Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Merger or Acquisition (December 2024)
37 slides from Northern Star Resources's merger presentation, Dec 2, 2024
Slide 1: Northern Star agrees to acquire De Grey
Northern Star agrees to acquire De Grey 2 December 2024 Not for release to US wire services or distribution in the United States
Slide 2: Cautionary note and disclaimers
Cautionary note and disclaimers This presentation is dated 2 December 2024 is a joint presentation prepared by Northern Star Resources Ltd only be made on the basis of the information contained in the Scheme Booklet and De Grey shareholders are ACN 092 832 892 (Northern Star) and De Grey Mining Ltd
Slide 3: Cautionary note and disclaimers
Cautionary note and disclaimers Before making any investment decision, investors should consider the appropriateness of all the information production businesses (many of which are outside the control of Northern Star and De Grey and may available having regard to their own objectives, financial and
Slide 4: Cautionary note and disclaimers
Cautionary note and disclaimers Financial Data Disclaimer Market and Industry Data No person other than Northern Star and De Grey has authorised or caused the issue, release, submission, distribution or provision of this presentation, or takes any responsibility for, or makes or purports to make, Ce
Slide 5: Northern Star Production Targets
Cautionary note and disclaimers Northern Star Production Targets Mineral Resources and Ore Reserves estimates The information in this presentation that relates to estimated Hemi production is based on estimated average annual gold production of 553kozpa over the first 5 years of production and 530ko
Slide 6: Combination of Northern Star and De Grey
Combination of Northern Star and De Grey A global gold leader Transaction Highlights 1 Commodity 1 2 Hemi will be a globally significant low-cost, long-life and large- scale gold project in the Pilbara of WA Strong strategic fit, enhancing the quality and scale of Northern Star’s portfolio 2 Tier-1
Slide 7: Transaction Overview
Transaction Overview All scrip acquisition of Transaction Each De Grey shareholder Post Implementation, De Grey by Northern Star via consideration represents will receive 0.119 new Northern Star and De Grey Scheme of Arrangement 37.1% to last close and Northern Star shares, shareholders as at the 43
Slide 8: Hemi Project: A strong strategic fit
Hemi Project: A strong strategic fit 1 Tier-1 jurisdiction Located in the Pilbara region of Western Australia1 2 Enhances overall portfolio AISC forecast to be in first half of global gold cost curve2 3 Material scale Estimated 530kozpa production over first 10 years of mine life3 4 Geological upsid
Slide 9: Hemi Project: A low-cost, large-scale globally significant gold project
Hemi Project: A low-cost, large-scale globally significant gold project in Western Australia Group Mineral Resources1 ▪ 310Mt @ 1.4g/t Au for 13.6Moz contained ▪ Mineral Resources grown ~16% and 1.9Moz in ~15 months since DFS released Group Ore Reserves1 ▪ 121Mt @ 1.5g/t for 6.0Moz contained ▪ Studi
Slide 10: Hemi Project: DFS outcomes
Hemi Project: DFS outcomes (Sep 2023) A future top 5 Australian Total production 5.7Moz Gold Mine based on over 12 years2,3 production1 Mining physicals Annual production2,3 122Mt @ 1.5g/t Au 2,3 553koz: first 5 years processed at 93.5% recovery 530koz: first 10 years Updated Ore Reserve3 10Mtpa pla
Slide 11: Proforma business summary
Proforma business summary Hemi Estimated production (koz) 5301 Milling capacity (Mtpa) 10.0 ▪ 13.6Moz Group Mineral Resources1 ▪ >12-year mine life2 ▪ Simple open pit with significant underground and regional potential Yandal FY25 production (koz) 505-5553 Milling capacity (Mtpa) 9.0 ▪ Dominant regi
Slide 12: Tier-1 jurisdiction: Australia
