Northern Star Resources Ltd · ASX:NST
Northern Star Resources — BMO Conference February 2019
19 slides from Northern Star Resources's conference presentation, Feb 26, 2019
Slide 1: An Australian gold miner - for global investors
For personal use only An Australian gold miner - for global investors BMO Conference - February 2019
Slide 2: Resources & Reserves and Forward Looking Statements
Resources & Reserves and Forward Looking Statements For personal use only Mineral Resources and Ore Reserves The Mineral Resources information in this presentation is extracted from the reports entitled “Reserve and Resource Update and Corporate Outlook” dated 2 August 2018, “Pogo JORC Resource” dat
Slide 3: An Australian listed gold miner with global scale
An Australian listed gold miner with global scale ▪ ASX 100, top 25 global gold producer For personal use only with mines in Western Australia and North America; FY2019 guidance 850koz-900koz per annum at an AISC of A$1,125/oz – A$1,225/oz (US$798- US$869/oz)* ▪ Market cap is A$6.1B with a sector- P
Slide 4: 1H FY2019 – Key Financial Highlights
1H FY2019 – Key Financial Highlights For personal use only Cash flow from Underlying net profit Interim dividend up operating activities up of A$89.1M up 11% 33% from pcp to A6¢ 33% to A$169M on on pcp (fully-franked) pcp Strong Balance 18% Return on Equity EBITDA of A$221.8M Sheet; Cash, Bullion an
Slide 5: NST continues to generate favourable ROE, ROIC and EBITDA margin
NST continues to generate favourable ROE, ROIC and EBITDA margin For personal use only Average Annualised Return on Equity ▪ For the past five years NST has delivered an 50% average annualised Return on Equity (ROE) of 42% 43% 39% 34% versus the GDX sector average of -2.9% 40% 37% NST 5yr Average 34
Slide 6: Consistent with strategy: Tier-1 assets, Tier-1 locations
Consistent with strategy: Tier-1 assets, Tier-1 locations ▪ Globally there are only 17 mines producing over 300kozpa in Tier-1 mining jurisdictions (Australia, For personal use only US and Canada); production is declining in these regions due to a lack of discoveries and significant reserve depletio
Slide 7: Delivering Reserve and Resource Growth per share
Delivering Reserve and Resource Growth per share ▪ Through value accretive organic and inorganic growth NST has been able to successfully grow For personal use only Resource and Reserve life on a per share basis for its Shareholders ▪ In 1H19 NST announced an updated JORC Group Resource including th
Slide 8: Value Creation – delivering returns to Shareholders
Value Creation – delivering returns to Shareholders ▪ NST’s strategy of balancing organic growth with well executed M&A has generated over A$5.7B For personal use only of value for Shareholders since the first acquisition in 2010 and <10% of this value uplift has been from equity raised ▪ This strat
Slide 9: Operations
For personal use only Operations
Slide 10: Pogo transaction summary
Pogo transaction summary ▪ Acquired the high grade Pogo Underground Gold Mine in Alaska, USA for A$351M 1 in Sep-2018 ▪ Immediately transformed Northern Star into a ~900kozpa global gold producer with three Tier-1 assets all in For personal use only Tier-1 jurisdictions, aligns to stated strategy an
Slide 11: Pogo showing Resource and Reserve growth potential
Pogo showing Resource and Reserve growth potential ▪ Recent Resource extension and infill drilling has returned exceptional results which point to a significant increase For personal use only in the existing JORC Resource of 4.15Moz and bodes well for a substantial maiden JORC Reserve in mid-2019 ▪
Slide 12: Jundee Operations – going from strength to strength
Jundee Operations – going from strength to strength For personal use only ▪ A significant FY2018: 285koz sold, at an AISC of A$870/oz1 ▪ Resources up 31% to 4.3Moz and Reserves up 14% to 1.6Moz1 ▪ FY2019: Guidance 280,000-300,000oz at an AISC of A$895- A$980/oz ▪ Plant upgrade delivered 2Mtpa proces
Slide 13: Kalgoorlie Operations – SKO adds capacity
Kalgoorlie Operations – SKO adds capacity For personal use only ▪ FY2018: 262koz sold at an AISC of A$1,174/oz1 ▪ Resources of 8.6Moz (including 3.7Moz at SKO) and Reserves of 2.3Moz up 15% ▪ FY2019: Guidance 320,000-340,000oz at an AISC of A$1,190- A$1,300/oz ▪ Production growth options from Kundan
Slide 14: A$75-80M Exploration and Drilling Commitment
A$75-80M Exploration and Drilling Commitment ▪ A$75-80M 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 14
Slide 15: Environmental, Social and Governance Values are core at NST
Environmental, Social and Governance Values are core at NST For personal use only Environmental Compliance Transparency • Zero significant incidents or regulator fines Climate Change • Portfolio of assets in good standing • Inaugural sustainability report FY17 • Effective risk management • Sustainab
Slide 16: Northern Star investing in its people – a strategic advantage
Northern Star investing in its people – a strategic advantage ▪ NST is investing A$50M over the next 10 years to For personal use only continue expanding our specialist underground mining, geology and processing capability ▪ Key areas of investment include training, education, research and implement
Slide 17: Northern Star Resources Limited
For personal use only Northern Star Resources Limited ASX Code: NST An Australian mid cap gold miner – for global investors Investor Enquiries: Luke Gleeson, Investor Relations Level 1, 388 Hay Street, Subiaco 6008 Western Australia T: +61 8 6188 2100 E: [email protected] W: www.nsrltd.com Inventum 3D
Slide 18: Appendix
For personal use only Appendix
Slide 19: Acquiring a world class asset and a significant capital investment into the Australian Operations in 1H19
Acquiring a world class asset and a significant capital investment into the Australian Operations in 1H19 For personal use only ▪ Whilst acquiring the world class Pogo Operation in 1H19 for A$351M1, NST has also invested heavily into organic growth with an additional A$36M investment into its Austra
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