Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Shareholder Meeting (November 2014)
28 slides from Northern Star Resources's shareholder meeting presentation, Nov 12, 2014
Slide 1: Northern Star Resources AGM Presentation
For personal use only Northern Star Resources AGM Presentation An Australian gold miner – for global investors November 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 For personal use only Production of 550-600,000ozpa; Market cap A$592M (592M shares at A$1.00) FY15 AISC ~A$1,050 - A$1,100/oz Five operating mines, all in Western Australia Grown from one mine and 100,000ozpa in the past
Slide 4: FY 2014; a transformational year for Northern Star
FY 2014; a transformational year for Northern Star NST generated a 116% return in FY14 & was the best stock in the ASX 200 in a flat gold price environment For personal use only A 4 year period of Outperformance 4
Slide 5: 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 592M 1.5M BILL BEAMENT Managing Director (Mining Engineer) * As at 11 November 2014 Non-Executive Chairman – Independent CHRIS ROWE (Barrister and Solicitor) Share price:
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 within the right corporate structure
Growth within 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 A$45M to shareholders since July 2010 ASX-listed producer peer set
Slide 8: Company highlights for the Year to June 2014
Company highlights for the Year to 30 June 2014 A fourth consecutive year of double digit underlying return on shareholders equity of 22% For personal use only NST has been able to grow underlying NPAT by a compound annual growth rate of 24% since 2011 Record sales revenue of A$296M from 215,419oz p
Slide 9: 550-600koz production from five world class gold camps
550-600koz production from five world class gold camps NST has five world class production For personal use only centres that have produced Paulsens & Ashburton cumulatively over +20Mozs to date Operations +3Moz Gold Camp The goal in FY15 is to realise the Plutonic Mine potential of these deposits b
Slide 10: It's all about mine life extension
It’s all about mine life extension A 3% increase in mineable ounces over previous production Our five assets have produced +20M ounces For personal use only equates to a consensus average of A$0.30ps to date and at current production levels of 600,000ozpa it is the equivalent of a 3% One year Mine l
Slide 11: A $50m investment in world class gold camps
A $50m investment in world class gold camps For personal use only Exploration spend will be across the five assets focused on in-mine, near mine and regional targets NST has committed to drilling over 500kms in the coming 12 months to extend mine lives and grow the 6.2Moz resource base and mineral i
Slide 12: Emerging pipeline – targets in 2014-2015
Emerging pipeline – 84 targets in 2014-2015 NST’s project pipeline has a large number of projects already in resource and feasibility stage For personal use only 12 Page 12
Slide 13: Kundana: a corridor of riches
Kundana: a corridor of riches Part of the 2nd purchase from Barrick Gold for For personal use only A$75M, 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 A$800 - A$850/oz Resources of
Slide 14: Pegasus: A case study in Return on Invested Capital
Pegasus: A case study in Return on Invested Capital Stage 1 mining of the recently defined Pegasus deposit represents a return of invested capital of 500% to NST For personal use only Pegasus offers significant growth potential, resource of 763koz @ 11.4gpt, discovered 18 months ago Pegasus set for
Slide 15: Kundana: a corridor of riches
Kundana: a corridor of riches In-mine exploration at Kundana will be focussed on: Rubicon, Hornet, Pegasus and Millennium For personal use only Near-mine exploration at Kundana will be focussed on: Christmas, Moonbeam, Strzelecki & Ambition NST has demonstrated further success testing multiple ore s
Slide 16: Millennium; a new discovery at Kundana
Millennium; a new discovery at Kundana High-grade “Millennium” discovery made on NST’s 100% owned tenements at Kundana Project For personal use only Millennium has so far been defined over a 500m strike and remains open to the North and at depth Located immediately adjacent to dormant South/Centenar
Slide 17: Jundee: still one of Australia's best mines
Jundee: still one of Australia’s best mines Purchased from Newmont for A$82.5M For personal use only First production in 1995; consistent production with 6.1Moz to date Last 5 years free cash flow generation of A$1.3B Resources just increased by 68% to 851,000oz at 6.4gpt, supporting at least 4 year
Slide 18: Jundee: still one of Australia's best mines
Jundee: still one of Australia’s best mines In-mine drilling will be focussed on: Jundee Depth Extensions, Gateway/Gringotts & Nexus-Moneyline For personal use only Near-mine and regional exploration will be focussed on Stirling South and Gourdis Vause targets 18 Page 18
Slide 19: Jundee: still one of Australia's best mines
Jundee: still one of Australia’s best mines The recently released drilling results at Jundee demonstrate the potential for increases to mine life For personal use only Since acquisition NST has increased underground drill rigs from two to six, 3000m to 9000m per month (Image from ASX announcement 1s
Slide 20: Plutonic: years young
Plutonic: 24 years young Purchased from Barrick Gold for A$25M, 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 A$250M FY2015 guidance 100,000-110,000oz at
Slide 21: Plutonic: years young
Plutonic: 24 years young In-mine exploration at Plutonic will be focussed on: Baltic Extension, Pacific East, Indian Ext & Plutonic East For personal use only Near-mine exploration at Plutonic will be focused on: Big Fish, Zone 114, Plutonic West and other targets 21 •Page 21
Slide 22: 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 A$75M, 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 80,000-85,000o
Slide 23: Kanowna Belle: a great Goldfields address
Kanowna Belle: a great Goldfields address In-mine exploration at Kanowna Belle will focus on the parallel Troy/Sims lodes and E-Block depth extension For personal use only Near-mine exploration will focus on White Feather, Six Mile and a host of other regional targets 23 Page 23
Slide 24: 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 2014 quarter was a site record FY2015 guidance 80,000-90,000oz at AISC of A$1,100-$1,150/oz Resources of +400,000oz, supporting 5 year mine life Key
Slide 25: Paulsens: the cornerstone
Paulsens: the cornerstone In-mine exploration at Paulsens will be focussed on Voyager extensions, Titan and Galileo Lodes For personal use only Near-mine and regional exploration at Paulsens will focus on the Belvedere, FMG JV & Ashburton targets 25 Page 25
Slide 26: FY15 guidance - the growth continues
FY15 guidance - the growth continues FY15 Forecast of 550koz to 600koz at an AISC of A$1,050-$1,100/oz For personal use only Capital Expenditure of A$100M-A$110M, 95% of which will be spent on sustaining capital and ~A$5M to bring the Pegasus deposit into production Midpoint of FY 15 Guidance 550-60
Slide 27: 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 ~A$1,050-1,100/oz) with robust margins Focused on gen
Slide 28: 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 November 2014
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