Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Shareholder Meeting (November 2018)
20 slides from Northern Star Resources's shareholder meeting presentation, Nov 15, 2018
Slide 1: An Australian Mid Cap Global gold miner – Growing Against the Tide
For personal use only An Australian Mid Cap Global gold miner – Growing Against the Tide Annual General Meeting - November 2018
Slide 2: ASX Listing Rule 5.23 Disclosures, foreign estimates and forward looking statements
ASX Listing Rule 5.23 Disclosures, foreign estimates, foreign exchange conversion and forward looking statements ASX Listing Rule 5.23 Disclosures The Mineral Resources information in this report is extracted from the report entitled “Pogo JORC Resource” dated 16 October 2018 available at www.nsrltd
Slide 3: Introduction – An Australian listed gold miner with global scale
Introduction – An Australian listed gold miner with global scale ASX 100, top 25 global gold producer with mines in For personal use only Western Australia and North America; 850koz- 900koz per annum at an AISC of A$1,050/oz – A$1,150/oz (US$787- US$862/oz)* Market cap is A$5.2B, with a sector-leadi
Slide 4: FY2018 – Key Highlights
FY2018 – Key Highlights For personal use only Financial EPS* of 32.1¢ up Full year dividend Record Net Profit* Group EBITDA* Performance up 11%. Taking of A$194M A$443M up 4% on 2% on pcp total payments to pcp 9.5¢ per share Operational Jundee & Record Reserves Acquisition and Performance Kalgoorlie
Slide 5: FY2018 - Strong operational performance
FY2018 - Strong operational performance For personal use only NST has organically grown production and EBITDA at its Up 21% world class operations in FY2018 Gold Sold at both the Jundee and Kalgoorlie Operations combined increased by 21% Combined EBITDA increased by 15% to A$486M FY2018 gold sold 57
Slide 6: Organic growth - the key to our superior returns
Organic growth - the key to our superior returns NST has been able to consistently grow production, resource and reserve life on a per share basis for its For personal use only Shareholders since 2010 and has been our key focus for the past 4 years FY2018 Reserves increased to 4Moz and Resources to
Slide 7: Organic and Inorganic growth - delivering returns to Shareholders
Organic and Inorganic growth - delivering returns to Shareholders This strategy of balancing organic growth with well executed M+A has generated over A$5B of value for Shareholders since NST’s first acquisition in 2010 and <10% of this value uplift has been from equity raised For personal use only N
Slide 8: Past three financial year value proposition - delivering returns
Past three financial year value proposition - delivering returns For the past 3 financial years the team at Northern Star have generated over A$3.2B of value for Shareholders, delivered a Total Shareholder Return of 242%, Average Return on Equity of 35% pa, Average For personal use only Return on In
Slide 9: Pogo Gold Mine - Transaction Summary and Benefits
Pogo Gold Mine - Transaction Summary and Benefits Northern Star acquired the high grade Pogo Underground Gold Mine (“Pogo”), located in Alaska, USA, for ~A$3472 million during the Sep-2018 quarter For personal use only Pogo Site Layout Acquisition immediately transforms Northern Star into a ~900kozp
Slide 10: Proforma Transaction Impact on Northern Star
Proforma Transaction Impact on Northern Star Accretive to Northern Star’s group production, reserves, resources and gold grades For personal use only Reserves (Moz)(1) Reserve Grade (Au g/t)(1) Resources (Moz)(1) Resource Grade (Au g/t)(1) +19% +7% +20% +26% 4.8Moz 4.0Moz 3.8 g/t 4.1 g/t 20.0Moz 3.4
Slide 11: Consistent with strategy: Tier-1 assets, Tier-1 locations
Consistent with strategy: Tier-1 assets, Tier-1 locations Globally there are only 17 mines producing over 300kozpa in Tier-1 mining jurisdictions (Australia, US and Canada); For personal use only production is declining in these regions due to a lack of discoveries and significant reserve depletion
Slide 12: Pogo operating and financial performance – past years
Pogo operating and financial performance – past 5 years An established history of consistent high grade gold production at a competitive AISC For personal use only Throughput (kt) and Grade (Au g/t)* Gold Production (koz) and AISC (US$/oz) Recoveries (% Au) 1,000 16 400 882 1000 13.5 13.6 870 849 90
Slide 13: Pogo is in the World-Class Tintina Mineral Belt
Pogo is in the World-Class Tintina Mineral Belt Pogo provides Northern Star exposure to a prolific gold mineral belt with a long history of gold production For personal use only The Tintina Mineral Belt stretches across much of interior Alaska, through the southwestern Yukon The region hosts signifi
Slide 14: Pogo resources and reserves
Pogo resources and reserves Mineral Resources have now been re-estimated and stated under JORC 2012 guidelines For personal use only MINERAL RESERVES MINERAL RESOURCES at 31 December 20171 at 30 June 20181 Tonnes Grade Ounces Tonnes Grade Ounces (‘000) (g/t) (‘000) (‘000) (g/t) (‘000) Proven 1,046 1
Slide 15: Resource and reserve growth potential
Resource and reserve growth potential A significant amount of mineralisation is present outside of the current Pogo Resources, there is also considerable mineralisation inside the current Resources that hasn’t made it into reserves For personal use only During FY19 NST will look to invest A$15-20M i
Slide 16: Jundee Parallels - Case Study
Jundee Parallels - Case Study NST has identified similarities between Pogo & Jundee, which sets up the value creation template for Pogo For personal use only A Jundee Analogue? Demonstrated Ability to Extend Life at Underground Gold Mines Northern Star has a proven track record of Jundee Historical
Slide 17: Environmental, Social and Governance Values
Environmental, Social and Governance Values For personal use only Environmental Compliance Transparency • Zero significant incidents or regulator fines • Portfolio of assets in good standing Climate Change • Inaugural sustainability report FY17 • Effective risk management • Sustainability survey (CD
Slide 18: Northern Star investing in its people – a strategic advantage
Northern Star investing in its people – a strategic advantage NST is investing A$50M over the next 10 years to continue For personal use only expanding our specialist underground mining, geology and processing capability Key areas of investment include training, education, research and implementatio
Slide 19: The Northern Star Five-Year Plan
The Northern Star Five-Year Plan Objective: To increase shareholder value by maintaining our industry-leading financial returns while growing free cashflow For personal use only Method: Capitalise on and expand our specialist underground mining and exploration teams Utilise our exceptional balance s
Slide 20: Northern Star Resources – Contact Details
For personal use only Northern Star Resources An Australian Mid Cap Global gold miner – Growing Against the Tide Contact Details: Luke Gleeson – Investor Relations +61 8 6188 2100 Email – info@nsrltd.com Website – www.nsrltd.com 20
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