Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Gold Forum Americas 2020
23 slides from Northern Star Resources's conference presentation, Sep 21, 2020
Slide 1: An Australian Gold Miner, For Global Investors
For personal use only An Australian Gold Miner, For Global Investors Gold Forum Americas 2020
Slide 2: Resources & Reserves and Forward Looking Statements
Resources & Reserves and Forward Looking Statements Mineral Resources and Ore Reserves For personal use only The Mineral Resources, Ore Reserves and exploration results information reported in accordance with the 2012 edition of the Joint Ore Reserves Committee’s Australasian Code for Reporting of M
Slide 3: NST Business: Tier-1 Assets in Tier-1 Locations
NST Business: Tier-1 Assets in Tier-1 Locations ▪ ASX listed; Top 15 Global Gold Producer For personal use only ▪ NST manages a simplified business; with 4 US large scale Tier-1 assets in Tier-1 locations Pogo Operations (100%) (Alaska) +11Moz Gold Camp ▪ Market cap is US$7.7B with a robust balance
Slide 4: Corporate Overview
Corporate Overview Key Metrics (ASX:NST) For personal use only Market Capitalisation US$7.7B (A$11B) Hedging 526koz @ A$2,085/oz Cash and Bullion1 US$540M Safety - LTIFR 0.5 (vs Industry Average 2.1) Debt1 US$490M Mineral Resources2 31.8Moz @ 2.6gpt Major Index Inclusion ASX100, GDX/GDXJ, MSCI Ore R
Slide 5: Integrated Sustainability - Core business alignment
Integrated Sustainability - Core business alignment Our Sustainability Vision For personal use only “Delivering responsible environmental and social business practice that lead to both the creation of strong economic returns for our Shareholders, and shared value for our Stakeholders.” Our Sustainab
Slide 6: Thinking gold? Think proven sector leading returns
Thinking gold? Think proven sector leading returns 30 10 Year Average ROIC For personal use only ▪ NST operates by the core 20 focus of being a business 10 first and a mining company GDX 10Yr Ave. % second 0 -10 ▪ NST 10-Year average ROIC -20 +24%, ROE +28%, both strongly outperforming the -30 North
Slide 7: Consistent Resource and Reserve Growth
Consistent Resource and Reserve Growth ▪ Through value accretive organic and inorganic growth NST has For personal use only been able to significantly and consistently grow Resource and 35 Reserve life on a per share basis for its Shareholders 10.8 Mozs 12,000 31.8 Mozs ▪ FY20 Mineral Resources incr
Slide 8: Low capital intensity production growth
Low capital intensity production growth ▪ Annual production set to increase by 40% to 1.25Moz and costs to decrease by 10% over the next For personal use only 3 years ▪ This significant production growth is achieved with one of the lowest capital intensity's in the industry, with capex spend estimat
Slide 9: Dividends; increasing returns to Shareholders
Dividends; increasing returns to Shareholders For personal use only ▪ FY20 payout up 100% to A27.0cps full franked (A$144M) 536 ▪ Dividend policy targeting approximately 6% of Cumulative dividends (A$M) revenue cents per share (cps) ▪ Dividends set to increase substantially with growing production a
Slide 10: Proven Value Generation
Proven Value Generation $10,259 $10,996 NST’s strategy of balancing organic growth with For personal use only ▪ well executed M&A has generated over A$10.2B (US$7.2B) of value for Shareholders since the first acquisition in 2010 ▪ This strategy has been achieved through operational excellence, inves
Slide 11: FY21 Guidance
FY21 Guidance For personal use only FY21 Guidance Production (koz) AISC (US$/oz) Growth Capex (US$M) Yandal Operations 270 - 300 840 - 890 26 Kalgoorlie Operations 270 - 300 1,155 - 1,225 8 KCGM (50%) 220 - 240 1,030 - 1,100 70 Pogo Operations (US) 180 - 220 1,200 - 1,400 35 GROUP PRODUCTION 940 - 1
Slide 12: Operations
For personal use only Operations
