Newcrest Mining Annual Report 2001

← All annual reports

FY2001 Annual Report · Newcrest Mining

Loading PDF…

NEWCREST MINING LIMITED

Concise Annual Report 2001

NEWCREST
BUILDING
ON OUR
STRENGTH

N
e
w
c
r
e
s
t

M
i
n
i
n
g

L
i
m

i
t
e
d

A
B
N

2
0
0
0
5
6
8
3
6
2
5
C
o
n
c
i
s
e
A
n
n
u
a
l

R
e
p
o
r
t
2
0
0
1

Newcrest Mining Limited
ABN: 20 005 683 625

Notice of Meeting

Notice is hereby given that the 21st Annual
General Meeting will be held at the Grand
Hyatt Hotel, 123 Collins Street, Melbourne
on Wednesday 31 October 2001 at 2.30 pm.

Contents

Achievements 2001

How did Newcrest perform?

Chairman’s Review

Board of Directors

Operations at a glance

Operations Review

Projects Review

Mineral Resources and Ore Reserves

Exploration

Human Resources

Safety and Health

Environment

Financial Analysis

Corporate Governance

Directors’ Report

Discussion and analysis of financial
statements

Statement of Financial Performance

Statement of Financial Position

Statement of Cash Flows

Notes to the Concise Financial Report

Directors’ Declaration

Independent Audit Report

Five Year Summary

Shareholder Information

Corporate Directory

IBC

Newcrest is a leading Australian gold producer, focussed
on the development of large long life mines and high
margin projects with low costs.

Our key goal is the creation of shareholder wealth in a
manner that also benefits our employees, the communities
and the environment in which we operate.

Corporate Directory

INVESTOR INFORMATION

Registered and Principal Office
Level 9
600 St Kilda Road
Melbourne, Victoria 3004
Australia
Telephone: (61 3) 9522 5333
Facsimile: (61 3) 9525 2996

General Manager Corporate Affairs
Peter Reeve
Level 9
600 St Kilda Road
Melbourne, Victoria 3004
Australia
Telephone: (61 3) 9522 5339
Facsimile: (61 3) 9510 3416
Email: reevep@newcrest.com.au
Internet: www.newcrest.com.au

Share Registry
ASX Perpetual Registrars Limited
Level 4
333 Collins Street
Melbourne, Victoria 3000
Australia
Freecall 1800 331 721
Telephone: (61 3) 9615 9999
Facsimile: (61 3) 9615 9900
Email: registrars@aprl.com.au
Internet: www.registrars.aprl.com.au

ADR Depositary
The Bank of New York
101 Barclay Street
New York, NY 10286
United States of America
Telephone: (1 212) 815 2218
Facsimile: (1 212) 571 3050

OTHER OFFICES

Perth
The Hyatt Centre
Level 2
20 Terrace Road
East Perth, Western Australia 6004
Australia
Telephone: (61 8) 9270 7070
Facsimile: (61 8) 9221 7340

Brisbane
Level 2
349 Coronation Drive
Milton, Queensland 4064
Australia
Telephone: (61 7) 3858 0858
Facsimile: (61 7) 3217 8233

Jakarta
PT Puncakbaru Jayatama
Graha Elnusa
2nd Floor
Jl. T.B. Simatupang Kav. 1B Cilandak
Jakarta 12560
Indonesia
Telephone: (62 21) 7883 1211
Facsimile: (62 21) 7883 1226

CALENDAR OF COMPANY EVENTS 2001/02

31 October 2001

September Quarterly Report

31 October 2001

Annual General Meeting at 2.30 pm
Grand Hyatt Hotel, Melbourne

30 January 2002

December Quarterly Report

27 February 2002

Half Year Results

24 April 2002

31 July 2002

March Quarterly Report

June Quarterly Report

28 August 2002

Full Financial Statement

The Company advises that the above dates are indicative only and are
subject to change without notice.

Cover:
Kevin Slater, Underground Jumbo Operator at Ridgeway

Designed and produced by Amanda Roach Design

• Produced 773,352 ounces of gold and 32,838 tonnes of copper.

• Significant operational and organisational changes in line

with Company strategy.

• Full year profit after tax of $38.2 million with fully franked

5 cent per share dividend.

• Ridgeway project construction advanced to scheduled start-up

in early 2002.

• Telfer mineralisation re-evaluated with strong prospects

of development as a new project.

• Gold resources up 35 percent.

• High cost impact of Telfer and New Celebration operations

eliminated.

ACHIEVEMENTS

2001

SIGNIFICANT
PROJECT
PIPELINE

Ridgeway will be commissioned early 2002 - a strong cash flow generator
for the Group.

Telfer is undergoing a significant review and remains part of the
Company’s future.

Group resources continue to increase strongly.

COMMITMENT
TO BUILDING
SHAREHOLDER
WEALTH

Value generating organic growth remains our principal focus.

We seek production which delivers profit, not just size.

Newcrest only commits to projects which contribute strongly to Group returns.

FOCUSSED AND
CONSISTENT
STRATEGY

We have maintained a consistent strategy of organic growth focussing on large scale,
long life and low cost operations.

A commitment to profitable growth underpins our strategy.

Our people are key to our strategy.

2
2

(cid:2)
(cid:2)
(cid:2)
(cid:2)
(cid:2)
(cid:2)
(cid:2)
(cid:2)
(cid:2)
Strong blend of international and local skills in development, operations and finance.

Small central corporate group with strong site management.

Experienced Board with depth and vision.

SKILLED AND
EXPERIENCED
MANAGEMENT AND
BOARD

A strong track record, unparalleled in Australia and among the best internationally.

Continuing to discover significant mineral deposits capable of adding to
shareholder wealth.

Exploration strategy, focussed on long life and high return targets, well aligned
with corporate strategy.

EXPLORATION
EXPERTISE

Operation of existing mines and development of new mines in line with best
environmental and social practice.

Strong ongoing commitment to communities around our operations and
the wider community.

Safety is paramount.

3
3

SUSTAINABLE
DEVELOPMENT AND
MANAGEMENT

(cid:2)
(cid:2)
(cid:2)
(cid:2)
(cid:2)
(cid:2)
(cid:2)
(cid:2)
(cid:2)
Gold sales

Gold price realised

Sales revenue

Net mining income

12 months to
30 June 2001

12 months to
30 June 2000

(ounces)

792,382

993,446

($ per ounce)

($ million)

623

581.1

202.1

616

697.5

293.2

Depreciation and amortisation

($ million)

(111.7)

(141.4)

Exploration expense

Borrowing costs

Profit before tax

Income tax (expense)/benefit

($ million)

Net profit after tax attributable to members of the Company

($ million)

(22.4)

(18.6)

52.0

(12.1)

38.2

188.3

48.0

521.4

($ million)

(cents per share)

15.6

(percent)

($ million)

(percent)

8.7

54.5

51.4

36.6

(37.7)

(27.4)

(1.8)

7.1

3.4

174.2

92.3

499.9

1.4

0.8

41.8

49.7

Capital expenditure (including exploration)

Cash and short term deposits

Total debt

Earnings per share

Equity return

Capital commitments outstanding at year end

Total Cash Cost
($ per ounce)

Total Production Cost
($ per ounce)

Net debt/net debt plus equity

Net debt/net debt plus equity (after post
balance date equity raising and debt restructure)

How did Newcrest perform?

Newcrest Gold Production
(thousand ounces)

Cash Margin
($ per ounce)

1000

800

600

400

200

500

400

300

200

100

600

500

400

300

200

100

600

500

400

300

200

100

Chairman’s Review

BUILDING
SHAREHOLDER

VALUE

The 2000/01 year was significant for Newcrest,
as the Company consolidated and built upon
its achievements of the previous years.

Ian Johnson, Chairman

Chairman’s Review
Chairman’s and Chief Executive’s Review

The 2000/01 year was significant for Newcrest as the Company consolidated and built upon its
achievements of the previous years.

Key steps were taken to improve the quality of the Company’s asset portfolio by closing mining
operations at Telfer and selling the New Celebration operation. Combined with ongoing
productivity improvements, these changes lowered the overall cost of production and increased
the Company’s international cost competitiveness. A strong focus on our growth strategy was
evident in the ongoing development of the Ridgeway project, re-evaluation of the Telfer
mineralisation and continuing commitment to exploration.

Against a backdrop of a flat US dollar gold price, central bank gold sales and overall continuing
weak sentiment for gold, all gold producers have been compelled to focus on costs and
productivity. The solution for some producers has been industry rationalisation – for Newcrest
it has been to maintain efficient and strong organic growth.

The Company reported a profit after tax of $38.2 million for the year. The result includes a loss
after tax of $6.1 million on the sale of the New Celebration operation after bringing to account
proceeds of $36.5 million from the sale and close out of associated hedge contracts. Sales
revenue fell 16.7 percent reflecting the cessation of production at Telfer.

The Cadia Hill and Gosowong mines are the mainstay of the Company’s operations. Construction
of the low cost Ridgeway underground mine adjacent to Cadia Hill commenced, whilst a detailed
study of the Telfer mineralisation indicated strong potential for a new large scale, low cost project.

Subsequent to year end the Company consolidated its financial position through a successful
share placement, a new long term loan arrangement with one of its key customers, Nippon
Mining and Metals Company Limited, and the repayment of short term debt facilities.
In combination with the robust cash flow from its mining operations, this has placed the
Company in a sound position to fund the next phase of its growth strategy.

Highlights
Key achievements recorded during the year included:

• Continued excellent performance of the Gosowong mine.

• Continued sound performance of the Cadia Hill operation.

• Ongoing development and construction of the Ridgeway mine.

• Closure or sale of high cost operations at Telfer and New Celebration.

• Emerging potential for a new large, low cost operation at Telfer.

• Significant increase in estimated gold resources, particularly at Telfer and Cadia Far East.

• Reorganisation of Group management functions to reduce corporate overheads.

Newcrest’s share price was generally well supported with the Company retaining a strong
following with Australian institutional investors and retail shareholders. This was borne out
when the Company successfully raised approximately $138 million through a share placement
to Australian and overseas institutions, subsequent to year end.

Safety and Environment
The Company continued its emphasis on safety with particular attention given to enhancing the
safety culture across the Group. The significant improvements made in previous years plateaued
with the Lost Time Injury Frequency Rate (LTIFR) rising from 3.9 last year to 4.6 for the year in
review. We are committed to improving our performance in this area. Encouragement is taken
from the trend of other key safety indicators such as the number of Serious Potential Incidents
(SPI) and the Restricted Duties Injury Frequency Rate (RDIFR) which both reduced from the
1999/00 year. Further effort and innovation is required to continue to improve safety performance.

Environmentally the Company continued its responsible performance with sustainability as a
common aim at all of its operations. The number of environmental events was reduced during
the year and of those that occurred, all but one were categorised as minor. Newcrest became
a signatory to the Australian Mining Industry Code for Environmental Management and ensured
compliance with this program across the Group.

OPERATIONS

Cadia Hill
Cadia Hill continued to underpin the Company’s growth strategy by producing 300,255 ounces
of gold and 26,781 tonnes of copper at a cash cost of $272 per ounce of gold during the year.

The mine’s performance was to plan although by year end it had entered a phase where
additional stripping was required to access deeper ore. This will result in an increase in
mining costs.

The concentrator continued its steady performance with improvement programs focussing
on further increases in mill throughput.

Gosowong
Gosowong again put in a strong performance producing 226,900 ounces of gold for the year at
a cash cost of $222 per ounce. This was aided by the high grade of the ore which averaged more
than 28 grams of gold per tonne. Mining in the Gosowong pit was on target while the mill provided
consistently high recoveries.

At Toguraci, two kilometres south-west of the Gosowong pit, exploration drilling has discovered
several zones of mineralisation which at year end were being assessed for their mining potential.
An important step will be the permitting process and every effort is being made to ensure that this
can be achieved in time to allow continuity of operations.

Other Operations
New Celebration produced 86,379 ounces of gold for the year at a cash cost of $426 per ounce.

The continued high cost of mining at this operation was not acceptable given the Company’s clear
aim of moving down the world cost curve and the operation was sold at year end.

Boddington produced 50,756 ounces at a cash cost of $383 per ounce. This operation, which
has focussed on mining remnant oxide pits, is expected to cease in September 2001.

The joint venture partners continue to review the potential feasibility of developing the deeper
Wandoo deposit.

DEVELOPMENT

Ridgeway
The four million tonne per annum Ridgeway underground gold mine is well advanced
in construction and is expected to be commissioned early in 2002.

As mining development advanced, Ridgeway made an early, but substantial contribution
to production with 50,688 ounces of gold produced at a cash cost of $196 per ounce. The
Ridgeway ore was treated in the Cadia Hill mill. As with the Cadia Hill mine, substantial production
of copper as a by-product will significantly improve the financial returns from this operation.

At year end, capital development in the mine and surface infrastructure were largely complete
and construction of the dedicated Ridgeway mill was well advanced.

Telfer
The existing Telfer mining operations were suspended in October 2000 due to high operating costs.
A major contributing factor was the increasing presence of soluble copper in the openpit. As part
of a feasibility study into a new large scale, lower cost operation, a full review of the known Telfer
mineralisation was undertaken. $65 million was expended in the year on this review, involving
approximately 140 kilometres of surface and underground drilling and substantial bulk sampling.

By year end the review had established:

• A substantial improvement in resource grade and size, and

• Potential for the resource to support a combined large-scale openpit and bulk underground
mining project with a new treatment plant recovering gold with copper as a by-product.

The resource base at Telfer was subsequently upgraded to 18 million ounces, which is an
increase of 7 million ounces over the 1999/2000 resource estimate.

The full feasibility study at Telfer will be completed late in calendar 2002.

Exploration
Exploration remains the driver of the Company’s growth and continues to create substantial
opportunities for wealth creation for Newcrest shareholders.

The exploration strategy is a key component in the implementation of the Company’s broader
corporate objectives of delineating and obtaining title to large long life and/or high margin orebodies.

