Northern Star Resources Ltd · ASX:NST
Northern Star Resources — FY2017 Earnings Presentation
23 slides from Northern Star Resources's earnings presentation, Aug 22, 2017
Slide 1: World Class Financial Returns – From World Class Australian Gold Mines
For personal use only World Class Financial Returns – From World Class Australian Gold Mines Full Year 2017 Financial Results - August 2017
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: FY2017 – Key Financial Highlights
FY2017 – Key Financial Highlights Key Financial Outcomes For personal use only Record Net Profit after Record Earnings per Final Dividend up 50% Tax up 42% to share up 42% to to A6¢ Fully Franked; A$215.3M A35.9¢ A9¢ payout for FY2017 Results strength illustrated by Record EBITDA of 40% Return on Eq
Slide 4: NST continues to lead the global gold sector in ROE and ROIC
NST continues to lead the global gold sector in ROE and ROIC NST generated a sector leading annualised underlying return of invested capital of 33% in FY2017 and has For personal use only averaged 25% since FY2014 For the past four years NST has delivered an average return on equity of 35% and an av
Slide 5: FY2017 Highlights - All key financial metrics up
FY2017 Highlights - All key financial metrics up EPS grew by 42% to A35.9cps, EBITDA margins up 16%, ROIC up 24% and ROE up 2% For personal use only Financial Highlights Units FY17 FY16 Change Net Profit After Tax A$M 215.3 151.4 42% Earnings per share cps 35.9 25.2 42% EBITDA A$M 461.3 397.0 16% EB
Slide 6: Financial Highlights for FY2017
Financial Highlights for FY2017 Profit up: Record FY2017 net profit after tax of A$215.3M, up 42% on the previous corresponding period (pcp) only Earnings up: Earnings per share growth of 42% to a record of A35.9¢ EBITDA up: Record EBITDA of A$461.3M up 16% on pcp use Margins up: EBITDA margin growt
Slide 7: Growing profitability and returns to Shareholders since 2012
Growing profitability and returns to Shareholders since 2012 Since 2014 NST has been able to consistently grow earnings, profit margins and payouts to Shareholders For personal use only Dividends to Shareholders have grown by over 260% since 2012; FY2017 sees a full year payout of A9¢ 50 Earnings pe
Slide 8: Robust operating margins grow again in FY2017
Robust operating margins grow again in FY2017 NST has grown group EBITDA margins again by 16% in FY2017 and by 73% since FY2014 For personal use only Group EBITDA Margin 56% EBITDA margins at Jundee and Group EBITDA Margin is up 73% since FY2014 52% Kalgoorlie continue to be very strong; with a 37%
Slide 9: Significant free cash flow generation
Significant free cash flow generation Operating cash flows before tax increased by 10% to A$432 million For personal use only NST generated underlying free cash flow of A$177 million at an average gold price of A$1,675/oz During FY2017 A$140M was invested in exploration and expansionary capital to b
Slide 10: Investing back in the business to grow Resources and Reserves
Investing back in the business to grow Resources and Reserves During FY2017 A$130M was invested in exploration and expansionary capital to build the Resource For personal use only and Reserve inventory and grow production in the coming years Since 2011 NST has been able to grow Reserves and Resource
Slide 11: Strong operational performance
Strong operational performance NST has organically grown production and cash flow at its world class operations in FY2017 For personal use only Gold Sold (koz) 210 Up 7% 226 207 Up 9% 225 Operating cashflow and net mine cash flows up YoY at Jundee and Kalgoorlie operations FY16 80 FY17 56 FY2017 gol
Slide 12: FY2017: The year Northern Star became a long-life gold miner
FY2017: The year Northern Star became a long-life gold miner NST’s A$250M investment over the past three For personal use only years had added a 10 year horizon to its portfolio NST Resource and Reserve Growth 12 5.0 of assets 10.2 Mozs 4.5 Group Reserves increased by 2.3Moz to 3.5Moz 10 4.0 3.5 Moz
Slide 13: Organic growth strategy: CAPEX falling and financial benefits rising
Organic growth strategy: CAPEX falling and financial benefits rising A$250M invested in expansionary capital and NST 10 Year Production Profile For personal use only 800 exploration over past three years; now CAPEX Paulsens Revitalisation is falling and financial benefits are rising 700 CTP Redevelo
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
Slide 15: Appendix
Appendix For personal use only Appendix Northern Star Resources An Australian gold miner – for global investors
Slide 16: Jundee: Restored to world class status
Jundee: Restored to world class status 7Moz of continuous For personal use only production, life of mine average of 320kozpa with a peak year of 410koz FY2017 Resource of 3.2Moz, up 155% and Reserves of 1.45Moz, up 100% despite depletion of 259koz FY2018 Guidance 245,000-265,000oz at an AISC of A$95
Slide 17: Jundee: Life beyond 3Moz
Jundee: Life beyond 3Moz The Zodiac high-grade discovery at For personal use only Jundee was announced last week and is not included in the latest update Initial assays from Zodiac show multiple mineralised intercepts over a 200m single downhole interval Results in discovery hole include: 4.8m at 21
Slide 18: Kalgoorlie Operations: Rapid, low-cost production growth
Kalgoorlie Operations: Rapid, low-cost production growth For personal use only Resources of 4.5Moz up 25% and Reserves of 2Moz up 117%, despite CARBINE / PARADIGM Acra depletion of 229koz FY2018: Guidance 245,000-265,000oz at an AISC of A$1,000-A$1,050/oz Growing to a 300,000ozpa producer in 50km 25
Slide 19: Kalgoorlie Operations - Kanowna Belle (100% NST)
Kalgoorlie Operations - Kanowna Belle (100% NST) Kanowna Belle is a +5Moz orebody, averaging 4,000oz For personal use only per vertical metre, with limited exploration at depth and along strike of the major gold bearing structures Reserves have increased 120% to 0.5Moz and Resources are 1.4Moz which
Slide 20: Kalgoorlie Operations - Kundana EKJV (51% NST)
Kalgoorlie Operations - Kundana EKJV (51% NST) For personal use only NST attributable Reserves increased 36% to 0.6Moz, Resources increased 35% to 1.3Moz Primary production is from Rubicon, Hornet, Pegasus and Raleigh The new 2.1km drill drive from Hornet to Pegasus is now ~50% complete, providing t
Slide 21: Kalgoorlie Operations: This is where the production growth is coming
Kalgoorlie Operations: This is where the production growth is coming Past production on the 100% NST ground has yielded 1.25Moz at 6gpt between 1990-2004 For personal use only Current development to 50kozpa Millennium is ahead of schedule; first production ore due in December quarter Further product
Slide 22: Paulsens: Revitalisation underway
Paulsens: Revitalisation underway FY2018: Guidance 35,000-45,000oz For personal use only at an AISC of A$1,300-A$1,400/oz 1Moz at +7gpt has been mined continuously over the past 12 years, at an average of 75kozpa NST has committed to invest approximately A$10 million in exploration at Paulsens over
Slide 23: Central Tanami Project “CTP”: Emerging Growth Region
Central Tanami Project “CTP”: Emerging Growth Region GROUNDRUSH The Tanami region is an exciting new area that is (NST Earning to 60%) For personal use only rapidly developing a reputation for major gold Open Pit Production (Newmont) of 610koz discoveries 150km Tanami Gold Resource of 6.5Mt at 4.8gp
Northern Star Resources — FY2017 Earnings Presentation on 6ix