1 Tier-1 jurisdiction: Australia The Hemi Project is located in our home state, Western Australia Western Australia Pogo Hemi Yandal Kalgoorlie Located in the Pilbara, Established infrastructure network Northern Star has experience 85km from Port Hedland (power, gas, water, roads, airport, port) ope
Slide 13: Enhances the overall portfolio
2 Enhances the overall portfolio Two major assets approaching first quartile AISC, comprising +50% of total production1 FY24 Global Gold Cost Curve 2,500 1st 2nd 3rd 4th SUSTAINABLE Quartile Quartile Quartile Quartile BUSINESS 2,250 1st Half 2,000 COST CURVE 1,750 1,500 FY242 HEMI DFS AISC (US$/oz
Slide 14: Material scale
3 Material scale Low-cost, large-scale, 100% gold project supports Northern Star’s “Strength from Simplicity” strategy Hemi Project 2.0Moz3 1.8-2.2Moz3 Hemi +530koz2 Group Mineral Resources1 1.8Moz4 KALGOORLIE 1.1Moz 310Mt @ 1.4g/t Au for 13.6Moz contained of which Mineral Resources +16%, or 1.9Moz,
Slide 15: Geological upside
4 Geological upside Highly prospective exploration potential – open along strike and down dip Hemi extensions Underground production ▪ Potential to increase the Diucon & Eagle ▪ Mineral Resource demonstrates areas pits based on significant extensions with underground mining potential identified afte
Slide 16: Strong ESG
5 Strong ESG De Grey’s strong ESG foundations aligned with Northern Star’s values APPROVALS STRONG ESG CREDENTIALS Traditional Owners Renewable power ▪ Mining agreement in place with Kariyarra people ▪ Proposed power supply options include 20-30% renewable Project Approvals1 power at commencement of
Slide 17: Shareholder returns
6 Shareholder returns Northern Star's purpose is to generate superior returns for its shareholders 50.0 2500 45.0 Dividend Policy Maintained 20-30% of Cash Earnings 40.0 1,944 2000 (sustaining free cash flow) 35.0 30.0 1500 1,439 Valuation accretive 25.0 Expected at deal completion 20.0 1,008 1000 1
Slide 18: Proforma: Strong balance sheet maintained
Proforma: Strong balance sheet maintained Fully funded growth projects Proforma net cash Investment grade Disciplined approach position anchors rated by S&P, maintained balance sheet Moody’s and Fitch throughout the cycle Credit Facilities (at 30 Sep 2024) 1.0B 3.3B US$600M A$ A$ A$750M (undrawn) A$
Slide 19: KCGM & Hemi development timelines
KCGM & Hemi development timelines KCGM Mill Expansion and Hemi steady state production anticipated by FY291 Hemi approvals dictate project construction start FY24 FY25 FY26 FY27 FY28 FY29 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 KCGM Mill Expansion Hemi Development Engineering & Design Engineering
Slide 20: Unique skillset to develop Hemi
Unique skillset to develop Hemi Northern Star and De Grey to develop Hemi to its maximum potential Optimisations and development pathway Depth of management Proven operational excellence ▪ In parallel with finalising approvals, Northern Star intends to further optimise the Hemi development and Optim
Slide 21: Benefits to De Grey shareholders
Benefits to De Grey shareholders 1 Significant and attractive premium to historical trading prices delivered to De Grey shareholders’ Ongoing participation in the future upside of Hemi and broader exploration portfolio through 2 meaningful 19.9% ownership in the Northern Star Group Derisks the devel
Slide 22: Benefits to Northern Star shareholders
Benefits to Northern Star shareholders Addition of a low-cost, long-life, large scale development gold project delivering a 4th production centre in 1 a Tier-1 location1 2 Hemi is the ideal fit for Northern Star’s portfolio, a new pillar in our industry-leading growth pipeline 3 Enhances the quality
Slide 23: Investor relations and media contacts
ASX: NST ASX: DEG INVESTOR RELATIONS: INVESTOR RELATIONS: Sophie Spartalis Glenn Jardine & Peter Canterbury General Manager, Investor Relations Managing Director & Chief Financial Officer T: +61 8 6489 2488 T: +61 8 6117 9328 E: investorrelations@nsrltd.com E: investors@degreymining.com.au MEDIA ENQ
