Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Denver Gold Forum (September 2015)
25 slides from Northern Star Resources's conference presentation, Sep 22, 2015
Slide 1: Northern Star Resources
For personal use only Northern Star Resources An Australian gold miner – for global investors September 2015
Slide 2: Disclaimer: Competent Persons Statements
Disclaimer Competent Persons Statements The information in this announcement that relates to exploration results, data quality, geological interpretations and Mineral Resource estimations for the Company’s Kanowna, EKJV, Kundana and Carbine Project areas is based on information compiled by Darren Co
Slide 3: Introduction - Third biggest Australian listed Gold Miner
Introduction - Third biggest Australian listed Gold Miner We are the third-biggest gold miner on the Australian stock exchange by both For personal use only market cap and production. Paulsens & Ashburton Tanami Project Market cap is US$1B (A$1.3B) and we Operations +5Moz Gold Camp +3Moz Gold Camp a
Slide 4: Why invest in Northern Star
Why invest in Northern Star Highly profitable: underlying net profit US$76m in FY15; underlying free cashflow US$130m; total dividend of US3.5c For personal use only Strong balance sheet: no debt; US$125m in cash, bullion and investments Emphasis on shareholders: TSR 227% past five years & return on
Slide 5: A business first and a mining company second
A business first and a mining company second The Company has averaged a Return on Equity of 43% per annum for the last 5 years whilst acquiring world class mines For personal use only Generated a record US$130M underlying free cash flow in FY15, increased dividend by 43% in FY15 to US3.5cps Grown pr
Slide 6: Efficiently Allocating Capital – Organically & Inorganically
Efficiently Allocating Capital – Organically & Inorganically NST has averaged a Return on Invested Capital of 29% through a combination of organic and inorganic value adding growth; through the acquisition of low-cost, world class gold mines For personal use only Across the portfolio of assets NST t
Slide 7: FY2015 - Key Highlights
FY2015 - Key Highlights Key Operational Outcomes For personal use only Gold Mined Gold Poured/Sold AISC decreased by increased by 154% increased by 177% 3% to US$745/oz to 622koz to 581koz Key Resource Outcomes Measured and Total Resources 2.7Moz addition to Indicated Resources increased by 44% Reso
Slide 8: Financial Highlights for the FY2015
Financial Highlights for the FY2015 Sales revenue: US$592m up 185% on FY14 For personal use only Underlying Net Profit: US$76m up 198%, including one offs of acquisition costs US$9m and restructuring expenses of US$2.9m for a statutory net profit after tax of US$64m Underlying EBITDA of US$232m up 2
Slide 9: FY2016: Production and cost guidance
FY2016: Production and cost guidance Key FY2016 forecasts: For personal use only Total gold production of 535,000-570,000oz All-in sustaining costs of US$735-770/oz (A$1,050-1,100/oz) US$52M to be spent on Investing Capital for FY16 following on from the great successes in FY15, including; U
Slide 10: Group Production Growing Next Year
Group Production Growing Next Year Group production potentially growing organically next year, heading to a 700koz per annum producer in FY18, For personal use only subject to the following assumptions; Central Tanami Project commencing production in calendar year 2017 and ramping up to +75kozpa b
Slide 11: Jundee: still one of Australia's best mines
Jundee: still one of Australia’s best mines Purchased from Newmont for US$70 million, settled in July 2014 For personal use only FY2015 gold sold 223,727oz at an AISC of US$705/oz, well above guidance FY2016 guidance 210,000-220,000oz at AISC of US$700-735/oz Resources 1.35Moz, up 166% and Reserves
Slide 12: Kundana: A corridor of riches
Kundana: A corridor of riches Part of the 2nd purchase from Barrick Gold for US$52.5 million, settled 1 March 2014 FY2015 gold sold 103,051oz at an AISC of US$497/oz, within guidance For personal use only FY2016 guidance 100,000-110,000oz at AISC of US$595-US$630/oz Resources 1.6Moz, up 134% and Res
