Northern Star Resources Ltd · ASX:NST
Northern Star Resources — BMO 2016
24 slides from Northern Star Resources's conference presentation, Feb 29, 2016
Slide 1: Northern Star Resources February 2016
For personal use only Northern Star Resources February 2016 An Australian gold miner – for global investors
Slide 2: Disclaimer - Competent Persons Statements
Disclaimer Competent Persons Statements The information in this announcement that relates to mineral resource estimations, exploration results, data quality, geological interpretations and potential for eventual economic extraction, is based on information For personal use only compiled by Darren Co
Slide 3: Introduction - Third biggest Australian listed Gold Miner
Introduction - Third biggest Australian listed Gold Miner We are the third-biggest gold miner on the Australian stock exchange by both market For personal use only cap and production Strong balance sheet; no debt; A$226m in Paulsens & Ashburton cash, bullion & investments 31 Dec 2015 Operations +3Mo
Slide 4: A business first, mining is how we deliver value
A business first, mining is how we deliver value NST is uniquely positioned to continue to deliver above average returns to its Shareholders For personal use only Macquarie Global CY16 AISC Cost Curve Return on Invested Capital (%) 45% $1,400 Q4 27% NST 5yr Average 28% $1,200 NST AISC US$748/oz 30%
Slide 5: Efficiently Allocating Capital – Organically & Inorganically
Efficiently Allocating Capital – Organically & Inorganically Superior returns on invested capital will continue to be the focus to drive investment decisions For personal use only Capital will be forced to compete internally for project funding to continue to generate a sector leading Return on Equi
Slide 6: 2015 – Another golden year for NST
2015 – Another golden year for NST Key Operational, Resource & Financial Outcomes For personal use only Record mine production of Total Resources increased by Pegasus resource increased 622koz, up 154% 44% to 8.9Moz* to over 1.2Moz* at 11.2gpt Gold Sold increased by 177% Measured/Indicated Category
Slide 7: FY16: Production and Cost Guidance
FY16: Production and Cost Guidance Key FY16 forecasts: For personal use only Total gold production of 535,000-570,000oz; 1H 285,500oz produced, top end of guidance AISC of US$745-US$780/oz; 1H costs tracking towards lower end of guidance at US$754/oz A$74m to be spent on Investing Capital foll
Slide 8: Group Production Growing Next Financial Year
Group Production Growing Next Financial Year Cashflow set to lift to another level with group production growing organically next year, heading to a 700koz per annum producer in 2018 subject to the following assumptions; For personal use only Central Tanami Project commencing production in CY17 an
Slide 9: Jundee: still one of Australia's best mines
Jundee: still one of Australia’s best mines FY15 gold sold 223,727oz at an AISC of US$715/oz, well above guidance For personal use only FY16 guidance 210,000-220,000oz at AISC of US$710-US$745/oz Dec Qtr 60.3koz mined and 53.7koz sold at an AISC of US$700/oz Resources: 1.35Moz, up 166% and Reserves
Slide 10: Kundana: A corridor of riches
Kundana: A corridor of riches FY15 gold sold 103,051oz at an AISC of US$504/oz, within guidance For personal use only FY16 guidance 100,000-110,000oz at AISC of US$600-US$640/oz Dec Qtr 29.3koz mined and 27koz sold at an AISC of US$637/oz Resources: 1.6Moz, up 134% and Reserves 0.45Moz, up 61% even
Slide 11: Kanowna Belle: A great Goldfields address
Kanowna Belle: A great Goldfields address FY15 gold sold 96,223oz at an AISC of US$724/oz, For personal use only well above guidance FY16 guidance 80,000-85,000oz at AISC of US$745-US$780/oz Dec Qtr 27koz mined and 25koz sold at an AISC of US$575/oz Resources 1.2Moz, up 8% and Reserves 0.2Moz, after
Slide 12: Plutonic: Rebuilding the Mine
Plutonic: Rebuilding the Mine FY15 gold sold 80,141oz at an AISC of US$1,100/oz For personal use only FY16 guidance 75,000-80,000oz at AISC of US$960-US$995/oz Dec Qtr 21.3koz mined and 17koz sold at an AISC of US$1,167/oz down 11% Quarter on Quarter Maiden Hermes Resource of 0.22Moz at 2.7gpt, incr
