Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Investor Day (August 2017)
124 slides from Northern Star Resources's investor day presentation, Aug 7, 2017
Slide 1: An Australian gold miner – for global investors
For personal use only An Australian gold miner – for global investors Corporate Strategy Day August 2017
Slide 2: Disclaimer
Disclaimer Competent Persons Statements The information in this announcement that relates to exploration results, data quality, geological interpretations and Mineral Resource estimations for the Company’s Project areas is based on information compiled by Darren Cooke, a Competent Person who is a Me
Slide 3: Acknowledgement of Country
Acknowledgement of Country Northern Star Resources acknowledges the Traditional Owners of country whose land we are meeting on today, the For personal use only Whadjuk Nyoongar people We recognise their continuing connection to land, water and community, and pay our respect to their elders past, pre
Slide 4: NST Corporate Strategy Day Agenda
NST Corporate Strategy Day Agenda For personal use only 4
Slide 5: Gold Sector Backdrop
Gold Sector Backdrop Since 2009 the Australian gold index as represented by the AS30XGD index has on the whole outperformed both the For personal use only GDX and GDXJ indices by a considerable margin on a currency adjusted basis That outperformance spread has widened over the last 18 months and can
Slide 6: The Australian sector is in good shape and trading at a discount
The Australian sector is in good shape and trading at a discount Over the last five years Australian stocks generate the highest level of Return on Invested Capital in the GDX index For personal use only However when comparing the two jurisdictions on a EV//EBITDA* basis Australian established produ
Slide 7: Strategy and Vision – Northern Star Resources
For personal use only Strategy and Vision – Northern Star Resources August 2017
Slide 8: Highlights of FY2017 – Celebrating Successes
Highlights of FY2017 – Celebrating Successes Safety Performance improvement Expanded Board and Executive Restructure For personal use only Reduction in LTIFR, TRIFR Preparation for further growth Production Growth to 515kozpa EKJV Contract conversion Company quarterly record, Despite divestment of P
Slide 9: Year to date operating and financial highlights
Year to date operating and financial highlights 2017 YTD Financial Highlights For personal use only A$447M in cash and 43% Return on Equity EBITDA Margin 53% equivalents - no bank and 38% Return on up 24% from pcp debt Invested Capital FY17 Operating Highlights Record qtrly gold FY17 gold production
Slide 10: Northern Star Resources - Strategy
Northern Star Resources - Strategy Northern Star’s strategy is underpinned by three key strategic pillars and a people-centric foundation For personal use only 3 Year Vision A global mid-cap and ASX100 sustainable gold producer The What focused on superior Shareholder value creation Tier 1 Assets NS
Slide 11: Growth around our Tier Assets has been the core focus
Growth around our Tier 1 Assets has been the core focus NST has invested A$250M in exploration and For personal use only expansionary CAPEX since the acquisition of its Tier 1 portfolio 3 years ago In FY2017, NST invested A$56M into exploration This investment saw Group Reserves nearly triple to 3.5
Slide 12: Growth around our Tier Assets has been the core focus
Growth around our Tier 1 Assets has been the core focus Globally there are only 23 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 s
Slide 13: Global Gold Trends: Gold discoveries & exploration
Global Gold Trends: Gold discoveries & exploration Substantial reduction in major discoveries world wide; greenfield discoveries now cost over A$200 per ounce, For personal use only NST costs were A$21 per resource ounce over the last three years Exploration is becoming more focussed around the mine
Slide 14: Northern Star continues to buck the global trend
Northern Star continues to buck the global trend Since 2012 Reserve life of the top five global producers has declined by 37%; whilst NST’s Reserves have grown by For personal use only 220% in just three years by investing into successive exploration programs Production from the top five producers i
Slide 15: …and the sector is “profitable” again…
…and the sector is “profitable” again… Not much global supply is losing money at spot prices For personal use only Supply response to demand is measured in years, not weeks Source: IAI, CRU, ICSG, ILZSG, Wood Mackenzie, Macquarie Research, June 2017 15
Slide 16: …in a large part due to cost/CAPEX cutting
…in a large part due to cost/CAPEX cutting Senior producers have done well responding to lower prices – how much more to follow? For personal use only CAPEX/oz back down to 2005 levels for senior producers, higher interest payments offsets cuts to G&A/exploration Total per ounce costs vs. gold (seni
Slide 17: …leading to margin expansion
…leading to margin expansion Most senior and intermediate producers are now making money, but for how long? For personal use only Where is production growth coming from? Source: Bloomberg, Macquarie Research, June 2017 17
Slide 18: Senior Producers – Operations by Country
Senior Producers – Operations by Country Canada, Australia and US still preferred for jurisdictions for growth/M&A among strategics and institutions For personal use only Appetite for riskier jurisdictions is increasing due to a lack of assets in Tier 1 jurisdictions 18 Source: Company Reports & Pre