Slide 13: Kanowna Belle: A great Goldfields address
Kanowna Belle: A great Goldfields address Part of the 2nd purchase from Barrick Gold for US$52.5 million, settled 1 March 2014 For personal use only FY2015 gold sold 96,223oz at an AISC of US$740/oz, well above guidance FY2016 guidance 80,000-85,000oz at AISC of US$760- 800/oz Resources 1.2Moz, up 8
Slide 14: Plutonic: Rebuilding the Mine
Plutonic: Rebuilding the Mine Purchased from Barrick Gold for US$17.5 million, settled February 2014 For personal use only FY2015 gold sold 80,141oz at an AISC of US$1,085/oz FY2016 guidance 75,000-80,000oz at AISC of US$945- $980/oz Resources 1.5Moz, up 2% and Reserves 0.2Moz, up 34% after mining 9
Slide 15: Paulsens: The Founding asset
Paulsens: The Founding asset FY2015 gold sold 77,642oz at an AISC of US$884/oz For personal use only FY2016 guidance 70,000-75,000oz at AISC of US$820- US$860/oz Resources 0.4Moz, up 7% and Reserves 0.1Moz, after mining 76koz in FY15 Pipeline of additional feed; Low grade stockpiles, Belvedere and P
Slide 16: Central Tanami Project: Next round of production growth
Central Tanami Project: Next round of production growth Northern Star has now settled its six mine, a JV on the 2.7Moz Central Tanami Project with Tanami Gold NL* For personal use only Historically produced 2.1Moz from top 125m, last major production was from Newmont in 2005 when it produced 610,000
Slide 17: Why invest in Northern Star
Why invest in Northern Star Highly profitable: underlying net profit US$76m in FY15; underlying free cashflow US$130m; total dividend of US3.5c For personal use only Strong balance sheet: no debt; US$125m in cash, bullion and investments Emphasis on shareholders: TSR 227% past five years & return on
Slide 18: Northern Star Resources: Contact Details
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 September 2015
Slide 19: 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 600M 4.3M BILL BEAMENT Managing Director (Mining Engineer) * As at 21 September 2015 Non-Executive Chairman – Independent CHRIS ROWE (Barrister and Solicitor) Share price
Slide 20: FY2015 Resources (Part 1)
FY2015 Resources (Part 1) For personal use only 20
Slide 21: FY2015 Resources (Part 2)
FY2015 Resources (Part 2) MINERAL RESOURCES As at 30 June 2015 MEASURED INDICATED INFERRED TOTAL RESOURCES For personal use only Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Based on attributable ounces Au (000's) (gpt) (000's) (000's) (gpt) (000's) (000's) (gpt) (
Slide 22: FY2015 Resources (Part 3)
FY2015 Resources (Part 3) MINERAL RESOURCES As at 30 June 2015 MEASURED INDICATED INFERRED TOTAL RESOURCES For personal use only Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Based on attributable ounces Au (000's) (gpt) (000's) (000's) (gpt) (000's) (000's) (gpt) (
Slide 23: FY2015 Reserves (Part 1)
FY2015 Reserves (Part 1) ORE RESERVES For personal use only As at 30 June 2015 PROVED PROBABLE TOTAL RESERVES Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Based on attributable ounces Au (000's) (gpt) (000's) (000's) (gpt) (000's) (000's) (gpt) (000's) PAULSENS GOLD PROJECT Undergroun
Slide 24: FY2015 Reserves (Part 2)
Zone 19 : Baltic 26 6.2 5 3 3.9 0 29 6.0 6 Zone 61 : Caribbean 69 5.4 12 104 4.6 15 173 4.9 28 Zone 124 : Spur - Area 134 87 6.0 17 40 7.3 9 128 6.4 26 FY2015 Reserves (Part 2) Zone 124 : Cortez - Med - Adr Zone 124 North : Pacific 11 0 8.4 11.2 3 0 17 49 4.7 8.5 3 14 28 50 6.1 8.5 6 14 Zone 124 Nor
Slide 25: FY2015 Reserves (Part 3)
East Kundana Joint Venture (EKJV) Underground FY2015 Reserves (Part 3) Raleigh (50%) Rubicon / Hornet (51%) 89 107 13.1 10.2 38 35 17 180 10.6 7.3 6 42 106 287 12.7 8.4 43 77 Pegasus (51%) 3 4.8 0 1,219 7.9 310 1,222 7.9 310 Stockpiles 49 8.4 13 49 8.4 13 ORE RESERVES Subtotal EKJV 248 10.8 86 1,416
Northern Star Resources — Denver Gold Forum (September 2015) on 6ix