The Company’s exploration efforts during the year were again rewarded with promising results at Cracow
in Queensland, Toguraci near Gosowong and strong resource additions at Telfer and Cadia Far East.

Performance Objectives
In last year’s Annual Report, Newcrest set itself a series of objectives. The objectives and the
Company’s performance against them were as follows:

Continue full project development of the Ridgeway mine.
Development consent was granted by the NSW Government on 4 October 2000. The project
is expected to be commissioned in early 2002.

Further improve the LTIFR with no serious injuries at any sites.
The LTIFR for the Group increased marginally while the number of SPIs and the RDIFR decreased.

Significantly advance the Telfer feasibility studies.
Stage one of the full feasibility study was successfully completed with the revised resource
estimate indicating the potential for a substantial project.

Further reduce operating costs and improve productivity across the Group.
Total cash costs were reduced from $295 per ounce to $290 per ounce and total production costs
reduced from $441 per ounce to $439 per ounce. Initiatives were undertaken (including asset
sales and closures) to further improve overall Group productivity in the coming year.

Add to the resource base and substantially convert existing resources to reserve status. As part
of this, continue the Cadia District evaluation.
11 million ounces of estimated resources were added during the year at Telfer, Cadia Far East and
a small but important supplement at Gosowong. Reserves were depleted by 1 million ounces
overall. Work to convert resources to reserves is proceeding and it is expected the resource
increases will be reflected in increased reserve estimates in the 2001/02 year.

Maintain efficient operations at Cadia Hill and Gosowong.
Cadia Hill and Gosowong continued as the mainstay of the Company’s operations with Gosowong
exceeding expectations.

Actively commit to constant improvement in environmental standards across the Group.
The Company reduced the number of environmental events during the year by 70 percent as
steps continued to improve its overall environmental performance. Newcrest became a signatory
to the Australian Mining Industry Code for Environmental Management.

OBJECTIVES FOR 2001/02

The Newcrest team is committed to improving shareholder wealth by strong management
of existing operations and development of new prospects.

The Company’s objectives for the 2001/02 year are:

• Improve safety performance of the Group.

• Complete development of, and commission, the Ridgeway mine.

• Continue the Telfer feasibility study to determine the most appropriate development option.

• Improve operating productivity and reduce costs.

• Consolidate the substantial increase in the resource base and the conversion of new resources

into reserves.

• Extend the life of the Gosowong operation and advance the Cracow prospect.

Our Future
Overall, the 2000/01 year was one with which the Board, our shareholders and our employees
can feel pleased. There still remains much to be done in the years ahead, but the Company’s
growth path is clear and well established.

The success of Newcrest is directly linked to the calibre and efforts of the many people that
we employ. We thank the employees for their collective and individual efforts during the year
in review. More will be asked of them in the challenging and interesting year ahead. They will
continue to be given the support and encouragement necessary for them to give of their best,
as we strive to maximise returns for all shareholders.

Ian Johnson
Chairman

Board of Directors

Ian Johnson, Chairman and Non-Executive Director
Bachelor of Science (Hons.) from the University of New England. Former Chief Executive Officer of Newcrest Mining Limited.
Former Group Executive of CRA Limited. Fellow of AusIMM and a Fellow of the Australian Institute of Company Directors.
Appointed to the Board on 2 September 1998 and elected Chairman on 28 October 1998. A member of the Compensation,
and Nomination & Governance Committees.

Bryan Davis, Non-Executive Director
Bachelor of Science Technology (Mining) from the University of NSW. Former Executive Director of Pasminco Limited.
Fellow of AusIMM and a member of the Australian Institute of Company Directors. Appointed to the Board in March 1998.
A member of the Audit, Compensation, and Safety, Health and Environment Committees.

Ronald Milne, Non-Executive Director
Member of the Australian Society of Certified Practising Accountants. Appointed to the Board in November 1995 with a management career
extending through the manufacturing, merchant banking and oil exploration industries. A member of the Audit, Compensation, Finance, and
Safety, Health and Environment Committees.

Ian Renard, Non-Executive Director
Bachelor of Arts and Master of Laws degrees from the University of Melbourne. Consultant of Allens Arthur Robinson.
Fellow of the Australian Institute of Company Directors. Appointed to the Board in May 1998. A member of the
Audit, Compensation and Finance Committees.

Nora Scheinkestel, Non-Executive Director
Bachelor of Laws degree and PhD from the University of Melbourne. Member of the Australian Institute of Company Directors. Appointed to
the Board in August 2000 with a management background in international banking and project finance. An Associate Professor at the
Melbourne Business School at the University of Melbourne. Member of the Compensation, Nomination & Governance, and Finance Committees.

BUILDING
ON OUR
STRENGTH

BUILDING
SUSTAINABILITY

BUILDING
FUTURES

OPERATIONS
AT A GLANCE

GOSOWONG

TELFER

BODDINGTON

CADIA HILL
& RIDGEWAY

Cadia Hill Production
(thousand ounces)

Ridgeway Production
(thousand ounces)

Gosowong Production
(thousand ounces)

Telfer Production
(thousand ounces)

400

300

200

100

400

300

200

100

400

300

200

100

400

300

200

100

d
e
d
n
e
p
s
u
S

s
n
o
i
t
a
r
e
p
O

161616

Central NSW
Opencut Gold/Copper Mine
Nominal Treatment Rate
2001 Gold Production
2001 Copper Production
Cash Cost
Total Production Cost

17.0 million tonnes per annum
300,255 ounces
26,781 tonnes
$272 per ounce
$426 per ounce

Central NSW
Underground Gold/Copper Mine
Forecast Nominal Treatment Rate
2001 Trial Mining Gold Production 50,688 ounces
2001 Copper Production
Cash Cost
Total Production Cost

6,057 tonnes
$196 per ounce
$304 per ounce

4.0 million tonnes per annum

CADIA HILL (100%)

RIDGEWAY (100%)

(to be commissioned early 2002)

GOSOWONG (82.5%)

Halmahera Island, Indonesia
High Grade Opencut Gold Mine
Nominal Treatment Rate
2001 Gold Production
Cash Cost
Total Production Cost

0.3 million tonnes per annum
226,900 ounces
$222 per ounce
$408 per ounce

TELFER (100%)

North-west, Western Australia
Project under review
Revised resource estimate of 18 million ounces recently announced.
Feasibility study to be completed September 2002.
Potential large-scale gold/copper mine.

BODDINGTON (22.2%)

South-west, Western Australia
Opencut Gold Mine
Nominal Treatment Rate
2001 Gold Production
Cash Cost
Total Production Cost

8.0 million tonnes per annum
50,756 ounces
$383 per ounce
$527 per ounce

17
1717

Operations Review

Cadia Hill has continued as a key operation at Newcrest, its
long life base will support the Company’s growth into the future.

CADIA HILL

These include:

• A program to increase ball mill power aimed at improving
mill throughput. The impact of that change is expected in
the second half of the 2001/02 year.

• A Mine-to-Mill project was commenced late in the year

in review. It aims to maximise the breakage of ore through
mine blasting in order to increase mill throughput.

In the coming year the Cadia Hill mine will continue to focus
on ongoing cost reduction, productivity improvements and
optimisation of life-of-mine operating strategies ensuring the
benefits of economies of scale are realised.

On 27 November 2000, the Honorable Bob Carr, Premier
of New South Wales, and the Honorable Eddie Obeid, Minister
for Mineral Resources and Minister for Fisheries, presented
Cadia Hill with the Premier’s Award for Environmental
Excellence in the New South Wales Minerals Industry
for the relocation of the historic Cadia Cemetery.

The mine is one of the largest and most modern in Australia
and is unique for its proximity to, and association with, the
city of Orange in New South Wales. The operation is a large
employer in the region and combined with the indirect services
generated by it, has a significant positive effect on the local
economy.

Cadia Hill produced 300,255 ounces (326,035 ounces) for
the 2000/01 year, which was affected by a reduction in the
processed head grade and metal recovery. Copper production
was higher at 26,781 tonnes (25,636 tonnes) due to improved
copper grades.

The cash cost of production was $272 per ounce ($255 per
ounce) with total costs of $426 per ounce ($379 per ounce).
The unit costs were higher due to increased mining costs
predominantly from consumable costs due to the weaker
Australian dollar and lower gold production. Higher fuel costs
and contract maintenance rates in the mining area were the
main contributing factors to the increased mining costs. These
were offset by lower costs in the concentrator, better copper
production and higher received copper prices.

Development at the Ridgeway project yielded a substantial
amount of ore which produced 50,688 ounces of gold and
6,057 tonnes of copper. This material was put through the
Cadia Hill concentrator resulting in slightly lower recoveries
overall. Ridgeway will be commissioned with its own dedicated
mill in early 2002.

The Cadia Hill openpit is now 300 metres deep after 56 million
tonnes (58 million tonnes) of material was mined during the year.

Fresh initiatives aimed at productivity and cost improvements
have been implemented and are expected to contribute
positively in the coming year.

GOSOWONG

The Gosowong gold mine on Halmahera Island in the
Indonesian province of North Maluku is a relatively small
but high grade operation.

During its first two years of operation, production has been
maintained at consistent levels. In a challenging social and
political environment this performance has only been possible
through effective management and co-operation from many
Indonesian people.

In the year in review the mine maintained its strong
performance producing 226,900 ounces (274,943 ounces)
at a low cash cost of $222 per ounce ($186 per ounce). Total
production costs were $408 per ounce ($383 per ounce).

Production was achieved off a gold grade of 28.34g/t, which
was higher than the grade forecast in the mine plan. The
improved grade was the main cause of better than expected
production and lower cash costs.

Despite 3,500mm of rain in the year, the amount of material
mined remained on target. Milling performance exceeded
expectations with timely adjustments for high and low-grade
campaigns leading to consistently high gold recoveries.
Gold recovery averaged 95.6 percent for the year, well
ahead of budget.

The North Maluku area has been stable during the year with
the return of the nearby population to their villages continuing.
The Gosowong mine is gradually resuming its employment of
local people and reducing the reliance on imported skilled and
non-skilled labour.

The Company has continued its community support programs
with contributions to the restoration of schools and medical
clinics in the region. In particular, the Company assisted in a
program of providing logistical assistance for the distribution
of two container loads of medical supplies during the year.

The joint venture company which owns and operates the mine,
PT Nusa Halmahera Minerals, has also commenced a program
supporting microbusiness start-up plans to establish sustainable
businesses with an economic base to continue after
production ceases.

In the year ahead high gold grades from the Gosowong mine
are expected to continue. The Toguraci prospect, which is
about two kilometres south-west of the Gosowong mine,
continues to show promise with encouraging exploration results.
Mine feasibility studies and permitting issues will need to be
resolved before any mining activity can be undertaken.

Mine management continues to study the viability of processing
stockpiled material, once processing of high grade ore is
completed in about July 2002.

Government support for the operation remains strong following
the introduction of increased regional autonomy. Issues such as
permitting remain untested within the new system.

NEW CELEBRATION

This operation was sold at year end due to its high production
costs. The total proceeds from the sale and close out of
associated hedging contracts was $36.5 million and resulted
in an after tax loss of $6.1 million.

Prior to year end New Celebration produced 86,379 ounces
(70,506 ounces) at a cash cost of $426 per ounce ($355 per
ounce) and total costs of $553 per ounce ($419 per ounce).
All production was sourced from the Mount Marion
underground mine.

BODDINGTON

Production continued during the year from a number of oxide
pits. Operations are expected to cease in September 2001.

Newcrest’s 22.2 percent share of gold production was
50,756 ounces (51,077 ounces) at a cash cost of $383 per
ounce ($366 per ounce) and total costs of $527 per ounce
($510 per ounce). The increase in cost was attributed to
mining from a large number of pits during the year which
increased mining costs.

The Boddington Expansion feasibility study has been
completed and accepted by the Joint Venturers and remains
under review as the environmental permitting and the transfer
of management for the Boddington operation from Worsley
Alumina Pty Ltd to the Boddington Joint Venture is completed.

Projects Review

When operational the mine will be the fourth largest underground
mine in Australia and contribute strongly to Newcrest’s earnings.

The second key project area of the underground mine
development to allow ore extraction by the SLC mining method
also progressed according to plan. Development and limited
ore extraction of the first mining level to initiate the caving of
overlying rock was nearing completion and production was well
established on the second level. Development of the third SLC
level was at an advanced stage and had commenced on the
fourth level. Observations from monitoring bore holes drilled
from the surface above the SLC indicate that caving of the
overlying rock is occurring as planned.

A total of 712,501 tonnes of Ridgeway ore grading 2.59 g/t gold
and 0.98 percent copper was processed through the Cadia Hill
concentrator over the year. This yielded 50,688 ounces of gold
and 6,057 tonnes of copper at a cost of $196 per ounce.
The extraction from the orebody indicates that tonnage and
ore grades are in line with geological predictions.

The objectives during the 2001/02 year are to complete and
commission the new operation to around 3.0 million tonnes
per year by end of calendar 2002 as part of the ramp up to
4.0 million tonnes per annum by early 2003.

The completion of the Ridgeway project remains an essential
component in Newcrest’s growth in production and earnings
in the coming years.

RIDGEWAY

Ridgeway, which is adjacent to the Cadia Hill openpit,
is being developed by Newcrest as a 4 million tonne per year
underground gold and copper mine at a cost of $286 million.
Commissioning is expected to commence in early 2002.

Development consent for the Ridgeway project was announced
by the NSW Premier, Mr Bob Carr and Minister for Urban Affairs
and Planning, Dr Andrew Refshauge during a visit to the project
immediately following the Olympic Games on 4 October 2000.

Once operational and at full capacity, the mine will be the
fourth largest underground mine in Australia and will contribute
strongly to Newcrest’s earnings and cash flow.

Mining will be by the sublevel caving (SLC) method which
is a bulk low cost mining method. A dedicated mill is under
construction adjacent to the existing Cadia Hill concentrator
to produce gold doré and a gold/copper concentrate.

