Northern Star Resources Ltd · ASX:NST
Northern Star Resources — FY2024 Earnings Presentation
23 slides from Northern Star Resources's earnings presentation, Aug 22, 2024
Slide 1: Results Presentation for Year Ended 30 June 2024
Results Presentation for Year Ended 30 June 2024 22 August 2024
Slide 2: Disclaimers
Disclaimers Disclaimer and Forward-Looking Statements ASX Listing Rule 5.23 Statement Northern Star Resources Ltd has prepared this announcement based on The information in this announcement that relates to the current Ore Reserves and Mineral Resources of Northern Star information available to it.
Slide 3: We are a global gold leader
We are a global gold leader STRENGTH FROM SIMPLICITY 100% GOLD ALASKA Pogo SCALE AUSTRALIA 1.6Moz ~7,000 Yandal FY24 GOLD SOLD PEOPLE Kalgoorlie LIQUID ASX 50 $17B $63M MARKET INDEX MARKET CAP DAILY TURNOVER* Executing a clear, low-risk strategy = superior returns 3 *Source: Bloomberg. Average daily
Slide 4: FY24 Financial Overview
FY24 Financial Overview A$ 1.8B YoY A 40.0cps YoY Cash Earnings Dividends A$ 2.2B YoY A$ 462M YoY Underlying EBITDA Underlying FCF A$ 172M / $300M A$ 358M Share buy-back Net Cash Cash Earnings is defined as Underlying EBITDA ($2,192M) less sustaining capital ($320M from AISC tables in June 2024 Quar
Slide 5: Financial flexibility from a strong balance sheet
Financial flexibility from a strong balance sheet Net cash position Reinvesting for Disciplined approach supports organic growth to de-risk cost maintained strategy profile throughout the cycle Credit Facilities (at 30 June 2024) A$ 358M A$ 2.7B US$600M A$750M A$750M (drawn) (undrawn) (undrawn) Net
Slide 6: FY24 Operational Overview
FY24 Operational Overview Delivered FY24 guidance: 1,621koz gold at AISC of A$1,853/oz Third year of five-year profitable growth pathway delivered significant progress: Kalgoorlie: Access to high-grade material in the Golden Pike North mining area; Mill Expansion Project on track Yandal: Thu
Slide 7: Strong cash generation across all Production Centres
Strong cash generation across all Production Centres Cash Earnings (A$M) A$ 1.8B Cash Earnings A$ 462M Group Underlying Free Cash Flow Production Centre Cash Earnings defined as Segment EBITDA for operating assets ($2,320M) less sustaining capital ($320M). Kalgoorlie Segment EBITDA ($1,296M) less su
Slide 8: Increasing returns on capital
Increasing returns on capital Return on Capital Employed (ROCE) (%) Profitable Growth Strategy Our Purpose x2 ROCE To generate superior returns for our uplift shareholders, while providing positive benefits for our stakeholders, through operational effectiveness, exploration and Rebase from active p
Slide 9: Improved half-on-half financial performance
Improved half-on-half financial performance FY24 Group Level Underlying FY24 EBITDA Contribution 45% A$ 1,353/oz Pogo EBITDA margin EBITDA/oz 15% Production Centre (excl. exploration) 56% A$1,647/oz 47% 48% 44% 43% Yandal 33% Kalgoorlie A$1,200/oz 29% 56% Production Centre EBITDA contribution (exclu
Slide 10: Five-year profitable growth strategy on track
Five-year profitable growth strategy on track KALGOORLIE YANDAL POGO FY22 – FY24 A$ 729M A$ 725M A$ 248M A$ 1.7B Operational Free cash flow Cumulative FY22 + FY23 + FY24 Operational free cash flow excludes cumulative corporate and technical services costs FY22-FY24 ($381M). Operational Free cash flo
Slide 11: Balance sheet strength and financial flexibility
Balance sheet strength and financial flexibility Disciplined approach maintained throughout Capital Management – Aligned to our purpose the cycle Profitable Growth Strategy Clear capital management framework underpinned by focus on free cash flow generation Buy-back Continue to pay superior returns
Slide 12: Our framework to generate superior shareholder returns
