Northern Star Resources Ltd · ASX:NST
Northern Star Resources — FY2016 Earnings Presentation
25 slides from Northern Star Resources's earnings presentation, Aug 22, 2016
Slide 1: Northern Star Resources 2016 Full Year Results
For personal use only Northern Star Resources 2016 Full Year Results An Australian gold miner – for global investors August 2016
Slide 2: Disclaimer: Competent Persons Statements
Disclaimer Competent Persons Statements For personal use only The information in this announcement that relates to data quality, geological interpretations and Mineral Resource estimations for the Company’s Paulsens, Ashburton, Jundee and Plutonic Project areas is based on information compiled by Br
Slide 3: FY2016 – Key Financial Highlights
FY2016 – Key Financial Highlights Key Financial Outcomes For personal use only Net Profit After Tax up Full Year Dividend Underlying free cash 65% to a record increased by 33% flow up 21% to A$151.4M to 4¢ per share A$224.3M Results strength illustrated by A$326M Cash, Bullion 39% Return on Equity E
Slide 4: Resource additions for the Year to June 2016
Resource additions for the Year to 30 June 2016 The FY2016 A$50m exploration spend achieved a 33% increase in the Reserves to 2Moz* after mining depletion of 0.6Moz; discovery cost of just A$50/oz For personal use only Total Resource increased to 9.25Moz The Measured and Indicated Resource increased
Slide 5: Asset by Asset exploration highlights
Asset by Asset exploration highlights NST remains poised to continue growing mine lives across all its assets with four For personal use only new discoveries missing the cut off for the 30 June Resource statement Resource estimations to be completed in FY2017 on these new discoveries Jundee: Reserve
Slide 6: Financial Highlights for FY2016
Financial Highlights for FY2016 Sales revenue: A$887.4m up 5% on FY2015 For personal use only Record Net profit after tax of A$165.4m up 65% EBITDA of A$401.3m up 27% on FY2015 Cash flow from operating activities of A$383.3m; generating record underlying free cash flow of A$224.3m Dividend: Final 4¢
Slide 7: Financial Highlights for FY2016
Financial Highlights for FY2016 Net Profit After Tax EBITDA For personal use only 160 NPAT up 65% in FY2016 $151 450 EBITDA up 27% in FY2016 $401 140 375 120 $316 100 $92 300 A$(M) A$(M) 80 225 60 150 40 $28 $70 $89 $16 $22 $22 $46 $51 75 20 FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY1
Slide 8: Another record year of free cash flow generation
Another record year of free cash flow generation NST generated strong underlying free cash flow of A$224.3m at an average gold price of A$1,578/oz For personal use only NST stands to benefit from a spot gold price that is currently trading ~A$1,760/oz into FY2017 During FY2016 NST sold 561,153oz at
Slide 9: Details of Financials
Details of Financials Earnings per share and Statutory Net Profit grew by 63% to 25.2cps and 65% to A$151.4m in FY2016 For personal use only Year End Year End Change Change 30 June 2016 30 June 2015 ($000s) ($000s) ($000s) (%) Revenue 887,417 845,653 41,764 5 EBITDA 401,280 316,142 85,138 27 Net pro
Slide 10: FY2016 Operational breakdown by site
FY2016 Operational breakdown by site Group EBITDA margins grew to 45% and group AISCs fell to A$1,041/oz (US$758/oz) in FY2016 For personal use only NST group EBITDA margins have averaged 42% since FY2011, this compares favourably to the five calendar year trailing EBITDA margin for the broader ASX2
Slide 11: Asset by asset breakdown for FY2016
Asset by asset breakdown for FY2016 FY2016 ounces sold was 561,153oz at an AISC of A$1,041/oz For personal use only Jundee: gold sold of 209,572oz at an AISC of A$1,007/oz Kalgoorlie operations: 207,123oz sold at an AISC of A$837/oz (US$610/oz) Paulsens: gold sold of 80,278oz at an AISC of A$1,099/o
Slide 12: A business positioned for further outperformance
A business positioned for further outperformance NST is uniquely positioned to continue to deliver above average returns to its Shareholders For personal use only 50% Macquarie Global CY2016 AISC Cost Curve Q4 Return on Equity vs Current ASX 200 Mining Peers $1,400 40% $1,200 NST AISC US$740/oz Q3 N