Slide 19: Senior Producers – Operations by Type
Senior Producers – Operations by Type Gold mines broken down for open pit / underground / combined production For personal use only The clear trend is operations globally are transitioning underground Note: Percentages indicate contribution to total gold production. May not add up due to rounding. 1
Slide 20: Senior Producers – Operations by Size
Senior Producers – Operations by Size Top 3 seniors have narrowed focus onto larger +300kozpa operations For personal use only Remaining continue to focus on high-margin operations Note: Percentages indicate contribution to total gold production. 20 Source: Company Reports & Presentations, Macquarie
Slide 21: Delivering Income & Growth - The holy grail for resource investors
Delivering Income & Growth - The holy grail for resource investors NST has provided the optimum balance of income vs capital return to its Shareholders over the last five years For personal use only The business has paid out over A$150M to Shareholders in the form of dividends since 2012 Combining c
Slide 22: Company Performance and Outlook August 2017
For personal use only An Australian gold miner – for global investors Company Performance and Outlook August 2017
Slide 23: How Important is Culture?
How Important is Culture? Understanding and preserving NST culture has For personal use only been key to our success Since integration of the assets base, Implementation of the NST operating model has delivered significant returns for Shareholders As the business grows organically, maintaining this
Slide 24: STARR Core Values – the Decision Compass
STARR Core Values – the Decision Compass For personal use only • Zero harm targets SAFETY • Enabling culture • Continual improvement • Cooperative TEAMWORK • No-one left behind • No blame or excuses • Clarity of role ACCOUNTABILITY • Ownership of outcomes • Recognition of influence • Visual positive
Slide 25: Health & Safety
Health & Safety Leadership is key to developing the right culture For personal use only which in turn delivers safe behaviours across the business Safety Management is integrated into all Leadership roles and business planning to deliver sustainable results We collaborate with our contract partners
Slide 26: Why did NST acquire these Assets?
Why did NST acquire these Assets? Assets acquired are on multi-million ounce For personal use only Gold systems – annual production of Paulsens Operations 600koz represents 3% of total endowment +3Moz Gold Camp Central Tanami Project +5Moz Gold Camp These had been discovered from outcrop, mined from
Slide 27: Northern Star’s Operating Model has not changed
Northern Star’s Operating Model has not changed Established in 2010 by our first mine acquisition, NST’s operating model targets improved operational performance to For personal use only deliver significant value for Shareholders through a structured approach in 5 key areas Initiative Description ▪
Slide 28: Rapid Restoration of World Class Tier Assets
Rapid Restoration of World Class Tier 1 Assets We’ve often stated the For personal use only constraints to define underground v open pit Resources Our mines have typically held 3 year lives for 20+ years of continuous production To add a year mine life at 300koz to a 10Moz system is 3% of historic p
Slide 29: Consolidation of World Class Gold Camps
Consolidation of World Class Gold Camps Total Reserve increase by 2.3Moz to For personal use only 3.5Moz despite depletion of 546koz in FY17 This is a tripling of the Reserve base of 1.2Moz excluding Plutonic divestment Total Resources increase by 2.7Moz to 10.2Moz including a 58% increase in Measur
Slide 30: Established Year Visibility Platform
Established 10 Year Visibility Platform Near term production growth to For personal use only 600kozpa in CY18 from current producing Assets Paulsens Revitalisation Restored two World Class Tier 1 CTP Re-development Assets, Jundee and Kalgoorlie now lifting each centre to ~300,000ozpa Allows for oper
Slide 31: A Year mine life visibility to deliver Shareholder Value
A 10 Year mine life visibility to deliver Shareholder Value NST has established an ASX100 business that survives the cycles For personal use only Business plans can be delivered over a wide band of Gold Prices Significant balance sheet strength adds greater security to outcomes Diversified productio
Slide 32: Finance Update August 2017
For personal use only An Australian gold miner – for global investors Finance Update August 2017
Slide 33: Overview
Overview Stock code (ASX) : NST For personal use only Share price: A$4.70 Market capitalisation (600 million shares on issue) : A$2.83B (US$2.15B) Cash, bullion & investments as at 30 June 2017 A$447M (US$340M) Bank debt Nil Enterprise value A$2.38B (US$1.81B) Hedging as at 30 June 2017 365,000oz at
Slide 34: Efficiently allocating capital
Efficiently allocating capital Superior returns on invested capital will continue to be the focus to drive organic and in-organic investment For personal use only decisions Projects compete internally for capital funding to continue to generate a sector leading Return on Equity 30% and a Return on I
Slide 35: Delivering free cash flow
Delivering free cash flow To date, after investing into expanding production and mine lives NST has delivered over A$671M in free cash flow For personal use only since the acquisition of Paulsens, the Kalgoorlie operations and the Jundee mine After investing, NST has averaged A$49M of free cashflow
