Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Merger or Acquisition (January 2014)
35 slides from Northern Star Resources's merger presentation, Jan 23, 2014
Slide 1: The East Kundana JV and Kanowna Belle Acquisition
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION INTO THE U.S. For personal use only A Major Australian Gold Miner – for major global investors THE EAST KUNDANA JV and KANOWNA BELLE ACQUISITION Transforming Northern Star into a +350,000ozpa producer
Slide 2: Disclaimer: Competent Persons Statements
Disclaimer Competent Persons Statements For personal use only • The information in this announcement that relates to Paulsens and Ashburton mineral resource estimations, exploration results, data quality, geological interpretations, potential for eventual economic extraction and estimates of explora
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) Investment risk For personal use only • An investment in New Shares is subject to known and unknown risks, some of which are beyond the control of Northern Star. Northern Star does not guarantee any particular rate of return or the performance of the company nor does it guarantee
Slide 4: An Australian gold miner with global appeal
An Australian gold miner with global appeal Northern Star has agreed to acquire Barrick’s interest in the East Kundana Joint Venture (“EKJV”) as well as For personal use only the Kanowna Belle gold mine (“Kanowna Belle”) from Barrick Gold Corporation (“Barrick”) for cash consideration of A$75M (th
Slide 5: Critical mass, substantial inventory and low costs
Critical mass, substantial inventory and low costs Paulsens Ashburton For personal use only Reserves 204koz @ 5.3 gpt Reserves 53koz @ 3.7 gpt Resources 532koz @ 5.6 gpt Resources 1.7Moz @ 2.4 gpt FY14F Production 100-115koz FY14F All-in sustaining costs(1) A$900 - $1,050/oz Kanowna Belle Mine Life
Slide 6: Transformational Acquisition: Northern Star will become a +350,000ozpa Producer
Transformational Acquisition Northern Star will become a +350,000ozpa Producer For personal use only Northern Star pre the Northern Star post the Units Change Acquisition(1) Acquisition Reserves Moz 0.5 1.1 134% Resource Moz 4.0 5.6 43% Portfolio FY14 Production koz 152(2) 215(3) 41% Metrics F
Slide 7: Benefits for Northern Star Shareholders
Benefits for Northern Star Shareholders For personal use only Recent acquisitions propel Northern Star into a leading Australian focused gold producer Leading Australian Focused Acquisition lifts group production to in-excess of 350,000oz per annum and diversifies asset base Gold Producer whil
Slide 8: Northern Star to take its efficiency drive to operations
Northern Star to take its efficiency drive to operations As per the Paulsens and Plutonic acquisitions, Northern Star plans to undertake similar For personal use only initiatives to improve operational performance and create significant value for Shareholders Initiative Description Maximise operat
Slide 9: Northern Star's Experience with EKJV and Kanowna Belle
Northern Star’s Experience with EKJV and Kanowna Belle Most of Northern Star’s Executive and Senior management team have worked at Barrick mines. For personal use only The Company has recently bolstered the ranks with key operational management to handle the rapid growth period. • Bill Beament (Mana
Slide 10: Enhanced Scale & Market Positioning
Enhanced Scale & Market Positioning Current Peers Post Plutonic Acquisition(1) For personal use only New Peers(1) 7,159 1,600 Legend 1,400 1,360 Australian Operations Only 1,200 Contains International Operations 1,000 Market Cap. (A$M) 774 800 656 598 600 524 457 457 424 389 400 284 271 181 180 176
Slide 11: Northern Star: The fifth-biggest ASX gold miner
Northern Star: The fifth-biggest ASX gold miner Northern Star is set to become a leading Australian focused gold producer For personal use only FY2014 Production(1) 2,194 Legend 500 423 409 Australian Operations Only FY14 Production (koz) 400 332 329 292 Contains International Operations 300 220 219
Slide 12: Asset Overviews
For personal use only A Major Australian Gold Miner – for major global investors ASSET OVERVIEWS
Slide 13: East Kundana JV: High grades and low costs
East Kundana JV: High grades and low costs Significant high grade ore remains undefined and yet to be mined For personal use only • Located 20km west of Kalgoorlie Boulder in Western Australia • Comprises the Raleigh (50% Barrick ownership) and Rubicon-Hornet (51% ownership) mines • Underground mine
Slide 14: Pegasus: One of Australia's best finds in the past years
Pegasus: One of Australia best finds in the past 10 years Pegasus deposit has potential for +1Moz resource with underground access from For personal use only nearby Rubicon mine • Pegasus offers significant growth potential • Initial resource of 355koz @ 9.8gpt, discovered only 12 months ago • 1,300
Slide 15: Pegasus: Easy underground access
Pegasus: Easy underground access For personal use only • Pegasus can be easily accessed underground from existing mine infrastructure 200m away • Limited capital expenditure required to develop Pegasus deposit • Concurrent mining of Pegasus with Rubicon-Hornet and Raleigh will generate significant e
Slide 16: Kanowna Belle: A great Australian gold mine
Kanowna Belle: A great Australian gold mine Strong, consistent production profile For personal use only • Located 18km northeast of Kalgoorlie Boulder in Western Australia • Underground mine operation with simple longhole open stoping mining method • Substantial Resources of 1.1Moz at 4.1gpt and Res
Slide 17: Plutonic – Asset Overview
Plutonic – Asset Overview A leading Australian gold mine with an outstanding future For personal use only • Located 180km north of Meekatharra in Western Australia and is the nearest gold mine to Paulsens • Underground mine operation with simple longhole open stoping mining method • High-grade Resou