The status of project capital facilities at year end was:

• Surface infrastructure consisting of two large dams, roads,

buildings and minor services were largely complete.

• Concrete works for the concentrator were 75 percent
complete and fabrication of structural steelwork was
well advanced.

• 800 metres (of a total of 3.5 kilometres) of the conveyor

incline tunnel remained to be excavated.

• Purchase and delivery of all long lead time key equipment

was well advanced.

• Development and construction associated with essential

underground facilities was on schedule for mine start-up.

• Overall, 48 percent of the capital works were complete at year
end and the project remained on schedule and within budget.

TELFER

Telfer was the founding project for Newcrest and over almost
25 years of operation had become one of Australia’s most
enduring gold mines. In its life to date it has produced over
6 million ounces of gold. During the year the operation’s costs
had become unacceptably high as increasing levels of copper
were encountered at depth in the openpit. As such the
operation was suspended whilst a complete conceptual
review for a large low cost gold/copper mining operation
was accelerated.

In August 2000 approval was given by the Board for the first
stage of a full project feasibility study. This commenced with
extensive drilling of the openpit and underground areas.
The primary focus was on the acquisition of geological data
to allow greater confidence in assessment of the style of
mineralisation and resource estimates.

In 2000/01 resource definition programs for both the Open Pit
and Telfer Deeps Projects focussed on increasing the level of
confidence in the distribution and grade of gold and copper
mineralisation within the project areas. This objective was
met by completing resource definition drilling and a number
of calibration tests, including bulk sampling, close spaced
drilling programs and thorough quality assurance and
sampling protocols.

The openpit feasibility resource definition drilling program
comprised a total of 115,500 metres of surface reverse
circulation (RC) drilling, 9,500 metres of underground diamond
drilling and 1,900 metres of underground RC drilling. A large
amount of geochemical and structural interpretation was
performed to better define resource estimation parameters.

In the underground project, resource definition drilling
totalled 10,900 metres of underground diamond drilling
and 4,000 metres of underground RC drilling, targeting the
bulk underground Helmsman resource. The I30 Quartz Reef

was intersected in development during March 2001 and
continued to allow 480 metres of bulk sample development
within the orebody to be completed. Mapping and sampling
of the decline and development continued throughout the year.
Results from the drilling and bulk sampling have confirmed or
improved the mineralisation grade and distribution predicted
from earlier drilling.

In March 2001, the Company released details of mining
reconciliations from historical production records and twinning
of RC drilling versus diamond drilling. This showed a substantial
upgrade of gold grades estimated from RC drilling compared
with those estimated using historical and diamond drilling data.
The current underground and openpit bulk sampling programs
continue to support the magnitude of the upgrade.

The main underground access decline was completed, as
forecast, in the March 2001 quarter.

Review of both the openpit and underground orebodies was
completed at a conceptual level and established that both
orebodies appeared to be amenable to conventional economic
mining methods.

Review of all other aspects of the establishment and permitting
of a project based on the concepts developed was completed.
Initial discussions were held with all relevant parties and no
matters that may delay or defer the development of a project
of the type envisaged were identified.

By year end, it had been established that the grade of the
deposit was materially better than previously estimated and
could potentially support a large combined openpit and
underground operation. Approval was given by the Board
in July 2001 for further expenditure to complete stages 2 – 5
of the feasibility study. This study is scheduled for completion
in late calendar year 2002.

Mineral Resources and Ore Reserves

Total Mineral Resources as at year end are estimated at
42 million ounces of gold insitu, which is an increase of
11 million ounces of gold insitu compared with 30 June 2000.
Total Mineral Resources for copper are 3.3 million tonnes.
Ore Reserves are estimated at 10.4 million ounces of gold,
a decrease of 1.0 million ounces of gold. Total Ore Reserves
for copper are 0.7 million tonnes.

The major increases in Mineral Resources were at the Telfer
Projects, Cadia Far East, Cadia East and Cadia Quarry.

With the exception of Gosowong where diamond and RC drilling
conducted in early 2001 resulted in additional reserves being
identified in the north-eastern area of the pit, the June 2001
Ore Reserve estimate is effectively a depletion of the June 2000
Ore Reserve.

Mineral Resources and Ore Reserves conform to the
Australasian Code for Reporting of Mineral Resources and
Ore Reserves (The Joint Ore Reserves Committee Code).
Ore Reserves are a subset of Mineral Resources. External and
internal audits are conducted on completed estimates. All costs
and prices are in Australian dollars unless shown otherwise.

Relevant information on the methods and parameters used to
estimate Mineral Resources and Ore Reserves are presented
in our Supplementary Report and website.

CADIA HILL

CADIA QUARRY

• No material changes occurred at Cadia Hill during this year
other than normal production depletion of the orebody.

• Reconciliation of the Mineral Resource and Ore Reserve
models continued to demonstrate very close agreement
with actual reported production results.

• It is planned that a full update of the Ore Reserve will be
completed by June 2002. This updated Ore Reserve will
reflect operational experience and ongoing investigations
into the performance of the geological, geotechnical and
metallurgical models used for pit optimisation. Preliminary
indications are that some pit design modifications that will
affect Ore Reserves will be required.

CADIA EAST

• Re-estimation of Cadia East following additional drilling and
re-interpretation of the mineralisation and geology resulted
in a significant increase in the reported Mineral Resource
of approximately 1.6 million ounces of gold and 0.35 million
tonnes of copper insitu metal.

• Re-estimation of Cadia Quarry following additional drilling
and re-interpretation of the mineralisation and geology
resulted in an increase in the reported Mineral Resource
of approximately 0.39 million ounces of gold and 0.06 million
tonnes of copper insitu metal.

• Cadia Quarry is located immediately to the west of the

Cadia Hill openpit and represents an opportunity to add
to Ore Reserves.

• A close spaced drilling program conducted during the

year tested a proposed bulk sample area of approximately
1 million tonnes. Results indicated an upside to the Mineral
Resource exists. Additional drilling is planned
in the coming year.

RIDGEWAY

• Based on additional diamond drilling and estimation of

an updated resource model, an increase in Measured and
Indicated Mineral Resources of 0.25 million ounces of gold
and 0.03 million tonnes of copper metal insitu was reported.

• Cadia East is located adjacent to the Cadia Hill openpit and
represents the up-dip part of the Cadia East-Far East body
of gold and copper mineralisation that is potentially amenable
to openpit mining.

• All Mineral Resources contained within the current life-of-mine

plan were converted by additional drilling and geological
interpretation to a Measured or Indicated Resource
classification.

• Drilling is planned to further define the connection between

Cadia East and Cadia Far East.

• Production from sublevel caving commenced in June 2000.
Ramp up to full production is in progress and remains on
schedule. The Mineral Resource and Ore Reserve have been
depleted for mine production to 30 June 2001.

• The current Ore Reserve is derived from the previous Mineral

Resource estimated in 2000.

• Production reconciliation against the Mineral Resource and

Ore Reserve indicates good performance to date.

CADIA FAR EAST

• The first Inferred Resource estimate for this deposit was

completed.

• At a 2 g/t gold equivalent cut-off the Inferred Resource is

63 million tonnes at 1.7 g/t gold and 0.48 percent copper,
for an insitu 3.4 million ounces of gold and 0.3 million tonnes
of copper.

• The deposit is located 1.5 kilometres east of the Cadia Hill
openpit and is separate from the shallower Cadia East
deposit. The Mineral Resource lies between 700 metres and
1500 metres below the surface and is 400 metres long by
150 metres maximum width.

• Cadia Far East is a body of relatively high grade, porphyry-
style gold/copper mineralisation containing native gold,
chalcopyrite and bornite as the main metalliferous minerals.
The mineralisation grades outwards from a central, thickest,
highest-grade core in a predictable manner.

• Drilling is continuing to increase the level of confidence
in the grade of the core and to extend the resource.

TELFER

• The new Mineral Resource estimates have resulted in a total
resource base of 18 million ounces of gold, an increase of
7 million ounces of gold as compared to the total resource
as at 30 June 2000.

• Significant increases in both tonnage and grade in the

Mineral Resource estimates occurred in the Telfer openpit
and underground resources where the feasibility study work
is focussed. These estimates take into account the additional
drilling, bulk sampling, development mapping and test work
analysis and as a result, some diamond drill-hole assays have
been upgraded.

• The Underground Mineral Resource has been classified as

an Inferred Resource. This resource incorporates the I30 Reef
Mineral Resource and Ore Reserve which was included in
the Underground Mineral Resource and Ore Reserve as at
30 June 2000.

• Mining will exhaust the remaining Ore Reserve by February
2002 and milling of high grade stockpiles is estimated to
cease in June – July 2002. The economics of milling the
low-grade stockpiles, estimated to be 400-450,000 tonnes
at the end of mining, continue to be investigated.

• The potential for additional mill feed in the mine area is under
investigation. Exploration in the Toguraci area 1-2 kilometres
to the south-west, has indicated the potential for additional
resources to be sourced from this area.

CRACOW

• Exploration by the Cracow Joint Venture has continued
during the past year seeking high grade epithermal gold
mineralisation along strike to the north-west of the Royal
Shoot where an Inferred Resource of 270,000 ounces of
gold insitu (Newcrest share) was previously delineated.

• High grade epithermal gold mineralisation has been
intersected by diamond drilling at Klondyke North,
200 metres to the north-west of the Royal Shoot and at the
Crown location, 600 metres north-west of the Royal Shoot.

• Resource estimation is planned for later in the year when

the drilling is complete.

• The Ore Reserve as at 30 June 2001 has been estimated by
depleting the Underground Ore Reserve estimated at June
2000 for production from underground operations during
the year. The June 2000 Ore Reserve was based on mining
methods historically used at Telfer.

BODDINGTON

• Oxide and basement plant feed resources and reserves

have been depleted for the year as mining has continued
at normal rates.

• Small additions to the oxide and basement plant feed

resources and reserves have been made during the period.

• The oxide and the basement plant feed mine is nearing the
end of mine life and this part of the Boddington Gold Mine
is expected to cease operation in late 2001.

• The Boddington Expansion Mineral Resources and Ore

Reserves remain unchanged.

GOSOWONG

• Additional diamond and RC drilling and a revised geological
interpretation have achieved an increase of 90,000 ounces
in the combined Indicated and Inferred Resource, 56,000
ounces of which is the Indicated Resource category.

• The resource has performed well in the past 12 months with
mined ounces of gold 2.5 percent less than indicated by the
resource model. This has resulted in mining less tonnes at a
higher grade. This trend is reflected in the new geological
interpretation and resource model.

GOLD AND COPPER RESOURCES ATTRIBUTABLE TO NEWCREST AS AT 30 JUNE 2001

Measured Resource

Indicated Resource

Inferred Resource

Gold insitu

Copper Competent
Person

insitu

2.8

0.27

Total Gold and Copper

2.8

0.27

Cadia Hill

Ridgeway

Cadia East

Cadia Far East

Cadia Quarry

Telfer

Opencut

Underground

Satellites

Stockpiles

Boddington

Direct Leach Oxide

Basement

Boddington Expansion

Total Gold

Total Copper

Gosowong

Cracow

Total Gold and Copper

Dry
Tonnes
(million)

240

Gold
Grade
(g/t Au)

0.73

3.0

Copper
Grade
(% Cu)

0.17

0.90

Dry
Tonnes
(million)

6.6

Gold
Grade
(g/t Au)

0.43

2.0

Copper
Grade
(% Cu)

0.18

0.65

140

0.75

3.1

140

2.5

0.14

1.2

4.2

0.83

1.2

0.75

3.8

0.83

0.13

0.06

0.14

0.13

0.12

3.2

0.099

0.78

2.2

0.93

0.92

0.11

0.35

5.7

0.30

Dry
Tonnes
(million)

Gold
Grade
(g/t Au)

Copper
Grade
(% Cu)

(million
ounces)

(million
tonnes)

2.0

2.3

320

220

1.7

270

4.0

0.022

0.016

0.77

0.15

0.59

0.36

0.48

0.21

0.08

0.50

0.08

0.16

0.09

0.59

1.5

0.45

1.7

0.40

1.0

2.5

2.6

1.3

0.4

9.0

0.8

0.77

9.1

5.8

3.9

4.7

3.4

0.90

4.2

0.24

0.08

0.19

0.03

4.4

4.6

0.24

0.27

0.43

0.37

1.2

0.3

0.15

0.4

0.26

1.9

4.4

0.67

0.18

3.3

ORE RESERVES ATTRIBUTABLE TO NEWCREST AS AT 30 JUNE 2001

Gold and Copper Reserves

Cadia Hill

Ridgeway

Telfer
Underground

Total Gold and Copper

Boddington

Direct Leach Oxide

Basement

Expansion

Total Gold

Total Copper

Gosowong

Stockpiles

Opencut

Total Gold

Total Gold and Copper

Proved Reserve

Probable Reserve

Gold Insitu

Copper
Insitu

Competent
Person

Dry
Tonnes
(million)

Gold
Grade
(g/t Au)

Copper
Grade
(% Cu)

Dry
Tonnes
(million)

Gold
Grade
(g/t Au)

Copper
Grade
(% Cu)

(million
ounces)

(million
tonnes)

170

0.78

0.18

1.9

0.12

0.26

0.29

0.07

0.35

0.83

2.8

0.94

6.5

0.19

0.75

2.3

0.13

1.3

0.18

0.08

0.19

0.35

2.7

0.85

4.6

0.84

4.3

2.7

0.7

0.01

0.02

2.4

2.5

0.07

0.16

0.23

10.4

0.32

0.24

0.033

0.107

0.7

1. C.F. Moorhead, 2. J.R. Grace, 3. J.R. Holliday, 4. G.R. Howard, 5. N. Markham, 6. S. Williams, 7. G. Petersen, 8. J.F. Leckie, 9. A. Giguere, 10. A. Logan, 11. N. Liyanaarachchi.

Rounding, conforming to the JORC Code, may cause some computational discrepancies. The totals in resources and reserves gold and copper grades are weighted averages.