Slide 36: Jundee’s financial performance
Jundee’s financial performance The Jundee asset was purchased for a consideration of A$82.5M For personal use only To date, the asset has generated an IRR in excess of 150% and produced net free cash flows of over A$243M Under NST ownership the asset has produced over 724koz at an average AISC of A$
Slide 37: Kalgoorlie’s financial performance
Kalgoorlie’s financial performance The Kalgoorlie asset was purchased for a total consideration of A$75M For personal use only To date the asset has generated an IRR in excess of 250% and produced net free cash flows of A$307M Under NST ownership the asset has produced over 734koz at an average AISC
Slide 38: Paulsens’ financial performance
Paulsens’ financial performance The Paulsens asset was purchased for a total consideration of A$40M For personal use only To date, the asset has generated an IRR in excess of 170% and produced net free cash flows of over A$159M Under NST ownership the asset has produced over 589koz at an average AIS
Slide 39: CAPEX profile
CAPEX profile Following the acquisitions of assets towards the end of FY14, CAPEX and exploration materially increased as NST For personal use only invested heavily into growing the production profile and Reserve life of its asset base Exploration expenditure has culminated in the recent announcemen
Slide 40: Margin improvement driving Shareholder returns
Margin improvement driving Shareholder returns NST’s focus on concentrated centres has delivered an increased production profile from our higher margin sites For personal use only The impact of the concentrated centres strategy can be observed in the increasing EBITDA margin The higher margin contin
Slide 41: Financial strength driving evolution of capital return strategy
Financial strength driving evolution of capital return strategy NST has grown its operating cashflow and increased returns to Shareholders whilst also executing value adding M&A For personal use only Operating cash flow A$1,100M Reinvested Return to Shareholders A$73M in M&A Retained cash A$123M A$1
Slide 42: Environmental, Social and Corporate Governance
For personal use only Environmental, Social and Corporate Governance ESG Initiatives - August 2017
Slide 43: Sustainability - What is a sustainable gold producer?
Sustainability - What is a sustainable gold producer? Last year NST committed to an integrated reporting pathway for the For personal use only Company’s FY17 Annual Report to highlight the good work that is currently being done in the business and the community At NST we believe operating sustainabl
Slide 44: Protecting & developing our most important assets - our people
Protecting & developing our most important assets - our people Maintaining a safe and healthy workplace is vital to the running For personal use only of an efficient and sustainable business for the long term The safety and well-being of our employees, contractors and broader stakeholders is front o
Slide 45: Sustainability - What is a sustainable gold producer
Sustainability - What is a sustainable gold producer At NST we believe our sustainably vision aligns with our ESG goals that will create long-term value for all Stakeholders For personal use only NST’s approach to sustainability seeks to address sustainability across Financial, Human, Enviromental a
Slide 46: NST’s Economic Value Add and Community Investment
NST’s Economic Value Add and Community Investment NST delivered over A$718M of economic value add directly into the Australian economy in FY2016 For personal use only NST has a raft of proposed community investments in FY2018 as the business aims to continue its commitment to the communities in whic
Slide 47: Martu Ranger Partnership
For personal use only Martu Ranger Partnership Developing a Fee For Service Framework - August 2017
Slide 48: Living by Our Core Values
Living by Our Core Values Sustainability Vision: Delivering responsible environmental and social business practices that lead to both For personal use only the creation of strong economic returns for our Shareholders, and shared value for our stakeholders SHARED VALUE CONCEPT Resource sector CSR has
Slide 49: Problem: Local Aboriginal Employment
Problem: Local Aboriginal Employment Significant misalignment between Indigenous peoples For personal use only aspirations and mainstream industry opportunities often result in underwhelming outcomes for both sides. This is especially true in remote regions – where we operate. Martu were working, we
Slide 50: Development of a Fee For Service Land Management Framework
Development of a Fee For Service Land Management Framework For personal use only One week per month, ten months per year Draws from broader pool of Martu Rangers BIRRILIBURU Supports Martu cultural obligations • Indigenous Protected Area • Life skills, intro to job readiness Commensurate with other
Slide 51: Evolution into Pastoral Management Project
Evolution into Pastoral Management Project Increasing Biodiversity Values On Pastoral And Mining Held Land For personal use only Develop and action a Biodiversity Management Plan on the Jundee pastoral lease One week per month, pool of 15 Martu (gender equality) Industry & Gov Co-investment Wiluna M
Slide 52: Positive External Program Evaluation
Positive External Program Evaluation For personal use only UN HR Best 2013 Finalist Participatory Evaluation 2017 Finalist Practice 2013 2014 52
Slide 53: Other Shared Value Outputs?
