Northern Star Resources Ltd · ASX:NST
Northern Star Resources — JP Morgan Conference (September 2018)
22 slides from Northern Star Resources's conference presentation, Sep 20, 2018
Slide 1: Northern Star Resources – Growing Against the Tide
For personal use only Northern Star Resources – Growing Against the Tide JP Morgan Conference
Slide 2: Competent Persons Statements
Competent Persons statements Competent Persons Statements The information in this announcement that relates to Mineral Resource estimations, exploration results, data quality and geological interpretations for the Company’s Project areas is based on information compiled by Brook Ekers, For personal
Slide 3: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. For personal use only Not for release to US wire services or distribution in the United States This presentation has been prepared by Northern Star Resources Limited (ACN 092 832 892) ("Company" or "Northern Star" or "NST"). This p
Slide 4: Disclaimer
Disclaimer Limitation on information relating to the Pogo mine and SMM Pogo and SC Pogo All information in this presentation in relation to SMM Pogo and SC Pogo, and the Pogo mine – including in relation to historical production, mineral resources and mineral reserves, historic costs and other histo
Slide 5: Foreign Estimate Footnote & Cautionary Statements & LR 5.23
Foreign Estimate Footnote & Cautionary Statements & LR 5.23 Foreign Estimate Footnote This information is extracted from the ASX announcement titled “Northern Star Acquires Pogo Gold Mine in Alaska dated 30 August 2018" and is available to view at https://www.nsrltd.com/investor-media/news/ or For p
Slide 6: Forward looking statements
Forward looking statements Past performance Past performance and pro-forma financial information given in this document, including in relation to upgrades to resources and reserves, is given for illustrative purposes only and should not be relied upon as (and is not) an For personal use only indicat
Slide 7: Introduction – An Australian listed gold miner with global scale
Introduction – An Australian listed gold miner with global scale ASX 100, top 25 global gold producer with mines in For personal use only Western Australia and North America(1); 850koz- 900koz(2) per annum at an AISC of A$1,050/oz – A$1,150/oz (US$750- US$822/oz)** Market cap is A$5.3B, with a secto
Slide 8: Consistent strategy: Tier-1 assets in Tier-1 locations
Consistent strategy: Tier-1 assets in Tier-1 locations Globally there are only 17 mines producing over 300kozpa in Tier-1 mining jurisdictions (Australia, US and Canada); For personal use only production is declining in these regions due to a lack of discoveries and significant reserve depletion NST
Slide 9: NST continues to deliver best in class returns, globally
NST continues to deliver best in class returns, globally NST continues to deliver best in class financial returns in the global gold industry over 5 years For personal use only 40% 30% GDX 5 Yr Avg Return on Equity 30% 27% GDX 5 Yr Avg Return on Invested Capital 30% 20% 20% 10% 10% 0% 0% Sector Aver
Slide 10: Organic and Inorganic growth - delivering returns to Shareholders
Organic and Inorganic growth - delivering returns to Shareholders This strategy of organic growth has generated over A$4.65B of value for Shareholders since NST’s first gold acquisition in 2010 and only 10% of this value uplift has been from equity raised For personal use only NST has achieved this
Slide 11: Extending Mine Life and Delivery of Guidance – Proven Formula
Extending Mine Life and Delivery of Guidance – Proven Formula Paulsens Gold Mine Jundee Gold Mine Kalgoorlie Operations For personal use only IRR: 148% (historic) IRR: 156% (historic) IRR: 264% (historic) Average AISC: A$1,146/oz Average AISC: A$950/oz Average AISC: A$964/oz 7.4x 5.9x 15.9x Paulsens
Slide 12: Organic growth - the key to our superior returns
Organic growth - the key to our superior returns NST has been able to consistently grow production, resource and reserve life on a per share basis for its For personal use only Shareholders since 2010 and has been our key focus for the past 4 years Reserves increased to 4Moz and Resources to 15.9Moz
Slide 13: Pogo Transaction Summary
Pogo Transaction Summary Acquisition of the high grade 4.1Moz(3) Pogo underground gold mine in Alaska for US$260 million For personal use only Pogo Site Layout Northern Star has agreed to acquire the high grade 4.1Moz Pogo Underground Gold Mine (“Pogo”), located in Alaska, USA, from Sumitomo Metal M
Slide 14: Transaction Benefits for Northern Star
Transaction Benefits for Northern Star Acquisition immediately transforms Northern Star into a ~900kozpa global gold producer with three Tier-1 For personal use only assets all in Tier-1 jurisdictions Pogo Processing Plant ✓ Pogo represents another high grade, low cost, Tier-1 asset in another Tier-
Slide 15: Pogo Acquisition – Consistent with publicly stated 3 Year Vision
Pogo Acquisition – Consistent with publicly stated 3 Year Vision 3 Year Vision A global mid-cap and ASX100 sustainable gold producer focused on superior shareholder value creation For personal use only Establish concentrated centres to maximise Develop functional disciplines and corporate Find new c
Slide 16: Resource and reserve growth potential
Resource and reserve growth potential A significant amount of mineralisation is present outside of the current Pogo resources, there is also considerable mineralisation For personal use only inside the current resources that hasn’t made it into reserves Over the coming 24 months NST will look to inv
Slide 17: Jundee Parallels - Case Study
Jundee Parallels - Case Study NST has identified similarities between Pogo & Jundee, which sets up the value creation template for Pogo For personal use only A Jundee Analogue? Demonstrated Ability to Extend Life at Underground Gold Mines Northern Star has a proven track record of Jundee Historical
Slide 18: Jundee Operations- going from strength to strength
Jundee Operations- going from strength to strength FY2018: 285koz sold, at an AISC For personal use only of A$870/oz(1) Resources up 31% to 4.3Moz and Reserves up 14% to 1.6Moz(1) FY2019: Guidance 280,000- 300,000oz at an AISC of A$895- A$980/oz(2) Plant upgrade delivered 2Mtpa processing capacity U
Slide 19: Kalgoorlie Operations- SKO acquisition adds capacity
Kalgoorlie Operations- SKO acquisition adds capacity FY2018: 262koz sold at an For personal use only AISC of A$1,174/oz(1) Resources of 8.6Moz (including 3.7Moz at SKO) and Reserves of 2.3Moz up 15%(2) FY2019: Guidance 320,000- 340,000oz at an AISC of A$1,140-A$1,250/oz(2) Production growth options
Slide 20: A$60M Exploration and Drilling Commitment
A$60M Exploration and Drilling Commitment A$60M exploration and drilling commitment for FY2019 For personal use only Core focus is Resource conversion across the major production centres We have the assets, the people, the capacity and the funding to grow our mineral inventory 20
Slide 21: Northern Star: Still ticking every box
Northern Star: Still ticking every box World-class financial returns: 27% Return on Equity and 25% Return on Invested Capital in For personal use only Financial year 2018. Underlying free cash flow of A$186M and a 5-year average Total Shareholder Return of 76% World-class assets: 10-year mine life v
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 22
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