Slide 13: Efficient Capital Allocation - Organic vs Inorganic Growth
Efficient Capital Allocation - Organic vs Inorganic Growth Superior returns on invested capital continues to be the focus driving investment decisions for NST For personal use only Capital is forced to compete internally for project funding to ensure NST continues to generate a sector leading Return
Slide 14: FY2017: Production and Cost Guidance
FY2017: Production and Cost Guidance Total gold production of 485,000-515,000oz at an AISC of A$1,000-A$1,050/oz (US$728-$765/oz)* For personal use only A$130M to be spent on investing capital following on from the great successes in FY2016, including; A$60M for targeted drilling to bring more
Slide 15: 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 August 2016
Slide 16: Appendix
For personal use only Appendix Northern Star Resources 2016 Full Year Results An Australian gold miner – for global investors August 2016
Slide 17: Jundee: A big mine…..and getting bigger
Jundee: A big mine…..and getting bigger FY2016 228,144oz mined and 209,572oz sold at an AISC of A$1,007/oz (US$733/oz) For personal use only FY2017 guidance 220,000-230,000oz at an AISC of A$1,000-$1,050/oz (US$730-$765/oz) Resources: 1.25Moz and Reserves up 21% to 720,000oz, even after mining 228,0
Slide 18: Kalgoorlie Operations: Rapid, low-cost growth
Kalgoorlie Operations: Rapid, low-cost growth FY2016 215,667oz mined and 207,123oz sold at an AISC of A$837/oz (US$610/oz) For personal use only FY2017 guidance 200,000-210,000oz at an AISC of A$950-$1,000/oz (US$692-$728/oz) Resources 3.6Moz, up 17% and Reserves up 0.9Moz up 48%, after mining 216Ko
Slide 19: Kalgoorlie Operations: Rapid, low-cost growth
Kalgoorlie Operations: Rapid, low-cost growth Ramp up production at Kundana JV: For personal use only Link Hornet, Rubicon and Pegasus orebodies with a decline which will also offer numerous production fronts and provide the drill platform to make another step change in mineral inventory PEGASUS RUB
Slide 20: Kalgoorlie Operations: Rapid, low-cost growth
Kalgoorlie Operations: Rapid, low-cost growth Commence production at Millennium, 100% NST owned Kundana; For personal use only Have started the underground access to the 50kozpa Millennium deposit, ahead of schedule Resources of 419,000oz at 6.2gpt and maiden Reserve of 205,000oz; underpinning first
Slide 21: Kalgoorlie Operations: Rapid, low-cost growth
Kalgoorlie Operations: Rapid, low-cost growth Evaluate production at historical 100% NST owned Kundana mines: Barkers, Strzelecki, Centenary, Pope John For personal use only Past production of 1.25Moz at 6gpt between 1990-2004 Each of these ore surfaces historically produced 50-60koz per annum 21 Pa
Slide 22: Kalgoorlie Operations: Rapid, low-cost growth
Kalgoorlie Operations: Rapid, low-cost growth Kanowna extension at depth and along strike; Gold For personal use only Gram Drill out depth extension to +5Moz orebody, Metres historically averaging 4Koz per vertical metre Continue to define Velvet discovery (recent result of 47.9m at 83.1gpt) and bri
Slide 23: Paulsens: The Founding Asset
Paulsens: The Founding Asset FY2016 production of 91,250oz mined and 80,278oz sold at an AISC of A$1,099/oz (US$800/oz) For personal use only FY2017 guidance 65,000-75,000oz at AISC of A$1,200-$1,250/oz (US$874-$910/oz) Resources: 0.3Moz and Reserves 0.1Moz, after mining 91Koz in FY2016 Record cash
Slide 24: Central Tanami Project: Next Tier of Production Growth
Central Tanami Project: Next Tier of Production Growth Historically produced 2.1Moz, last major For personal use only production was from Newmont in 2005 when it produced 610,000oz at 4.3gpt over a 4 year period from the main deposit: Groundrush open pit The past 5 years has seen A$40m invested at G
Slide 25: 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 August 2016
Northern Star Resources — FY2016 Earnings Presentation on 6ix