Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Diggers and Dealers Forum 2012
17 slides from Northern Star Resources's conference presentation, Aug 8, 2012
Slide 1: 12,178gpt intersection at Paulsens
For personal use only 12,178gpt intersection at Paulsens • Maiden 2.5c fully‐franked dividend for CY12 (3% yield at 85c) • $65‐85m surplus cash forecast for CY13 • Resources to underpin +5‐year mine life at Paulsens • Clear strategy to grow group production to +200,000ozpa
Slide 2: Disclaimer
Disclaimer For personal use only Competent Persons Statements • The information in this announcement that relates to Paulsens and Mt Olympus mineral resource estimation, exploration results, data quality, geological interpretations, potential for eventual economic extraction and estimates of explora
Slide 3: Team with a track record
Team with a track record For personal use only Shares Options Board ‐ Successful record in discovering and developing mines Total 409M 20M BILL BEAMENT Managing Director (Mining Engineer) * As at July 2012 Non Executive Chairman (Barrister and CHRIS ROWE Solicitor) Share price: $0.96 Non Executive D
Slide 4: Northern Star: an abridged history
Northern Star: an abridged history For personal use only • Acquired Paulsens Gold Mine in WA from Intrepid Mines for $40m in July 2010 • At the time Paulsens had an eight‐ month life based on a mine plan of 45,000oz • Acquisition covered the eight‐month cashflow, the asset was for free, replacement
Slide 5: 2011: the year of transition at Paulsens
2011: the year of transition at Paulsens For personal use only • Repaid full $40m acquisition from cashflow within 7 months • Delivered record operational performance of 87,069oz recovered, 10% better than any previous year • Cash cost $588/oz (inclusive of royalties) and total expenditure cost $742
Slide 6: Paulsens – Productivity Drive
Paulsens – Productivity Drive For personal use only • Changed out Mining and Crushing Contractors with in‐house team (Northern Star Mining Services Division) • Increased our productivity by 43% in ore tonnes mined in the first full year, expect to improve again this year • Dropped total cost per ton
Slide 7: 2012: Strategy pays dividends .. literally
2012: Strategy pays dividends .. literally June Quarter production of 19,000oz at $646/oz (inclusive of royalties) For personal use only • • On track to meet CY12 guidance of 75‐80,000oz and $35m surplus cash (after allowing $15m capex) • Increased Company profit by 57% to $34.1m for FY2012 • EBITDA
Slide 8: Voyager 1: The Paulsens Engine Room
Voyager 1: The Paulsens Engine Room For personal use only • Voyager 1 is the flagship lode at Paulsens and has produced all the gold under NST ownership • Currently mining this lode 550m below surface. Mineralisation drilled to 850m and remains open at depth • Lode runs at a rich 1,250–2,000 ounces
Slide 9: Voyager 2: One of the richest intersections in Australian modern gold history
Voyager 2: One of the richest intersection in Australian modern gold history For personal use only • Voyager 2 was discovered by NST in late 2010; host of stunning drilling results up to 12,178gpt • Voyager 2 begins 650 metres below surface and sits immediately adjacent to Voyager 1 • Maiden resourc
Slide 10: Deep drilling: high-grade hits 325m below current workings
Deep drilling: high‐grade hits 325m below current workings For personal use only • Orebody has yielded 500,000oz over ≈ 400 vertical meters, 7 years of production so far • Deep holes drilled in June to target ore body 400‐500 vertical metres below current workings • Outstanding results first up with
Slide 11: 2013: The year of rising production, falling costs and increasing cashflow
2013: The year of rising production, falling costs and increasing cashflow For personal use only • Key CY2013 forecasts: • Total production of 100‐115koz • Plant capacity expanded by 25% to 450,000tpa • Average blended grade to rise 20% from 7gpt to ~8.5gpt • Cash costs of $610‐690/oz (inclusive of
Slide 12: Exploration: writing the next chapter at Paulsens
Exploration: writing the next chapter at Paulsens For personal use only • Part‐way through $20m exploration program, consistent stream of outstanding results • No other deposit found within 50km radius of Paulsens mine, which is now approaching a 1Moz • Great opportunity as there has been limited re
Slide 13: Gabbro offsets: the gold may be as green on the other side of the fence
Gabbro offsets: the gold may be as green on the other side of the fence For personal use only • Paulsens is bounded by a Gabbro unit, traditionally seen as a ‘fence’ around the orebody • Drilling aimed at testing the theory that the Gabbro unit is broken more than once, allowing quartz and mineralis
Slide 14: Ashburton – a 100,000ozpa stand-alone operation
Ashburton – a 100,000ozpa stand‐alone operation For personal use only • Ashburton Project located within trucking distance of Paulsens • Acquired in June 2011 for zero cash payment; royalty payable on production over 250koz • Oxide open pit operation from 1998 to 2004, produced 340,000oz @ 3.3gpt •
Slide 15: Key reasons to invest in Northern Star
Key reasons to invest in Northern Star For personal use only • Extremely strong cash generation from high‐grade and high‐margin ounces • Growing production to underpin further grow in surplus cash (up to $85 million CY2013) • Sufficient resources to underpin +5 year mine life, with further extension
Slide 16: 12,178gpt intersection at Paulsens
For personal use only 12,178gpt intersection at Paulsens • Contact Details: • Bill Beament – Managing Director +61 8 6188 2100 • Email – [email protected] • Website – www.nsrltd.com
Slide 17: Appendix
Appendix For personal use only Measured Indicated Inferred Total Proven Probable Total 30 Jun 2012 Tonne Tonne Tonn Tonne Grade Grade Grade Grade Oz Au s s es s 31 December 2012 Tonnes Grade Tonnes Grade Tonnes Grade Oz Au (g/t) (g/t) (g/t) (g/t) (,000) (,000) (,000) (,000) (,000) (,000) (g/t) (,000
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