Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Denver Gold Forum (September 2014)
23 slides from Northern Star Resources's conference presentation, Sep 15, 2014
Slide 1: Northern Star Resources
For personal use only Northern Star Resources An Australian Mid Cap gold miner – for global investors September 2014
Slide 2: Disclaimer
Disclaimer Competent Persons Statements For personal use only The information in this announcement that relates to mineral resource and reserve estimations, exploration results, data quality, geological interpretations and potential for eventual economic extraction, is based on information compiled
Slide 3: A Global Mid-Cap Gold Miner
A Global Mid-Cap Gold Miner Second-biggest ASX-listed gold miner by production and market cap For personal use only Production of 550-600,000ozpa; Market cap US$750m (587m shares at US$1.35) FY15 AISC ~US$950/oz Five operating mines, all in Western Australia Grown from one mine and 100,000ozpa in pa
Slide 4: A Global Mid-Cap Gold Miner
A Global Mid-Cap Gold Miner NST has a production profile that now positions the company as a true global Mid-Cap Gold Miner For personal use only US $7.4b US $5.4b US $2.9b Median Producer average 594kozs *Source: Goldman Sachs Consensus Production Forecasts 4
Slide 5: A story just getting started
A story just getting started The market has rewarded NST with outperformance from optimising it assets and value adding M&A For personal use only A 4 year period of Outperformance 5
Slide 6: The Northern Star Team
The Northern Star Team There is one ingredient in the NST recipe that is more important than our projects: our people For personal use only We built our team before we built our asset base Our contracting backgrounds give us a crucial advantage in the operational and recruitment area This team give
Slide 7: Growth with the right corporate structure
Growth with the right corporate structure NST has been able to grow production whilst maintaining a low level of corporate overheads For personal use only when compared to its ASX and North American peer group NST has paid out over US$42M to shareholders since July 2010 *Based on Forecast Corporate
Slide 8: Company Highlights for the Year to June 2014
Company Highlights for the Year to 30 June 2014 Record sales revenue of US$267m from 215,419oz produced at AISC US$985/oz (includes $30/oz non-cash items) For personal use only Underlying Net Profit: US$35m including one offs; acquisition costs US$6.7m and redundancies US$6.5m Cash flow from operati
Slide 9: FY15 Guidance- The growth continues
FY15 Guidance- The growth continues FY15 Forecast of 550koz to 600koz at an AISC of US$950-$990/oz For personal use only Capital Expenditure of US$90-US$100m, 95% of which will be spent on sustaining capital and ~US$4.5m to bring the Pegasus deposit into production Midpoint of FY 15 Guidance 550-600
Slide 10: Jundee: Still one of Australia's best mines
Jundee: Still one of Australia’s best mines Purchased from Newmont for US$75 million For personal use only First production in 1995; Consistent production with 6.1Moz to date Last 5 years free cash flow generation of US$1.2B Resources just increased by 68% to 851,000oz at 6.8gpt, supporting at least
Slide 11: Jundee: Still one of Australia's best mines
Jundee: Still one of Australia’s best mines For personal use only 11 Page 11
Slide 12: Plutonic: years young
Plutonic: 24 years young Purchased from Barrick Gold for US$22.5 million, settled Feb 2014 For personal use only Located in the Upper Murchison region of WA First production in 1990; Consistent production with 5.3Moz to date Tier One infrastructure; replacement cost US$225M FY2015 guidance 100,000-1
Slide 13: Kanowna Belle: A great Goldfields address
Kanowna Belle: A great Goldfields address Part of the 2nd purchase from Barrick Gold for For personal use only US$67.5 million, settled 1 March 2014 Located 18km north-east of Kalgoorlie in WA First production in 1994; Total production of 4.8Moz (Dec 2013), consistent production FY2015 guidance 80,0
Slide 14: Kundana: A Corridor of Riches
Kundana: A Corridor of Riches Part of the 2nd purchase from Barrick Gold for For personal use only US$67.5 million, settled 1 March 2014 Located 20km west of Kalgoorlie First production mid-1990s; Total production of 2.5Moz (Dec 2013) FY2015 guidance 100,000-110,000oz at AISC of US$720-765/oz Resour
Slide 15: Pegasus: The Jewel in the Kundana Crown
Pegasus: The Jewel in the Kundana Crown Pegasus has potential for +1Moz resource and is one of Australia’s best high-grade gold discoveries in the past 10yrs For personal use only Pegasus offers significant growth potential, resource of 763koz @ 11.4gpt, discovered 18 months ago Recent drilling has
Slide 16: Paulsens: the cornerstone
Paulsens: the cornerstone Located in the Ashburton region of WA For personal use only First production in 2005; Total production to date of 700Koz June 2014Qtr was a site record FY2015 guidance 80,000-90,000oz at AISC of US$990-1035/oz Strong track record of increasing productivity and production Re
Slide 17: Its all about mine life extension
Its all about mine life extension A 3% increase in mineable ounces over previous production For personal use only Our five assets have produced 20 million equates to a consensus average of US$0.27ps ounces to date and at current production One year Mine life extension v Historic Production levels of
Slide 18: Emerging Pipeline – targets in 2014-2015
Emerging Pipeline – 84 targets in 2014-2015 PROJECT DISCOVERY RESOURCE FEASIBILITY RESERVE PRODUCTION For personal use only Paulsens Gold Project Southern Gabbro Titan, Voyager 2 Extensions Titan, Voyagers, UL Regional Belvedere Ashburton Kazput (Coal) Peake Regional Waugh East Waugh Extensions Mt O
Slide 19: Active Broker Coverage List
Active Broker Coverage List For personal use only Broker Date Target Price Recommendation Goldman Sachs 14-Aug-14 1.30 Neutral Macquarie 6-Aug-14 1.95 Outperform Hartleys 1-Aug-14 1.93 Buy Baillieu 1-Aug-14 1.57 Hold Cannacord 31-Jul-14 2.13 Buy Paterson's 31-Jul-14 1.34 Sell Ord Minnett 30-Jul-14 1
Slide 20: Why Invest in Northern Star
Why Invest in Northern Star Global-scale gold miner with all assets in Australia – second For personal use only biggest ASX-listed gold producer Critical mass from 600,000ozpa production; asset diversity from five high-grade, low-cost mines (ASIC ~US$950/oz) with robust margins Focused on generating
Slide 21: Northern Star Resources
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 2014
Slide 22: 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 587M 1.5M BILL BEAMENT Managing Director (Mining Engineer) * As at 12 September 2014 Non-Executive Chairman – Independent CHRIS ROWE (Barrister and Solicitor) Share price
Slide 23: Appendix – Resource & Reserve Statement
Appendix – Resource & Reserve Statement GOLD MINERAL RESOURCES GOLD MINERAL RESERVES As at 30 June 2014 MEASURED (M) INDICATED (I) INFERRED (Inf) TOTAL (MI&Inf) As at 30 June 2014 PROVED PROBABLE PROVED and PROBABLE Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonn
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