Northern Star Resources Ltd · ASX:NST
Northern Star Resources — H1 FY2019 Earnings Presentation
15 slides from Northern Star Resources's earnings presentation, Feb 13, 2019
Slide 1: An Australian gold miner - for global investors: 1H FY2019 Financial Results
For personal use only An Australian gold miner - for global investors 1H FY2019 Financial Results - February 2019
Slide 2: Resources & Reserves, Forward Looking Statement and Notes to Financial Overview Table
Resources & Reserves, Forward Looking Statement and Notes to Financial Overview Table For personal use only Mineral Resources and Ore Reserves not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, Resource and Reserve estimations, loss of market, i
Slide 3: 1H FY2019 – Key Financial Highlights
1H FY2019 – Key Financial Highlights For personal use only Cash flow from Underlying net profit Interim dividend up operating activities up of A$89.1M up 11% 33% from pcp to A6¢ 33% to A$169M on on pcp (fully-franked) pcp Strong Balance 18% Return on Equity EBITDA of A$221.8M Sheet; Cash, Bullion an
Slide 4: NST continues to generate favourable ROE and ROIC
NST continues to generate favourable ROE and ROIC For personal use only ▪ For the past five years NST has delivered an Average Annualised Return on Equity average annualised Return on Equity (ROE) 50% of 34% versus the GDX sector average of 40% 37% 42% 43% 39% NST 5yr Average 34% -2.9% 31% 30% 2% Po
Slide 5: Value Creation – delivering returns to Shareholders
Value Creation – delivering returns to Shareholders ▪ NST’s strategy of balancing organic growth with well executed M&A has generated over A$5.7B For personal use only of value for Shareholders since the first acquisition in 2010 and <10% of this value uplift has been from equity raised ▪ This strat
Slide 6: Acquiring a world class asset and a significant capital investment into the Australian Operations in 1H19
Acquiring a world class asset and a significant capital investment into the Australian Operations in 1H19 For personal use only ▪ Whilst acquiring the world class Pogo Operation in 1H19 for A$351M, NST has also invested heavily into organic growth with an additional A$36M investment into its Austral
Slide 7: 1H FY2019 - Financial Overview Table
1H FY2019 - Financial Overview Table ▪ Cash flow from operating activities grew 33% and underlying net profit by 11% in 1H19 For personal use only Half Year End Half Year End $’000 % A$’000 31 Dec 2018(1) 31 Dec 2017 Change Change Revenue 633,515 443,696 189,819 43 EBITDA(2) 221,795 201,738 20,057 1
Slide 8: 1H FY2019 Highlights
1H FY2019 Highlights ▪ Underlying NPAT of A$89M was up 11% on the pcp; statutory NPAT of A$82M up 4% on pcp For personal use only ▪ Group EBITDA of A$222M grew 10% against pcp of A$202M ▪ Group EBITDA margin excluding Pogo and integration costs was 41% Net Profit After Tax EBITDA 300 140 250 $241 12
Slide 9: Financial Highlights for 1H FY2019 Dividend Per Share
Financial Highlights for 1H FY2019 Dividend Per Share 8 ▪ EPS of A13cps in 1H19, on an underlying For personal use only 7 basis EPS is up 6% to A14.1cps (excluding 6 6.0 acquisition & integration costs) 5 3.0 5.0 4.5 A$cps ▪ Dividend up: interim dividend up 33% to 4 A6cps fully franked in line with
Slide 10: Strong EBITDA and operating cash flow maintained
Strong EBITDA and operating cash flow maintained ▪ Jundee and Kalgoorlie Operations continue to produce strong EBITDA margins of 51% and For personal use only 40% respectively ▪ Pogo integration began in Q2 with work commencing to rationalise costs and optimise operations ▪ Solid cash generation hel
Slide 11: Another leg of growth added to the portfolio in 1H19
Another leg of growth added to the portfolio in 1H19 ▪ NST generated A$41.7M in underlying free cash flow and invested over A$370M in 1H19 to For personal use only provide the next level of value creation in the portfolio ▪ NST also paid out A$32M to Shareholders in dividends in 1H19 NST’s investmen
Slide 12: Growing cash generation, balance sheet flexibility
Growing cash generation, balance sheet flexibility ▪ One of the key differentiators of the NST business is its balance sheet; this strength has For personal use only allowed for counter cyclical acquisitions and sector leading returns to Shareholders ▪ NST currently has a sector leading balance shee
Slide 13: Gold production and sales up
Gold production and sales up ▪ Gold sold of 423koz in 1H19; an increase of 58% on pcp For personal use only ▪ Group AISC of A$1,295/oz in 1H19 ▪ Jundee: Gold sold of 142koz up 4% on pcp at AISC of A$978/oz (US$713*/oz) ▪ Kalgoorlie Operations: Gold sold of 164koz up 53% at AISC of A$1,363/oz (US$993
Slide 14: Delivering Reserve and Resource Growth per share
Delivering Reserve and Resource Growth per share ▪ Through value accretive organic and inorganic growth NST has been able to successfully grow For personal use only Resource and Reserve life on a per share basis for its Shareholders ▪ In 1H19 NST announced an updated JORC Group Resource including th
Slide 15: Northern Star Resources Limited
For personal use only Northern Star Resources Limited ASX Code: NST An Australian mid cap gold miner – for global investors Investor Enquiries: Luke Gleeson, Investor Relations Level 1, 388 Hay Street, Subiaco 6008 Western Australia T: +61 8 6188 2100 E: info@nsrltd.com W: www.nsrltd.com 15
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