Northern Star Resources Ltd · ASX:NST
Northern Star Resources — BMO Conference February 2020
19 slides from Northern Star Resources's conference presentation, Feb 24, 2020
Slide 1: A rapidly growing tier-1 gold miner - for global investors
For personal use only A rapidly growing tier-1 gold miner - for global investors BMO Conference - February 2020
Slide 2: Resources & Reserves
Resources & Reserves Ore reserves and mineral resources reporting of Northern Star For personal use only This presentation contains estimates of Northern Star's ore reserves and mineral resources, as well as statements about KCGM's mineral resources and mineral reserves. The information in this pres
Slide 3: Forward Looking Statements
Forward Looking Statements Forward Looking Statements For personal use only Northern Star Resources Limited has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the
Slide 4: Early adopters of ESG and our assets are in Tier-1 areas
Early adopters of ESG and our assets are in Tier-1 areas Our Sustainability Vision For personal use only “Delivering responsible environmental and social business practice that lead to both the creation of strong economic returns for our Shareholders, and shared value for our Stakeholders.” Sustaina
Slide 5: 1H FY2020 – Key Financial Highlights
1H FY2020 – Key Financial Highlights For personal use only Cash flow from Underlying free Net profit of operating activities cash flow up 179% A$126.8M up 54% up 76% to A$297.5M from pcp to on pcp on pcp A$116.3M Strong Balance EBITDA of Interim dividend up Sheet; Cash, Bullion A$322.2M up 45% 25% f
Slide 6: Strong EBITDA and strong cashflow growth forecasted
Strong EBITDA and strong cashflow growth forecasted ▪ Jundee and Kalgoorlie Operations continue to produce strong EBITDA margins of 64% and 41% For personal use only respectively, they are expected to perform strongly in the second half of this financial year ▪ Pogo financial returns expected to lif
Slide 7: US$775M KCGM acquisition adds another Tier-1 asset
US$775M KCGM acquisition adds another Tier-1 asset Extends portfolio mine life, adding meaningful production beyond 2030 For personal use only 1. Kalgoorlie Operations (100%) Mine type: U/G Australia US Processing: CIL / CIP plant with (Alaska) throughput of 3.2Mtpa FY20G production: 340koz-380koz A
Slide 8: KCGM adding value to the Northern Star portfolio
KCGM adding value to the Northern Star portfolio Creation of a 1Moz+ gold producer For personal use only FY20G Production1 (koz) • KCGM 2HFY20 Guidance (50%): 1,250 • 120koz – 140koz 1,110 FY20PF (assuming • A$1,450/oz – A$1,550/oz AISC 1,000 12 months KCGM) FY20 750 • Revised FY20 Northern Star con
Slide 9: Northern Star continues to generate favourable ROE and ROIC
Northern Star continues to generate favourable ROE and ROIC Average Annualised Return on Equity For personal use only 50% ▪ For the past five years Northern Star has 40% delivered an average annualised Return on NST 5yr Average 29% 6% acquisition Equity (ROE) of 29% versus the GDX sector 30% effect
Slide 10: Value Creation – delivering returns to Shareholders
Value Creation – delivering returns to Shareholders ▪ Northern Star’s strategy of balancing organic growth with well executed M&A has generated For personal use only over A$9.8B of value for Shareholders since the first acquisition in 2010 ▪ This strategy has been achieved through operational excell
Slide 11: Growing cash generation, balance sheet flexibility
Growing cash generation, balance sheet flexibility ▪ One of the key differentiators of the Northern Star business is its balance sheet; this strength has For personal use only allowed for counter cyclical acquisitions and sector leading returns to Shareholders ▪ Post KCGM acquisition moderate gearin
Slide 12: Operations
For personal use only Operations
Slide 13: Pogo – Inflection point reached; December month demonstrating Pogo potential
Pogo – Inflection point reached; December month demonstrating Pogo potential For personal use only ▪ Pogo’s 18 month transition plan is on track FY20 Gold Produced to End of December with December quarter a significant inflection 25,000 point 21,570 ▪ Pogo produced 24.7koz mined at 9.8gpt for 120% i
Slide 14: Jundee – Going from strength to strength
Jundee – Going from strength to strength ▪ FY20: Guidance 260,000- For personal use only 280,000oz at an AISC of A$1,115-A$1,195/oz (US$763- US$818/oz) ▪ 1H FY2020 production of Gold sold 163koz up 15% on pcp at AISC of A$1,008/oz (US$690/oz) ▪ In addition to guidance, a further 60koz of Ramone ore
Slide 15: KCGM consolidates Northern Star's Kalgoorlie footprint
KCGM consolidates Northern Star’s Kalgoorlie footprint Northern Star has accumulated a premier land holding in the world class Kalgoorlie Camp For personal use only NST Managed Tenure Kalgoorlie Operations KCGM Tenure ▪ Northern Star has accumulated (NST 50%) Newmont Tenure (NST 100%) unprecedented
Slide 16: The World Class Golden Mile and Mt Charlotte Systems
The World Class Golden Mile and Mt Charlotte Systems MT CHARLOTTE GOLDEN MILE (Fimiston) Years of Operation: 1963 – Present Years of Operation: 1893 – Present For personal use only Production / Oz 48.2Mt @ 3.7g/t Mined Production / Oz Produced 414.2Mt @ 5g/t Mined Produced (1963- Oct 2019) 5.5Moz Pr
Slide 17: Fimiston Underground Potential
Fimiston Underground Potential Fimiston Plan View Fimiston Cross Section C-D ▪ Total production on the Golden Mile for past C D For personal use only F 125 years has totalled ~62Moz A B ▪ Drilling by KCGM between 2016 and 2018 (section C-D) demonstrates that there are unmined ore lodes amongst the h
Slide 18: Longer term KCGM growth potential
Longer term KCGM growth potential KCGM GROWTH PROJECTS ▪ Mineralisation not extracted by For personal use only previous underground mining. This includes parallel structures, high FIMISTON grade pillars and fill materials around UNDERGROUND historic workings, in addition to unmined lodes beneath the
Slide 19: Northern Star Resources Limited
For personal use only Northern Star Resources Limited ASX Code: NST An Australian gold miner – for global investors Investor Enquiries: Level 1, 388 Hay Street, Subiaco 6008 Western Australia T: +61 8 6188 2100 E: [email protected] W: www.nsrltd.com Inventum 3D Page Links click here 19
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