Slide 18: Plutonic – Mine Performance and Geology
Plutonic – Mine Performance and Geology Plutonic has maintained continuous production for +20 years, ~5.24Moz mined to date For personal use only • Operation has consistently produced well in-excess of 100,000oz per annum • Historically ~50% of resources have converted to reserves providing substant
Slide 19: Plutonic – the growth story
Plutonic – the growth story A number of highly prospective new mine targets have been identified at Plutonic For personal use only • Significant opportunity exists to convert in-mine deposits into production with minimal capital • Deposits shown below currently sit outside the known resource base •
Slide 20: Paulsens – Consistent Performer
Paulsens – Consistent Performer Gold Sales v Revenue • Record December-13 Half: For personal use only 30 42.0 • 55,087oz mined, up 10% from previous 25 35.0 corresponding period (“pcp”) Ounces Sold (koz) Revenue (A$M) 20 28.0 • 50,927oz sold at A$1,416/oz for A$72.1M 15 27 21.0 24 25 24 revenue, up
Slide 21: Capital Raising
For personal use only A Major Australian Gold Miner – for major global investors CAPITAL RAISING
Slide 22: Funding Sources and Uses
Funding Sources and Uses For personal use only Funding Sources Funding Uses Cash on Hand (Post Plutonic Acquisition)(1) ~A$15M Kanowna Acquisition Consideration A$75M Investec Acquisition Debt Facility A$50M Transaction Costs & Taxes(2) ~A$12M Proposed Equity Raising ~A$100M Minimum Cash Balance Req
Slide 23: Capital Raising Overview
Capital Raising Overview For personal use only ~$100 million via an underwritten two tranche Placement Capital Raising Structure Tranche 1: ~$55 million – equates to 15% of Northern Star’s current shares outstanding Tranche 2: ~$45 million – subject to approval by Northern Star Shareholders
Slide 24: Indicative Capital Raising Timetable
Indicative Capital Raising Timetable For personal use only Event Date • Trading Halt and Announcement of the Acquisition Pre-market Thursday, 23 January 2014 • Placement bookbuild opens Thursday, 23 January 2014 • Placement bookbuild closes Friday, 24 January 2014 • Settlement of Tranche 1 of Placem
Slide 25: Contact Details
For personal use only A Major Australian Gold Miner – for major global investors • Contact Details: • Bill Beament – Managing Director +61 8 6188 2100 • Email – [email protected] • Website – www.nsrltd.com
Slide 26: Appendix – Resource & Reserve Statement
Appendix – Resource & Reserve Statement For personal use only GOLD MINERAL RESOURCES 1 GOLD MINERAL RESERVES1 As at 30 June 2013 MEASURED (M) INDICATED (I) INFERRED (Inf) TOTAL (MI&Inf) As at 31 December 2012 PROVED PROBABLE PROVED and PROBABLE Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ou
Slide 27: Appendix – Resource & Reserve Statement (cont'd)
Appendix – Resource & Reserve Statement (cont’d) GOLD MINERAL RESOURCES 2 For personal use only As at December 31, 2012 MEASURED (M) INDICATED (I) (M) + (I) INFERRED (Inf) TOTAL (MI & Inf) Tonnes Grade Ounces Tonnes Grade Ounces Ounces Tonnes Grade Ounces Tonnes Grade Ounces Based on attributable ou
Slide 28: Appendix – Resource & Reserve Statement (cont'd)
Appendix – Resource & Reserve Statement (cont’d) For personal use only GOLD MINERAL RESOURCES 2 As at 31 December 2012 MEASURED (M) INDICATED (I) (M) + (I) INFERRED (Inf) TOTAL (MI & Inf) Tonnes Grade Ounces Tonnes Grade Ounces Ounces Tonnes Grade Ounces Tonnes Grade Ounces Based on attributable oun
Slide 29: Appendix – Resource & Reserve Statement (cont'd)
Appendix – Resource & Reserve Statement (cont’d) For personal use only GOLD MINERAL RESOURCES 1 As at 31 December 2013 MEASURED (M) INDICATED (I) (M) + (I) INFERRED (Inf) TOTAL (MI & Inf) Tonnes Grade Ounces Tonnes Grade Ounces Ounces Tonnes Grade Ounces Tonnes Grade Ounces Based on attributable oun
Slide 30: Appendix – Key Risks
Appendix – Key Risks This section discloses some of the key risks attaching to an investment In Northern Star. Before investing or increasing For personal use only your investment in Northern Star, you should consider whether this investment is suitable for you having regard to publicly available in
Slide 31: Appendix – Key Risks (cont'd)
Appendix – Key Risks (cont’d) For personal use only • Northern Star is dependent upon a number of key management personnel and executives to manage the day-to-day requirements of its businesses. The loss of the services of one or more of such key management personnel could have an adverse effect on
Slide 32: Appendix – Key Risks (cont'd)
Appendix – Key Risks (cont’d) For personal use only • Northern Star has significant commodity and energy requirements and it relies on being able to fulfil those requirements at a cost which does not negatively impact on its cash flows. A number of factors (such as rising oil prices, macro-economic
Slide 33: Appendix – Foreign Selling Restrictions
Appendix – Foreign Selling Restrictions International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. New Shares may not be offered or sold in any country outside Australia For perso
Slide 34: Appendix – Foreign Selling Restrictions (cont'd)
Appendix – Foreign Selling Restrictions (cont’d) European Economic Area – Germany For personal use only The information in this document has been prepared on the basis that all offers of New Shares will be made pursuant to an exemption under the Directive 2003/71/EC ("Prospectus Directive"), as amen
Slide 35: Appendix – Foreign Selling Restrictions (cont'd)
Appendix – Foreign Selling Restrictions (cont’d) Singapore For personal use only This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and
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