Northern Star Resources Ltd · ASX:NST

Northern Star Resources — Technical Presentation (August 2023)

36 slides from Northern Star Resources's technical presentation, Aug 7, 2023

  1. Slide 1: KCGM Site Visit Presentation

    For personal use only KCGM Site Visit Presentation August 2023

  2. Slide 2: Forward Looking Statements, Reserves and Resources

    Forward Looking Statements, Reserves and Resources For personal use only Forward Looking Statements 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

  3. Slide 3: KCGM Operations

    For personal use only KCGM OPERATIONS

  4. Slide 4: Our key global gold asset

    Our key global gold asset For personal use only KCGM % NORTHERN STAR GROUP 100% ownership ALASKA POGO 432koz KCGM 30% AUSTRALIA FY23 Gold Sold YANDAL 28Moz KALGOORLIE KCGM 50% Mineral Resource KALGOORLIE PRODUCTION CENTRE KCGM Carosue Dam 12Moz KCGM 60% Kalgoorlie Ops Ore Reserve 4

  5. Slide 5: Moving KCGM into rare company

    Moving KCGM into rare company For personal use only FY26 FY29 TODAY KCGM PROFITABLE GROWTH PLAN KCGM MILL EXPANSION TOP 10 GLOBAL TOP 5 GLOBAL GOLD MINE1 GOLD MINE1 1,500 1,200 Gold production (koz) Tier-1 900 location Tier-1 Tier-1 location 600 Tier-1 location Tier-1 location Tier-1 location locati

  6. Slide 6: Working at KCGM

    Working at KCGM For personal use only Residential workforce 33% 820 KCGM employees ( 36% Female | 64% Male) (+220 Northern Star Mining Services employees ) Operational 24 hours per day, year round Production shifts are 12 hours Village accommodation solution resolved for mill construction workforce

  7. Slide 7: KCGM asset overview

    KCGM asset overview For personal use only STOCKPILES ORE SOURCES OPEN PIT UNDERGROUND 120Mt @ 0.7g/t Fimiston South Mt Charlotte High grade Oroya Brownhill Fimiston UG Low grade Golden Pike North PROCESS PLANT Capacity Location Fimiston Plant EXISTING 13Mtpa Gidji Plant EXPANSION 27Mtpa Fimiston Pla

  8. Slide 8: Connecting with our Community

    Connecting with our Community For personal use only Working with our local and regional communities to achieve mutually beneficial partnerships and sustainable long-term social benefits  Community & Inclusion  Health & Wellness  Environment  Indigenous Advancement  Education & Development 8

  9. Slide 9: Processing

    For personal use only PROCESSING Positioning for tomorrow

  10. Slide 10: Current process flowsheet: Two locations

    Current process flowsheet: Two locations For personal use only Tailings ROM Gyratory Stockpile SAG Mill Flotation Tail Flotation Tail FIM Tailings Dam Crusher Rougher & Scavenger Thickeners (3) Leach/Adsorption Ball Mills (2) Flotation Gravity Circuits De-slime De-slime Cyclone Flotation CSI Rougher

  11. Slide 11: Post expansion: A modern, simplified plant in one location

    Post expansion: A modern, simplified plant in one location For personal use only Lower unit operating Maximise margin Increased reliability costs across resources Tailings FIM Tailings Dam ROM Gyratory Stockpile SAG Mill Crusher Rougher & Flotation Tail Flotation Tail Scavenger Thickener (New) Leach

  12. Slide 12: KCGM mill expansion highlights

    KCGM mill expansion highlights For personal use only Key operational metrics 3 YR 900kozpa FY29 13Mtpa 27Mtpa build time steady state FY24-FY28 KCGM Gold Sold 1,425/oz A$ Fimiston Processing Plant PLUS YR 2 ramp-up KCGM AISC Post-tax IRR Post-tax Payback Strong Balance Sheet A$2,600/oz gold price A$

