Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Shareholder Meeting (November 2012)
19 slides from Northern Star Resources's shareholder meeting presentation, Nov 30, 2012
Slide 1: 12,178gpt intersection at Paulsens - Company Annual General Meeting 2012
For personal use only 12,178gpt intersection at Paulsens COMPANY ANNUAL GENERAL MEETING 2012
Slide 2: Disclaimer
Disclaimer Competent Persons Statements For personal use only • The information in this announcement that relates to Paulsens and Mt Olympus mineral resource estimation, exploration results, data quality, geological interpretations, potential for eventual economic extraction and estimates of explora
Slide 3: Shareholder Return – 4600% over the past 3 years
Shareholder Return – 4600% over the past 3 years ? 2.00 For personal use only 1.80 ? 1.60 $1.38 1.40 Share Price 1.20 ? 1.00 $0.84 0.80 0.60 ? 0.40 $0.27 0.20 $0.03 0.00 AGM 2009 AGM 2010 AGM 2011 AGM 2012 AGM 2013 Page 3
Slide 4: 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 424M 3.5M BILL BEAMENT Managing Director (Mining Engineer) * As at Nov 2012 Non Executive Chairman – Independent CHRIS ROWE (Barrister and Solicitor) Share price: A$1.38
Slide 5: Northern Star: an abridged history
Northern Star: an abridged history For personal use only • Acquired Paulsens Gold Mine in Western Australia from Intrepid Mines (TSX/ASX : IAU) : for A$40M in July 2010 • At the time Paulsens had an eight- month life based on a mine plan of 45,000oz • Repaid full A$40M acquisition from cashflow with
Slide 6: Paulsens – Productivity Drive
Paulsens – Productivity Drive • Changed out Mining and Crushing Contractors with in-house team (Northern Star Mining Services Division) For personal use only • Increased our productivity by 43% in ore tonnes mined in the first full year, already improving again on this with 187,000 ore tonnes mined
Slide 7: Profitability and Balance Sheet “Rapidly Growing”
Profitability and Balance Sheet “Rapidly Growing” For personal use only Page 7
Slide 8: 2012: Strategy pays dividends .. literally
2012: Strategy pays dividends .. literally • Increased Company profit by 57% to A$34.1M for FY2012 For personal use only • EBITDA FY2012 A$49.4M • Declared a maiden fully-franked dividend of 2.5c • Delivered two resource upgrades, taking total inventory to 403,000oz1 – 180% increase • Raised A$42.5M
Slide 9: Voyager 1: The Paulsens Engine Room
Voyager 1: The Paulsens Engine Room • Voyager 1 is the flagship lode at Paulsens and has produced all the gold under NST For personal use only ownership • Currently mining this lode 550m below surface. Mineralisation drilled to 850m and remains open at depth • Lode runs at a rich 1,250–2,000 ounces
Slide 10: Voyager 2: One of the richest intersection in Australian modern gold history
Voyager 2: One of the richest intersection in Australian modern gold history • Voyager 2 was discovered by NST in late 2010; host of stunning drilling results up to 12,178gpt For personal use only • Voyager 2 begins 650 metres below surface and sits immediately adjacent to Voyager 1 • Maiden resourc
Slide 11: Deep drilling: high-grade hits 325m below current workings
Deep drilling: high-grade hits 325m below current workings For personal use only • Orebody has yielded 500,000oz over ≈ 400 vertical meters, 7 years of production so far • Numerous drill results to follow up outside current mining areas • Deep holes drilled in June to target ore body a further 400-5
Slide 12: 2013: The year of rising production, falling costs and increasing cashflow
2013: The year of rising production, falling costs and increasing cashflow • Key CY2013 forecasts @ Gold Price A$1,550/oz: For personal use only • Total production of 100-115koz • Plant capacity expanded by 25% to 450,000tpa • Average blended grade to rise 20% from 7gpt to ~8.5gpt • Cash Costs C1 of
Slide 13: Exploration: writing the next chapter for Northern Star
Exploration: writing the next chapter for Northern Star For personal use only • Long-way through A$20M exploration program, consistent stream of outstanding results • No other deposit found within 50km radius of Paulsens mine, which is now approaching the 1Moz endowment • Great opportunity as there
Slide 14: Gabbro offsets: the gold may be as green on the other side of the fence
Gabbro offsets: the gold may be as green on the other side of the fence For personal use only • Paulsens is bounded by a Gabbro unit, traditionally seen as a ‘fence’ around the orebody • Drilling aimed at testing the theory that the mineralisation is deposited on the other side of Gabbro and itself
Slide 15: Ashburton – a 100,000ozpa stand-alone operation
Ashburton – a 100,000ozpa stand-alone operation • Ashburton Project located within trucking For personal use only distance of Paulsens • Acquired in June 2011 for zero cash payment; royalty payable on production over 250koz • Oxide open pit operation from 1998 to 2004, produced 340,000oz @ 3.3gpt •
Slide 16: Community Achievements and Involvement - past years
Community Achievements and Involvement - past 2 years • Maintained the employment of 200 people from Western Australia, with a number from For personal use only the local region • Paid $13.2 million in State Government/Stakeholder royalties, Company and Payroll Tax • Donated/Committed $300,000 to va
Slide 17: Key reasons to invest in Northern Star
Key reasons to invest in Northern Star • Extremely strong cash generation from high-grade and high-margin ounces For personal use only • Growing production to underpin further growth in surplus cash (up to A$85 million CY2013) • Sufficient resources to underpin +5 year mine life, with further extens
Slide 18: Contact Details
For personal use only 12,178gpt intersection at Paulsens • Contact Details: • Bill Beament – Managing Director +61 8 6188 2100 • Email – [email protected] • Website – www.nsrltd.com
Slide 19: Appendix
Appendix Measured Indicated Inferred Total Proven Probable Total Tonne Tonne Tonne Tonne For personal use only 30 Jun 2012 Grade Grade Grade Grade Oz Au s s s s 31 December 2011 Tonnes Grade Tonnes Grade Tonnes Grade Oz Au (g/t) (g/t) (g/t) (g/t) (,000) (,000) (,000) (,000) (,000) (,000) (g/t) (,000
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