Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Gold Forum Denver 2012
19 slides from Northern Star Resources's conference presentation, Sep 13, 2012
Slide 1: 12,178gpt intersection at Paulsens
For personal use only 12,178gpt intersection at Paulsens • Maiden 2.5c fully-franked dividend for FY12 (3% yield) • $65-85m surplus cash forecast for CY13 • Resources to underpin +5-year mine life at Paulsens • Clear strategy to grow group production to +200,000ozpa
Slide 2: Disclaimer
Disclaimer Competent Persons Statements For personal use only • The information in this announcement that relates to Paulsens and Mt Olympus mineral resource estimation, exploration results, data quality, geological interpretations, potential for eventual economic extraction and estimates of explora
Slide 3: Team with a track record
Team with a track record Shares Options Board - Successful record in discovering and developing mines For personal use only Total 424M 3.5M BILL BEAMENT Managing Director (Mining Engineer) * As at Sep 2012 CHRIS ROWE Non Executive Chairman (Barrister and Solicitor) Share price: A$1.05 Non Executive
Slide 4: Northern Star: an abridged history
Northern Star: an abridged history For personal use only • Acquired Paulsens Gold Mine in WA from Intrepid Mines (TSX/ASX : IAU) : for A$40M in July 2010 • At the time Paulsens had an eight- month life based on a mine plan of 45,000oz • Acquisition covered the eight-month cashflow, the asset was for
Slide 5: 2011: the year of transition at Paulsens
2011: the year of transition at Paulsens • Repaid full A$40M acquisition from For personal use only cashflow within 7 months • Delivered record operational performance of 87,069oz recovered, 10% better than any previous year • Cash cost A$588/oz (inclusive of royalties) and total expenditure cost A$
Slide 6: Paulsens – Productivity Drive
Paulsens – Productivity Drive • Changed out Mining and Crushing Contractors with in-house team (Northern Star Mining Services Division) For personal use only • Increased our productivity by 43% in ore tonnes mined in the first full year, expect to improve again this year • Dropped total cost per ton
Slide 7: Profitability "Growing"
Profitability “Growing” For personal use only Page 7
Slide 8: Balance Sheet "Growing"
Balance Sheet “Growing” For personal use only Page 8
Slide 9: 2012: Strategy pays dividends .. literally
2012: Strategy pays dividends .. literally • June Quarter production of 19,000oz at A$646/oz (inclusive of royalties) For personal use only • On track to meet CY12 guidance of 75-80,000oz and A$35m surplus cash (after allowing A$15M capex) • Increased Company profit by 57% to A$34.1M for FY2012 • EB
Slide 10: Voyager 1: The Paulsens Engine Room
Voyager 1: The Paulsens Engine Room • Voyager 1 is the flagship lode at Paulsens and For personal use only has produced all the gold under NST ownership • Currently mining this lode 550m below surface. Mineralisation drilled to 850m and remains open at depth Voyager 1 Mined to June 2012 170,000oz Av
Slide 11: Voyager 2: One of the richest intersection in Australian modern gold history
Voyager 2: One of the richest intersection in Australian modern gold history • Voyager 2 was discovered by NST in late 2010; host of stunning drilling results up to 12,178gpt For personal use only • Voyager 2 begins 650 metres below surface and sits immediately adjacent to Voyager 1 • Maiden resourc
Slide 12: Deep drilling: high-grade hits 325m below current workings
Deep drilling: high-grade hits 325m below current workings For personal use only • Orebody has yielded 500,000oz over ≈ 400 vertical meters, 7 years of production so far • Deep holes drilled in June to target ore body a further 400-500 vertical metres below current workings • Outstanding results fir
Slide 13: 2013: The year of rising production, falling costs and increasing cashflow
2013: The year of rising production, falling costs and increasing cashflow • Key CY2013 forecasts @ Gold Price A$1,550/oz: For personal use only • Total production of 100-115koz • Plant capacity expanded by 25% to 450,000tpa • Average blended grade to rise 20% from 7gpt to ~8.5gpt • Cash Costs C1 of
Slide 14: Exploration: writing the next chapter at Paulsens
Exploration: writing the next chapter at Paulsens For personal use only • Part-way through A$20M exploration program, consistent stream of outstanding results • No other deposit found within 50km radius of Paulsens mine, which is now approaching the 1Moz endowment • Great opportunity as there has be
Slide 15: Gabbro offsets: the gold may be as green on the other side of the fence
Gabbro offsets: the gold may be as green on the other side of the fence For personal use only • Paulsens is bounded by a Gabbro unit, traditionally seen as a ‘fence’ around the orebody • Drilling aimed at testing the theory that the Gabbro unit is broken more than once, allowing quartz and mineralis
Slide 16: Ashburton – a 100,000ozpa stand-alone operation
Ashburton – a 100,000ozpa stand-alone operation • Ashburton Project located within trucking For personal use only distance of Paulsens • Acquired in June 2011 for zero cash payment; royalty payable on production over 250koz • Oxide open pit operation from 1998 to 2004, produced 340,000oz @ 3.3gpt •
Slide 17: Key reasons to invest in Northern Star
Key reasons to invest in Northern Star • Extremely strong cash generation from high-grade and high-margin ounces For personal use only • Growing production to underpin further growth in surplus cash (up to A$85 million CY2013) • Sufficient resources to underpin +5 year mine life, with further extens
Slide 18: 12,178gpt intersection at Paulsens
For personal use only 12,178gpt intersection at Paulsens • Contact Details: • Bill Beament – Managing Director +61 8 6188 2100 • Email – [email protected] • Website – www.nsrltd.com
Slide 19: Appendix
Appendix Measured Indicated Inferred Total Proven Probable Total For personal use only 30 Jun 2012 Tonnes Grade Tonnes Grade Tonnes Grade Tonnes Grade Oz Au (,000) (g/t) (,000) (g/t) (,000) (g/t) (,000) (g/t) (,000) 31 December 2011 Tonnes Grade Tonnes Grade Tonnes Grade Oz Au (,000) (g/t) (,000) (g