Northern Star Resources Ltd · ASX:NST

Northern Star Resources — H1 FY2023 Earnings Presentation

19 slides from Northern Star Resources's earnings presentation, Feb 20, 2023

  1. Slide 1: Results Presentation for Half Year to 31 Dec 2022

    For personal use only Results Presentation for Half Year to 31 Dec 2022 20 February 2023

  2. Slide 2: Forward Looking Statements, Reserves and Resources

    Forward Looking Statements, Reserves and Resources Forward Looking Statements For personal use only 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, completene

  3. Slide 3: World class gold assets in Tier-1 locations

    World class gold assets in Tier-1 locations For personal use only Generate superior returns Responsible producer Pogo Profitable growth Yandal Kalgoorlie Strong cash flow generation World-class assets 100% +6,000 ASX 50 GOLD PEOPLE MARKET INDEX 3

  4. Slide 4: 1H FY23 Financial Overview

    1H FY23 Financial Overview For personal use only A$ 633M A$ 467M A$ 145M Underlying EBITDA Cash Earnings Net Cash Capital A$ 127M / $300M A 11cps Management Share buy-back Declared interim progress dividend Cash Earnings is defined as Underlying EBITDA ($633M) less sustaining capital ($163M, from AI

  5. Slide 5: 1H FY23 Operational Overview

    1H FY23 Operational Overview For personal use only  Delivered 773koz gold at AISC of A$1,766/oz; Maintain FY23 production and cost guidance  Advancing five-year profitable growth pathway:  Kalgoorlie: KCGM material movements at an annualised 84Mtpa (vs target of 80-100Mtpa until FY26)  Yandal: T

  6. Slide 6: All production centres generate positive Cash Earnings

    All production centres generate positive Cash Earnings For personal use only Cash Earnings (A$M) A$ 467M YoY Cash Earnings Pogo 9% EBITDA contribution Kalgoorlie Yandal 49% 42% Production Centre Cash Earnings defined as Segment EBITDA ($678M) less sustaining capital ($163M from AISC tables in Decemb

  7. Slide 7: Capital management framework

    Capital management framework For personal use only CAPITAL FINANCIAL RISK ALLOCATION STRENGTH1 MANAGEMENT  Organic growth  A$1.1B liquidity  Growth capex self-funded  Dividends  Net Debt/EBITDA less than zero  Low cost debt2  A$300M share buy-back  Active portfolio management  Gold hedge bo

  8. Slide 8: Continued strong cash flows support capital returns

    Continued strong cash flows support capital returns For personal use only  Best-performing senior global gold stock on a total Total Shareholder Returns2 (12mth basis, local currency) shareholder return basis over the last 12 months 25% Market Index & ETFs  Returned A$1.1 billion1 to shareholders

  9. Slide 9: FY23 Guidance

    FY23 Guidance For personal use only FY23 Kalgoorlie UNITS KALGOORLIE YANDAL POGO TOTAL GUIDANCE  Progress KCGM waste material movement Gold Sales koz 820 - 870 480 - 520 260 - 290 1,560 - 1,680  Scheduled KCGM plant maintenance 3Q23 AISC A$/oz 1,560 - 1,660 1,525 - 1,625 1,857 - 2,000 1,630 - 1,69

  10. Slide 10: Five-year profitable growth plan - low risk delivery

    Five-year profitable growth plan - low risk delivery For personal use only FY22 FY23 FY24 FY25 FY26 1.56Moz 1.56-1.68Moz SUSTAINABLE BUSINESS KCGM Fleet Increase KCGM material movement to 80-100Mtpa 1,100koz Kalgoorlie Delivery  Fimiston South ramp up; Increased access to Golden Pike KCGM 650koz 3–

  11. Slide 11: Exploration underpins further organic growth opportunities

    Exploration underpins further organic growth opportunities For personal use only Ore Reserves* Mineral Resources* 9% 14% 19% Kalgoorlie Kalgoorlie 20.7 Yandal 18% 56.4 Yandal Moz Pogo Moz Pogo 68% 72% + 10YR A$ 24/OZ Reserve backed Cost of Resource production profile Addition 11 *Annual Mineral Reso

  12. Slide 12: Advancing our lower carbon emission journey

    Advancing our lower carbon emission journey For personal use only Northern Star 2030 Emissions Reduction Pathway 2023 - Carosue Dam (Kalgoorlie)  1st stage complete (2022) 978kt CO2-e  Porphyry UG solar farm + battery energy to displace diesel 2024 - Jundee (Yandal)  Preliminary works agreement a

  13. Slide 13: Optimising KCGM to further strengthen Northern Star

    Optimising KCGM to further strengthen Northern Star For personal use only  Current consideration to expand and optimise KCGM mills  Low cost, low emission Tier-1 global gold mine  Maintaining the current 13Mtpa milling capacity Asset KCGM  Significant in-mine resource growth potential remains an

  14. Slide 14: Executing our clearly defined strategy

    Executing our clearly defined strategy For personal use only RESPONSIBLE PROFITABLE STRONG WORLD CLASS GENERATE PRODUCER GROWTH CASH FLOW ASSETS SUPERIOR GENERATION RETURNS 14

  15. Slide 15: Northern Star Resources Limited

    Northern Star Resources Limited ASX Code: NST For personal use only Business First. Investor Enquiries: Sophie Spartalis T: +61 8 6489 2488 E: investorrelations@nsrltd.com W: www.nsrltd.com 15

  16. Slide 16: Appendix: Key Financials

    Appendix: Key Financials For personal use only % Units 1H FY23 1H FY22 Variance Key financials Revenue A$M 1,949 1,865 5 Abnormal items 1H FY23 Underlying EBITDA A$M 633 722 (12) Impairment of exploration Depreciation & Amortisation A$M 536 517 4 19 assets Underlying EBIT A$M 97 205 (53) Financial I

  17. Slide 17: Appendix: 1H FY23 NPAT to Cash Earnings

    Appendix: 1H FY23 NPAT to Cash Earnings (A$M) For personal use only 19 2 (2) (11) (163) 536 623 612 633 467 40 48 Net Profit After Tax Tax & Net Finance D&A EBITDA Fair value gain on Impairment charges Loss on sale of assets Underlying EBITDA Tax & Net Interest Paid Sustaining Capital Cash Earnings

  18. Slide 18: Appendix: 1H FY23 Cash Movement

    Appendix: 1H FY23 Cash Movement (A$M) For personal use only (158) (145) 629 (329) (74) (132) (127) 250 (1) (74) 571 410 Cash Jun-22 Operating Stamp Duty PPE Mine Properties Exploration Share Buy Backs Equipment Net Debt Dividends Other Cash Dec-22 cashflow Finance/Leases Drawdowns All figures above

  19. Slide 19: Appendix: 1H FY23 AISC to cost of sales reconciliation

    Appendix: 1H FY23 AISC to cost of sales reconciliation From December 22 Quarterly Activities Report For personal use only Revenue add minus minus minus AISC add add P&L Calculations: Depreciation & Amortisation = A$689/oz x Gold Sold (production) = A$533M A$3M depreciation variance is due to depreci

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