Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Investor Presentation (February 2011)
14 slides from Northern Star Resources's investor presentation, February 2011
Slide 1: Company Presentation
Company Presentation The clear step- step-by- by-step strategy to make Northern Star a 200,000ozpa gold mid- mid- cap producer January/February 2011
Slide 2: Disclaimer
Disclaimer Competent Persons Statements The information in this announcement that relates to exploration results, data quality, geological interpretations and potential for eventual economic extraction, is based on information compiled by or under the supervision of Brook Ekers, (Member AIG), who is
Slide 3: Corporate and Asset Overview
Corporate and Asset Overview +80,000oz Western Australian Gold Producer Market cap: $345m based on 352m shares at 98c, plus 24m options Cash/Bullion on hand: $41.7m as 31 Dec 11 Debt free and un-hedged Top 20 hold 50% (inc InvestMet with 17.5%) Key production asset: Paulsens Gold Mine near Paraburdo
Slide 4: Paulsens – Corner Stone Asset
Paulsens – Corner Stone Asset Paulsens started production in 2005 has produced 500,000oz in 6.5 years to 2011 at an average gold production of 70-80,000ozpa Life of Mine Cash Cost of $560/oz Average monthly total site cost of $5M or 3,000oz to breakeven Acquired by Northern Star in July 2010 for $40
Slide 5: Paulsens – Corner Stone Asset (continued…)
Paulsens – Corner Stone Asset (continued…) Changed out Mining and Crushing Contractors with in-house team Dropped total cost per tonne by 30% 5
Slide 6: Paulsens – Corner Stone Asset (continued…)
Paulsens – Corner Stone Asset (continued…) Exceeded 2011 guidance by 15% , generated $46M surplus cashflow through the production of over 75,000oz at $660/oz. Current Resource underpinned by key Voyager 1 lode that is being mined in-excess of 1000oz per vertical metre. Deepest intersection 6.4m @ 12
Slide 7: Growing production to 200,000ozpa
Growing production to 200,000ozpa Two staged approach to 200,000oz per annum Stage 1 - Grow Paulsens to 100,000ozpa Increase plant capacity from 350,000 to 450,000tpa Rapid expansion to cost just $10M Expansion funding to come from surplus cashflow First production increase to flow in Dec Qtr 2012 M
Slide 8: Significant Exploration Upside
Significant Exploration Upside No other sizeable deposit within 50km radius of the Paulsens mine 1,300km² of Tenements, numerous targets 100% owned and JV’s No other operational gold processing plant within 400km radius Cheroona copper/gold project, 80km from Sandfire discovery $20M exploration prog
Slide 9: Significant Exploration Upside (continued…)
Significant Exploration Upside (continued…) Paulsens in/near mine Exploration delivering early results Found two Gabbro Offset positions similar geology as Paulsens Potential to replicate the Paulsens orebody which has produced 500,000oz Ore grade intercepts upto 14gpt received to date, early days b
Slide 10: Board of Directors
Board of Directors Successful record in discovering and developing mines BILL BEAMENT – Managing Director (Mining Engineer) Former General Manager – Operations for 12 mines across WA, including 3.5 years involvement at Paulsens overseeing the incumbent mining contractor. Established over 15 new mini
Slide 11: Senior Management
Senior Management BERNIE SOSTAK – General Manager of Geology Geologist with over 20 years in the Gold Industry with extensive experience in mine geology, resource estimations, planning and general operations management in underground and open pit. Held senior management roles with WMC, Broken Hill M
Slide 12: Ten Reasons to Follow Northern Star
Ten Reasons to Follow Northern Star 1. Exceeded CY2011 guidance by 15%, generated $46m surplus cashflow, over 75,000oz production at $660/oz cash cost 2. Debt-free (minor equipment HP), un-hedged, $41.7m cash/bullion in bank at 31 December 2011 3. Outstanding drilling results at Paulsens point to fu
Slide 13: Ten Reasons to Follow Northern Star
Ten Reasons to Follow Northern Star 7. Significant exploration potential with a $20M program over the next 12 months, yielding early result such as new gabbro offsets 8. Strong cashflow/balance sheet means NST is ideally placed to capitalise on falling asset values and uncertain market conditions 9.
Slide 14: Appendix 1
Appendix 1 Indicated Inferred Total 31 December 2010 Tonnes Grade Tonnes Grade Tonnes Grade Oz Au (,000) (g/t) (,000) (g/t) (,000) (g/t) (,000) Open Pit 471 2.9 200 3.3 671 3.0 64.5 Paulsens Upper Levels 110 7.5 23 5.0 133 7.1 30.2 Voyager 1 230 9.9 234 6.3 464 8.1 120.2 Paulsens Stockpiles 43 5.5 4
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