Northern Star Resources Ltd · ASX:NST
Northern Star Resources — BMO Conference 2015
23 slides from Northern Star Resources's conference presentation, Feb 23, 2015
Slide 1: Northern Star Resources BMO Conference
For personal use only Northern Star Resources BMO Conference An Australian gold miner – for global investors February 2015
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 For personal use only Production of 550-600,000ozpa; Market cap US$936M (A$1.2B) (592M shares) at US$1.56 (A$2.00) FY2015 AISC ~US$820-US$860/oz (A$1,050-A$1,100/oz) Five operating mines, all in Western Australia Grown fr
Slide 4: 550-600koz production from five world-class gold camps
550-600koz production from five world-class gold camps NST has five world-class production For personal use only centres that have produced Paulsens & Ashburton cumulatively over +20Mozs to date Operations +3Moz Gold Camp The goal in FY2015 is to realise the Plutonic Mine potential of these deposits
Slide 5: Financial Highlights for the Half Year to Dec 2014
Financial Highlights for the Half Year to 31 Dec 2014 Sales revenue: US$321.4m (A$412.1m) For personal use only Net Profit after tax: US$39.8m (A$51m) including one offs of acquisition costs of US$5.6m (A$7.2m) & restructure costs of US$3.1m (A$4m) Cash flow from operations of: US$100.3m (A$128.7m)
Slide 6: A global mid-cap gold miner
A global mid-cap gold miner NST has a proud history of outperformance through value adding M&A, operational performance, exploration success and paying dividends to Shareholders For personal use only Dividends are a key focus for NST 6
Slide 7: A business first and a mining company second
A business first and a mining company second NST has averaged a Return on Equity of over 30% for the last five years and the Company has a consistent history of paying dividends to Shareholders For personal use only NST has delivered operating free cash flow of over US$82.7m (A$106m) in the first ha
Slide 8: Well on the way to replicating the success of Paulsens
Well on the way to replicating the success of Paulsens NST is well positioned to replicate the success achieved at Paulsens in coming quarters For personal use only Paulsens Purchased the mine in July 2010 and paid back in seven months In the first two years of ownership, taken a six month mine life
Slide 9: 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 592M 4.2M BILL BEAMENT Managing Director (Mining Engineer) * As at 16 February 2015 Non-Executive Chairman – Independent CHRIS ROWE (Barrister and Solicitor) Share price:
Slide 10: 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 US$44.5M (A$57M) to Shareholders since July 2010 ASX-listed produc
Slide 11: It's all about mine life extension
It’s all about mine life extension Our five assets have produced +20M For personal use only ounces to date and at current production levels of 600kozpa it is the equivalent of a 3% reserve depletion Aggressive group exploration/drilling budget of US$40m (A$50M) this calendar year This reflects our s
Slide 12: US$40m exploration plan already paying dividends
US$40m exploration plan already paying dividends 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
Slide 13: Kundana: a corridor of riches
Kundana: a corridor of riches FY2015 guidance 100,000-110,000oz at AISC of US$625-US$663/oz (A$800-A$850/oz), Dec 2014 Qtr For personal use only 30koz at AISC US$493/oz (A$632/oz) Comprises 3 producing deposits: Raleigh, Rubicon and Hornet Also hosts the rich Pegasus discovery due to be in full prod
Slide 14: Pegasus: A case study in Return on Invested Capital
Pegasus: A case study in Return on Invested Capital Stage 1 mining of the recently defined Pegasus deposit represents a return of invested capital of 500% to NST For personal use only Pegasus offers significant growth potential, resource of 1.1Moz @ 11.6gpt, discovered 24 months ago Pegasus set for
Slide 15: Millennium: a new discovery at Kundana
Millennium: a new discovery at Kundana High-grade “Millennium” discovery made on NST’s 100% owned tenements at Kundana Project For personal use only Millennium has so far been defined over a 500m strike and remains open to the north and at depth Located immediately adjacent to dormant South/Centenar
Slide 16: Jundee: still one of Australia's best mines
Jundee: still one of Australia’s best mines Purchased from Newmont for US$64.3M (A$82.5M) For personal use only First production in 1995; consistent production with 6.1Moz to date Free cash flow generation of US$1.01B (A$1.3B) in past five years Two resource updates in the past six months, now 1.15M
Slide 17: Jundee: still one of Australia's best mines
Jundee: still one of Australia’s best mines Latest Feb 2015 released Resource update doesn’t include numerous significant drill results For personal use only In-mine drilling is focused on depth extensions, unmined east-west structures and known in-fill areas 17 Page 17
Slide 18: Plutonic: years young
Plutonic: 24 years young First production in 1990; consistent production with 5.3Moz to date For personal use only Tier One infrastructure; replacement cost US$195M (A$250M) FY2015 guidance 100,000-110,000oz at AISC of US$975- US$1,014/oz (A$1,250- A$1,300/oz) Resources of 1.45Moz, supporting 5-7 ye
Slide 19: Kanowna Belle: a great Goldfields address
Kanowna Belle: a great Goldfields address First production in 1994; total production of For personal use only 4.8Moz (Dec 2013), consistent production FY2015 guidance 80,000-85,000ozpa at AISC of US$860-US$897/oz (A$1,100-A$1,150/oz) Resources 1.1Moz at 4.4gpt Key opportunities have quickly develope
Slide 20: Paulsens: the cornerstone
Paulsens: the cornerstone First production in 2005; total For personal use only production to date of 700Koz FY2015 guidance 80,000-90,000oz at AISC of US$860-US$897/oz (A$1,100-A$1,150/oz) Resources of +400,000oz, supporting 5 year mine life Significant results recently received from Voyager 2 shou
Slide 21: FY2015 guidance – the growth continues
FY2015 guidance – the growth continues FY2015 Forecast of 550koz to 600koz at an AISC of US$820-US860/oz (A$1,050-$1,100/oz) For personal use only Capital Expenditure of US$78M-US$85.8M (A$100M-A$110M), 95% of which will be spent on sustaining capital and ~US$4M (A$5M) to bring the Pegasus deposit i
Slide 22: 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 ~US$820-US860/oz (A$1,050-1,100/oz)) with robust marg
Slide 23: 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 February 2015