Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Gold Forum Americas 2021
19 slides from Northern Star Resources's conference presentation, Sep 13, 2021
Slide 1: Business First - Gold Forum Americas September 2021
For personal use only Business First Gold Forum Americas September 2021
Slide 2: Forward Looking Statements, Reserves and Resources
Forward Looking Statements, Reserves and Resources Forward Looking Statements For personal use only Northern Star Resources Limited has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completene
Slide 3: Value Creation Strategy
Value Creation Strategy For personal use only RESPONSIBLE PROFITABLE LOWER LONG MINE PREMIUM EESG GROWTH COSTS LIFE VALUATION SUPERIOR SUSTAINABLE SUSTAINABLE SUSTAINABLE SUSTAINABLE SHAREHOLDER NST ~2Mozpa 1st HALF COSTS +20 YEARS RETURNS Net Zero ambition by 3-5 world class Growth in Target +20Moz
Slide 4: EESG Highlights
EESG Highlights Industry leading safety Net Zero ambition for Scope 1 & 2 GHG Emissions by 2050 For personal use only ▪ performance (TRIFR 5.6 and LTIFR 0.9) 2021 2030 Existing technology 2040 Innovation Indicative Scope 1 & 2 Kalgoorlie pathway (t CO2-e) ▪ July 2021 - Net Zero ambition Yandal for S
Slide 5: A simple business - Three large-scale production centres
A simple business - Three large-scale production centres Kalgoorlie to 1.1Mozpa Yandal to 600kozpa Pogo to 300kozpa For personal use only Reserves: 309Mt @ 1.4g/t for 14.4Moz Reserves: 67Mt @ 2.1g/t for 4.5Moz Reserves: 5.9Mt @ 8.0g/t for 1.5Moz Resources: 647Mt @ 1.7g/t for 35.2Moz Resources: 141Mt
Slide 6: Profitable growth generates strong cashflows
Profitable growth generates strong cashflows Group production outlook Profitable production growth to For personal use only Moz US$/oz 2Mozpa 2.0 1,200 ▪ Kalgoorlie to 1.1Mozpa Thousands 1,000 ▪ Yandal to 600kozpa 1.5 800 ▪ Pogo to 300kozpa …where it counts most: 1.0 600 ▪ KCGM increasing to 650koz
Slide 7: FY22 Guidance
FY22 Guidance 1.55-1.65Moz at AISC of US$1,105-1,180/oz; US$430M growth capital For personal use only Gold production AISC Growth capital Exploration Depreciation (koz) (US$/oz) (US$M)* (US$M) (US$/oz) Kalgoorlie 900-950 1,125-1,200 172 Yandal 430-450 1,030-1,105 203 Pogo 220-250 1,275-1,350 55 Grou
Slide 8: Geological endowment - A major value driver
Geological endowment - A major value driver Consolidation of world-class gold systems, exclusively in Tier-1 jurisdictions For personal use only Kalgoorlie Operations Yandal Operations Pogo Operations 160 127 years 30 years 14 years 10.0 production production production 140 9.0 8.0 120 7.0 Reserve g
Slide 9: Kalgoorlie Production Centre - Enviable optionality
Kalgoorlie Production Centre Enviable optionality For personal use only ▪ Simplify the business, divert capital to grow Kalgoorlie production outlook the high margin assets, where it counts koz US$/oz ▪ Reduce costs with regional synergies 1,200 1,600 ▪ Enviable optionality: 1,000 1,200 ▪ Open pit a
Slide 10: KCGM - Open pits get better every day
Kalgoorlie Production Centre KCGM - Open pits get better every day For personal use only ▪ All open pit mining - 17 years from 4 areas: Super Pit cutbacks Reserve Stockpiles ▪ 7.8Moz Reserves targeting conversion of 2.0Moz Inferred Resource within Reserve shell ▪ Strip ratio 10:1 (falls to 7.2:1 inc
Slide 11: KCGM - Fimiston underground; A brand new chapter
Kalgoorlie Production Centre KCGM - Fimiston underground; A brand new chapter For personal use only ▪ KCGM offers world class scale: Fimiston North West drill platform • Endowment 45,000 ounces per vertical metre • Large underground potential - Underground Resource 50Mt @ 2.5 g/t for 4.0Moz just the
Slide 12: KCGM - Processing optionality
Kalgoorlie Production Centre KCGM - Processing optionality For personal use only ▪ As mining increases, the Reserve stockpile value KCGM processing studies becomes increasingly stranded Current Option 1 Option 2 ▪ Evaluating mill expansion options 2 x SAG 2 x SAG 2 x SAG Number of mills ▪ NOT in cur
Slide 13: Yandal
Yandal Production Centre Yandal 600 For personal use only Yandal production outlook ▪ Increase Thunderbox mill (TBO) to 6.0Mtpa; Jundee at 3.0Mtpa koz US$/oz 600 1,200 ▪ Total Yandal milling capacity 9.0Mtpa 500 ▪ Growth underpinned by 4.5Moz Reserves 900 (8 years)… 400 ▪ …plus >10Moz Resources / tr
Slide 14: Uncomplicated expansion
Yandal Production Centre Uncomplicated expansion For personal use only ▪ Increase TBO mill to 6.0Mtpa (US$135M): Thunderbox 6.0Mtpa schematic ▪ New 18MW mill and classification circuit ▪ New leach tanks, elution and gold room upgrades ▪ New tailing thickener and tailings pumping ▪ Designed for 100%
Slide 15: On the way to 300kozpa from FY23
Pogo Production Centre On the way to 300kozpa from FY23 For personal use only ▪ High grade operation with large Resource base; Pogo production outlook multiple extensional opportunities in an under- koz US$/oz explored camp-scale district 300 1,600 ▪ FY21 guidance achieved; FY22 production guidance
Slide 16: Balance sheet - Robust and flexible
Balance sheet - Robust and flexible Liquidity Position at 30 June 2021 Disciplined capital allocation: For personal use only ▪ Balance between re-investment (organic / inorganic), dividends, retained earnings 30% As at Financial metrics 30 June 2021 Measure Target Range US$855M 70% Leverage Ratio (N
Slide 17: Capital discipline delivers sector leading growth
Capital discipline delivers sector leading growth For personal use only ▪ Growth capex in line or Growth Capex vs Production Growth Koz less than peers however 1,200 3,000 delivers 3x the production growth 1,000 2,500 rate 800 2,000 ▪ Sustainable growth will deliver lower AISC and 1,500 600 increase
Slide 18: Why Northern Star is a stand-out gold investment
Why Northern Star is a stand-out gold investment For personal use only ▪ Business first - Leveraging operating / technical skills and disciplined capital management to deliver superior shareholder returns ▪ Tier-1 jurisdictions - Exclusively ▪ Capital discipline - Balance between shareholder returns
Slide 19: Northern Star Resources Limited
Northern Star Resources Limited ASX Code: NST For personal use only Business First Investor Enquiries: Troy Irvin Level 1, 388 Hay Street, Subiaco 6008 Western Australia T: +61 8 6188 2100 E: [email protected] W: www.nsrltd.com 19