Northern Star Resources Ltd · ASX:NST
Northern Star Resources — The Gold Symposium 2012
16 slides from Northern Star Resources's conference presentation, 2012
Slide 1: 12,178gpt intersection at Paulsens
12,178gpt intersection at Paulsens • Maiden 2.5c fully-franked dividend for FY12 (3% yield) • $65-85m surplus cash forecast for CY13 • Resources to underpin +5-year mine life at Paulsens • Clear strategy to grow group production to +200,000ozpa
Slide 2: Disclaimer
Disclaimer Competent Persons Statements • The information in this announcement that relates to Paulsens and Mt Olympus mineral resource estimation, exploration results, data quality, geological interpretations, potential for eventual economic extraction and estimates of exploration potential, is bas
Slide 3: Team with a track record
Team with a track record Shares Options Board - Successful record in discovering and developing mines Total 424M 3.5M BILL BEAMENT Managing Director (Mining Engineer) * As at Sep 2012 Non Executive Chairman (Barrister and CHRIS ROWE Solicitor) Share price: A$1.20 Non Executive Director (Investment F
Slide 4: Northern Star: an abridged history
Northern Star: an abridged history • Acquired Paulsens Gold Mine in Western Australia from Intrepid Mines (TSX/ASX : IAU) : for A$40M in July 2010 • At the time Paulsens had an eight- month life based on a mine plan of 45,000oz • Repaid full A$40M acquisition from cashflow within 7 months • Mine has
Slide 5: Paulsens – Productivity Drive
Paulsens – Productivity Drive • Changed out Mining and Crushing Contractors with in-house team (Northern Star Mining Services Division) • Increased our productivity by 43% in ore tonnes mined in the first full year, expect to improve again this year • Dropped total cost per tonne by 20%, lowering th
Slide 6: Profitability and Balance Sheet “Rapidly Growing”
Profitability and Balance Sheet “Rapidly Growing” Page 6
Slide 7: 2012: Strategy pays dividends .. literally
2012: Strategy pays dividends .. literally • June Quarter production of 19,000oz at A$646/oz (inclusive of royalties) • On track to meet CY12 guidance of 75-80,000oz and A$35m surplus cash (after allowing A$15M capex) • Increased Company profit by 57% to A$34.1M for FY2012 • EBITDA FY2012 A$49.4M •
Slide 8: Voyager 1: The Paulsens Engine Room
Voyager 1: The Paulsens Engine Room • Voyager 1 is the flagship lode at Paulsens and has produced all the gold under NST ownership • Currently mining this lode 550m below surface. Mineralisation drilled to 850m and remains open at depth Voyager 1 Mined to June 2012 Lode runs at a rich 1,250–2,000 ou
Slide 9: Voyager 2: One of the richest intersection in Australian modern gold history
Voyager 2: One of the richest intersection in Australian modern gold history • Voyager 2 was discovered by NST in late 2010; host of stunning drilling results up to 12,178gpt • Voyager 2 begins 650 metres below surface and sits immediately adjacent to Voyager 1 • Maiden resource grade of 11.4gpt • O
Slide 10: Deep drilling: high-grade hits 325m below current workings
Deep drilling: high-grade hits 325m below current workings • Orebody has yielded 500,000oz over ≈ 400 vertical meters, 7 years of production so far • Deep holes drilled in June to target ore body a further 400-500 vertical metres below current workings • Outstanding results first up with grades up t
Slide 11: 2013: The year of rising production, falling costs and increasing cashflow
2013: The year of rising production, falling costs and increasing cashflow • Key CY2013 forecasts @ Gold Price A$1,550/oz: • Total production of 100-115koz • Plant capacity expanded by 25% to 450,000tpa • Average blended grade to rise 20% from 7gpt to ~8.5gpt • Cash Costs C1 of A$610-690/oz (inclusi
Slide 12: Exploration: writing the next chapter for Northern Star
Exploration: writing the next chapter for Northern Star • Part-way through A$20M exploration program, consistent stream of outstanding results • No other deposit found within 50km radius of Paulsens mine, which is now approaching the 1Moz endowment • Great opportunity as there has been limited regio
Slide 13: Gabbro offsets: the gold may be as green on the other side of the fence
Gabbro offsets: the gold may be as green on the other side of the fence • Paulsens is bounded by a Gabbro unit, traditionally seen as a ‘fence’ around the orebody • Drilling aimed at testing the theory that the Gabbro unit is broken more than once, allowing quartz and mineralisation to be deposited
Slide 14: Ashburton – a 100,000ozpa stand-alone operation
Ashburton – a 100,000ozpa stand-alone operation • Ashburton Project located within trucking distance of Paulsens • Acquired in June 2011 for zero cash payment; royalty payable on production over 250koz • Oxide open pit operation from 1998 to 2004, produced 340,000oz @ 3.3gpt • JORC resource recently
Slide 15: Key reasons to invest in Northern Star
Key reasons to invest in Northern Star • Extremely strong cash generation from high-grade and high-margin ounces • Growing production to underpin further growth in surplus cash (up to A$85 million CY2013) • Sufficient resources to underpin +5 year mine life, with further extensions expected • Explor
Slide 16: Contact Details
12,178gpt intersection at Paulsens • Contact Details: • Bill Beament – Managing Director +61 8 6188 2100 • Email – info@nsrltd.com • Website – www.nsrltd.com