Information in this report which relates to Ore Reserves and Mineral Resources is based on and accurately reflects reports prepared by the Competent Person named beside the information. All these persons are full-time employees of
Newcrest Mining Limited or the relevant subsidiary, except N. Markham, who is an employee of Worsley Alumina Pty Ltd and S. Williams, who is a director of Mine Engineering Services Pty Ltd contracting to Worsley Alumina Pty Ltd,
who consent to the inclusion of material in the form and content in which it appears. This resource report is compiled by Mr J.F. Leckie, Chief Geologist Mining and Development, Newcrest Mining Limited. This reserve report is
compiled by Mr D. Corp, Manager Business Development, Newcrest Mining Limited. All the Competent Persons are members of The Australasian Institute of Mining and Metallurgy and/or the Australian Institute of Geoscientists and
have the relevant experience in relation to the mineralisation being reported on by them to qualify as Competent Persons as defined in the Australasian Code for Reporting of Mineral Resources and Ore Reserves.

Newcrest has retained Mr Peter Stoker of Hackchester Pty Ltd to act as external auditor for the Newcrest Mineral Resources where Newcrest is the operator. Mr Stoker has progressively audited these Mineral Resources and has
stated that he is not aware of any issues which materially affect the reported Mineral Resources.Mr Stoker is a geologist with over 30 years experience in mine geology, Mineral Resource and Ore Reserve estimation, feasibility studies,
project evaluation and mineral exploration. He is secretary of the Joint Ore Reserves Committee.

Australian Mining Consultants – AMC have been retained to conduct audits on the process used for Ore Reserve estimation. AMC are not aware of any issues with the process used which may materially affect the reported Ore Reserve.

Exploration

Exploration remains a core business and an industry-recognised
strength of the Company. It is also a key strategic component
of Newcrest’s growth strategy. Newcrest is one of the few mining
companies in the world which derives all of its production from
mineral deposits it has discovered. The success of its exploration
activities has been evidenced by Mineral Resources increasing
more than fourfold and Ore Reserves more than tripling over
the past decade, net of depletion.

Non-Mine Exploration
Cracow (Newcrest 70%)
At Cracow in Queensland, systematic exploratory drilling across
the north-westerly projection of the Klondyke structure (host to
the Royal Shoot) discovered previously unrecorded high grade
gold mineralisation on a new structure – the Crown.

Eighty three holes were drilled (33,295 metres) to discover
the Crown mineralisation, which is semi-parallel and about
100 metres to the west of the Klondyke structure and about
650 metres north-west of the Royal Shoot. The discovery of
Crown has encouraged further exploration along the Klondyke
structure for other high grade gold shoots.

The Crown structure has been traced over a distance of
400 metres and penetrated to a depth of 550 metres below
surface. Further drilling to define the Crown mineralisation
and test for other mineralised structures will be conducted
over the coming year.

Ashburton, WA (Newcrest earning 70%)
In Western Australia the search for ‘Carlin’ style sediment-
hosted gold mineralisation continued in the Ashburton district
where established infrastructure includes sealed roads, a gas
pipeline and the township of Paraburdoo. This project further
evidences Newcrest’s focus on sourcing large long life projects.

Systematic wide-spaced geochemical drilling covering more than
150 kilometres of prospective geology has progressively localised
a number of gold anomalies for more detailed investigation.

These include the Cheela area anomaly, located about
100 kilometres north-west of Paraburdoo, where widely-spaced
geochemical (RAB) drilling has intersected anomalous
gold-in-saprolite values extending along strike for more than
10 kilometres.

In the Xanadu area, located about 60 kilometres south-east
of Paraburdoo, silica replaced sediments which are gold-
anomalous in places, have been mapped over a distance
of more than 10 kilometres.

Mine Area Exploration
Cadia District
At Cadia Far East, resource definition drilling on a 100 metre
pattern continued within an area of potentially better grade
gold/copper mineralisation.

An Inferred Resource of 63 million tonnes with an average
grade of 1.7 g/t gold and 0.48 percent copper has been
estimated for this mineralisation, using a 2.0 g/t gold
equivalent cut-off.

The resource contains an estimated 200 million tonnes grading
1.1 g/t gold and 0.41 percent copper, using a lower cut-off of
1.0 g/t gold equivalent.

A joint venture agreement was signed with Climax Mining
Limited and Homestake Australia which enables Newcrest
to earn a 51 percent interest in the Junction Reefs tenements
immediately to the east of Newcrest's Cadia tenements.

The northern part of this joint venture area includes the
south-easterly projection of the corridor which contains the
Cadia deposits.

A helicopter-borne geophysical survey was completed over the
joint venture area with detailed geological mapping and deep
reconnaissance core drilling focussed on known prospects
within the projected trend of the Cadia deposit corridor.

Drilling of prospects in the Junction Reefs area has
commenced.

Gosowong (Newcrest 82.5%)
Continued exploration in the Toguraci area, located 2 kilometres
south-west of the Gosowong pit, identified high grade gold
mineralisation in narrow epithermal quartz veins at the Midas
and Damar prospects.

Infill drilling is being conducted to investigate the mining
potential of this mineralisation.

Exploration drilling is continuing on other epithermal quartz
veins at Toguraci and in the Tobobo area, located within
2 kilometres north-west of the Gosowong pit.

Other Areas
Archaen/WA
With the sale of New Celebration a small exploration effort
is being pursued in the Eastern Goldfields seeking new
opportunities.

Outlook
In 2001/02 the focussed exploration strategy will continue with
further exploratory and resource definition drilling in the Cracow,
Cadia and Gosowong districts.

An accelerated program of discovery drilling will be conducted
in the Ashburton in order to further define a series of detailed
drill targets.

Early-stage exploration will also be conducted on several
properties in Australia and Indonesia.

Growth in Resources

Gold Resource
(Moz)

Growth in Reserves

Copper Resource
(Kt)

Gold Reserve
(Moz)

8000

7000

6000

5000

4000

3000

2000

1000

2000

1000

Copper Reserve
(Kt)

3000

The key to Newcrest’s future is its people. The Company
is committed to the continual development of its skill base.
An experienced team has been built in all aspects of
production, exploration, finance and services. This team
will ensure the future successful development of Newcrest.

STRENGTH
IS OUR PEOPLE

Human Resources

As Newcrest implemented a more focussed operating and
development strategy, optimisation of the Company’s skill
base remained a priority with operating efficiencies achieved
through more effective use of human resources.

The AWAs have served employees and Newcrest well. During
the year, these agreements have been renewed progressively,
following an extensive consultation process and with full support
of employees.

During the year, Newcrest introduced a new Human Resources
and Payroll Information System. The new system will enable
lower cost provision of payroll services across all Newcrest
sites in Australia and enhanced capability for managing human
resource information.

The professional development of Newcrest’s employees
continued, with Company sponsored training programs,
support with external education programs through the
Education Assistance Program and career advancement
through internal transfer and promotion arising from new
business projects.

A review of Newcrest’s organisation structure during the
year resulted in the establishment of a single Operations
Division responsible for all mining operations and a new
Project Development Division responsible for all
development projects.

At 30 June 2001 Newcrest had 775 direct employees and
1,491 contractors. This compares with 932 employees and
1,298 contractors for the previous year.

Creation of a new Leadership Development Program is
advancing, with the first modules scheduled to commence
in August 2001.

During the year a number of Newcrest managers in WA and NSW
participated in Front Line Manager Development Programs.

A desire to create a more unified Newcrest culture and maintain
a direct relationship with our employees in setting remuneration
rates and working conditions led Newcrest to offer Australian
Workplace Agreements (AWAs) to employees at our mine sites
three years ago.

SITE SAFETY PERFORMANCE

Site

LTIFR

RDIFR

This Year

Previous
Year

This Year

Previous
Year

Cadia Hill

Ridgeway

Gosowong

Telfer Project

Telfer Operation

New Celebration

Boddington

Exploration

Total Newcrest

9.7

3.0

1.4

7.3

6.1

5.4

3.0

5.4

4.6

2.1

4.7

N/A

5.0

12.8

7.4

7.6

3.9

41.9

29.4

6.8

87.4

33.7

75.3

27.0

34.0

33.7

29.1

23.6

15.0

66.5

29.1

59.0

41.2

58.0

37.8

Safety and Health

The safety and health of the Newcrest workforce remains
the priority for the Newcrest Board, management and
employees. Industry ‘Best Practice’ in this area remains the
aim at all operations.

During the year, in line with our Safety & Health (S&H) Policy,
we have continued to work towards the ‘dual aim’ of
simultaneously implementing a Newcrest Safety & Health
Management System (S&HMS) and strengthening the
S&H culture within the Company.

Strategic S&H objectives were developed following a
comprehensive consultation process involving all sites.
Audit protocols for each standard were also developed and
team-based risk assessments have been conducted at each
site as a key input into Hazard Management Plans.

Line Management leadership and commitment is one of the
strongest drivers of cultural change. All levels of the Newcrest
management team demonstrated the importance of this by
participating in a range of critical S&H activities, e.g. team-
based risk assessments.

The reporting and investigation of Serious Potential Incidents
(SPIs) continued in an effort to heighten safety awareness and
create preventative actions. There was a marked drop in the
number of SPIs reported from 85 in 1999/2000
to 39 in 2000/2001.

Newcrest’s Restricted Duties Injury Frequency Rate (RDIFR)
showed an overall improvement throughout the year, dropping
to 33.7 (RDIs per million hours worked) compared with 37.8
reported in last year’s Annual Report.

Newcrest’s Lost Time Injury Frequency Rate (LTIFR) increased
marginally throughout the year to 4.6 (LTIs per million hours
worked) compared with 3.9 reported in last year’s Annual
Report with this increase being largely due to an increase in
the LTIFR at the Cadia Hill mine. The industry average LTIFR

has increased over the past year reflecting the extent of the
broader industry challenge to reduce workplace injury down
to a new benchmark.

Planned Approach for 2001/02
The approach for the upcoming year will be to build upon and
consolidate the significant work undertaken over the last two
years. It is recognised that strong innovation will be required to
develop new ways to approach and promote S&H improvement.
Specific attention will be paid to the following:

• Actively promoting and ‘locking in place’ the S&HMS.
This will involve all of our employees and contractors.

• Ensuring that risk management principles are more explicitly
demonstrated in our S&H plans and activities, including our
processes for selecting and managing contractors. In
particular, we will be working to ensure that all our major
potential risks are identified and managed.

• The increased use of Positive Performance Measures (PPM)
to determine our level of success (as opposed to simply
measuring our failures i.e. incidents and injuries). This
will involve more formal ongoing measurement of our
performance against our risk-based plans.

• Improved communication of S&H related information.
This will include a more active use of the Sitesafe
Information Management system to ensure that identified
preventative actions and workplace controls are
implemented and maintained.

• Increasing our level of knowledge and understanding
in the area of behavioural based approaches to S&H.

Environment

• In keeping with our commitment under the Australian
Mining Industry Code for Environmental Management,
Newcrest completed its initial Code Implementation Survey
during the year. This survey measures the success of
individual operations in implementing the various principles
of the Code. The results from each site (and the Group
average) are shown in the table below, along with the
industry average.

Operation

Cadia Hill

Gosowong

New Celebration

Ridgeway

Newcrest

Industry average

Implementation

55 percent

49 percent

31 percent

44 percent

43 percent

46 percent

• Newcrest submitted data to the National Pollutant Inventory

(NPI) on those of the 36 designated substances that
exceeded pre-defined thresholds. We have been working
with industry bodies to address particular concerns relating
to the estimation of cyanide and diesel particulate emissions.

• Newcrest has provided input to the development of an

international Cyanide Management Code. Sponsored by
UNEP and ICME, the voluntary Code seeks to develop
standards of practice for the responsible management
of cyanide at gold mining operations.

Newcrest has a sound environmental track record and is
committed to continuing its strong performance in this area.
The number of reported incidents was reduced by 70 percent
compared with the previous year. The Company will continue
to optimise and modify strategies and to innovate where
appropriate, to ensure favourable environmental outcomes.

The past year has been a period of consolidation for Newcrest’s
environmental functions. Having become a signatory to the
Australian Mining Industry Code for Environmental
Management and implemented or upgraded programs in
incident reporting, auditing, closure planning and environmental
management, the emphasis was on ensuring that these
programs were fully reflected in our management culture.

Newcrest has adopted sustainability as a common base in
its operations embracing the concept of a balance between
economic prosperity, environmental quality and social
responsibility. Integrating sustainability into our management
philosophy will be a principal focus of the coming year.

Programs undertaken during the year were as follows:

• The baseline environmental audit program continued during

the year. One site (Cadia Hill) remains to be audited to
complete this program, with this audit scheduled to
be completed by end of December 2001.

• Preliminary closure plans have been completed for all

operations. These plans will be reviewed and upgraded during
the coming year. First pass costings have been prepared
and these will be audited by end of December 2001.

• A corporate Environmental Management Plan (EMP) has
been completed and similar EMPs are being developed at
each operation. The EMP is an integral component of each
operation’s environmental management system and draws
together the key environmental functions and programs
at each site.

Financial Analysis

Profit from ordinary activities before income tax expense was
$52.0 million compared to a loss of $1.8 million in the previous
year. Net profit attributable to shareholders was $38.2 million
against $3.4 million for the 1999/00 year.

Sales revenue comprising gold bullion and gold/copper
concentrate amounted to $581.1 million for the year, down
16.7 percent on last year. This fall in revenue was directly
attributable to the cessation of operating activities at Telfer
in early October 2000. Telfer gold production fell by
208,665 ounces.

The achieved gold price for the year was $623 per ounce on a
total of 792,382 ounces sold. This price exceeded the spot gold
price by $117 per ounce after absorbing all maturing foreign
currency hedge contracts in the year.

In the last five years gold and currency hedging has resulted
in the following outcomes:

1996/97 1997/98 1998/99 1999/00 2000/01

Achieved gold price
(A$ per ounce)

Margin over spot
(A$ per ounce)

Incremental revenue
(A$ million)

631

590

623

616

623

167

140

167

168

117

81.2

60.9

115.9

166.9

92.7

The result in 1996/97 and subsequent years excludes
the realisation of $270.1 million in profit on close out of
a substantial portion of the hedge position in that year.

