Northern Star Resources Ltd · ASX:NST

Northern Star Resources — FY2022 Earnings Presentation

21 slides from Northern Star Resources's earnings presentation, Aug 29, 2022

  1. Slide 1: Results Presentation for Year Ended 30 June 2022

    Results Presentation for Year Ended 30 June 2022 29 August 2022

  2. Slide 2: Forward Looking Statements, Reserves and Resources

    Forward Looking Statements, Reserves and Resources Forward Looking Statements Northern Star Resources Limited has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of t

  3. Slide 3: World class gold assets in Tier-1 locations

    World class gold assets in Tier-1 locations Generate superior returns Responsible producer Pogo Profitable growth Yandal Kalgoorlie Strong cash flow generation World-class assets 100% +6,000 ASX 50 GOLD PEOPLE MARKET INDEX 3

  4. Slide 4: FY22 Financial Overview

    FY22 Financial Overview A$ 1.0B YoY A$ 1.5B YoY Cash Earnings Underlying EBITDA A$ 430M YoY A$ 628M YoY Statutory NPAT Cash & bullion A$ 300M A 21.5cps Share buy-back Declared dividends Underlying EBITDA and Cash Earnings are non-GAAP measures. Table reconciling statutory NPAT to non-GAAP measures h

  5. Slide 5: FY22 Operational Overview

    FY22 Operational Overview  Delivered to FY22 guidance: 1,561koz gold at AISC of A$1,633/oz  First year of five-year profitable growth pathway delivered significant progress:  Kalgoorlie: KCGM material movement of 66Mtpa (vs FY26 target of 80-100Mtpa)  Yandal: Thunderbox mill expansion remains on

  6. Slide 6: Cash Earnings generation across all production centres

    Cash Earnings generation across all production centres Cash Earnings (A$M) A$ 1.0B YoY Cash Earnings A$ 477M YoY Group Underlying Free Cash Flow Group Underlying Free Cash Flow defined as Operating Cash Flow ($1,599M); plus payment for merger and acquisition costs ($5M); plus movement in bullion ($3

  7. Slide 7: Strong HoH performance despite operational challenges

    Strong HoH performance despite operational challenges FY22 Group Level Underlying EBITDA contribution 41% A$ 991/oz Pogo EBITDA margin EBITDA/oz 10% Production centre (excl. exploration) A$1,116/oz 58% 56% Yandal 36% 40% 40% 39% Kalgoorlie 54% A$991/oz 21% Production centre EBITDA contribution (excl

  8. Slide 8: Our scale provides continuous improvement benefits

    Our scale provides continuous improvement benefits Mining improvement Processing  KCGM open pit fleet replacement program now  Portfolio optimisation to increase cash flow complete  Kalgoorlie processing capacity reduced by 1Mtpa  Successfully commissioned 45 state of the art to 19Mtpa = A$20M f

  9. Slide 9: Continued strong cash flows support capital returns

    Continued strong cash flows support capital returns  A$1.0B Cash Earnings Returned A$1.0B to shareholders since FY12  Dividend Policy: Cumulative Dividends (A$M)  20-30% of Cash Earnings 1,008  FY22 dividend of A21.5cps (25% of Cash 757 Earnings), higher than FY21 dividend of 536 A19cps 336  In

  10. Slide 10: Capital management framework

    Capital management framework CAPITAL FINANCIAL RISK ALLOCATION STRENGTH1 MANAGEMENT  Organic growth  A$1.5B liquidity  Project capex self-funded  Dividends  Net Debt/EBITDA less than zero  Low cost debt (<3%)2  A$300M share buy-back  Active portfolio management  Gold hedge book3  Retained

  11. Slide 11: FY23 Guidance

    FY23 Guidance Kalgoorlie FY23 UNITS KALGOORLIE YANDAL POGO TOTAL  Progress KCGM waste GUIDANCE material movement  Scheduled KCGM plant Gold Sales koz 820 - 870 480 - 520 260 - 290 1,560 - 1,680 maintenance 1Q23 and 3Q23  Carosue Dam Porphyry Underground 1H23 AISC A$/oz 1,560 - 1,660 1,525 - 1,625