Other Shared Value Outputs? Participated in Dept. of the Prime Minister & Cabinet's Social Return On Investment Analysis that concluded a 2.3/1 SROI For personal use only for Ranger programs (Social Ventures Australia 2016) Signed a research agreement with Ninti One’s Interplay Project to case-study
Slide 54: Political Engagement and Support
Political Engagement and Support For personal use only 54
Slide 55: Other NST Replications
Other NST Replications 2016: NST – Central Tanami Project, Lajamanu Rangers and Central Land Council For personal use only Ongoing compliance water monitoring, biodiversity management Only Industry engagement for group 2017: NST – Kal Ops, Goldfields Land Sea Council Rangers Pilot project scheduled
Slide 56: In closing: Core Values and Sustainability Vision
In closing: Core Values and Sustainability Vision Sustainability Vision: Delivering responsible environmental and social business practices that lead to both the For personal use only creation of strong economic returns for our Shareholders, and shared value for our stakeholders “NST is indebted to
Slide 57: Strategy Day – August 2017 Asset Overview
For personal use only Strategy Day – August 2017 Asset Overview
Slide 58: FY2017 Achievements
FY2017 Achievements Establish Concentrated Centres, grow Resource and Reserves For personal use only FY17 - Repositioned business into concentrated production centres Jundee Kalgoorlie; Kanowna (100% NST), Kundana (100% NST), EKJV (51% NST) Investing in exploration to drive long term production grow
Slide 59: Operations Overview: Jundee
Operations Overview For personal use only JUNDEE FY2017 233,556oz @ A$948/oz FY2018 245,00-265,000oz @ A$950-1,000/oz CY2019 onwards 275,000-300,000ozpa 59
Slide 60: Jundee: World-class asset, production and Resource life set to grow
Jundee: World-class asset, production and Resource life set to grow 7Moz of continuous gold production over the past 22 years, average of 320kozpa with a peak year of 410koz For personal use only FY17 Resource of 3.2Moz up 155% and Reserve of ~1.45Moz up 100% after mine depletion of 259koz; 10-year
Slide 61: FY2017: A Year of Records for NST
FY2017: A Year of Records for NST Jumbo Development Metres Average Metres Per Jumbo Per Month 0 LTIs / Least Recordable Injuries For personal use only 5500 400 5000 4500 350 Total development metres (18,140m) 4000 3500 300 3000 250 Development metres per jumbo (361m) 2500 2000 200 Q1 Q2 Q3 Q4 Q1 Q2
Slide 62: FY2017 Capital Projects - Completed
FY2017 Capital Projects - Completed Armada and Revelation access drives For personal use only Ventilation Infrastructure in place for Nexus, Wilson and Armada Raisebore ventilation rises completed Primary fan arrangements procured Process plant upgrade – crushing and gravity upgrades commenced Taili
Slide 63: Jundee Mining Plan: Then to Now
Jundee Mining Plan: Then to Now NST has been able to generate value for Shareholders by extending mine life through investing in exploration For personal use only ~2 YR LIFE IN RESERVE July 2017 Mining Plan 350,000 300,000 250,000 200,000 Oz 258,679 150,000 237,883 228,144 100,000 5+ YR LIFE IN RESE
Slide 64: Jundee Depth of activity - remains open at depth
Jundee Depth of activity - remains open at depth Historical mining and drilling activity has focused above 700m below surface and defined 10Moz. Platform now exists to drill next the 700m For personal use only Invicta portal PTD =548kOz Barton portal PTD =4,250kOz Gateway portal PTD =316kOz Barton I
Slide 65: Near-mine open pit production potential
Near-mine open pit production potential Open Pit Opportunities: For personal use only • Significant drilling program completed • Results show open pit potential over tenement package • First open pit Reserve declared for Jundee in 10 years – more where that came from • Currently evaluating options t