  13. Slide 13: Investing to move down the cost curve

    Investing to move down the cost curve… For personal use only 2023 Global Gold Cost Curve 2,250 SUSTAINABLE 1st 2nd 3rd 4th BUSINESS 2,000 Quartile Quartile Quartile Quartile 3–5 1,750 PRODUCTION CENTRES  KCGM TODAY EXPANSION 1,500 KCGM MILL 1.8–2.2Moz  AISC (US$/oz) 1,250 GOLD SOLD 1st Half 1,000

  14. Slide 14: Build schedule and capital cost breakdown

    Build schedule and capital cost breakdown For personal use only Task FY24 FY25 FY26 FY27 FY28 FY29 Engineering and Design Onsite Construction Commissioning Ramp-up Throughput 13Mtpa 13Mtpa 13Mtpa 23Mtpa 25Mtpa 27Mtpa Capital Cost Breakdown (%) FY23 • Major equipment ordered  A$1.5B FY24 FY25 FY26 F

  15. Slide 15: Mill feed source optimisation ongoing

    Mill feed source optimisation ongoing For personal use only Mill Feed Sources  Grade displacement strategy – open pit and 30 underground feed preferentially milled 27Mtpa  Value realisation of historic stockpiles 25  13Mtpa 20  Open pit feed increases with Golden Ore (Mt) 15 Pike North access 13

  16. Slide 16: Pathway to 650kozpa by FY26, then 900kozpa from FY29

    Pathway to 650kozpa by FY26, then 900kozpa from FY29 For personal use only Produced Ounces Pathway to 650kozpa by FY26 1000 900kozpa  KCGM on track to deliver 650kozpa towards 900 800 the Group’s 2Moz profitable growth strategy 700 650kozpa Pathway to 900kozpa by FY29 Ounces (koz) 600 500  Product

  17. Slide 17: Geology

    For personal use only GEOLOGY Opportunity from lower cost base

  18. Slide 18: Well positioned for higher production levels

    Well positioned for higher production levels For personal use only 3 years of drilling 2,167 holes 602,000m drilled OPEN PIT UNDERGROUND STOCKPILES 8.2Moz 1.3Moz 2.7Moz Ore Reserve Ore Reserve Ore Reserves 16.9Moz 8.7Moz Mineral Resource Mineral Resource 18

  19. Slide 19: Optimising long-term feed grade

    Optimising long-term feed grade For personal use only UNDERGROUND RESOURCE 124Mt at 2.2g/t = 8.7Moz 15% IN RESERVES 3.5Moz 5.1Moz 1.3Moz MEASURED INFERRED PROBABLE INDICATED PROVED RESOURCES RESERVES New drill platforms provide future conversion opportunity 19

  20. Slide 20: Opportunity from lower cost base

    Opportunity from lower cost base For personal use only Future KCGM Mill Opportunity Opportunity to Expansion reduce cut-off grade Lower AISC of by 30% within $1,425/oz* existing pit-shell Fimiston Processing Geology Plant Robust cost position Deliver superior shareholder returns Financial Returns 20

  21. Slide 21: A clear multi-year roadmap

    A clear multi-year roadmap For personal use only Resource to Reserve conversion Advancing development areas to provide drilling access and increased mining opportunities $ 41M OF A$ 150M EXPLORATION FY24 GROUP SPEND AT KCGM EXPLORATION GUIDANCE 21

  22. Slide 22: Potential grade displacement opportunities for KCGM

    Potential grade displacement opportunities for KCGM For personal use only  Maiden 1.2Moz Mineral Resource at 1.1g/t defined at “Red Hill”, 3.5km from Kanowna Belle  New discovery “Hercules” less than 30km from KCGM Fimiston Plant, highlights potential that exists across the broader Kalgoorlie regi

  23. Slide 23: Open Pit

    For personal use only OPEN PIT Unlocking future mining areas

  24. Slide 24: KCGM production areas

    KCGM production areas For personal use only  Key mining areas:  Ramp-up to +80Mtpa now complete  Oroya Brownhill (East Wall)  Working on optimisation and efficiencies  Access to Golden Pike North on track (FY24-29)  New 9400 excavator to improve open pit mined  Fimiston South for long-term or