  12. Slide 12: Asset timeline

    Asset timeline Multiple growth projects to deliver five-year profitable growth plan FY22 FY23 FY24 FY25 FY26 SUSTAINABLE 1.56Moz 1.56-1.68koz BUSINESS KCGM Fleet Increase KCGM material movement to 80-100Mtpa 1,100koz 3–5 Kalgoorlie Delivery  Fimiston South ramp up; Increased access to Golden Pike K

  13. Slide 13: Exploration underpins further organic growth opportunities

    Exploration underpins further organic growth opportunities Mineral Resources*  +10 year Reserve backed production profile 14%  2022 Resources added at A$24/oz 56.4 Kalgoorlie  Fimiston Underground Inferred Mineral Resource increased 18% Yandal by 1.0Moz – first glimpse of new world-class system a

  14. Slide 14: Our commitment to lower carbon emissions

    Our commitment to lower carbon emissions Net Zero ambition by 2050 TBO Expansion 35% lower carbon emissions by 2030 KCGM up to 60% renewable power 14 References to carbon emissions are for absolute scope 1 and 2 only.

  15. Slide 15: Sustainable Development Publications

    Sustainable Development Publications 2022 Annual Report FY22 Corporate FY22 Modern Slavery 2021-2022 Workplace Governance Statement Statement Gender & Equality Report FY22 Sustainability Report FY22 Sustainability FY22 GRI, SASB & UN SDG FY22 Tailings Disclosures FY22 Biodiversity Values Performance

  16. Slide 16: Executing our clearly defined strategy

    Executing our clearly defined strategy RESPONSIBLE PROFITABLE STRONG WORLD CLASS GENERATE PRODUCER GROWTH CASH FLOW ASSETS SUPERIOR GENERATION RETURNS 16

  17. Slide 17: Northern Star Resources Limited

    Northern Star Resources Limited ASX Code: NST Business First. Investor Enquiries: Sophie Spartalis T: +61 8 6489 2488 E: investorrelations@nsrltd.com W: www.nsrltd.com 17

  18. Slide 18: Appendix: Key Financials

    Appendix: Key Financials % Units FY22 FY21 Variance Key financials Revenue A$M 3,735 2,761 35 Abnormal items 1H22 FY22 Underlying EBITDA A$M 1,517 1,159 31 Acquisition and Integration Costs (4) (7) Depreciation & Amortisation A$M 1,111 660 68 Impairment of exploration assets (12) (52) Underlying EBI

  19. Slide 19: Appendix: FY22 NPAT to Cash Earnings

    Appendix: FY22 NPAT to Cash Earnings (A$M) (298) 52 22 (83) (412) 1,111 1,741 1,517 1,022 200 430 Net Profit Tax & Net D&A EBITDA Gain on Sale Impairment Other Underlying Tax & Net Sustaining Cash Earnings After Tax Finance Costs of subsidiary charges EBITDA Interest Paid Capital and asset P&L Tax a

  20. Slide 20: Appendix: FY22 cash movement

    Appendix: FY22 cash movement (A$M) (410) (498) 1,599 (19) (121) 146 (128) (561) (218) 9 772 571 Cash Jun-21 Operating cashflow PPE Mine Properties Exploration M&A/Divestments Equity Equipment Net Debt Dividends FX Cash Jun-22 Finance/Leases Repayments M&A/Divestment = Kundana sale ($402M) plus Pauls

  21. Slide 21: Appendix: AISC to cost of sales reconciliation

    Appendix: ASIC to cost of sales reconciliation From June 22 Quarterly Activities Report Revenue add minus minus minus AISC add add P&L Calculations: Depreciation & Amortisation = A$718/oz x Gold Sold (production) = A$1,099M A$7M depreciation variance primarily relates to the power business Non-cash

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