Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Denver Gold Forum 2017
23 slides from Northern Star Resources's conference presentation, Sep 25, 2017
Slide 1: An Australian gold miner – for global investors
For personal use only An Australian gold miner – for global investors Denver Gold Forum - September 2017
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 Project areas is based on information compiled by Darren Cooke, a Competent Person who is a Me
Slide 3: WA Gold Royalty Increase – There must be a better way
WA Gold Royalty Increase – There must be a better way • The WA Labor Government wants to increase the royalty For personal use only rate on WA gold production by 50%; from 2.5% to 3.75% • The proposed increase would see gold miners paying an extra $392 million in royalties over the next 4 years • 15
Slide 4: Introduction – Globally Relevant Gold Miner
Introduction – Globally Relevant Gold Miner ASX 100, top 25 global gold producer with all mines in Western Australia; ~550koz per annum For personal use only at an AISC of ~A$1,025/oz* (US$770/oz) Paulsens Operations +3Moz Gold Camp Central Tanami Project +5Moz Gold Camp Market cap is A$3B, with a s
Slide 5: A business first, mining is how we deliver value
A business first, mining is how we deliver value NST is delivering best in class returns when compared to its peers in the GDX global gold miners index For personal use only 5yr Peer Average -1.9% 5yr Peer Average -3.1% Efficiently allocating Shareholders’ capital Consistently generating returns to
Slide 6: Continue to grow profitability and returns to Shareholders
Continue to grow profitability and returns to Shareholders Since 2014, NST has been able to consistently grow earnings and payouts to Shareholders in dividends For personal use only Dividends to Shareholders have grown by over 260% since 2012; FY2017 sees a full year payout of A9¢ NPAT up 42% in FY2
Slide 7: 2014 to 2017: The consolidation of world class gold camps
2014 to 2017: The consolidation of world class gold camps For personal use only Since acquiring assets in 2010, NST has invested +A$200M in exploration with significant success in growing the Resource/Reserves and mine lives Now have 10-year mine life visibility at our Jundee and Kalgoorlie Operatio
Slide 8: Bucking the global trend: Margins rising and CAPEX falling
Bucking the global trend: Margins rising and CAPEX falling For the past 3 years, NST has invested back into the business A$250M in exploration and expansionary capital For personal use only with significant success; now CAPEX is falling and financial benefits are rising The business is now well posi
Slide 9: Growth around our WA Assets has been the core focus
Growth around our WA Assets has been the core focus Globally there are only 23 mines producing over 300kozpa in Tier 1 mining jurisdictions; production is declining in these regions due to a lack of discoveries and significant Reserve depletion For personal use only NST has two mines that will short
Slide 10: Organic growth strategy: CAPEX now falling and benefits rising
Organic growth strategy: CAPEX now falling and benefits rising FY2018: Guidance 525,000-575,000oz 800 NST 10 Year Production Profile For personal use only at an AISC of A$1,000-A$1,050/oz, Paulsens Revitalisation (US$750-US$787/oz); expansionary 700 CTP Redevelopment CAPEX A$65M, followed by A$60M i
Slide 11: Jundee: Restored to world class status
Jundee: Restored to world class status FY2018 Guidance 245,000-265,000oz For personal use only at an AISC of A$950-A$1,000/oz (US$710-US$750/oz) FY2017 Resource of 3.2Moz, up 155% and Reserves of 1.45Moz, up 100% despite depletion of 259koz 7Moz of continuous production, life of mine average of 320k
Slide 12: Jundee: Life beyond 3Moz
Jundee: Life beyond 3Moz The Zodiac high-grade discovery at For personal use only Jundee was recently announced and is not included in the latest update Initial assays from Zodiac show multiple mineralised intercepts over a 200m single downhole interval Results in discovery hole include: 4.8m at 21.
Slide 13: Kalgoorlie Operations: Rapid, low-cost production growth
Kalgoorlie Operations: Rapid, low-cost production growth For personal use only FY2018: Guidance 245,000-265,000oz at an AISC of A$1,000-A$1,050/oz (US$750-US$787/oz) CARBINE / PARADIGM Acra Resources of 4.5Moz up 25% and Reserves of 2Moz up 117%, despite depletion of 229koz Growing to a 300,000ozpa
Slide 14: Northern Star: Now ticking every box
Northern Star: Now ticking every box Superior financial returns: 40% Return on Equity and 33% Return on Invested Capital in For personal use only FY2017, A$177M in underlying free cash flow in FY2017 and a 6-year TSR average of 188% High quality assets: 10-year mine life visibility; two mines capabl
Slide 15: Northern Star Resources – Contact Details
For personal use only Northern Star Resources An Australian gold miner – for global investors Contact Details: Luke Gleeson – Investor Relations +61 8 6188 2100 Email – [email protected] Website – www.nsrltd.com 15
Slide 16: Appendix
Appendix For personal use only Appendix Northern Star Resources Limited An Australian gold miner – for global investors 16
Slide 17: Overview
Overview Stock code (ASX) : NST For personal use only Share price: A$5.00 Market capitalisation (600 million shares on issue) : A$3.0B (US$2.2B) Cash, bullion & investments as at 30 June 2017 A$447M (US$335M) Bank debt Nil Enterprise value A$2.60B (US$1.95B) Hedging as at 30 June 2017 365,000oz at A
Slide 18: Investing back in the business to grow Resources and Reserves
Investing back in the business to grow Resources and Reserves During FY2017, A$130M was invested in exploration and expansionary capital to build the Resource and Reserve inventory and grow production in the coming years For personal use only Since 2011 NST has been able to grow Resources and Reserv
Slide 19: Paulsens: Revitalisation underway
Paulsens: Revitalisation underway FY2018: Guidance 35,000-45,000oz For personal use only at AISC of A$1,300-A$1,400/oz (US$975-US$1,050/oz) 1Moz at +7gpt has been mined continuously over the past 12 years, at an average of 75kozpa NST has committed to invest approximately A$10 million in exploration
Slide 20: Central Tanami Project “CTP”: Emerging Growth Region
Central Tanami Project “CTP”: Emerging Growth Region GROUNDRUSH The Tanami region is an exciting new area that is (NST Earning to 60%) For personal use only rapidly developing a reputation for major gold Open Pit Production (Newmont) of 610koz discoveries 150km Tanami Gold Resource of 6.5Mt at 4.8gp
Slide 21: Kalgoorlie Operations: Kanowna Belle (100% NST)
Kalgoorlie Operations: Kanowna Belle (100% NST) Kanowna Belle is a +5Moz orebody, averaging 4,000oz For personal use only per vertical metre, with limited exploration at depth and along strike of the major gold bearing structures Reserves have increased 120% to 0.5Moz and Resources are 1.4Moz which
Slide 22: Kalgoorlie Operations: Kundana EKJV (51% NST)
Kalgoorlie Operations: Kundana EKJV (51% NST) For personal use only NST attributable Reserves increased 36% to 0.6Moz, Resources increased 35% to 1.3Moz Primary production is from Rubicon, Hornet, Pegasus and Raleigh The new 2.1km drill drive from Hornet to Pegasus is now ~50% complete, providing th
Slide 23: Kalgoorlie Operations: This is where the production growth is coming from
Kalgoorlie Operations: This is where the production growth is coming from Past production on the 100% NST ground has yielded 1.25Moz at 6gpt between 1990-2004 For personal use only Current development to 50kozpa Millennium is ahead of schedule; first production ore due in December quarter Further pr