Slide 66: Jundee Processing Capacity Growth
Jundee Processing Capacity Growth Jundee processing capacity increased from 1.3Mt/y in FY16 to For personal use only 1.5Mt/y in FY17 Jundee Expansion Project ~A$18M total project cost Lifts hard rock capacity to +1.7Mt per annum Installing a secondary crushing circuit Upgrading gravity circuit to im
Slide 67: Operations Overview: Kalgoorlie Operations
Operations Overview For personal use only KALGOORLIE OPERATIONS FY2017 224,800 @ A$969/oz FY2018 245,00-265,000oz @ A$1,000-1,050/oz FY19 onwards 300,000-325,000ozpa 67
Slide 68: Kalgoorlie Operations: Rapid, low-cost growth
Kalgoorlie Operations: Rapid, low-cost growth 6.7Moz of gold production over the past 24 For personal use only years, average of 280kozpa with a peak year of 370koz. Resource/Reserve upgrades now provide 10 years of mine life visibility across the Kalgoorlie operation: Reserve up 117% to 2.0Moz and
Slide 69: Kalgoorlie Operations: FY2017 Achievements
Kalgoorlie Operations: FY2017 Achievements Record Northern Star ounces and EKJV ounces For personal use only Record processing throughput – 1.95 Mtpa 367,007m of drilling – Surface, UG , RC, Diamond etc. First Ore Millennium – Portal to ore in <12 months. Third party Ore Purchase EKJV UG Contract ch
Slide 70: Kalgoorlie Operations – Kanowna Belle (100% NST)
Kalgoorlie Operations – Kanowna Belle (100% NST) Kanowna Belle is a +5Moz orebody, averaging 4koz per vertical metre with limited exploration below E block and along strike of For personal use only the major gold bearing structure, Fitzroy fault Reserve has increased 120% to 0.5Moz and Resources are
Slide 71: Kalgoorlie Operations- EKJV (51% NST)
Kalgoorlie Operations- EKJV (51% NST) NST Attributable Reserves increased 36% to 0.60Moz at 5.8gpt. Resource increased 35% to 1.3Moz. For personal use only The high grade core still exists, with lower grade additional material discovered through exploration (hanging wall lodes, Pode). Moved to owner
Slide 72: Kalgoorlie Operations – Kundana (100% NST)
Kalgoorlie Operations – Kundana (100% NST) Past production on the 100% NST ground has yielded 1.25Moz at 6gpt, between 1990-2004 For personal use only FY17 Resource of 1.8Moz, Reserves increased to 0.8Moz at 4.2gpt with the addition of Paradigm & Carbine, now larger than EKJV Current development at
Slide 73: Kanowna Belle Processing Facility
Kanowna Belle Processing Facility Kalgoorlie milling capacity is 2 Mt/y For personal use only FY17 2nd highest historical throughput Tonnes Processed 600000 FY17 – increased throughput and recovery 500000 Throughput (t) 400000 Improved equipment availability and 300000 200000 utilisation: outstandin
Slide 74: Operations Overview: Paulsens
Operations Overview For personal use only PAULSENS FY2017 55,783 @ A$1,455/oz FY2018 35,00-45,000oz @ A$1,300-1,400/oz FY2021 Revitalisation back to 75,000ozpa 74
Slide 75: Paulsens: FY18 Exploration growth phase
Paulsens: FY18 Exploration growth phase 1Moz of continuous gold production over the past 12 years, average of 75kozpa with a peak year of 100koz For personal use only The 160RL drill drive has been completed to provide a platform to further explore the Voyager 2 lode FY18 – Focus to restore Paulsens
Slide 76: Operations Overview: Central Tanami
Operations Overview For personal use only CENTRAL TANAMI NST earning in to 60% Re-development forecast for FY21 76
Slide 77: Central Tanami Project “CTP”: Groundrush
Central Tanami Project “CTP”: Groundrush The Groundrush deposit is one of the top historical assets in For personal use only the Tanami region: Mined 610koz at 4.3gpt over a 4 year period, and mineralisation continues at depth Finalising development plan, including plant refurb, during FY18 – plenty
Slide 78: Operations Overview: Where to from here?
