Northern Star Resources Ltd · ASX:NST
Northern Star Resources — FY2018 Earnings Presentation
17 slides from Northern Star Resources's earnings presentation, Aug 23, 2018
Slide 1: Delivering Financial Returns – From Tier-1 Assets in Tier-1 Locations
For personal use only Delivering Financial Returns – From Tier-1 Assets in Tier-1 Locations Full Year 2018 Financial Results - August 2018
Slide 2: Disclaimer – Competent Persons Statements
Disclaimer Competent Persons Statements For personal use only The information in this announcement that relates to Mineral Resource estimations, exploration results, data quality and geological interpretations for the Company’s Project areas is based on information compiled by Brook Ekers, a Compete
Slide 3: FY2018 – Key Highlights
FY2018 – Key Highlights For personal use only Financial Record Net Profit* Group EBITDA* EPS* of 32.1¢ up Full year dividend Performance of A$194M A$443M up 4% 2% on pcp up 11% to 5¢ per on pcp share Operational Jundee & Record Reserves Acquisition and Performance Kalgoorlie Ops production run incre
Slide 4: NST continues to lead the global gold sector in ROE and ROIC
NST continues to lead the global gold sector in ROE and ROIC NST generated a sector leading average ROE of 27% in FY2018 and has averaged 35% since FY2014 For personal use only Return on Invested Capital of 25% in FY2018 and a 4 year average underlying ROIC of 28% Since FY2014 NST has returned an av
Slide 5: Financial Highlights for FY2018
Financial Highlights for FY2018 Profit up: Record FY2018 Net Profit after tax of A$194M, up 3% on the previous corresponding period (pcp) For personal use only Earnings up: Record Earnings per share of 32.1¢ up 2% on FY2017 Group EBITDA of A$443M up 4% and combined EBITDA margin at Jundee and Kalgoo
Slide 6: FY2018 Highlights - All key financial and production metrics up
FY2018 Highlights - All key financial and production metrics up Underlying free cashflow grew by 8% to A$186M, NPAT up 3%, EPS up 2% and Production up 12% For personal use only Year Ended Year Ended Change Change Financial Highlights* 30 June 2018 30 June 2017 ($000’s) ($000’s) ($000’s) (%) Revenue
Slide 7: FY2018 cash flow performance
FY2018 cash flow performance NST generated A$353M of operating cashflow across its assets in FY2018 For personal use only In FY2018 NST invested A$194M into exploration and assets whilst returning A$63M of dividends to its Shareholders 7
Slide 8: FY2018 cash flow performance
FY2018 cash flow performance NST generated A$186M of underlying free cashflow across its assets in FY2018 For personal use only 8
Slide 9: Growing Cash generation and a balance sheet with flexibility
Growing Cash generation and a balance sheet with flexibility NST currently has a sector leading balance sheet to fund growth opportunities For personal use only The business has a current available funding capacity of A$834M NST has 259,018oz hedged at an average gold price of A$1,752/oz, currently
Slide 10: Growing profitability and returns to Shareholders since 2012
Growing profitability and returns to Shareholders since 2012 Since 2014 NST has been able to consistently grow earnings, profit margins and payouts to Shareholders For personal use only Dividends to Shareholders have grown by over 280% since 2012; FY2018 sees a full year payout of A9.5¢ NST has retu
Slide 11: Organic growth – still delivering returns for our Shareholders
Organic growth – still delivering returns for our Shareholders NST has been able to consistently grow production, resource and reserve life on a per share basis for its For personal use only Shareholders since 2010 and has been our key focus for the past 4 years Reserves increased to 4Moz and Resour
Slide 12: Allocation of capital
Allocation of capital NST’s allocation of capital has been sector leading and the operating business model has allowed for NST to deliver on all fronts; this approach has delivered sector leading returns for its shareholders For personal use only Organic Growth Dividends & TSR Inorganic Growth Balan
Slide 13: Extending mine life and consistent delivery of guidance
Extending mine life and consistent delivery of guidance Paulsens Gold Mine Jundee Gold Mine Kalgoorlie Operations For personal use only IRR: 148% (historic) IRR: 156% (historic) IRR: 264% (historic) Generation of FCF: A$162M Generation of FCF: A$450M Generation of FCF: A$368M Average ASIC: A$1,146/o
Slide 14: Strong operational performance
Strong operational performance NST has organically grown production and EBITDA at its world class operations in FY2018 For personal use only Gold Sold at both the Jundee and Kalgoorlie Up 21% Operations combined increased by 21% Combined EBITDA increased by 15% to A$486M FY2018 gold sold 570,110oz a
Slide 15: FY2018 Procurement: another year of cost savings
FY2018 Procurement: another year of cost savings NST’s cost focus generated over A$25M of procurement savings in FY2018 For personal use only Since 1 July 2014 total procurement savings of A$106M Continued focus on local procurement as part of community engagement 15
Slide 16: Consistent delivery of Guidance and Mine Life Extension
Consistent delivery of Guidance and Mine Life Extension FY2019 Guidance is for 600,000oz to 640,000oz at A$1,025 - A$1,125 For personal use only 800 NST 10 Year Production Profile 750 700 Organic Growth Options Assumes Resource 650 Jundee, Kalgoorlie, Tanami, Paulsens Conversion 600 THOUSAND OUNCES
Slide 17: Northern Star Resources – Contact Details
For personal use only Northern Star Resources An Australian Mid Cap gold miner – for global investors Contact Details: Luke Gleeson – Investor Relations +61 8 6188 2100 Email – info@nsrltd.com Website – www.nsrltd.com 17
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