The achieved gold price for the year fell comfortably within the
forecast range advised to the market as far back as April 2000.
Higher spot gold prices in the second half of the 2000/01 year
assisted in realising $594 per ounce, up $13 on the minimum

price noted in the 28 February 2001 release. In that market
release, we noted that the achieved gold price for the second
half of the year would ‘be dependent upon the level of
production, the spot Australian dollar gold price and the
exchange rate’.

There has been no significant change in the Group’s hedging
philosophy or centralised treasury function. Hedging is
undertaken to manage and mitigate risk, add value and provide
reasonable certainty to cash flows. Details of the hedge position
continue to be set out on the Company’s website. The mark to
market value of the position was negative $806 million
(including gold loan) at 30 June 2001.

The consistent application of the Company hedging philosophy
combined with the drive to reduce gold production costs has
resulted in a growing margin in both cash cost and total cost
per ounce. The trend over the last five years has been as follows:

1996/97 1997/98 1998/99

1999/00 2000/01

Cash margin
(A$ per ounce)

Total margin
(A$ per ounce)

201

169

269

317

321

148

179

177

The Company anticipates achieving a gold price of
approximately $600 per ounce in the 2001/02 year. Again
this price is dependent upon gold production, spot gold prices
and the exchange rate.

Copper hedging, introduced in 1997, has achieved the
objective of underpinning the value of copper revenue. However
the fall in the Australian dollar throughout the year and resultant
rise in the Australian dollar copper price has resulted in
significant opportunity losses.

The history of copper hedging outcomes is as follows:

1998/99

1999/00

2000/01

Achieved copper price
(A$ per pound)

Margin over/(under spot)
(A$ per pound)

Increment/
(decrement) to revenue
(A$ million)

1.30

1.23

1.22

0.18

(0.05)

(0.30)

9.3

(3.2)

(22.8)

Other revenue from ordinary activities in the year was
$55.3 million compared to $4.4 million in the previous year.
The increase in the 2000/01 year included revenue from the
sale of New Celebration and close out of the relevant hedge
contracts totalling $36.5 million. Also included were revenue
on the sale of fixed assets, comprising mainly surplus Telfer
assets, totalling $9.0 million.

A loss of $9.2 million before tax was incurred in the year from
the sale of New Celebration. The prior year included losses
associated with the suspension of Telfer amounting to
$92.8 million before tax.

Operating profit before depreciation, amortisation and interest for
the year was $182.3 million, up 9.1 percent on the previous year.

Depreciation and amortisation for the year was $111.7 million
equating to a rate of $141 per ounce, in line with the previous
year of $142 per ounce.

Borrowing costs expensed in the year amounted to $18.6 million,
a decrease of $8.8 million over last year. The fall was due to a
restructure of the long term gold loan. In the prior year, the debt
was denominated in Australian dollars for a significant portion
of the year.

Total exploration expenditure in the year was $51.4 million
compared to $65.0 million in the preceding year. Exploration
expenditure charged against income totalled $22.4 million in
the year compared to $37.7 million in the previous year. All
exploration expenditure in the year was expensed except for
costs relating to Telfer, Cadia, Cracow and Toguraci in Indonesia.

Cash flow from operating activities for the year was
$136.0 million, down $66.5 million on last year due
substantially to the reduction in gold sales following the
Telfer suspension.

A total of $188.3 million was paid for investing activities,
up $14.1 million on the previous year. The largest component
of this figure relates to Ridgeway where $89.3 million was paid
for development and construction. In addition, a further
$36.4 million of work was incurred in relation to Ridgeway
and was taken up in creditors at year end.

Telfer feasibilities and exploration payments totalled
$65.0 million in the year.

Cash flow from financing activities generated a net $7.9 million
in the year. Drawdowns from standby facilities totalled
$45.0 million, offset in part by loan repayments and finance
lease payments totalling $34.6 million.

The Dividend Reinvestment Plan reduced the net payout of the
1999/00 dividend of $12.1 million to $8.8 million.

The balance sheet at 30 June 2001 had current assets of
$181.1 million and current liabilities of $252.9 million. Long
term debt totalled $409.7 million comprising the gold loan
and finance lease liabilities.

On 16 August 2001 the Company placed 33.75 million shares
at a price of $4.10, raising approximately $138 million. These
funds will be applied to continuing expenditure on the Telfer
project, repayment of short term debt facilities and general
corporate purposes.

A new long term concentrate sales agreement was signed with
Nippon Mining and Metals Company Limited in August 2001.
Nippon has also agreed to provide a US$80 million long term
loan. The loan is for a period of approximately seven years.
Repayments totalling US$16 million a year will be made by way
of deduction from concentrate proceeds commencing in July
2003 and concluding in June 2008.

This new long term financing without principal repayments
for the next two years, together with the equity raising,
strengthens the financial position of the Company and
underpins the future growth.

Corporate Governance

On behalf of the shareholders, the Board:

• sets the Company’s strategic goals and objectives

• oversees the management and performance of the

Company’s business

• determines broad issues of policy, and

• sets an appropriate framework of corporate governance

for management.

BOARD COMPOSITION

Newcrest’s Board normally comprises five Non-Executive
Directors and one Executive Director who is also the Managing
Director. The Chairman of Directors is a Non-Executive Director.
The Non-Executive Directors are independent and free of
any relationship which might conflict with the interests of
the Company.*

Board candidates are indentified with the assistance of
professional advice and are considered, at first instance, by the
Nomination, Governance and Ethics Committee of the Board,
and then by the full Board. Directors are selected for their
specialist skills and business backgrounds in order to create
appropriate skill balance on the Board. All Board appointments
are subject to shareholder approval. As a general rule, a
Non-Executive Director who has served on the Board for
12 or more years will not seek re-election.

The Board periodically reviews the number and composition
of its membership to ensure that it remains appropriate, having
regard to the needs of the Company. The Board believes that its
present membership provides the range of business skills and
expertise demanded by the Company’s existing operations.

All Directors of the Newcrest Board have agreed, as a matter of
Board Policy, to own a minimum of 3,000 shares in the

Company, on the basis that share ownership encourages
greater alignment of the financial interests of Directors with
those of the shareholders. Non-Executive Directors can acquire
shares either on market or through the Non-Executive Directors’
Share Plan, which was approved by shareholders at the
Company’s 1999 Annual General Meeting. Under the Plan
Non-Executive Directors can receive a portion of their
remuneration in the form of shares (purchased at market
prices) rather than as fees. Directors who do own Company
shares must observe the Company’s Share Trading Policy
which restricts the times when a Director can purchase or
sell Company stock and also prohibits short term trading.

BOARD FUNCTION

The Board meets every month and at such other times as the
business of the Company requires. At each regular meeting
it reviews the performance of the Company, with particular
emphasis on safety and environmental performance. As well
as considering any major strategic or investment decisions,
the Board reviews in detail principal aspects of the Company’s
operations. This process involves receiving detailed
presentations from management about key components
of the Company’s business.

The Board periodically reviews the Company’s strategic
direction and each year, together with senior management,
conducts a structured strategic review of the Company’s
activities and its future direction.

The Board has put in place a number of Committees
to enhance its capacity to monitor the full range of the
Company’s operations and to increase Directors’ exposure
to them. The Committees also provide specialist independent
advice to the Board.

*Non-Executive Director Mr Renard, is a consultant to a law firm which, amongst others, provides legal services to Newcrest, however he is not
personally involved in providing legal advice to the Company.

The current Committee structure is:

Audit Committee
Ensures compliance with all accounting and financial reporting
obligations of the Group and reviews internal financial controls,
the role of the internal and external auditors and the Company’s
risk management activities.

Compensation Committee
Deals with all matters relating to the Company’s remuneration
policy, executive and employee remuneration levels and
remuneration matters generally.

Finance Committee
Formulates and monitors policies and procedures for treasury
practices and considers the Company’s funding requirements.

Nomination, Governance and Ethics Committee
Considers candidates for the Board, reviews corporate
governance and compliance processes and monitors the
ethical standards of the Company.

Safety, Health and Environment Committee
Ensures that the Company has in place, and monitors,
the Company’s practices in the areas of safety, health and
environmental management.

Each Committee is comprised of selected Non-Executive
Directors, one of whom acts as Committee Chairman.
Memberships, which are detailed in the Directors’ Report
on page 41 are reviewed periodically by the Board. Each
Committee acts pursuant to a formal charter also approved
by the Board. All Board Committee deliberations are reported
to the Board at the earliest opportunity and, where necessary,
recommendations of a Committee are submitted to the Board
for a decision.

The Managing Director, although not formally a Committee
Member, is invited to attend Committee meetings. Other Board
members are also invited to attend if they wish to do so.

Directors of the Company have direct access to the Company’s
senior managers. The Board has adopted a formal policy which
ensures that Directors also have access to independent external
advisers where necessary. Directors are encouraged to visit the
Company’s operating sites annually.

The Board establishes with the Managing Director appropriate
and specific objectives for the short and long term. The
performance of the Managing Director is formally assessed
against these objectives annually. The assessment determines,
in part, the level of the Managing Director’s remuneration.

The Board has also introduced a formal process for evaluating
its own performance. Directors measure Board performance in
key areas and seek to identify areas where that performance
can be improved.

BOARD REMUNERATION

Total annual remuneration paid to all Non-Executive Directors
may not exceed the maximum amount authorised by the
shareholders in a general meeting (currently $500,000). In
addition each Non-Executive Director enters into a deed with
the Company which provides that upon retirement, that Director
will be eligible to receive a lump sum payment equivalent to the
fees paid to that Director during their preceding three years.

Remuneration of the Non-Executive Directors is determined
with regard to the need to maintain Board membership of an
appropriate calibre and remuneration trends in the marketplace.
Remuneration levels and trends are assessed with the assistance
of professional independent remuneration consultants.

RISK MANAGEMENT

The Board recognises that risk management is one of its key
responsibilities. The Company has a comprehensive reporting
system which seeks to identify, at the earliest opportunity, any
significant business risks. The Company has in place specific
reporting and control mechanisms to manage significant risks,
as well as an internal audit function which reviews and reports
to the Board on the effectiveness of those mechanisms.

ETHICS

The Board has adopted a formal Code of Ethics which all
Newcrest Directors, employees and contractors are required
to observe and which is published in internal Company
publications. The Company also has a comprehensive range
of corporate policies which detail the framework for acceptable
corporate behaviour. These set out procedures that employees
are required to follow. The ethics policies are reviewed periodically.

COMMUNICATION WITH STAKEHOLDERS

The Board recognises the importance of communicating
openly and clearly with all stakeholders. Company information
considered to be material is announced immediately through
the Australian Stock Exchange. Key presentations given by
Company personnel to investors and institutions are also lodged
with the Australian Stock Exchange. Every effort is made to
ensure that communications are clear and complete and that
they address shareholders’ needs for information. Where
necessary key communications are mailed directly to all
shareholders. The Company maintains a comprehensive
website on the Internet at www.newcrest.com.au.

Directors’ Report

The Directors present their Report on the Consolidated Entity consisting of Newcrest Mining
Limited and the entities it controlled at the end of, or during, the year ended 30 June 2001.

Directors
The Directors of the Company in office at the date of this Report are:

Ian Johnson
Non-Executive Chairman

Russell Barwick
Managing Director and Chief Executive Officer

Bryan Davis
Non-Executive Director

Ronald Milne
Non-Executive Director

Ian Renard
Non-Executive Director

Nora Scheinkestel
Non-Executive Director

Appointment and Retirement of Directors
Unless otherwise indicated, all Directors held their position as a Director throughout the entire
year and up to the date of this Report.

Mr Russell C. Barwick commenced as Chief Executive Officer on 21 July 2000 and was appointed
Managing Director on 26 July 2000.

Dr Nora L. Scheinkestel was appointed a Non-Executive Director on 22 August 2000.

Details of the Directors' qualifications, experience and special responsibilities appear in the table
on page 42.

Principal Activities
The principal activities of the Consolidated Entity during the year were exploration, development,
mining and the sale of gold and gold/copper concentrate. There were no significant changes in
those activities during the year.

Consolidated Result
The profit of the Consolidated Entity for the year ended 30 June 2001 after income tax and
outside equity interest amounted to $38,154,000 ($3,394,000).

Dividends
The following dividends of the Consolidated Entity have been paid, declared or recommended
since the end of the preceding year:

• Final fully franked dividend for 30 June 2000 of 5 cents per share, amounting to $12,187,000

was paid on 20 October 2000.

• Final fully franked dividend for 30 June 2001 of 5 cents per share amounting to approximately
$14,000,000 to be paid on 19 October 2001 to shareholders registered by close of business
on 28 September 2001.

Review of Operations
Information on the operations of the Group during the year and the results of those operations
are set out in the Annual Report at pages 1 to 39.

Environmental Regulation
The operations of the Consolidated Entity in Australia are subject to environmental regulation
under the laws of the Commonwealth and the States in which those operations are conducted.
It is the policy of the Consolidated Entity to comply with all relevant environmental regulations
in the other countries in which it operates.

Each mining operation is subject to particular environmental regulation specific to the activities
undertaken at that site as part of the licence or approval for that operation. There are also broad
industry environmental laws which apply to all mining operations and other operations of the
Consolidated Entity. The environmental laws and regulations generally address the potential
impact of the Consolidated Entity’s activities in the areas of water and air quality, noise, surface
disturbance and the impact upon flora and fauna.

The Consolidated Entity has a uniform internal reporting system across all sites. All environmental
events, including breaches of any regulation or law, are ranked according to their actual or potential
environmental consequence. Five levels of incidents are recognised (based on Australian Standard
AS4360): I (insignificant), II (minor), III (moderate), IV (major) and V (catastrophic). Data on
Category I incidents are only collected at a site level and are not reported in aggregate for the
Consolidated Entity.

