Northern Star Resources Ltd · ASX:NST
Northern Star Resources — FY2023 Earnings Presentation
20 slides from Northern Star Resources's earnings presentation, Aug 24, 2023
Slide 1: Results Presentation for Year Ended 30 June 2023
Results Presentation for Year Ended 30 June 2023 24 August 2023
Slide 2: Forward Looking Statements, Reserves and Resources
Forward Looking Statements, Reserves and Resources 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 t
Slide 3: We are a global gold leader
We are a global gold leader STRENGTH FROM SIMPLICITY 100% GOLD ALASKA Pogo LARGE AUSTRALIA 1.6Moz +6,000 Yandal FY23 GOLD SOLD PEOPLE Kalgoorlie LIQUID ASX 50 $12B $67M MARKET INDEX MARKET CAP DAILY TURNOVER* Executing a clear, low-risk strategy = superior returns 3 *Source: Bloomberg. Average daily
Slide 4: FY23 Financial Overview
FY23 Financial Overview A$ 1.2B A$ 362M Cash Earnings Net Cash A$ 1.5B A$ 301M Underlying EBITDA Underlying NPAT A$ 127M A 26.5cps Share buy-back Dividends Underlying EBITDA and Cash Earnings are non-GAAP measures. Reconciliation of statutory NPAT to non-GAAP measures has been included on page 19. F
Slide 5: FY23 Operational Overview
FY23 Operational Overview Delivered FY23 guidance: 1,563koz gold at AISC of A$1,759/oz Second year of five-year profitable growth pathway delivered significant progress: Kalgoorlie: FY23 KCGM material movement 83Mtpa (vs FY26 target of 80-100Mtpa), up 26% from FY22 Yandal: Thunderbox mill ex
Slide 6: Strong cash generation across all production centres
Strong cash generation across all production centres Cash Earnings (A$M) A$ 1.2B Cash Earnings A$ 359M Group Underlying Free Cash Flow Production Centre Cash Earnings defined as Segment EBITDA ($2,092M) less sustaining capital ($311M) less one-off write back of KCGM inventory stockpiles ($437M); Kal
Slide 7: Improved half-on-half financial performance
Improved half-on-half financial performance FY23 Group Level Underlying FY23 EBITDA Contribution 37% A$ 984/oz Pogo 11% EBITDA margin EBITDA/oz Production centre (excl. exploration) 56% A$1,237/oz 49% 42% A$877/oz Yandal 33% 31% 40% Kalgoorlie 49% 22% Production centre EBITDA contribution (excluding
Slide 8: Profitable growth strategy on track
Profitable growth strategy on track KALGOORLIE YANDAL POGO Cumulative FY22 & FY23 A$ 515M A$ 479M A$ 32M A$ 1.0B Operational Free cash flow Production growth 31% 26% 23% to FY26 target 1.1Moz 600koz 300koz FCF generation OBH cutback, high-margin Economies of scale Improving grades with opportunities
Slide 9: Balance sheet strength and financial flexibility
Balance sheet strength and financial flexibility Disciplined approach maintained throughout Cumulative capital management the cycle 40 of A$1.44B since FY12 1600 Clear capital management framework underpinned by (dividends plus buy-back) 1,440 focus on free cash flow generation 35 1400 Continue to p
Slide 10: Capital investment de-risking cost profile
Capital investment de-risking cost profile 2023 Global Gold Cost Curve 2,250 1st 2nd 3rd 4th KCGM MILL EXPANSION 2,000 Quartile Quartile Quartile Quartile 900kozpa FY29 1,750 steady state KCGM Gold Sold 1,425/oz 1,500 A$ AISC (US$/oz) 1,250 KCGM AISC 3rd Quartile 1,000 NORTHERN STAR GROUP FY23 750 2
Slide 11: Our framework to generate superior shareholder returns
Our framework to generate superior shareholder returns OPERATIONAL DISCIPLINED CAPITAL EXCELLENCE ALLOCATION World-class assets Strong balance sheet Responsible producer Profitable growth with a strong safety culture Agile decision making Strong cash flow and strategic flexibility generation Superio
Slide 12: FY24 guidance
FY24 guidance FY24 Group UNITS KALGOORLIE YANDAL POGO TOTAL GUIDANCE Production 1H < 2H weighted Gold sold koz 820 - 900 520 - 570 260 - 280 1,600 - 1,750 1Q24: Planned major shuts AISC A$/oz 1,730 - 1,780 1,655 - 1,700 1,900 - 2,015 1,730 - 1,790 across three production (US$1,270 - 1,350) centr
Slide 13: Five-year profitable growth plan: low-risk delivery
Five-year profitable growth plan: low-risk delivery SUSTAINABLE BUSINESS 3–5 PRODUCTION CENTRES 1.8–2.2Moz GOLD SOLD 1st Half COST CURVE +20yr LIFE OF MINE 13
Slide 14: Exploration underpins further organic growth opportunities
Exploration underpins further organic growth opportunities Ore Reserves* Mineral Resources* 8% 13% 19% Kalgoorlie Kalgoorlie 20.2 Yandal 17% 57.4 Yandal Moz Pogo Moz Pogo 70% 73% + 10YR A$ 31/OZ Reserve-backed Cost of resource production profile additions 14 *Annual Mineral Resources and Ore Reserve
Slide 15: Sustainable Development Publications
Sustainable Development Publications FY23 sustainable performance highlights 1.0 LTIFR below industry average Safety performance Zero Materially adverse incidents Nil Environmental, community or heritage incidents, nil fatalities 2023 Annual Report FY23 Sustainability FY23 Corporate FY23 Modern Slav
Slide 16: 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 17: Appendix: Key Financials
Appendix: Key Financials % Units FY23 FY22* Variance Key financials Abnormal items 1H23 FY23 Revenue A$M 4,131 3,806 9% Underlying EBITDA A$M 1,537 1,549 (1%) Impairment of exploration assets 19 42 Depreciation & Amortisation A$M 1,059 1,111 (4%) Financial Instruments (11) (11) Underlying EBIT A$M 4
Slide 18: Appendix: FY23 NPAT to Cash Earnings
Appendix: FY23 NPAT to Cash Earnings (A$M) Tax and Net Finance Costs is Income Tax expense ($260M) plus Interest expense ($65M) less Interest income ($26M). D&A is Cost of Sales D&A ($1056M) plus Corporate D&A ($3M). Impairment charges is Exploration and evaluation assets impairment ($42M). 18 Tax &
Slide 19: Appendix: FY23 cash movement
Appendix: FY23 cash movement (A$M) (290) (631) 1,352 (255) 19 (139) 782 (127) (148) 1,133 571 Cash Jun-22 Operating PPE Mine Properties Exploration Share Buy Backs Equipment Net Debt Dividends FX and other Cash Jun-23 cashflow Finance/Leases Drawdowns All figures above are extracted from the FY23 ca
Slide 20: Appendix: FY23 AISC to cost of sales reconciliation
Appendix: FY23 AISC to cost of sales reconciliation From June-23 Quarterly Activities Report A$M Revenue add minus minus minus AISC add add P&L Calculations: Depreciation & Amortisation = A$667/oz x Gold Sold (production) = A$1,042M Depreciation variance is due to depreciation of rehabilitation asse
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