Slide 24: Supporting Information
Supporting Information aN NORTHERN STAR ¢ PE GREY
Slide 25: Transaction summary
Transaction summary Proposed ▪ Northern Star has entered into a Scheme Implementation Deed (“SID”) with De Grey pursuant to which Northern Star will acquire Transaction 100% of De Grey’s shares under a De Grey Board recommended Scheme of Arrangement (the “Transaction”) ▪ Each De Grey shareholder wil
Slide 26: Proforma metrics
Proforma metrics Northern Star De Grey Proforma Share price (29 Nov 2024) A$/sh 17.51 1.52 17.51 Basic shares outstanding1 m 1,150 2,397 1,436 Market capitalisation A$M 20,131 3,643 25,142 Cash & bullion (30 Sep 2024) A$M 998 828 1,826 Debt (30 Sep 2024) A$M 850 - 850 Enterprise value A$M 19,983 2,8
Slide 27: Indicative timetable
Indicative timetable Event Date Draft Scheme Booklet provided to ASIC Mid to late February 2025 First Court Hearing Early to mid March 2025 Scheme Meeting Mid April 2025 Second Court Hearing Mid April 2025 Effective Date Late April or Early May 2025 If the Scheme is approved by the Court and becomes
Slide 28: Proforma Northern Star Metrics
Proforma Northern Star Metrics Production (Moz)1,2 AISC (A$/oz)1,3 Proforma Ore Reserves & Mineral Resources3 Ongoing portfolio 1,975 management 1,538 22% ~2.50 1,425 2.20 1,3373 +/- 1.80 15% Ore 1,136 Reserves 6% 26.9Moz 1.65 1.80 (Moz) 13% 59% Northern Star Northern Star FY29 Proforma Northern Sta
Slide 29: Supporting information on De Grey
Supporting information on De Grey
Slide 30: Current project status
Current project status A high-quality Western Australian gold project advancing towards production ✓ Project approvals progressing Northern Star’s proposed development plan for Hemi is o Traditional Owner Mining Agreement in place based upon the Hemi DFS (which has been subject to Northern Star’s du
Slide 31: De Grey Mineral Resources & Ore Reserves
De Grey Mineral Resources & Ore Reserves Mineral Resources Estimate as at November 2024 Measured Indicated Inferred Total Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained (Mt) (g/t Au) (koz Au) (Mt) (g/t Au) (koz Au) (Mt) (g/t Au) (koz Au) (Mt) (g/t Au) (ko
Slide 32: Supporting information on Northern Star
Supporting information on Northern Star
Slide 33: Kalgoorlie Production Centre
Kalgoorlie Production Centre KALGOORLIE 39.0Moz 14.7Moz 19Mtpa Mineral Resources Ore Reserves Milling Capacity KCGM reserve grade 13Mtpa 28.3Moz 12.2Moz 1.3g/t MILLING Mineral Resources Ore Reserves CAPACITY Carosue Dam reserve grade 4 4.1Moz 1.5Moz Mtpa 1.8g/t MILLING Mineral Resources Ore Reserves
Slide 34: Yandal Production Centre
Yandal Production Centre 14Moz YANDAL 10.2Moz 3.4Moz 9Mtpa gold mined over 30 years MILLING Mineral Resources Ore Reserves CAPACITY Jundee 3Mtpa Reserve grade 5.9Moz 1.3Moz 3.9g/t MILLING CAPACITY Mineral Resources Ore Reserves Thunderbox 6Mtpa Reserve grade 4.2Moz 2.1Moz 1.6g/t MILLING Mineral Reso
Slide 35: Pogo Production Centre
Pogo Production Centre ▪ High-grade Mineral Resources 10.1g/t; Ore 6.7 Moz Mineral Resources Reserves at 8.0g/t ▪ Lowering costs through growth 1.5 Moz Ore Reserves and optimisation +10 ▪ In-mine and near regional Years opportunity Mine Life ▪ 1.3Mtpa 5Moz nameplate gold mined milling capacity over
Slide 36: Northern Star Mineral Resources
Northern Star Mineral Resources Mineral Resources1 as at 31 March 2024 Measured Indicated Inferred Total Site Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces (000's) (gpt) (000's) (000's) (gpt) (000's) (000's) (gpt) (000's) (000's) (gpt) (000's) KCGM Operations 136,85
Slide 37: Northern Star Ore Reserves
Northern Star Ore Reserves Ore Reserves1 as at 31 March 2024 Proved Probable Total Site Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces (000's) (gpt) (000's) (000's) (gpt) (000's) (000's) (gpt) (000's) KCGM Operations 136,855 0.7 3,156 192,610 1.6 10,110 329,465 1.3 13,266 Kalgoorlie Ope
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