The number of events reported in each category during the year are shown in the accompanying
table. In all cases environmental authorities were notified of those events where required and
remedial action undertaken.

Category

No. of incidents

III

–

The Managing Director reports monthly to the Board on all environmental and health and safety
incidents. The Board also has a Safety and Environment Committee which reviews the
environmental and safety performance of the Consolidated Entity. The Directors are not aware
of any environmental matter which would have a materially adverse impact on the overall business
of the Consolidated Entity.

Significant Changes in the State of Affairs
Significant changes in the state of affairs of the Consolidated Entity that occurred during the year
and which are reported in the consolidated financial statements, were:

(i) Cessation of openpit and underground mining operations at Telfer in early October 2000
was the major reason for Group gold production falling from 998,615 ounces in 1999/00
to 773,352 ounces in 2000/01. Telfer gold production fell by 208,665 ounces.

Subsequent Events
On 16 August 2001, the Company made a placement of 33,750,000 new ordinary shares raising

approximately $138,000,000. The new shares rank equally with existing shares and are eligible

(ii) The Ridgeway mine received full development approval on 4 October 2000. The mine produced
50,688 ounces for the year compared to 9,015 ounces in the prior year. Development of the
underground workings and engineering for the mill and surface infrastructure progressed
through the year. Commissioning of the new plant is scheduled to commence in early 2002.

(iii) Sales revenue fell 16.7 percent due to the reduction in production. The achieved gold price
for the year was $623 per ounce compared to $616 per ounce last year. The decline in gold
sales was partially offset by increased copper production.

(iv) Other revenue for the year was $55,289,000 compared to $4,449,000 the previous year.

Included in current year revenue was $36,497,000 relating to the sale of New Celebration,
comprising $11,800,000 proceeds from the sale and $24,697,000 from the close out of
surplus hedging contracts. An after tax loss of $6,102,000 resulted from the sale of New
Celebration. Proceeds on the sale of other fixed assets, comprising mainly surplus
Telfer assets, totalled $8,651,000.

(v) The fall in the Australian dollar generated losses on foreign currency hedging. All currency
hedge contracts maturing in the year were delivered and the achieved gold price of
$623 per ounce was after absorbing all foreign currency exchange losses. The low Australian
dollar also adversely affected copper hedging which incurred a loss of $22,800,000 in the year.
The mark to market of off-balance sheet financial instruments at 30 June 2001 was negative
$806,400,000 (negative $178,400,000).

for all future dividends. The provision for dividend included in financial statements at 30 June 2001

includes a provision for dividend on these new shares.

On 27 August 2001, the Company announced a new long term concentrate sales agreement with,

and a new US$80 million loan from Nippon Mining and Metals Company Limited. The loan

principal is to be repaid in instalments of US$16 million per annum, commencing in July 2003

and concluding in June 2008.

There are no other matters or circumstances, which have arisen since 30 June 2001 that have

significantly affected, or may significantly affect, the operations of the Consolidated Entity, the

results of those operations or the state of affairs of the Consolidated Entity in subsequent financial

years.

Future Developments
Disclosure of information regarding likely developments in the operations of the Consolidated

Entity and the expected results of those operations in future financial years has not been included

in this report because disclosure of the information would be likely to result in unreasonable

prejudice to the Consolidated Entity.

Directors’ Meetings
The attendances of the Directors at meetings of the Board and of its Committees of which they

were members during the year were:

Directors’
Meetings

Audit
Committee Meetings

Compensation
Committee Meetings

Finance
Committee Meetings

Nomination & Governance
Committee Meetings

Safety, Health
& Environment
Committee Meetings

I. R. Johnson

R. C. Barwick

N. L. Scheinkestel

R. B. Davis

R. C. Milne

I. A. Renard

–

Column A – Indicates the number of meetings attended. Column B – Indicates the number of meetings held whilst a Director. Column C – Indicates the number of meetings held whilst a member.

The details of the functions and memberships of the Committees of the Board are presented in the Statement of Corporate Governance.

Information on Directors

Qualifications, Experience and Special Responsibilities

Other Directorships

Ian Johnson
Chairman and Non-Executive Director

Bachelor of Science (Hons.) from the University of New England. Former Chief Executive
Officer of Newcrest Mining Limited. Former Group Executive of CRA Limited. Fellow of
AusIMM and a Fellow of the Australian Institute of Company Directors. Appointed to the
Board on 2 September 1998 and elected Chairman on 28 October 1998. A member of
the Compensation, and Nomination & Governance Committees.

Director of Leighton Holdings
Limited, John Holland Group Pty Ltd.
and Orogen Minerals Limited.

Russell Barwick
Managing Director and Chief Executive Officer

Diploma of Mining Engineering from the Ballarat School of Mines. Former Managing
Director of Placer Niugini Limited. Fellow of the Australian Institute of Company Directors
and a Fellow of AusIMM. Appointed to the Board in July 2000.

No other directorships.

Bryan Davis
Non-Executive Director

Ronald Milne
Non-Executive Director

Ian Renard
Non-Executive Director

Nora Scheinkestel
Non-Executive Director

Bachelor of Science Technology (Mining) from the University of NSW. Former Executive
Director of Pasminco Limited. Fellow of AusIMM and a member of the Australian Institute
of Company Directors. Appointed to the Board in March 1998. A member of the Audit,
Compensation, and Safety, Health and Environment Committees.

Chairman of Odyssey Technologies Pty Ltd.
Chairman of Indophil Resources NL.
Director of Coal & Allied Industries Ltd.

Member of the Australian Society of Certified Practising Accountants. Appointed to the
Board in November 1995 with a management career extending through the manufacturing,
merchant banking and oil exploration industries. A member of the Audit, Compensation,
Finance, and Safety, Health and Environment Committees.

Director of Brambles Industries Limited,
Regis Nominees Pty Ltd, Utilux Holdings
Pty Limited and OPSM Protector Limited.

Bachelor of Arts and Master of Laws degrees from the University of Melbourne. Consultant
of Allens Arthur Robinson. Fellow of the Australian Institute of Company Directors. Appointed
to the Board in May 1998. A member of the Audit, Compensation and Finance Committees.

Bachelor of Laws degree and PhD from the University of Melbourne. Member of the
Australian Institute of Company Directors. Appointed to the Board in August 2000 with
a management background in international banking and project finance. An Associate
Professor at the Melbourne Business School at the University of Melbourne. Member of
the Compensation, Nomination & Governance, and Finance Committees.

Deputy Chancellor of the University of Melbourne,
Director of AMP Limited, CSL Limited, Hurstmead
Pastoral Company Pty Ltd and Hillview Quarries
Pty Ltd. Chairman of Melbourne Theatre Company.

Director of PaperlinX Ltd, Docklands Authority,
Hydro Tasmania, City West Water Ltd and
IOOF Group of Companies.

Directors’ and Senior Executives’ Emoluments
The Compensation Committee, consisting of the Non-Executive Directors, is responsible for
making recommendations to the Board on remuneration policies and practices generally and
makes special recommendations on remuneration packages and other terms of employment
applicable to Executive Directors, senior executives and Non-Executive Directors of the Company.
The broad remuneration policy is to ensure the remuneration package properly reflects the
persons’ duties and responsibilities and that remuneration is competitive in attracting, retaining
and motivating people of the highest quality.

Executive remuneration and other terms of employment are reviewed annually by the
Compensation Committee having regard to performance against goals set at the start of the year,
relevant comparative information and independent expert advice. As well as a base salary,
remuneration packages include superannuation, resignation and retirement entitlements,
performance related bonuses and fringe benefits. Executives are also eligible to participate

in the Company’s Share Option Plans. The ability to exercise options is conditional on the
Consolidated Entity achieving certain performance hurdles.

Remuneration and other terms of employment for the Managing Director and certain senior
executives are formalised in service agreements.

Remuneration of Non-Executive Directors is determined by the Board within the maximum
amount approved by the shareholders from time to time. Non-Executive Directors do not receive
any performance related remuneration. Non-Executive Directors are entitled to retirement benefits
in accordance with a shareholder approved scheme.

Details of the nature and amount of each element of the emoluments of every Director of
Newcrest Mining Limited and each of the five officers of the Company and the Consolidated Entity
receiving the highest emoluments are set out in the following tables.

DIRECTORS OF THE COMPANY

Name

Title

Directors’ Base Fee/Salary
$

Superannuation
Contributions
$

Other Benefits
$

I. R. Johnson

Chairman and Non–Executive Director

R. C. Barwick

Managing Director and Chief Executive Officer

R.B. Davis

R. C. Milne

I. A. Renard

Non–Executive Director

N. L. Scheinkestel

Non–Executive Director

150,000

566,218

114,166 (1)

85,000 (2)

70,000

60,171

12,000

7,948

15,133

6,800

5,600

4,814

–

33,611

4,667

–

(1) Includes remuneration as Managing Director for the period 1/7/2000 – 28/7/2000.
(2) Includes a payment of $15,000 for other duties performed as Chairman of the Newcrest Superannuation Fund.

Options
$

–

67,500

–

Total
$

162,000

675,277

133,966

91,800

75,600

64,985

SENIOR EXECUTIVES OF THE COMPANY AND CONSOLIDATED ENTITY

Name

B. Price

G. Scanlan

D. Wood

B. Lavery

Title & Department

Executive General Manager Project Development

Executive General Manager Finance

Executive General Manager Exploration

Executive General Manager Corporate Services

G. Monkhouse

General Manager Human Resources

Base Salary
$

384,350

408,000

360,500

324,350

262,450

Other
Benefits
$

44,805

4,602

1,970

4,602

Retrenchment
and Retirement
Payments
$

–

Options
$

27,000

18,900

Total
$

456,155

439,602

389,470

355,952

285,952

The following executives are also disclosed as they fall within the top five remuneration category because of redundancy and retirement payments in the year following the suspension of Telfer operations

and the corporate restructure:

P. Lester

P. Greeff

T. Moran

Former Executive General Manager Corporate Development

246,984

Former Executive General Manager Operations West

Former General Manager,Telfer

181,400

98,333

3,280

1,608

11,529

756,900

688,778

433,857

27,000

–

1,034,164

898,786

543,719

Executives are officers who are involved in, concerned in, or who take part in, the management of the affairs of the Company and/or related bodies corporate.

Senior Management Employee Options
‘Employee Options’ in the case of the Company refers to those options granted to senior
management, including the Executive Director, pursuant to the Employee Share Option Plan and
the Newcrest Executive Option Plan. No person entitled to exercise any of the options had or has
any right, by virtue of the options, to participate in any share issue of any other body corporate.

The Newcrest Executive Option Plan provides for the allocation of five year options with performance
hurdles and exercise conditions. Options may not be exercised until after the second anniversary of the
grant date and not more than 25% of the options granted in each subsequent year to the exercise
date can be exercised. Where the previous year’s maximum entitlement was not exercised,
accumulated entitlements to that anniversary date may be exercised. The exercise price at which
these options are issued is based on the weighted average of the prices at which the Company’s
shares were traded on the Australian Stock Exchange during the one week period prior to issue date.

Details of options issued under the Newcrest Executive Option Plan and the balance exercisable
under the Newcrest Executive Option Plan and Employee Share Option Plan at balance date are
detailed in Note 17 to the full 2001 Financial Report.

Share Options Granted to Directors and Most Highly Remunerated Officers
During or since the end of the financial year, the Company granted options over unissued ordinary
shares to the following Directors and those of the other most highly remunerated executive officers
as part of their remuneration:

All options granted to executive officers during the financial year were granted under the Newcrest
Executive Option Plan. No options have been granted since the end of the financial year.

The Directors’ assessment of the fair value of options granted, for the purpose of reporting
emoluments of Directors and executive officers, has been determined using a Black Scholes
option valuation methodology. The valuation of the options granted required estimating the
probability that options will vest, based on the performance criteria of the Plan.

Shares Issued on the Exercise of Options
During the year an aggregate of 2,342,958 options were exercised, resulting in the issue
of 2,342,958 ordinary shares of the Company at an aggregate consideration of $5,958,000.

Directors' Interests
The relevant interest of each Director in the share capital of the Company, as notified by the
Directors to the Australian Stock Exchange in accordance with Section 235(1) of the Corporations
Act (2001), at the date of this Report, is as follows:

Name of Director

Chief Entity or Related
Body Corporate

Number of
Ordinary
Shares

Nature of

Number of
Options Over
Interest Ordinary Shares

I. R. Johnson

Newcrest Mining Limited

15,128

R. C. Barwick

Newcrest Mining Limited

Directors

R. C. Barwick

Managing Director and Chief Executive Officer

250,000

R.C. Milne

Newcrest Mining Limited

I. A. Renard

Newcrest Mining Limited

Number of Options Granted

R. B. Davis

Newcrest Mining Limited

Direct

Indirect

Direct

5,000

3,038

5,000

8,102

Nil

250,000

Nil

Other Executive Officers

B. Price

Executive General Manager Project Development

G. Scanlan

Executive General Manager Finance

D. Wood

Executive General Manager Exploration

B. Lavery

Executive General Manager Corporate Services

G. Monkhouse

General Manager Human Resources

P. Lester

Former Executive General Manager Corporate Development

P. Greeff

Former Executive General Manager Operations West

100,000

70,000

100,000

N. L. Scheinkestel

Newcrest Mining Limited

10,300

Indirect

The Newcrest Non-Executive Directors’ Share Plan was approved by shareholders on
28 October 1999. The Plan provides Non-Executive Directors with an opportunity to receive,
at their election, a portion of their annual remuneration in the form of shares in the Company
rather than as fees. Shares acquired by a Non-Executive Director under the Plan may not be
sold for a period of ten years after they are acquired, except if the Director retires from the
Board or if the Board permits earlier sale.

Indemnification of Directors and Officers
The Company has, pursuant to Article 35 of the Articles of Association of the Company, agreed
to insure and fully indemnify the Directors named on page 40 of this Report, and the Secretary
of the Company, Mr B.J. Lavery, against all liabilities to another person (other than the Company
or a related body corporate) that may arise from their position as Directors and Secretary of the
Company and its controlled entities, except where the liability arises out of conduct involving
a lack of good faith.

