0.2%decrease

8%higher

17%increase

12 months to 12 months to % 30 June 2012 30 June 2011(1) Change

Gold produced (ounces) 2,285,917 2,527,352 (10)

Copper produced (tonnes) 76,015 75,631 0.5

Gold price realised (A$ per ounce) 1,609 1,378 17

Sales revenue (A$ million) 4,416 4,102 8

EBITDA(2)(7) (A$ million) 2,151 2,059 4

EBIT (2)(7) (A$ million) 1,590 1,544 3

Statutory Profi t(3) (A$ million) 1,117 908 23

Underlying Profi t (4)(7) (A$ million) 1,084 1,058 2

Operating cash fl ow (A$ million) 1,726 1,729 (0.2)

Capital expenditure (A$ million) 2,556 1,890 35

Gearing (5) (percent) 12.5 4.2 198

Return on capital employed(6) (percent) 10.1 12.4 (19)

Earnings Per Share on Statutory Profi t (A$ cents per share) 146 126 16

Ordinary Dividends (A$ cents per share) 35 30 17(1) Results from the former LGL operations included from the acquisition date of 30 August 2010.(2) EBITDA is Earnings before interest, tax, depreciation, amortisation, hedge restructure and other signifi cant items. EBIT is Earnings before interest,

tax, hedge restructure and other signifi cant items. EBITDA and EBIT are used to measure segment performance and have been extracted from Note 36 Segment Information on page 114.

(3) Statutory Profi t is profi t after tax attributable to owners of the parent.(4) Underlying Profi t is profi t after tax before hedge restructure and other signifi cant items attributable to owners of the parent. Refer to page 47 for further details.(5) Gearing is calculated as net debt to net debt and equity. Refer to page 54.(6) Return On Capital Employed is calculated as EBIT divided by average capital employed.(7) EBIT, EBITDA and Underlying Profi t are non-IFRS fi nancial information and have not been subject to audit by the Companys external auditor.

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Chairmans Report

Don Mercer Chairman

6newcrest mining annual report 2012

Despite a record profit, this year has been challenging for Newcrest, with production impacted by several short-term, one-off issues that are now well on the way to being rectified. The pre-commissioning production ore sourced from Cadia East was lower than the rates initially expected and the underinvested old plant at Lihir required repair sooner than anticipated. Both of these situations affected production and delayed cash income.

Notwithstanding these challenges, it has been a year of significant progress. The Newcrest portfolio has been consolidated into a suite of predominantly long-life, low-cost mines and a pipeline of further growth options. The two smaller mines in Queensland, Cracow and Mt Rawdon, were sold. Excellent progress was made on the two major projects, the Cadia East project and the plant expansion at Lihir, which will underpin production for future decades. These two projects are slated for completion in the December 2012 quarter. The Pre-Feasibility Study and new Ore Reserve determination for Golpu in the Morobe Province of Papua New Guinea were announced at the end of August 2012, confirming it to be a world-class mineral endowment.

The focus of our operations remains in the Asia Pacific Region, where five of our six mines are located in Australia, Papua New Guinea and Indonesia. Our operations in Cte dIvoire in West Africa enjoyed a full year of production and a return to exploration in the region following elections in the country.

Tragically, a helicopter accident occurred on 3 August 2011 near Manado in Indonesia, where eight employees and contractors and the two helicopter crew members were killed. The accident profoundly affected Newcrest and your Board of Directors.

Two important appointments were made during the year, with Gerard Bond joining the Company as Finance Director and Chief Financial Officer in January 2012, followed by his appointment to the Board in February. Scott Langford joined the Company as General Counsel in July 2012 and was formally appointed Company Secretary in August 2012.

Scott takes over from Stephen Creese who has been General Counsel and Company Secretary since November 2009. Stephen will continue with his Corporate Affairs role, focusing on external affairs and social responsibility until his retirement mid next year. On behalf of the Board, I thank Stephen for his counsel and significant contribution.

Of note during the year was the raising of US$1 billion in the United States bond market in November 2011. The capital raising provides Newcrest with long-term, low-cost funds. On 2 March 2012, Newcrests shares were listed on the Toronto Stock Exchange, the TSX, one of the most active markets for gold producers.

Pleasingly in 2012, Newcrests statutory profit grew 23 percent to A$1,117 million and underlying profit, which excludes the profit from the sale of Cracow and Mt Rawdon, grew 2 percent to A$1,084 million. The Company generated operating cash flow of A$1,726 million an important achievement in light of the capital expenditure required on the two major projects.

Members were paid an interim dividend of 12 cents per share in April 2012. The Board has determined that a final dividend of 23 cents, 15 percent franked, will be paid in October 2012. This represents a 17 percent increase in ordinary dividends paid over the prior year. In addition, a special dividend of 20 cents was paid in December 2011.

The Companys balance sheet remains strong, with gearing at 12.5 percent as at 30 June 2012. Peak capital spend occurs in financial years 2012 and 2013, but gearing is expected to remain within our internal target level of a maximum of around 15 percent. As well as the US corporate bonds, our debt funding comes from bilateral facilities with several major banks.

During the year, global financial markets remained volatile as weakness continued to be experienced in European economies as well as in the United States, while China continued to enjoy growth, albeit at a more moderate rate.

Overall, gold stocks weakened during the year, despite a more resilient gold price