Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Deutsche Bank 2016 Gold Day
18 slides from Northern Star Resources's conference presentation, Sep 15, 2016
Slide 1: Northern Star Resources 2016 Gold Day
For personal use only Northern Star Resources 2016 Gold Day An Australian gold miner – for global investors September 2016
Slide 2: Disclaimer – Competent Persons Statements
Disclaimer Competent Persons Statements For personal use only The information in this announcement that relates to data quality, geological interpretations and Mineral Resource estimations for the Company’s Paulsens, Ashburton, Jundee and Plutonic Project areas is based on information compiled by Br
Slide 3: Introduction - Third biggest Australian listed Gold Miner
Introduction - Third biggest Australian listed Gold Miner Northern Star is an ASX100 Australian stock For personal use only exchange listed gold miner Paulsens & Ashburton Strong balance sheet; no debt; A$326m in cash Operations +3Moz Gold Camp Central Tanami Project +5Moz Gold Camp & equivalents 30
Slide 4: FY16 – Another standout year
FY16 – Another standout year Key Operational Outcomes For personal use only Total Reserves 561,000oz Gold Sold Resources increased increased by 33% to at AISC of A$1,041/oz to 9.25Moz 2Moz Key Financial Outcomes Net Profit After Tax up Underlying free cash Dividends increased 65% to a record flow of
Slide 5: Efficient Capital Allocation – 5 Year Return on Invested Capital
Efficient Capital Allocation – Bucking the 5 year trend Superior returns on invested capital continues to be the focus driving investment decisions for NST For personal use only Capital is forced to compete internally for project funding to ensure NST continues to generate a sector leading Return on
Slide 6: Efficient Capital Allocation – 5 Year Return on Equity
Efficient Capital Allocation – Bucking the 5 year trend Superior returns on invested capital continues to be the focus driving investment decisions for NST For personal use only Capital is forced to compete internally for project funding to ensure NST continues to generate a sector leading Return on
Slide 7: Efficient Capital Allocation – FCF Yield to Enterprise Value
Efficient Capital Allocation – Bucking the 5 year trend Superior returns on invested capital continues to be the focus driving investment decisions for NST For personal use only Capital is forced to compete internally for project funding to ensure NST continues to generate a sector leading Return on
Slide 8: Efficient Capital Allocation – Global AISC Cost Curve
Efficient Capital Allocation – Bucking the 5 year trend Superior returns on invested capital continues to be the focus driving investment decisions for NST For personal use only Capital is forced to compete internally for project funding to ensure NST continues to generate a sector leading Return on
Slide 9: Efficient Capital Allocation – Capital Intensity Ratio
Efficient Capital Allocation – Bucking the 5 year trend Superior returns on invested capital continues to be the focus driving investment decisions for NST For personal use only Capital is forced to compete internally for project funding to ensure NST continues to generate a sector leading Return on
Slide 10: Lack of exploration success driving asset prices
Lack of exploration success driving asset prices Discovery costs in 2015 for greenfield discoveries were at US$189/oz For personal use only 56% of gold production in Australia is now from underground vs 44% from open pit sources Mine lives are getting shorter; since 2012 average reserve life has dec
Slide 11: Market Update – Diminishing Reserves
Market Update – Diminishing Reserves Forecast production of the global majors at current prices is set to decline 50% by 2026 For personal use only 2016 Level 50% Reduction 2026 Level 11
Slide 12: FY17: Production and Cost Guidance
FY17: Production and Cost Guidance Total gold production of 485,000-515,000oz at an AISC of A$1,000-A$1,050/oz (US$728-$765/oz)* For personal use only A$130M to be spent on investing capital following on from the great successes in FY16 including; A$60M for targeted drilling to bring more Reso
Slide 13: Jundee: A big mine…..and getting bigger
Jundee: A big mine…..and getting bigger FY16: Resources 1.25Moz and Reserves up 21% to 720,000oz, even after mining 228,000oz For personal use only FY16: 210,000oz sold at an AISC of A$1,007/oz (US$733/oz) FY17: Guidance 220,000-230,000oz at an AISC of A$1,000-$1,050/oz (US$730-$765/oz) 6.75Moz of c
Slide 14: Kalgoorlie Operations: Rapid, low-cost growth
Kalgoorlie Operations: Rapid, low-cost growth FY16: Resources 3.6Moz, up 17% and Reserves up 0.9Moz up 48%, after mining 216koz For personal use only FY16: 207,000oz sold at an AISC of A$837/oz (US$610/oz) FY17: Guidance 200,000-210,000oz at an AISC of A$950-$1,000/oz (US$692-$728/oz) 6.45Moz of con
Slide 15: Paulsens: The Founding Asset
Paulsens: The Founding Asset FY16: Resources: 0.3Moz and Reserves 0.1Moz, after mining 91koz For personal use only FY16: 80,000oz sold at an AISC of A$1,099/oz (US$800/oz) FY17: Guidance 65,000-75,000oz at AISC of A$1,200-$1,250/oz (US$874-$910/oz) 0.85Moz of continuous gold production over the past
Slide 16: Central Tanami Project: Next Tier of Production Growth
Central Tanami Project: Next Tier of Production Growth Previous Newmont asset which produced For personal use only 2.1Moz over 18 years to 2005, average of 120kozpa with a peak year of 170koz Only mined mineralisation via pits <125m Production ceased after mining of the Groundrush pit, where 610koz
Slide 17: Why Invest in Northern Star
Why Invest in Northern Star Highly profitable: Net profit after tax up 65% to A$151.4M in FY16; underlying free cash For personal use only flow of A$224.3M; dividends up 40% from A5¢ps to A7¢ps Strong balance sheet: no debt; A$326M in cash & equivalents (30 June 2016) Emphasis on financial returns:
Slide 18: Northern Star Resources – Contact Details
For personal use only Northern Star Resources An Australian Mid Cap gold miner – for global investors Contact Details: Luke Gleeson – Investor Relations +61 8 6188 2100 Email – [email protected] / Website – www.nsrltd.com September 2016
Northern Star Resources — Deutsche Bank 2016 Gold Day on 6ix