Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Diggers & Dealers 2018
17 slides from Northern Star Resources's conference presentation, Aug 6, 2018
Slide 1: Northern Star Resources – Growing Against the Tide
For personal use only Northern Star Resources – Growing Against the Tide Diggers and Dealers 2018
Slide 2: Disclaimer
Disclaimer Competent Persons Statements The information in this announcement that relates to exploration results, data quality and geological interpretations for the Company’s Project areas is based on information compiled by Michael Mulroney, a Competent Person For personal use only who is a Member
Slide 3: Introduction – An Australian gold miner with global scale
Introduction – An Australian gold miner with global scale ASX 100, top 25 global gold producer with mines For personal use only in Western Australia; +600koz per annum at an Paulsens Operations +3Moz Gold Camp AISC of ~A$1,075/oz (US$795/oz) Tanami Project +5Moz Gold Camp Market cap is A$4.4B, with
Slide 4: Tier-one assets, tier-one locations
Tier-one assets, tier-one locations Globally there are only 17 mines producing over 300kozpa in Tier 1 mining jurisdictions; production is declining in these regions due to a lack of discoveries and significant Reserve depletion For personal use only NST has two mines that will join that list of ass
Slide 5: NST has again delivered best in class returns, globally
NST has again delivered best in class returns, globally NST continues to deliver best in class financial returns in the global gold industry over 5 years For personal use only 40% 40% 30% GDX 5 Yr Avg Return on Equity 27% GDX 5 Yr Avg Return on Invested Capital 30% 20% 20% 0% 10% -20% Sector Average
Slide 6: Organic growth - the key to our superior returns
Organic growth - the key to our superior returns NST has been able to consistently grow production, resource and reserve life on a per share basis for its For personal use only Shareholders since 2010 and has been our key focus for the past 4 years Reserves increased to 4Moz and Resources to 15.9Moz
Slide 7: Organic growth - delivering returns to Shareholders
Organic growth - delivering returns to Shareholders This strategy of organic growth has generated over A$3.9B of value for Shareholders since NST’s first gold acquisition in 2010 and only 7% of this value uplift has been from equity raised For personal use only NST has achieved this through operatio
Slide 8: FY2018 Highlights
FY2018 Highlights Millennium Commercial Production delivered For personal use only Delivery of production from discovery in 3 years SKO Acquisition and Integration Win/Win M&A and key infrastructure to underpin organic growth Kanowna Plant Optimisation Record throughput in 25 years process plant lif
Slide 9: Kalgoorlie Operations
Kalgoorlie Operations FY2018: 262koz sold at an For personal use only PARADIGM ACRA AISC of A$1,174/oz Paradigm KANOWNA BELLE Resources of 8.6Moz (including 3.7Moz at SKO) and Kanowna Belle KUNDANA Reserves of 2.3Moz up 15%, Millennium despite depletion of 262koz Raleigh Kalgoorlie - Boulder FY2019:
Slide 10: Jundee Operations
Jundee Operations FY2018: 285koz sold at an For personal use only AISC of A$870/oz Resources up 31% to 4.3Moz and Reserves up 14% to 1.6Moz, despite depletion of 285koz FY2019: Guidance 280,000- 300,000oz at an AISC of A$895-A$980/oz Plant upgrade delivered 2Mtpa processing capacity Underground prod
Slide 11: Tanami Region and Paulsens Revitalisation
Tanami Region and Paulsens Revitalisation Tanami consolidation of 11,000km2 of tenure in Paulsens mine area 3D seismic survey For personal use only highly prospective region. WTP and Regional 100% completed in early June of 12km2 (larger than NST, CTP at 25% moving to 40%, farm-in to 75% Jundee cube
Slide 12: A$60M Exploration and Drilling Commitment
A$60M Exploration and Drilling Commitment A$60M exploration and drilling commitment for FY2019 For personal use only Core focus is Resource conversion across the major production centres We have the assets, the people, the capacity and the funding to grow our mineral inventory 12
Slide 13: Consistent delivery of Guidance and Mine Life Extension
Consistent delivery of Guidance and Mine Life Extension World-class assets: 10-year mine life visibility; two Tier-1 mines capable of producing +300,000ozpa For personal use only with significant organic growth options from known sources. FY2019 Guidance 600,000-640,000oz at an AISC of A$1,025-A$1,1
Slide 14: Environmental, Social and Governance Values
Environmental, Social and Governance Values For personal use only Environmental Compliance Transparency • Zero significant incidents or regulator fines • Portfolio of assets in good standing Climate Change • Inaugural sustainability report FY17 • Effective risk management • Sustainability survey (CD
Slide 15: Northern Star investing in its people – a strategic advantage
Northern Star investing in its people – a strategic advantage NST is investing A$50M over the next 10 years to continue For personal use only expanding our specialist underground mining, geology and processing capability Key areas of investment include training, education, research and implementatio
Slide 16: Northern Star: Still ticking every box
Northern Star: Still ticking every box World-class financial returns: 25% Return on Equity and 24% Return on Invested Capital in the For personal use only half year to December 2017. Underlying free cash flow of A$186M and a 5-year average Total Shareholder Return of 70% World-class assets: 10-year
Slide 17: 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 17