Under Article 35 of the Articles of Association the Company has also agreed to insure and
fully indemnify:

The contract of insurance prohibits disclosure of the amount of the premium and the nature
of the liability insured against. Each Director named on page 40 of this Report has paid the
insurance premium in respect of cover afforded for liabilities outlined in Section 241A(1)
of the Corporations Act (2001).

Rounding of Amounts
The Company is of a kind referred to in Class Order 98/100 issued by the Australian Securities
and Investments Commission dated 10 July 1998 and, in accordance with that Class Order,
amounts in the financial report have been rounded to the nearest thousand dollars, unless
otherwise stated.

(a) all officers covering the areas of operations, development, exploration, finance and

This Report has been made in accordance with a resolution of the Directors.

Ian R. Johnson
Chairman

29 August 2001
Melbourne

Russell C. Barwick
Managing Director and Chief Executive Officer

administration who are or have held, since the adoption of this Article 35, past or present
office in the Company; and

(b) all persons, who are or who have held, since the adoption of this Article 35, the office

of or acted in the capacity of Director or Secretary of controlled entities listed in Note 25
of the full 2001 Financial Report, against:

(i) any liability for costs and expenses reasonably incurred by that person in defending any
proceedings in which judgement is given in that person’s favour or in which the person
is acquitted or in connection with an application in relation to any proceedings in which
the Court grants relief to the person under the Corporations Act (2001); and

(ii) any liability incurred by that person as an officer of the Company or a controlled entity
to another person (other than the Company or related body corporate of the Company)
unless the liability arises out of conduct involving a lack of good faith.

Each Director named on page 40 of this Report and the Secretary, has entered into a Deed
of Indemnity with the Company on these terms.

Insurance Premiums
Since the end of the previous financial year the Company has paid an insurance premium
in respect of a contract insuring against liability of:

(a) Executive and General Managers covering the areas of operations, development, exploration,

finance and administration; and

(b) All persons, who are or have held the office of, or have acted in the capacity of Director,
Secretary or General Manager of controlled entities listed in Note 25 of the full 2001
Financial Report.

Discussion and analysis of financial statements

This discussion and analysis is provided to assist readers in understanding the Concise Financial
Report. The Concise Financial Report has been derived from the full 2001 Financial Report of
Newcrest Mining Limited.

The Newcrest Mining Limited Consolidated Entity consists of Newcrest Mining Limited and its
controlled entities. The principal activities of the Newcrest Mining Limited Consolidated Entity
during the financial year comprised exploration, development, mining and the sale of gold and
gold/copper concentrate.

Statement of Financial Performance
Net profit attributable to shareholders for the year was $38,154,000; $34,760,000 higher than
the profit for the previous corresponding period of $3,394,000.

Major factors impacting the result for the current year are:

• Revenue from the sale of New Celebration Mine comprised $11,800,000 sale proceeds and
$24,697,000 from the close out of surplus hedge contracts. This resulted in a $6,102,000
after tax loss on sale.

• Achieved gold price of $623/oz (FY2000: $616/oz) compared to the spot price of $506/oz
(FY2000: $452/oz). The achieved gold price includes exchange losses on matured foreign
currency contracts.

• Achieved copper price of $1.22/lb (average spot price $1.52/lb).

• Initial contribution from the Ridgeway Project arising from gold production of 50,688 ounces.

• Lower exploration expenditure and increase in capitalisation of expenditure relating to

Cadia Hill, Toguraci and Cracow.

• Lower net interest expense due to lower gold lease rates and the full effect of the gold loan

restructure.

• Excluding the $6,102,000 loss on sale of the New Celebration Mine, the FY2001 net profit

attributable to shareholders was $44,256,000. This compares to the FY2000 profit after tax
and before Telfer write-downs of $62,801,000.

Statement of Financial Position
Assets
Current assets have reduced by $21,734,000 to $181,135,000 with the reduction in cash assets
and inventories partly offset by a build up in receivables, mainly bullion awaiting settlement and
trade debtors.

Total non-current assets have increased by $106,953,000 to $1,035,593,000 mainly due to
capital expenditure on the Ridgeway Project and feasibility expenditure on the Telfer Project that
was partly offset by the sale of the New Celebration mine assets.

Liabilities
Current liabilities have increased by $109,013,000 to $252,919,000 primarily due to the
$45,000,000 short term bank loans and an increase in the amount payable in respect of the bank
gold loan in the next twelve months. In addition, payables have increased by $36,369,000 due to
a build up in creditors relating to the construction and feasibility projects.

Non-current liabilities at $515,610,000 have decreased by $59,346,000 due in part to the
$65,372,000 transfer to current liabilities of the Gold Loan and finance lease repayments due
to be settled within the next twelve months.

Equity
The $9,718,000 increase in contributed equity and the net movement in retained earnings
of $24,099,000 are the major factors in the increase in equity to $448,199,000.

Statement of Cash Flows
Group cash balances for the year have fallen from $92,298,000 to $47,956,000, a decrease
of $44,342,000 mainly reflecting lower cash flows from operating activities and utilisation of cash
balances to meet cash flows from investing activities.

Cash Flows from Operating Activities
• Cash flows from operating activities at $136,025,000 are $66,500,000 lower than FY2000.

• Sales receipts at $569,884,000 are $85,239,000 lower than FY2000 mainly due to the

cessation of operations at the Telfer Mine.

• Payments to suppliers and employees at $419,315,000 are $13,304,000 lower than FY2000.

Payments in FY2001 include redundancies for Telfer employees and corporate staff.

Cash Flows from Investing Activities
• Net investing cash outflows at $188,297,000 are $14,135,000 higher than the previous

corresponding period.

• Mine under construction payments of $89,276,000 are mainly in respect of the Ridgeway Project.

• Feasibility expenditure of $36,362,000 is mainly relating to the Telfer Project.

Cash Flows from Financing Activities
Major movements in the cash flows from financing activities include:

• Initial repayment of gold loan facility ($14,566,000).

• Payment of FY2000 dividend ($8,793,000).

• Proceeds from share issues arising from the conversion of share options $6,324,000.

• Drawdown of $45,000,000 under short term financing facilities provided by a number of banks.

Statement of Financial Performance

For the year ended 30 June 2001

Sales Revenue
Other revenues from ordinary activities

Total Revenue

Total Operating Costs
Written down value of assets sold
Provision for asset write-downs and provisions
due to the suspension of Telfer operations
Expenses and written down value of net assets sold
from the sale of the New Celebration Mine

Note

2
2

Operating Profit Before Depreciation, Amortisation, Interest and Income Tax

Depreciation and Amortisation
Borrowing Costs

Profit/(Loss) from ordinary activities before income tax expense

Income tax (expense) benefit relating to ordinary activities

Profit from ordinary activities after related income tax

Net profit attributable to outside equity interest

Net profit attributable to members of the parent entity

Basic earnings per share (cents per share)

The accompanying notes form an integral part of this Statement of Financial Performance.

Consolidated

2001
$’000

581,106
55,289

636,395

2000
$’000

697,487
4,449

701,936

(401,338)
(7,032)

(441,823)
(279)

–

(92,824)

(45,743)

182,282

(111,733)
(18,573)

51,976

(12,087)

39,889

(1,735)

38,154

15.6

–

167,010

(141,413)
(27,394)

(1,797)

7,085

5,288

(1,894)

3,394

1.4

Statement of Financial Position

As at 30 June 2001

CURRENT ASSETS
Cash assets
Receivables
Other financial assets
Inventories
Other

Total Current Assets

NON-CURRENT ASSETS
Receivables
Inventories
Property, plant and equipment
Exploration, evaluation and development
Other

Total Non-Current Assets

TOTAL ASSETS

CURRENT LIABILITIES
Payables
Interest bearing liabilities
Provisions
Other

Total Current Liabilities

NON-CURRENT LIABILITIES
Interest bearing liabilities
Deferred tax liabilities
Provisions
Other

Total Non–Current Liabilities

TOTAL LIABILITIES

NET ASSETS

EQUITY
Contributed equity
Retained profits

Parent entity interest
Outside equity interest

TOTAL EQUITY

Consolidated

2001
$’000

47,956
93,881
155
28,034
11,109

2000
$’000

92,298
53,327
168
49,663
7,413

181,135

202,869

26,415
9,688
446,140
442,310
111,040

1,035,593

18,203
10,042
500,920
304,560
94,915

928,640

1,216,728

1,131,509

110,482
111,712
22,678
8,047

252,919

409,674
58,985
42,773
4,178

515,610

768,529

448,199

370,017
70,643

440,660
7,539

448,199

74,113
24,849
35,752
9,192

143,906

475,046
46,898
40,787
12,225

574,956

718,862

412,647

360,299
46,544

406,843
5,804

412,647

Statement of Cash Flows

Consolidated

2001
$’000

2000
$’000

569,884
(419,315)
3,468
(21,290)
3,278

655,123
(432,619)
4,211
(24,437)
247

136,025

202,525

–
(17,550)
8,651
–
(51,421)
(1,545)
(89,276)
(36,362)
(794)

3
(54,549)
254
314
(65,028)
(8,059)
(30,532)
(15,871)
(694)

(188,297)

(174,162)

45,000
(7,458)
(14,566)
(12,577)
6,324
(8,793)

7,930

(44,342)
92,298

47,956

54,757
(6,953)
–
(11,031)
579
–

37,352

65,715
26,583

92,298

For the year ended 30 June 2001

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest received
Borrowing costs paid
Other

Net cash provided by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investment
Payments for property, plant and equipment
Proceeds from sale of non–current assets
Proceeds from sale of controlled entity
Exploration and evaluation expenditure
Payments in respect of mine development
Payments in respect of mines under construction
Feasibility expenditure
Payments of research and development costs

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
Repayment of loans from bullion bank
Repayment of gold loan
Lease payments including finance costs
Proceeds from share issues
Dividend paid

Net cash provided by financing activities

Net increase/(decrease) in cash held
Cash at the beginning of the financial year

Cash at the end of the financial year

Note 3 Dividends
The following dividends of the Consolidated Entity have been paid, declared or recommended
since the end of the preceding financial year:

On Ordinary
Shares
$’000

Dividend per
Ordinary Share
$

Final fully franked dividend for 2000 paid on 20 October 2000

12,187

Final fully franked dividend for 2001 as recommended and declared
by the Directors, to be paid on 19 October 2001 to shareholders
registered by close of business on 28 September 2001

14,000

0.05

Dividend Franking
All dividends paid or provided for as reported in the Statement of Financial Performance were or
will be fully franked at the current tax rate of 30% (2000: 34%).

Note 4 Earnings per Share

Basic earnings per share (cents per share)

Consolidated

2001

15.6

2000

1.4

Diluted earnings per share has not been disclosed as it is not materially different from basic
earnings per share.

Notes to the Concise Financial Report

Note 1 Accounting Policies
This Concise Financial Report has been derived from the full 2001 Financial Report which
complies with the Corporations Act (2001), Australian Accounting Standards and Urgent Issues
Group Consensus Views. This Concise Financial Report has been prepared in accordance with
accounting standard AASB1039 ‘Concise Financial Report’ and the relevant provisions of
the Corporations Act. A full description of the accounting policies adopted by Newcrest Mining
Limited is provided in the full 2001 Financial Report. The accounting policies are consistent
with those of the previous financial year.

Note 2 Operating Profit

Profit from ordinary activities after crediting the following revenues

Sales Revenue

Sale of gold

Sale of gold/copper concentrate

Other Revenues

Interest from other persons

Revenue from the sale of the New Celebration Mine

Revenue from the sale of non-current assets

Net foreign exchange gains

Other revenue items

Total Revenue

Operating Costs by Function

Cost of goods sold

Exploration costs

Corporate administration and other costs

Written down value of assets sold

Provision for asset write-downs and provisions due
to the suspension of Telfer Operations

Expenses from the sale of New Celebration Mine

Total Operating Costs by Function

Consolidated

2001
$’000

2000
$’000

347,963

233,143

581,106

4,067

36,497

8,984

5,741

–

469,335

228,152

697,487

3,717

–

571

–

161

55,289

4,449

636,395

701,936

468,135

524,896

22,366

22,570

7,032

37,654

20,686

279

–

92,824

45,743

–

565,846

676,339

Note 5 Financial Instruments
A full description of the Consolidated Entity’s financial instruments is provided in Note 20
to the full 2001 Financial Report.

The following extracted information is after post balance date adjustments to close out
New Celebration hedging.

Gold Hedging

30 June 2001

30 June 2000

Australian Dollar (AUD)

’000 oz

1. Forward sales

2. Purchased put options

US Dollar (USD)

3. Forward sales

4. Purchased put options

Total ounces hedged

1,864

4,528

6,392

’000 oz

–

330

6,722

Average
A$/oz*

731

611

646

Average
US$/oz*

–

496

–

’000 oz

603

5,852

6,455

’000 oz

500

539

6,994

Average
A$/oz*

569

636

629

Average
US$/oz*

483

475

–

*The average hedge price per ounce in respect of 6,722,000 ounces (6,994,000 ounces) represents the
estimated achieved gold price, which includes a lease rate allowance of approximately 1.8%
(2000: approximately 1.7%). Lease rates are subject to market fluctuations and vary over time.