Slide 13: Paulsens: The Founding Asset
Paulsens: The Founding Asset FY15 gold sold 77,642oz at an AISC of US$897/oz FY16 guidance 70,000-75,000oz at AISC of US$835-US$905/oz For personal use only Dec Qtr 21koz mined and 19koz sold at an AISC of US$820/oz Resources: 0.4Moz, up 7% and Reserves 0.1Moz, after mining 76koz in FY15 Recent hit
Slide 14: Central Tanami Project: Next Tier of Production Growth
Central Tanami Project: Next Tier of Production Growth Historically produced 2.1Moz from top 125m, last major 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 For personal use only The past 5 years has seen A$30m
Slide 15: Why invest in Northern Star
Why invest in Northern Star Highly profitable: Net profit after tax up 79% to A$65.1m in 1HFY16; underlying free For personal use only cashflow of A$96.7m; total interim dividend up 50% from 1H15 to A3¢ps Strong balance sheet: no debt; A$226m in cash, bullion & investments (31 Dec 2015) Emphasis on
Slide 16: Northern Star Resources - Contact Details
For personal use only Northern Star Resources An Australian gold miner – for global investors Contact Details: Luke Gleeson – Investor Relations +61 8 6188 2100 February 2016 Email – info@nsrltd.com / Website – www.nsrltd.com
Slide 17: Team with a track record
Team with a track record Shares Options Board – Successful record in discovering and developing mines For personal use only Total 600M 4.1M BILL BEAMENT Managing Director (Mining Engineer) * As at 31 December 2015 Non-Executive Chairman – Independent Share price: A$4.02 CHRIS ROWE (Barrister and Sol
Slide 18: APPENDIX – RESULTS: Paulsens Significant Intersections
APPENDIX 1 – RESULTS PAULSENS SIGNIFICANT INTERSECTIONS – Resource Definition and Grade Control Drill hole Azimuth End of Downhole Downhole Downhole Au Est True Drill Hole Easting Northing collar RL (degrees, hole depth From To Intersection (gpt) Thickness # (Mine Grid) (Mine Grid) (Mine Grid) Dip (
Slide 19: Paulsens Significant Intersections
PAULSENS SIGNIFICANT INTERSECTIONS – Resource Definition and Grade Control Drill hole Azimuth End of Downhole Downhole Downhole Au Est True Drill Hole Easting Northing collar RL (degrees, hole depth From To Intersection (gpt) Thickness # (Mine Grid) (Mine Grid) (Mine Grid) Dip (degrees) Mine Grid) (
Slide 20: JORC Code, 2012 Edition – Table Report: Voy2 Drill Results
JORC Code, 2012 Edition – Table 1 Report: Voy2 Drill Results to 24 February 2016 Section 1 Sampling Techniques and Data For personal use only (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary Sampling Nature and quality of sampling (e.g. cut chann
Slide 21: JORC Table 1 – Sampling Techniques and Data (continued)
Criteria JORC Code explanation Commentary Ideally, sample intervals are 1m in length, though they range from 0.3m to 1.5m in length. Total weight of each sample generally does not exceed 5kg. For personal use only All samples are oven-dried overnight (max 1200C), crushed to 90% passing 3mm before a
Slide 22: JORC Table 1 – Data Verification and Location
Criteria JORC Code explanation Commentary Documentation of primary data, data entry procedures, data verification, data Data is entered in the OCRIS data capture system, where it is then exported to the GBIS Geology For personal use only storage (physical and electronic) protocols. database after va
Slide 23: Section Reporting of Exploration Results
Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) For personal use only Criteria JORC Code explanation Commentary Mineral Type, reference name/number, location and ownership including agreements or M08/196 and M08/99 are wholly owned by
Slide 24: JORC Table – Reporting Criteria (continued)
Criteria JORC Code explanation Commentary but not be limited to a plan view of drill hole collar locations and appropriate See ASX releases dated 04/08/2015, 13/01/2015, 19/02/2014, 05/09/2013, 23/09/2013, 02/08/2013, sectional views. 29/05/2013, 16/05/2013, 20/01/2013, 12/12/2012, 1/10/2012, 24/8/2