Our framework to generate superior shareholder returns OPERATIONAL DISCIPLINED CAPITAL EXCELLENCE ALLOCATION World-class assets Strong balance sheet Responsible producer Profitable growth with a strong safety culture Agile decision making Strong cash flow and strategic flexibility generation Superio
Slide 13: KCGM Mill Expansion: Build schedule and cost breakdown
KCGM Mill Expansion: Build schedule and cost breakdown Capital Cost Breakdown (%) A$1.5B FY24 $348M FY25 $500-530M FY26 ~$530-550M FY27 ~$100M Inclusive of 10% inflation & contingency 23% 34% ~36% ~7% 13
Slide 14: KCGM Mill Expansion: Construction progress by areas
KCGM Mill Expansion: Construction progress by areas Primary Crushing Area Concrete Works Flotation Thickener Concrete Works All critical path enabling Two accommodation camps Major equipment to be works completed fully operational delivered 1H FY25 14
Slide 15: FY25 operational guidance
FY25 operational guidance FY25 GUIDANCE UNITS KALGOORLIE YANDAL POGO TOTAL* Gold Sold koz 890 - 980 505 - 555 255 - 265 1,650 - 1,800 AISC A$/oz 1,740 - 2,000 1,930 - 2,210 US$1,395 - 1,460 1,850 - 2,100 GOLD SOLD OUTLOOK KALGOORLIE YANDAL POGO GROUP KCGM grade increase Jundee to normalise 1Q25: ~50
Slide 16: FY25 financial guidance
FY25 financial guidance FY25 GUIDANCE (UNCHANGED) UNITS KALGOORLIE YANDAL POGO TOTAL* Growth Capital Expenditure A$M 555 - 595 285 - 307 US$60 - 65 950 - 1,020 plus KCGM Mill Expansion Project 500 - 530 - - 500 - 530 Exploration A$M - - - 180 Depreciation & A$775 - 875/oz Amortisation (A$M: 1H < 2H)
Slide 17: Exploration underpins further organic growth opportunities
Exploration underpins further organic growth opportunities Advancement of operational, development and discovery projects provide long-term organic growth optionality across our three Production Centres Our exploration program remains a highly attractive approach to value creation 20.9Moz 61.3Mo
Slide 18: Sustainable development publications
Sustainable development publications FY24 sustainable performance highlights 0.5 LTIFR FY24 Annual Reporting Suite below industry average Safety performance Zero Materially adverse incidents Nil Environmental, community or heritage incidents, nil fatalities FY24 Annual Report FY24 Environment & Soci
Slide 19: Northern Star: Our commitment to create value
Northern Star: Our commitment to create value Our Purpose To generate superior returns for our shareholders while providing positive benefits for our stakeholders through operational effectiveness, exploration and active portfolio management www.nsrltd.com 19
Slide 20: Appendix: Key Financials
Appendix: Key Financials % Units FY24 FY23 Variance Abnormal items FY24 FY23 Key financials Impairment of exploration assets 69 42 Revenue A$M 4,921 4,131 19% Loss / (gain) on financial Underlying EBITDA A$M 2,192 1,537 43% 10 (11) instruments Depreciation & Amortisation A$M 1,132 1,059 7% Loss / (g
Slide 21: Appendix: FY24 NPAT to Cash Earnings
Appendix: FY24 NPAT to Cash Earnings (A$M) Tax and Net Finance Costs is Income Tax expense ($289M) plus Interest expense ($114M) less Interest income ($54M). D&A is Cost of Sales D&A ($1,125M) plus Corporate D&A ($7M). Impairment charges is Exploration and evaluation assets impairment ($69M). Tax &
Slide 22: Appendix: FY24 cash movement
Appendix: FY24 cash movement (A$M) 22
Slide 23: Appendix: FY24 AISC to cost of sales reconciliation
Appendix: FY24 AISC to cost of sales reconciliation From June-24 Quarterly Activities Report A$M Revenue add minus minus minus AISC add add P&L Calculations: Depreciation & Amortisation = A$703/oz x Gold Sold (production) = A$1,139M Depreciation variance is due to depreciation of rehabilitation asse
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