Operations Overview For personal use only WHERE TO FROM HERE? - Operational Excellence 78
Slide 79: Where to from here? Further operational excellence
Where to from here? Further operational excellence Continue pathway to growth: For personal use only De-bottlenecking current production Start new production fronts Innovation Refine and optimise the assets Focus on operational efficiency Eliminate Waste Marginal Gains Improve 100 things by 1% 79
Slide 80: Geology Update - August 2017
For personal use only An Australian gold miner – for global investors Geology Update - August 2017
Slide 81: Growth around our Tier assets is the core focus
Growth around our Tier 1 assets is the core focus By the end of FY2017, NST had invested ~A$160M in For personal use only exploration since the acquisition of its Tier 1 portfolio 3 years ago FY2017 saw A$56M was invested in exploration to organically grow Reserve and Resource life across our asset
Slide 82: June 2017 Update – Demonstrated Long Mine Life
June 2017 Update – Demonstrated Long Mine Life Significant increases to Reserves and Resources within the 2017 update released 3 August 2017 For personal use only Latest Resource/Reserve statement: ~3.5Moz Group Ore Reserves: +2.3Moz after mining depletion from June 2016 ~10.2Moz Group Mineral Resou
Slide 83: A large increase drives the year outlook
A large increase drives the 10 year outlook….. Jundee and Kalgoorlie assets both recorded significant increases to Reserves and Resources. For personal use only The below graphs are resource and reserve growth net of 534,735 ounces of depletion in the year FY17 Resource Growth FY17 Ore Reserve Growt
Slide 84: Built From Sustained Exploration Investment in Tier Assets
Built From Sustained Exploration Investment in Tier 1 Assets Sustained exploration commitment delivers exceptional value and investment return For personal use only The below graphs are resource and reserve growth net of 1.65Mozs depletion and Plutonic divestment 3 Year Resource Growth 3 Year Ore Re
Slide 85: Organic Growth Delivers Strong Investor Returns
Organic Growth Delivers Strong Investor Returns NST acquired Resource ounces at A$275/oz and has averaged Resource discovery costs of just A$38/oz For personal use only NST has generated exceptional investment returns at well below industry benchmarks Average NST acquisition cost A$275/resource oz A
Slide 86: NST Exploration: Leveraging the latest technology
NST Exploration: Leveraging the latest technology NST has been leveraging the latest geophysical exploration techniques with great success at Kundana and For personal use only now at Jundee deposit with 2D and 3D seismic surveys Seismic has successfully identified extensions and parallel targets for
Slide 87: Jundee – The Next Years and Beyond
Jundee – The Next 10 Years and Beyond……. For personal use only 87
Slide 88: Jundee – A World Class Gold Deposit
Jundee – A World Class Gold Deposit Jundee Reserves up 100% to 1.45Moz, Resources are up 155% to 3.2Moz For personal use only FY17 mineralisation additions highlighted in red 88
Slide 89: Jundee – Underground Exploration Continues
Jundee – Underground Exploration Continues Jundee Deeps DDR Project Jundee Deeps DDR Project For personal use only View East showing “scout fan” holes and mineralised structures Two year investment to test a intersected volume of rock equivalent to the 7Moz Jundee production centre 70% of the origin
Slide 90: Armada – Just the Beginning
Armada – Just the Beginning For personal use only Significant investment pays dividends Armada discovery was in the database Armada trend now 2.5km strike length Less than 20% drilled to resource status – open everywhere Provides 5-10 year growth visibility at Jundee FY2017 Resource (in red) driven
Slide 91: The Zodiac Discovery - A Brilliant Result
The Zodiac Discovery - A Brilliant Result Located in the Stirling fault For personal use only complex Hosted within the Fisher Basalt in the footwall of the Jundee mine sequence The new mineralised corridor open in all directions beneath Jundee mine and importantly, to the untested southern areas. G
Slide 92: Zodiac Discovery – Spatial Position
Zodiac Discovery – Spatial Position Plan View (North at top) Section view Looking East For personal use only 92
Slide 93: Just the Beginning …… Greenfield Exploration Renewed
Just the Beginning …… Greenfield Exploration Renewed Numerous targets generated from new For personal use only geological mapping generated in FY16 Aircore geochemical drilling program for FY2017 – 2,416 holes drilled for 119,764m Targeting new mineralised systems similar to Jundee, Gourdis-Vause an
Slide 94: Kalgoorlie Exploration provides rapid low-cost growth
Kalgoorlie Exploration provides rapid low-cost growth Kalgoorlie Reserves are up For personal use only 117% to 2.0Moz (despite depletion of 229koz) Kalgoorlie Resources are up 25% to 4.5Moz (despite depletion of 229koz) NST 100% owned Kundana deposits are where Northern Star will achieve a large pro