Slide 13: Kalgoorlie "Super Pit" - KCGM Overview (NST 50%)
Kalgoorlie “Super Pit” - KCGM Overview (NST 50%) ▪ US$775M acquisition of 50% KCGM was completed early January 2020 For personal use only ▪ Strong platform set for growth, with 15-year mine life visibility based on Reserves, with production set to ramp up to +675koz per annum by FY28 ▪ Successful tr
Slide 14: KCGM Fimiston Super Pit
KCGM Fimiston Super Pit ▪ Long-life robust plan that delivers 15yrs based on current For personal use only Reserves of 9.7Moz (100%) ▪ Revised mine plan developed has increased the mining areas from two to three: ▪ Golden Pike ▪ Morrison ▪ Oroya Brownhill (OBH) ▪ A fourth area (Fimiston South) is sc
Slide 15: Fimiston Open Pit Growth Potential
Fimiston Open Pit Growth Potential ▪ Historical drilling and drilling completed since the new JV ownership demonstrates significant For personal use only upside potential both within and outside of the current Resource optimisation FIMISTON CROSS SECTION A-B 47,800mN A B ABOVE: Plan view of Fimiston
Slide 16: Fimiston Underground
Fimiston Underground ▪ Deep drilling beneath the June 2020 Open Pit Resource demonstrates the continuity of Fimiston mineralisation at depth, providing future underground targets For personal use only FIMISTON LONG SECTION FIMISTON CROSS SECTION 47,500mN 47,500mN ABOVE: Long projection of the Fimist
Slide 17: Yandal Operation - Growing to 400kozpa
Yandal Operation - Growing to 400kozpa ▪ Yandal Operation has been “recreated” with Jundee and For personal use only Bronzewing as the primary ore sources ▪ Addition of Bronzewing grows Yandal production to 400kozpa in 3 years time ▪ Production growth backed by Resources of 6.9Moz and Reserves of 2.
Slide 18: Pogo - Pathway to 300kozpa
Pogo - Pathway to 300kozpa ▪ Pogo is a world-class 11Moz gold endowment, that has produced For personal use only in-excess of 4Moz at an average grade of over 12gpt ▪ It has one of the world’s highest Resource grades of an orebody greater than 5Moz, with an existing Resource of 6.7Moz at 9.8gpt and
Slide 19: Kalgoorlie Operations - Great leverage to gold price
Kalgoorlie Operations - Great leverage to gold price ▪ FY20 gold sold was 317,248oz at AISC of For personal use only US$1,095/oz; delivering significant free KANOWNA cashflow BELLE PLANT 2.0Mtpa Processing facility ▪ FY21 production guidance of 270,000oz- 300,000oz at an AISC of US$1,155- US$1,225/o
Slide 20: NST - Set another world development record
NST - Set another world development record ▪ In the month of March 2020 a single jumbo For personal use only achieved a world record of 1,033.4 metres (~3,400 feet) of lateral development at our Kalgoorlie Operations ▪ This machine also completed all the ground support for the 1,033.4 metres of deve
Slide 21: Northern Star Resources Limited
For personal use only Northern Star Resources Limited ASX Code: NST An Australian gold miner – for global investors Investor Enquiries: Kurt Walker Level 1, 388 Hay Street, Subiaco 6008 Western Australia T: +61 8 6188 2100 E: [email protected] W: www.nsrltd.com Inventum 3D Page Links click here 21
Slide 22: Pogo - an emerging camp scale system
Pogo - an emerging camp scale system GOODPASTER CENTRAL POGO MINE AREA SOUTHERN EXTENSIONS For personal use only Gold Produced to Jun-2019: ~4.2Moz Discovery potential Resource 0.5Moz 2020 Resource: 5.7Moz Hill 4021 2020 Reserve: 1.5Moz 2019 Resource: 0.5Moz Inadequately Tested Not Tested Inadequate
Slide 23: Goodpaster - New discovery, a Pogo analogue?
Goodpaster - New discovery, a Pogo analogue? ▪ The Goodpaster discovery For personal use only extends over 2.3km along strike and remains open in every direction ▪ The current Goodpaster interpretation consists of a series of stacked lodes with 3 lodes identified to date ▪ NST is investing A$25M acr