Northern Star Resources Ltd · ASX:NST
Northern Star Resources — H1 FY2024 Earnings Presentation
18 slides from Northern Star Resources's earnings presentation, Jan 24, 2024
Slide 1: Results Presentation for Half Year Ended 31 Dec 2023
Results Presentation for Half Year Ended 31 Dec 2023 22 February 2024
Slide 2: Forward Looking Statements and Disclosures
Forward Looking Statements and Disclosures Forward Looking Statements Northern Star Resources Limited has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the infor
Slide 3: We are a global gold leader
We are a global gold leader STRENGTH FROM SIMPLICITY 100% GOLD ALASKA Pogo LARGE AUSTRALIA 1.60-1.75Moz +6,000 Yandal FY24 GOLD SOLD GUIDANCE PEOPLE Kalgoorlie LIQUID ASX 50 A$15B A$64M MARKET INDEX MARKET CAP DAILY TURNOVER* Executing a clear, low-risk strategy = superior returns 3 *Source: Bloombe
Slide 4: 1H FY24 Financial Overview
1H FY24 Financial Overview A$ 889M YoY A$ 702M YoY Underlying EBITDA Cash Earnings A$ 131M YoY A$ 211M YoY Underlying FCF Underlying NPAT A$ 169M / $300M A 15.0cps YoY Share buy-back Declared interim dividend Underlying EBITDA, Cash Earnings and Underlying NPAT are non-GAAP measures. Reconciliation
Slide 5: Financial flexibility from a strong balance sheet
Financial flexibility from a strong balance sheet Net cash position Reinvesting for Disciplined approach supports organic growth to de-risk cost maintained strategy profile throughout the cycle Credit Facilities (at 31 Dec 2023) A$ 229M A$ 2.6B US$600M A$750M A$750M (drawn) (undrawn) (undrawn) Net C
Slide 6: 1H FY24 Operational Overview
1H FY24 Operational Overview Delivered 781koz gold at AISC of A$1,878/oz; remain on track to meet FY24 production and cost guidance Advancing low-risk, five-year profitable growth pathway: Kalgoorlie: KCGM successfully commenced mining in Golden Pike North ahead of schedule Yandal: Thunderbo
Slide 7: Strong cash generation across all production centres
Strong cash generation across all production centres 1H FY24 Cash Earnings (A$M) A$ 702M Cash Earnings A$ 131M Group Underlying Free Cash Flow Production Centre Cash Earnings defined as Segment EBITDA excluding exploration ($937M) less sustaining capital ($164M). Kalgoorlie Segment EBITDA ($506M) le
Slide 8: Improved financial performance
Improved financial performance 1H FY24 Group Level Underlying 1H FY24 EBITDA Contribution 40% A$ 1,199/oz EBITDA margin EBITDA/oz Pogo 13% Production centre (excl. exploration) A$1,199/oz 49% 44% 43% A$877/oz Yandal 33% 33% 31% Kalgoorlie 54% 22% Production centre EBITDA contribution (excluding expl
Slide 9: Profitable growth strategy rebasing cash generation higher
Profitable growth strategy rebasing cash generation higher KALGOORLIE YANDAL POGO Cumulative FY22, FY23 & 1H FY24 A$ 510M A$ 595M A$ 95M A$ 1.2B Operational Free cash flow Asset portfolio positioned to rebase Operational Free Cash Flow higher FCF generation High-margin Golden Economies of scale Feed
Slide 10: 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 11: KCGM Expansion Project on track and progressing well
KCGM Expansion Project on track and progressing well Capital Cost Breakdown (%) 2H FY24 Planned Activities Second camp on track for commissioning (first camp fully A$1.5B FY24 FY25 FY26 FY27 operational) Inclusive of 10% inflation & 35% 30% 30% 5% Power line upgrade tie-in contingency Building
Slide 12: FY24 guidance
FY24 guidance FY24 Group UNITS KALGOORLIE YANDAL POGO TOTAL GUIDANCE Production 1H < 2H weighted Gold sold koz 820 - 900 520 - 570 260 - 280 1,600 - 1,750 3Q24: KCGM, TBO, CDO, Pogo AISC A$/oz 1,730 - 1,780 1,655 - 1,700 1,900 - 2,015 1,730 - 1,790 planned mill shutdowns (US$1,270 - 1,350) Kalgo
Slide 13: Exploration underpins further organic growth opportunities
Exploration underpins further organic growth opportunities Ore Reserves* Mineral Resources* 8% 13% 19% Kalgoorlie Kalgoorlie 20.2 Yandal 17% 57.4 Yandal Moz Pogo Moz Pogo 70% 73% + 10YR A$ 31/OZ Reserve-backed Cost of resource production profile additions 13 *Annual Mineral Resources and Ore Reserve
Slide 14: Executing our clearly defined strategy
Executing our clearly defined strategy Our Purpose To generate superior returns for our shareholders while providing positive benefits for our stakeholders through operational effectiveness, exploration and active portfolio management Generate superior returns Strong cash flow generation World-class
Slide 15: Appendix: Key Financials
Appendix: Key Financials % Units 1H FY24 1H FY23 Variance Key financials Abnormal items 1H FY24 1H FY23 Revenue A$M 2,248 1,949 15% Underlying EBITDA A$M 889 633 41% Impairment of exploration assets 10 19 Depreciation & Amortisation A$M 550 536 3% Loss /(gain) on financial 10 (11) instruments Underl
Slide 16: Appendix: 1H FY24 NPAT to Cash Earnings
Appendix: 1H FY24 NPAT to Cash Earnings (A$M) Tax and Net Finance Costs is Income Tax expense ($90M), plus Finance costs ($58M), less Interest income ($26M). D&A is Cost of Sales D&A ($547M) plus Corporate D&A ($3M). Impairment charges is Exploration and evaluation assets impairment ($10M). Other is
Slide 17: Appendix: 1H FY24 cash movement
Appendix: 1H FY24 cash movement (A$M) All figures above are extracted from the HY24 cashflow statement included in the HY24 financial statements. 17 Equipment Finance/Leases comprises repayments on equipment fleet and right of use leases.
Slide 18: Appendix: 1H FY24 AISC to cost of sales reconciliation
Appendix: 1H FY24 AISC to cost of sales reconciliation From December 2023 Quarterly Activities Report A$M Revenue add minus minus minus AISC add add P&L Calculations: Depreciation & Amortisation = $691/oz x Gold Sold (production) = $540M Depreciation variance is due to a one-off depreciation adjustm
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