Slide 95: Kanowna Belle – Rebuilding a Long Term Future
Kanowna Belle – Rebuilding a Long Term Future KB Reserve grown 120% to For personal use only 0.5Moz Exploration success and large cost reductions drive larger Resource to Reserve conversion Delivered largest reserve base in the past 7 years and secured KB’s long-term future Northern Star will invest
Slide 96: Just the Beginning – Growth of Velvet
Just the Beginning – Growth of Velvet Velvet contributes only 21% (105,000oz) to the new Reserve estimate and 10% (143,000oz) to the new Resource estimate. For personal use only Recent exploratory drilling at Lower Velvet intersected significant new mineralisation trend down dip along the Fitzroy Fa
Slide 97: Kundana
Kundana For the first time the underground Resource estimate on Northern Star’s 100% Kundana tenements of 1.5Moz For personal use only has exceeded the 1.24Moz underground Resource on the 51% owned EKJV at Kundana 97
Slide 98: Kundana 100% - The Future Growth Centre
Kundana 100% - The Future Growth Centre Underground Reserve estimate of 0.8Moz exceeds the 0.6Moz underground Reserve for 51% owned EKJV For personal use only Exploration success has enabled the new operation to go from discovery to maiden Reserve to production in under three years 98
Slide 99: EKJV – Exploration success drives production growth
EKJV – Exploration success drives production growth For personal use only Since the acquisition of the EKJV 51% owned Kundana tenements three years ago, Northern Star has focused on growing the Resources, Reserves and production profile FY17 delivered the largest Reserve base and highest annual prod
Slide 100: RHP – New Drill Drive to continue Resource growth
RHP – New Drill Drive to continue Resource growth The 2.1km drill/link drive at the base of the mine will form the next leg in exploration For personal use only PEGASUS RUBICON HORNET K2B HW Vein Pode Nugget HW Vein Multiple HW lodes Honey HW Vein New 2.1 km DDR under Grade 2.29 - 4 g/t development
Slide 101: EKJV – Raleigh Reborn
EKJV – Raleigh Reborn For personal use only Exploratory development RALEIGH and drilling continued to grow new Raleigh resource base Historically, Raleigh was the largest and highest New DDR under margin producer at development Kundana FY17 exploration success Grade 2.29 - 4 g/t driving the future r
Slide 102: EKJV– Raleigh Corridor Future Exploration
EKJV– Raleigh Corridor Future Exploration For personal use only FY17 Resource Drilling 600m Raleigh South 200m Golden Hind 2.0kms 102
Slide 103: Paradigm – Maiden Resource is just the beginning
Paradigm – Maiden Resource is just the beginning….. New Paradigm discovery located at Carbine, For personal use only approximately 40km north of Kundana Original Natasha resource discovered by New Arina Structure Goldfields and mined via shallow open pit and underground in 1990s Paradigm North (Arin
Slide 104: Paulsens Exploration Investment
Paulsens Exploration Investment Northern Star has committed to invest approximately A$10 million in exploration at Paulsens over the next two years to revitalise the For personal use only operation The Company has a two-pronged strategy to return Paulsens to its historical production average of 75,0
Slide 105: Central Tanami Project “CTP”: Emerging Growth Region
Central Tanami Project “CTP”: Emerging Growth Region The Tanami region is an exploration frontier that is rapidly GROUNDRUSH (NST Earning to 60%) developing a reputation for major gold discoveries For personal use only Open Pit Production NST land position are contiguous to the world class 150km (Ne
Slide 106: Tanami Regional Exploration – FY18 Strategy
Tanami Regional Exploration – FY18 Strategy Accelerate evaluation of existing Resources, identify opportunities For personal use only for growth, and determine conversion requirements Application of a combined empirical-conceptual targeting strategy across all areas Initial FY18 exploration budget o
Slide 107: Northern Star Mining Services – Asset Optimisation
For personal use only An Australian gold miner – for global investors Northern Star Mining Services – Asset Optimisation
Slide 108: What is Northern Star Mining Services “NSMS”
What is Northern Star Mining Services “NSMS” Underground Mining Services Division is effectively an “In-house” mining contractor model For personal use only Setup to cater for Northern Star’s internal and external growth ambitions with fully aligned goals Provides Northern Star with another option t
Slide 109: Underground Capability Statement
Underground Capability Statement People: We have one of the largest specialist underground workforces in Kalgoorlie and in the state of Western Australia For personal use only We have a total workforce of ~600 people of which 500 are in Kalgoorlie We have the ability to transfer underground staff be