  25. Slide 25: East Wall cutback unlocks superior returns today

    East Wall cutback unlocks superior returns today… For personal use only  Material movement of 80-100Mtpa 12 Strip Ratio  FY23: 83Mtpa  FY24: 85-95Mtpa peak material movement 8  FY25: 80-90Mtpa 4  FY26: 80-90Mtpa  Reduced Life of Mine strip ratio to 6:1, from 9:1 0 (including Inferred) due to a

  26. Slide 26: and unlocks future pit working areas

    …and unlocks future pit working areas For personal use only  Well positioned to increase open pit volumes to feed mill expansion  Large benches provide flexibility and higher productivities  Further optimisation of Fimiston South to bring forward open pit high- grade ore 26

  27. Slide 27: Underground

    For personal use only UNDERGROUND Developing a world class underground

  28. Slide 28: Underground Resource and Reserve growth

    Underground Resource and Reserve growth For personal use only KCGM Underground Resources 10 8 Ounces (Moz) 6 4 2 0 FY20 FY21 FY22 FY23 Mt Charlotte Fimiston UG KCGM (MTC) Underground Reserves 4 3 Ounces (Moz) 2 1 +10% YoY increase Exploration success enables Underground Mineral Resource 0 and Ore Re

  29. Slide 29: KCGM underground production growth

    KCGM underground production growth For personal use only  Mt Charlotte continues to demonstrate strong KCGM Underground Ore Tonnes 7.0 growth in underground productivity 6.0 (FY23: 1.9Mt ore) 5.0  Priority for mill feed as part of grade displacement Tonnes (Mt) strategy (underground grade 2.0g/t v

  30. Slide 30: Two distinct future underground mining areas

    Two distinct future underground mining areas For personal use only Mt Charlotte and Fimiston UG are distinct underground systems, with a separate decline and associated infrastructure (ventilation, dewatering, power)  Mt Charlotte: ore hauled via Sam Pearce decline  Mt Ferrum:  350koz Mineral Res

  31. Slide 31: Northern Star Mining Services: a strategic advantage

    Northern Star Mining Services: a strategic advantage For personal use only  Our internal underground mining services provider  Commenced at KCGM in November 2020, with immediate productivity improvements realised  Highlights:  June 2023 PD 263 longhole 13,294m (vs industry average 5,000-6,500m)

  32. Slide 32: In Conclusion

    For personal use only IN CONCLUSION

  33. Slide 33: Greater organic future returns

    Greater organic future returns For personal use only KCGM KCGM KCGM Short Term Medium Term Long Term FY26 Growth Strategy Mill Expansion Project District Opportunity Production growth Lower AISC Exploration 432kozpa to 650kozpa 1st half global gold cost curve Underground and regional New fleet deliv

  34. Slide 34: KCGM: The most prominent gold address in Australia

    KCGM: The most prominent gold address in Australia For personal use only  KCGM is a world-class asset that is significantly growing  Continued outstanding long-term geological potential  FY24 guidance:  Planned major mill shut schedule in 1Q and 3Q KCGM, CDO and Kal Ops  1H < 2H (increasing gra

  35. Slide 35: FY24 Group guidance

    FY24 Group guidance For personal use only FY24 GUIDANCE UNITS KALGOORLIE YANDAL POGO TOTAL* Gold Sold koz 820 - 900 520 - 570 260 - 280 1,600 - 1,750 AISC A$/oz 1,730 - 1,780 1,655 - 1,700 1,900 - 2,015 1,730 - 1,790 (US$1,270-1,350) Growth Capital Expenditure A$M 890 - 960 205 - 225 52 - 60 1,150 -

  36. Slide 36: Delivering on our clearly defined strategy

    Delivering on our clearly defined strategy For personal use only Our Purpose To generate superior returns for our shareholders, while providing positive benefits for our stakeholders, through operational effectiveness, exploration and active portfolio management Generate superior returns Strong cash

Northern Star Resources — Technical Presentation (August 2023) on 6ix