Northern Star Resources Ltd · ASX:NST
Northern Star Resources — RIU Conference (September 2014)
24 slides from Northern Star Resources's conference presentation, Sep 24, 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 A$719M (587M shares at A$1.22) FY15 AISC ~A$1,050 - A$1,100/oz Five operating mines, all in Western Australia Grown from one mine and 100,000o
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 with currency forecasts adjusted at A$0.9
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 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 Record sales revenue of A$296M from 215,419oz produced at AISC A$1,094/oz (includes $30/oz non-cash items) For personal use only Underlying Net Profit: A$38.6M including one offs; acquisition costs A$7.4M and redundancies A$7.2M Cash flow from operatin
Slide 9: 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 10: 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 6.8gpt, supporting at least 4 year
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: Jundee: unmined resource shapes above cut-off grade
Jundee: unmined resource shapes above cut-off grade For personal use only 12 Page 12
Slide 13: 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 14: 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 15: 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 16: 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 17: 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 Strong track record of increasing productivity and produ
Slide 18: It's all about mine life extension
It’s all about mine life extension A 3% increase in mineable ounces over previous production For personal use only Our five assets have produced 20M ounces equates to a consensus average of A$0.30ps to date and at current production levels of One year Mine life extension v Historic Production 600,00
Slide 19: 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 20: Active broker coverage list
Active broker coverage list For personal use only Broker Date Target Price Recommendation Goldman Sachs 28-Aug-14 $1.34 Neutral Macquarie 28-Aug-14 $1.95 Outperform Hartleys 1-Aug-14 $1.93 Buy Baillieu 1-Aug-14 $1.57 Hold Canaccord 28-Aug-14 $2.14 Buy Paterson's 16-Sep-14 $1.34 Hold Ord Minnett 02-S
Slide 21: 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 22: 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 23: 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 23 September 2014 Non-Executive Chairman – Independent CHRIS ROWE (Barrister and Solicitor) Share price
Slide 24: 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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