Northern Star Resources Ltd · ASX:NST
Northern Star Resources — H1 2018 Earnings Presentation
14 slides from Northern Star Resources's earnings presentation, Feb 20, 2018
Slide 1: An Australian gold miner – for global investors
For personal use only An Australian gold miner – for global investors 1H FY2018 Financial Results - February 2018
Slide 2: Disclaimer – Competent Persons Statements
Disclaimer Competent Persons Statements For personal use only The information in this announcement that relates to exploration results, data quality, geological interpretations and Mineral Resource estimations for the Company’s Project areas is based on information compiled by Darren Cooke, a Compet
Slide 3: 1H FY2018 – Key Financial Highlights
1H FY2018 – Key Financial Highlights Key Financial Outcomes For personal use only Cash Flow from Underlying Free Cash Interim dividend up operating activities up Flow of A$61M up 9% 50% from pcp to A4.5¢ 14% to A$126.8M on from pcp Fully Franked pcp Results strength illustrated by EBITDA of A$201.7M
Slide 4: NST continues to lead the global gold sector in ROE and ROIC
NST continues to lead the global gold sector in ROE and ROIC NST generated a sector leading annualised underlying return of invested capital of 24% in 1H2018 and has For personal use only averaged 28% since FY2015 For the past three years NST has delivered an average return on equity of 35% Capital
Slide 5: 1H FY2018 Highlights - Underlying FCF and Operating Cash Flow Up
1H FY2018 Highlights - Underlying FCF and Operating Cash Flow Up Cash flow from operating activities grew by 14% to A$126.7M and underlying FCF grew by 9% to A$61M For personal use only Half Year End Half Year End $’000 % 31 Dec 2017 31 Dec 2016[a] Change Change Revenue 435,349 415,485 19,864 5% EBI
Slide 6: Financial Highlights for 1H FY2018
Financial Highlights for 1H FY2018 Underlying Free Cash Flow up 9% to A$61M For personal use only Dividend up: interim dividend up 50% to A4.5cps fully franked inline with 6% of revenue EPS of A13.1cps in 1H2018 Since 2014 NST has been able to consistently grow earnings, profit margins and payouts t
Slide 7: Growing profitability and returns to Shareholders since 2012
Growing profitability and returns to Shareholders since 2012 Group level EBITDA margin of 46%, ex Paulsens EBITDA margin of 50% For personal use only Incorporating the 1H2018 dividend; NST has paid out A$217M to Shareholders in dividends since 2014 EBITDA & NPAT Margin EBITDA 90% 300 1H2018 generate
Slide 8: Operating cash flows grow again in 1H FY2018
Operating cash flows grow again in 1H FY2018 Jundee operations grew operating EBITDA margins by 5% over the pcp to 58% in 1H2018 For personal use only Kalgoorlie operations generated an EBITDA margin of 49% in 1H2018 Net operating cash flow across the business grew by 14% to A$127M in 1H2018 Operati
Slide 9: Significant free cash flow generation
Significant free cash flow generation NST generated underlying free cash flow of A$61.1 million at an average gold price of A$1,678/oz For personal use only Underlying free cash flow was up 9% on previous corresponding period NST also paid out A$36M to Shareholders in 1H2018 $70 $60 35.2 61.1 $50 $4
Slide 10: Free cash flow and cash balance growing despite capex growth
Free cash flow and cash balance growing despite capex growth During 1H2018 A$56M was invested in exploration and expansionary capital to build the Resource and Reserve inventory and grow production in the coming years For personal use only Despite an increase in expansionary capex of A$4M on pcp und
Slide 11: Growing Cash generation and a balance sheet with flexibility
Growing Cash generation and a balance sheet with flexibility NST currently has a sector leading balance sheet to fund organic or inorganic growth opportunities For personal use only The business has a current available funding capacity of A$633M NST hedge book has 270,500oz at an average gold price
Slide 12: Production up and AISCs down
Production up and AISCs down Gold sold of 267,278oz in 1H2018; an increase of 9% on the previous corresponding period despite the For personal use only divestment of the Plutonic operations Group Production and AISC Group level AISC of A$1,043oz in 1H2018 fell 350,000 Gold Sold up 9% and costs down
Slide 13: Organic growth - delivering returns to Shareholders
Organic growth - delivering returns to Shareholders NST has been able to successfully organically grow production, Resource and Reserve life on a per share For personal use only basis for its Shareholders, today’s exploration release points to further growth net of mining depletion In FY2017 Reserve
Slide 14: Northern Star Resources
For personal use only Northern Star Resources An Australian Mid Cap gold miner – for global investors Contact Details: Luke Gleeson – Investor Relations +61 8 6188 2100 Email – info@nsrltd.com Website – www.nsrltd.com 14
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