Slide 110: NSMS has been instrumental to Northern Star’s achievements
NSMS has been instrumental to Northern Star’s achievements NST in the past 7 years has grown from a A$1M shell company with no production or employees For personal use only to a A$2.8B market capitalisation producing 525-575kozpa with ~1,600 total employees and contractors We have successfully integ
Slide 111: Why does the NSMS model work inside Northern Star Resources
Why does the NSMS model work inside Northern Star Resources • The vast majority of the Executive team have an operational/technical Board - Successful record in operating, developing and discovering mines background coupled with many years of senior management especially For personal use only Bill B
Slide 112: NST Operating Model: Optimise Operations (Productivities)
NST Operating Model: Optimise Operations (Productivities) Case study at Kundana EKJV Operation: For personal use only Changed the management structure to a contractor management and remuneration model from day one of ownership Aggressively invested capital into the mining fleet and technologies – ne
Slide 113: NST Operating Model: Improve Financial Metrics (unit costs)
113 For personal use only A$/m AISC/oz (A$) 200 400 600 800 0 1000 1200 1400 $- $10,000 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 Sep-14 Sep-14 Qtr Qtr Dec-14 Qtr Dec-14 Qtr Mar-15 Qtr Mar –15 Jun-15 Qtr June – 15 Sep-15 Qtr Sep-15 Dec-15 Qtr Qtr Jundee Mining Cost/Dev m Mar-16
Slide 114: NST Advantage – High Speed Jumbo Development
NST Advantage – High Speed Jumbo Development Case study at Kundana EKJV Operation: For personal use only NSMS independently tendered against underground mining service providers and won the tender Development commenced in August 2016 3,873m development completed to the end of June Averaging 313m/mon
Slide 115: How responsive can we be – Track Record
How responsive can we be – Track Record NSMS has the expertise and capability of a leading underground contractor For personal use only Systems and organisational structure set up for high productivities and enable responsive decision making Transitioned four underground mines to NSMS at settlement
Slide 116: NSMS Moving forward – Continuous Improvement
NSMS Moving forward – Continuous Improvement Increase our Underground Capability For personal use only Measure performance against peers and continue to drive against current limits / bottlenecks Work with suppliers to utilise emerging technologies Critically assess current mine designs and specific
Slide 117: Innovation and Technology
For personal use only An Australian gold miner – for global investors Innovation and Technology
Slide 118: Innovation & Technology
Innovation & Technology NST’s approach to Innovation For personal use only A new idea, device, or method Something newly introduced (leading to a better solution) It does not need to be technology It can be on a mine by mine basis NST’s approach to Technology Is the collection of techniques, skills,
Slide 119: NST embraces the opportunity that exists for innovation
NST embraces the opportunity that exists for innovation NST consider that there has been no For personal use only fundamental change to mining Innovation and Technology 300 methodology since we stopped scaling from the muck pile and used 250 Jumbos for scaling and ground support 200 150 Open Pit min
Slide 120: Technology: What we are doing now
Technology: What we are doing now 3D Seismic surveying – drill targeting For personal use only Bogging: Guidance tele-remoting (including from surface) Allows 20% larger bogger to be used Allows second gear to be used in remoting cycle (80% faster) Increased available work time per shift up to 2hrs
Slide 121: Innovation & Technology: What next?
Innovation & Technology: What next? Top three this year For personal use only Undertaking ore screening and sorting / separation trials Implemented smaller faster trucks for Millennium NST trialed a world first with 4G LTE network underground at Millennium in June - driving towards automation of und
Slide 122: Utilising 4G technology for underground mining
Utilising 4G technology for underground mining An enabling technology For personal use only Still in the cycle We have been around once with the trial Going around a second time with a more advanced and specific set of needs Shorter term goals that bring potential implementation forward Focused more
Slide 123: What is NST ready for?
What is NST ready for? NST has the commitment to implement and development leading edge technology and For personal use only innovation to improve business metrics or create value from nothing including (but not limited to): Digitalisation – converting data to information and acting on it Automation
Slide 124: 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