Committed Ounces

TOTAL COMMITMENTS

AUD

USD

Gold Loan

TOTAL OUNCES

30 June 2001

Price/Oz

30 June 2000

Price/Oz

6,117,000

–

869,949

6,986,949

612

–

488

–

6,086,000

39,200

899,822

7,025,022

588

483

488

–

Foreign Exchange Contracts

Product

Forward contracts

Granted put options

Purchased call options

30 June 2001

Principal
US$’000

Average
Rate

39,400

740,000

347,500

.7618

.7522

.7239

30 June 2000

Principal
US$’000

76,300

840,000

465,500

Average
Rate

.7150

.7507

.7110

Off–Balance Sheet
The aggregate net fair values of off-balance sheet financial instruments held at the reporting date
(after post balance date adjustment to close out New Celebration hedging) are:

Off–Balance Sheet Financial Instruments

Gold hedge contracts

Copper hedge contracts

Foreign currency contracts over revenue hedging

Gold loan swaps

Total

30 June 2001 30 June 2000
$’000

$’000

(217,500)

61,800

(85,000)

(49,200)

(435,900)

(191,300)

(68,000)

–

(806,400)

(178,700)

Net fair value of hedge contracts is reported net of deferred income and includes the fair value
of gold lease rate contracts. Amounts in brackets indicate a net unrealised loss position if these contracts
were extinguished as at balance date. These positions have been designated against future production. The
net unrealised loss positions reflect the opportunity cost of the financial instruments relative to the prevailing
market as at balance date. The unrealised loss also reflects the estimated cost of unwinding the financial
instruments in the event that production does not occur as planned, again relative to the prevailing market
as at balance date. Unrealised losses will change over time as underlying market rates change.

Foreign currency hedge contracts have been entered into to convert anticipated future net USD income
into AUD. Copper and gold hedge contracts are employed to secure future commodity prices in either
AUD or USD terms. The use of option based hedge contracts introduces a degree of variability in outcome,
with ultimate hedge rates being determined over time and prevailing market rates.

Note 6 Segment Information
Industry Segments
The Consolidated Entity operates predominantly in the gold mining industry.

Geographical Segments

2001

Segment revenue

Segment result

Segment assets

2000

Segment revenue

Segment result

Segment assets

Australia
$’000

Asia
$’000

Consolidated
$’000

524,032

112,363

636,395

40,700

11,276

51,976

1,104,275

112,453

1,216,728

Australia
$’000

Asia
$’000

Consolidated
$’000

580,113

121,823

701,936

(11,369)

9,572

(1,797)

1,011,729

119,780

1,131,509

Note 7 Subsequent Events
On 16 August 2001, the Company made a placement of 33,750,000 new ordinary shares raising
approximately $138,000,000. The new shares rank equally with existing shares and are eligible
for all future dividends. The provision for dividend included in financial statements at 30 June
2001 includes a provision for dividend on these new shares.

On 27 August 2001, the Company announced a new long term concentrate sales agreement
with, and a new US$80 million loan from Nippon Mining and Metals Company Limited. The loan
principal is to be repaid in instalments of US$16 million per annum, commencing in July 2003
and concluding in June 2008.

There are no other matters or circumstance which have arisen since 30 June 2001 that has
significantly affected or may significantly affect the operations of the Consolidated Entity, the
results of those operations or the state of affairs of the Consolidated Entity in subsequent
financial years.

Directors’ Declaration

Independent Audit Report

The Directors of Newcrest Mining Limited declare that the accompanying Concise Financial
Report is presented fairly in accordance with applicable Australian Accounting Standards and
is consistent with the Consolidated Entity’s 30 June 2001 full financial report.

In respect to the 30 June 2001 full financial report of Newcrest Mining Limited, the Directors
declared that:

(a) The financial statements and associated notes comply with the accounting standards and

Urgent Issues Group Consensus Views.

(b) The financial statements and notes give a true and fair view of the financial position as at
30 June 2001 and performance of the Consolidated Entity for the year then ended; and

i. There are reasonable grounds to believe that the Company will be able to pay its debts

as and when they become due and payable and the companies and the parent entity who
are party to the Deed of Cross Guarantee described in Note 26 of the full financial
statements, will together be able to meet any obligations or liabilities to which they are, or
may become, subject by virtue of the Deed of Cross Guarantee dated 6 November 1992;
and

ii. The financial statements and notes are in accordance with the Corporations Act (2001),

To the members of Newcrest Mining Limited

Scope
We have audited the Concise Financial Report of Newcrest Mining Limited for the financial year
ended 30 June 2001 as set out on pages 48 to 53 and the Directors’ Declaration, in order to
express an opinion on it to the members of the Company. The Company’s Directors are
responsible for the Concise Financial Report.

Our audit has been conducted in accordance with Australian Auditing Standards to provide
reasonable assurance whether the Concise Financial Report is free of material misstatement.
We have also performed an independent audit of the full financial report of Newcrest Mining
Limited for the year ended 30 June 2001. Our audit report on the full financial report was signed
on 29 August 2001 and was not subject to any qualification.

Our procedures in respect of the audit of the Concise Financial Report included testing that
the information in the Concise Financial Report is consistent with the full financial report and
examination, on a test basis, of evidence supporting the amounts, discussion and analysis,
and other disclosures which were not directly derived from the full financial report. These
procedures have been undertaken to form an opinion whether, in all material respects, the
Concise Financial Report is presented fairly in accordance with Accounting Standard AASB1039
‘Concise Financial Reports’.

including Sections 296 and 297.

The audit opinion expressed in this report has been formed on the above basis.

This statement has been made in accordance with a resolution of Directors.

Audit Opinion
In our opinion, the Concise Financial Report of Newcrest Mining Limited complies with
Accounting Standard AASB1039 ‘Concise Financial Reports’.

Ian R. Johnson
Chairman

29 August 2001
Melbourne

Russell C. Barwick
Managing Director and Chief Executive Officer

Arthur Andersen
Chartered Accountants

Tim Wallace
Partner

29 August 2001
Melbourne

Five Year Summary

For the 12 months ending 30 June

1997

1998

1999

2000

2001

GOLD PRODUCTION – NEWCREST SHARE (ounces)

Cadia Hill

Ridgeway

Gosowong

Telfer

New Celebration

Boddington

Total

EXPENDITURE ($ thousands)
Exploration

Capital

PROFIT AND LOSS ($ thousands)
Sales Revenue

Income from Mining

Interest – net

Depreciation and Amortisation

Exploration

Fixed Asset Disposals

Income Tax (Expense)/Benefit

Net Earnings attributable to shareholders

Dividend paid or provided

FINANCIAL POSITION ($ thousands)
Current Assets

Non-Current Assets

Current Liabilities

Non-Current Liabilities

Shareholders’ Equity

ISSUED CAPITAL (million shares)
Weighted Average

GOLD SALES
Gold Sales (ounces)

Cost of Sales before depreciation ($ thousands)

Cost of Sales ($ per ounce)

GOLD PRICE ($ per ounce)
Received

Spot

GOLD INVENTORY (million ounces)
Reserves

Resources

–

337,297

57,120

73,813

473,642

80,182

148,531

306,930

90,582

(5,161)

(52,802)

(36,383)

180

(38,214)

(89,190)

29,592

252,134

448,851

185,388

122,482

393,115

–

319,891

72,731

57,479

450,101

59,510

299,933

258,295

66,972

6,887

(43,497)

(38,398)

6,504

6,653

174

–

116,691

795,008

62,613

455,678

393,408

253,670

–

351,151

52,160

53,858

710,839

75,632

143,935

457,369

172,588

(11,649)

(85,397)

(43,863)

328

(11,333)

21,594

–

123,090

938,542

91,123

551,597

418,912

326,035

9,015

274,943

267,039

70,506

51,077

998,615

65,426

109,011

697,487

291,912

(21,818)

(141,413)

(37,654)

109

7,085

3,394

12,132

202,869

928,640

143,906

574,956

412,647

300,255

50,688

226,900

58,374

86,379

50,756

773,352

51,421

144,733

581,106

202,100

(14,506)

(111,733)

(22,366)

1,952

(12,087)

38,154

14,000

181,135

1,035,593

252,919

515,610

448,199

239.7

242.1

242.3

242.5

244.4

486,096

213,143

434,752

183,083

694,219

245,754

993,446

296,589

792,382

238,913

438

631

464

8.1

421

590

450

8.3

354

623

456

7.2

299

616

448

11.4

302

623

506

10.4

Shareholder Information

Capital
Share capital comprised 279,913,000 shares on 23 August 2001.

Shareholder Details
At 23 August 2001, the Company had 30,209 ordinary shareholders.

There were 8,312 shareholdings with a marketable parcel of $500 worth of ordinary shares
(based upon a market price of $4.24 as at 23 August 2001).

Newcrest Top 20 Shareholders at 23 August 2001

Name

Chase Manhattan Nominees

National Nominees Limited

Westpac Custodian Nominees Limited

Citicorp Nominees Pty Limited

ANZ Nominees Limited

MLC Limited

JP Morgan Custodial Services Pty Ltd

Perpetual Nominees Limited

Perpetual Trustees Nominees Limited

Queensland Investment Corporation

RBC Global Services Australia

AMP Nominees Pty Limited

Westpac Financial Services

Commonwealth Custodial Services Limited

AMP Life Limited

CSS Board & PSS Board

Perpetual Trustees Australia Limited

Tower Life Australia Limited

Government Superannuation Office

HSBC Custody Nominees

Units

54,583,034

43,464,183

33,977,120

22,155,838

15,970,697

9,863,572

7,252,044

7,128,857

6,117,043

5,849,396

4,192,200

3,308,326

3,096,928

2,852,567

2,328,797

2,013,786

1,873,311

1,743,582

1,698,405

1,524,038

% I/C

19.50

15.53

12.14

7.92

5.71

3.52

2.59

2.55

2.19

2.09

1.50

1.18

1.11

1.02

0.83

0.72

0.67

0.62

0.61

0.54

Voting Rights
Each ordinary shareholder is entitled to one
vote for each share held.

The Company encourages shareholders
to express their views on the conduct of
business by speaking at shareholder meetings
or by writing to the Chairman of the Board
of Directors.

Dividends
The Company has declared a fully franked
dividend of 5 cents per share. The dividend
is payable to shareholders on 19 October
2001. Shareholders registered as at the
close of business on 28 September 2001
will be eligible for the dividend. A Dividend
Reinvestment Plan at market price will be
offered to shareholders.

US Investor Information
Newcrest may also be traded in the form of
American Depositary Receipts (ADRs). Each
ADR represents one Newcrest ordinary share.
The program is administered on behalf of the
Company by The Bank of New York and
enquiries should be directed in writing to:
The Bank of New York, 101 Barclay Street,
New York, NY 10286.

ADR holders are not members of the Company
but may instruct The Bank of New York as to
the exercise of voting rights pertaining to the
underlying shareholding.

Reporting to Shareholders
Newcrest is committed to clear reporting
and disclosure of the Company’s activities
to our shareholders.

Share Registry Information
Access to the Company’s share registry, ASX
Perpetual Registrars Limited, is available via
the internet at www.registrars.aprl.com.au.

Shareholders have access to the following
information about their holdings:

• Current and previous holdings balances

• Annual report election, i.e. whether you
have elected to receive the full annual
report, short form annual report or none

• Whether tax file number (TFN) has been

quoted

• Dividend information such as banking

instructions.

On-Line Access And Update
Shareholders can also update their personal
security holding details over the Internet in
respect of:

• Annual report election

• Lodge TFN/Australian Business Number

(ABN) number.

You can access this information via a security
log-in using your Securityholder Reference
Number (SRN) or Holder Identification
Number (HIN) and your surname/company
name and postcode.

Alternatively, Share Registry contact details
are contained in the Corporate Directory of
this Report.

A copy of the full 2001 Financial Report can
be obtained from our website or by contacting
the General Manager Corporate Affairs.

Newcrest Mining Limited
ABN: 20 005 683 625

Notice of Meeting

Notice is hereby given that the 21st Annual
General Meeting will be held at the Grand
Hyatt Hotel, 123 Collins Street, Melbourne
on Wednesday 31 October 2001 at 2.30 pm.

Contents

Achievements 2001

How did Newcrest perform?

Chairman’s Review

Board of Directors

Operations at a glance

Operations Review

Projects Review

Mineral Resources and Ore Reserves

Exploration

Human Resources

Safety and Health

Environment

Financial Analysis

Corporate Governance

Directors’ Report

Discussion and analysis of financial
statements

Statement of Financial Performance

Statement of Financial Position

Statement of Cash Flows

Notes to the Concise Financial Report

Directors’ Declaration

Independent Audit Report

Five Year Summary

Shareholder Information

Corporate Directory

IBC

Newcrest is a leading Australian gold producer, focussed
on the development of large long life mines and high
margin projects with low costs.

Our key goal is the creation of shareholder wealth in a
manner that also benefits our employees, the communities
and the environment in which we operate.

Corporate Directory

INVESTOR INFORMATION

Registered and Principal Office
Level 9
600 St Kilda Road
Melbourne, Victoria 3004
Australia
Telephone: (61 3) 9522 5333
Facsimile: (61 3) 9525 2996

ADR Depositary
The Bank of New York
101 Barclay Street
New York, NY 10286
United States of America
Telephone: (1 212) 815 2218
Facsimile: (1 212) 571 3050

OTHER OFFICES

Perth
The Hyatt Centre
Level 2
20 Terrace Road
East Perth, Western Australia 6004
Australia
Telephone: (61 8) 9270 7070
Facsimile: (61 8) 9221 7340

Brisbane
Level 2
349 Coronation Drive
Milton, Queensland 4064
Australia
Telephone: (61 7) 3858 0858
Facsimile: (61 7) 3217 8233

Jakarta
PT Puncakbaru Jayatama
Graha Elnusa
2nd Floor
Jl. T.B. Simatupang Kav. 1B Cilandak
Jakarta 12560
Indonesia
Telephone: (62 21) 7883 1211
Facsimile: (62 21) 7883 1226

CALENDAR OF COMPANY EVENTS 2001/02

31 October 2001

September Quarterly Report

31 October 2001

Annual General Meeting at 2.30 pm
Grand Hyatt Hotel, Melbourne

30 January 2002

December Quarterly Report

27 February 2002

Half Year Results

24 April 2002

31 July 2002

March Quarterly Report

June Quarterly Report

28 August 2002

Full Financial Statement

The Company advises that the above dates are indicative only and are
subject to change without notice.

Cover:
Kevin Slater, Underground Jumbo Operator at Ridgeway

Designed and produced by Amanda Roach Design