Northern Star Resources Ltd · ASX:NST
Northern Star Resources — H1 FY2025 Earnings Presentation
22 slides from Northern Star Resources's earnings presentation, Feb 13, 2025
Slide 1: Results Presentation for Half Year Ended 31 Dec 2024
Results Presentation for Half Year Ended 31 Dec 2024 13 February 2025
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 LARGE AUSTRALIA 1.65-1.80Moz +7,000 Yandal FY25 GOLD SOLD GUIDANCE PEOPLE Kalgoorlie LIQUID ASX 50 A$21B A$71M MARKET INDEX MARKET CAP DAILY TURNOVER* Executing a clear, low-risk strategy = superior returns 3 *Source: Bloombe
Slide 4: 1H FY25 Financial Overview
1H FY25 Financial Overview A$ 1.4B A$ 1.1B Underlying EBITDA Cash Earnings A$ 124M A$ 512M Underlying FCF Underlying NPAT A$ 257M / $300M A 25.0cps Share buy-back Declared interim dividend Underlying EBITDA is Revenue ($2,869M), less cost of sales excluding D&A ($1,376M), less corporate overheads ex
Slide 5: 1H FY25 Balance Sheet Overview
1H FY25 Balance Sheet Overview Net cash position Investment grade Disciplined approach supports growth credit rating maintained strategy (Moody’s, S&P, Fitch) throughout the cycle Credit Facilities (at 31 Dec 2024) A$ 265M A$ 2.7B US$600M A$750M A$750M (drawn) (undrawn) (undrawn) Net Cash* Liquidity
Slide 6: 1H FY25 Production Overview
1H FY25 Production Overview 804koz A$ 2,105/oz On track to meet FY25 production and Gold Sold All-in Sustaining Cost cost guidance Gold Sold (koz) 500 1H FY25 FY25 GUIDANCE 400 91 67 59 71 Gold Sold (koz) 804 1,650 - 1,800 60 300 127 125 114 129 132 Kalgoorlie 413 890 - 980 200 Yandal 261 505 - 555
Slide 7: Strong cash generation across all production centres
Strong cash generation across all production centres 1H FY25 Cash Earnings (A$M) (89) 194 (54) 410 A$ 1.1B Cash Earnings 124M 1,146 A$ 685 Group Underlying Free Cash Flow Kalgoorlie Yandal Pogo Exploration & Corporate Tax & Net Interest Cash Earnings Production Centre Cash Earnings defined as Segmen
Slide 8: Improving return on capital employed
Improving return on capital employed Return on Capital Employed (ROCE) (%) Profitable Growth Strategy Our Purpose To generate superior returns for our x 3.5 ROCE shareholders, while providing positive 6.1% uplift 5.9% benefits for our stakeholders, through operational effectiveness, exploration and
Slide 9: Improved financial performance
Improved financial performance 1H FY25 Group Level Underlying 1H FY25 EBITDA Contribution 49% A$ 1,744/oz Pogo EBITDA margin EBITDA/oz 15 % Production centre (excl. exploration) Segment EBITDA per ounce 53 % 52 % A$1,855/oz 48 % 44 % 43 % 33 % A$1,200/oz Yandal Kalgoorlie 32 % 52 % Production centre
Slide 10: Profitable growth strategy rebasing cash generation higher
Profitable growth strategy rebasing cash generation higher KALGOORLIE YANDAL POGO FY22 - 1H25 A$ 743M A$ 941M A$ 375M A$ 2.1B Operational Free cash flow Cumulative FY22 + FY23 + FY24 + 1H25 Operational free cash flow excludes cumulative corporate and technical services costs FY22-FY23-FY24-1H25 ($46
Slide 11: Delivering superior returns to our shareholders
Delivering superior returns to our shareholders Profitable Growth Strategy A25.0 cents per share Buy-back A$257M bought back to date; average price A$10.72ps FY25 interim unfranked dividend 25% of Cash Earnings 25.0 Dividend Policy: 20-30% of Cash Earnings 15.5 11.5 9.5 25.0 A$85M or 5.3M shares 9.5
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 Expansion Project on track and progressing well
KCGM Expansion Project on track and progressing well Capital Cost Breakdown (%) 2H FY25 Planned Activities Last delivery of bulk structural steel and steel FY24 FY25 FY26 FY27 A$1.5B $348M $500-530M ~$530-550M ~$100M modules received at site expected June quarter Inclusive of 10% inflation & conti
Slide 14: KCGM Mill Expansion: Construction progress by areas
KCGM Mill Expansion: Construction progress by areas 1. Ball Mill Shell Segments 2. Primary Crushing Area 3. Milling Area 4. Flotation Cells Ready For Installation 14
Slide 15: Prepared for next phase of growth
Prepared for next phase of growth Northern Star Agrees to Acquire De Grey Mining (ASX: DEG) Transaction Overview All scrip acquisition of De Grey by Northern Star via Scheme of Arrangement Each De Grey Transaction Transaction Transaction is Post shareholder will unanimously subject to Court targeted
Slide 16: FY25 guidance
FY25 guidance FY25 GUIDANCE UNITS KALGOORLIE YANDAL POGO TOTAL* Gold Sold koz 890 - 980 505 - 555 255 - 265 1,650 - 1,800 AISC A$/oz 1,740 - 2,000 1,930 - 2,210 US$1,395 - 1,460 1,850 - 2,100 Growth Capital Expenditure A$M 555 - 595 285 - 307 US$60 - 65 950 - 1,020 plus KCGM Mill Expansion Project 5
Slide 17: Exploration underpins further organic growth opportunities
Exploration underpins further organic growth opportunities Advancement of operational, development and discovery projects provide long-term organic growth optionality across our three Production Centres Our exploration program remains a highly attractive approach to value creation 20.9Moz 61.3Mo
Slide 18: Northern Star: Our commitment to create value
Northern Star: Our commitment to create value Our Purpose To generate superior returns for our shareholders while providing positive benefits for our stakeholders through operational effectiveness, exploration and active portfolio management www.nsrltd.com 18
Slide 19: Appendix: Key Financials
Appendix: Key Financials % Units 1H FY25 1H FY24 Abnormal items 1H FY25 1H FY24 Variance Key financials Impairment of exploration assets 25 10 Revenue A$M 2,869 2,248 28% (Gain) / loss on financial Underlying EBITDA A$M 1,402 889 58% (35) 10 instruments Depreciation & Amortisation A$M 624 550 13% Lo
Slide 20: Appendix: 1H FY25 NPAT to Cash Earnings
Appendix: 1H FY25 NPAT to Cash Earnings (A$M) (35) 25 17 (54) (202) 624 1,395 1,402 265 1,146 506 Net Profit Tax & Net D&A EBITDA Fair value gains Impairment Other incl Underlying EBITDA Tax & Net Sustaining Cash Earnings After Tax Finance Costs on financial charges FX on unhedged Interest Paid Capi
Slide 21: Appendix: 1H FY25 cash movement
Appendix: 1H FY25 cash movement (A$M) (493) 1,254 (445) (124) (82) (109) (1) (280) 206 1,120 1,046 Cash Jun-24 Operating PPE Mine Properties Exploration Share Equipment Dividends Osisko share sale FX and other Cash Dec-24 cashflow Buy-Backs Finance/Leases All figures above are extracted from the 1H2
Slide 22: Appendix: 1H FY25 AISC to cost of sales reconciliation
Appendix: 1H FY25 AISC to cost of sales reconciliation From December 2024 Quarterly Activities Report A$M Revenue (19) 4 6 (49) 620 (57) (202) add minus 1,997 minus minus 1,694 AISC By-Products Corporate D&A Other AISC Inventory Sustaining Rehabilitation Cost of Sales add Movement Capital add P&L Ca
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