Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Corporate Update (June 2023)
20 slides from Northern Star Resources's corporate update, Jun 22, 2023
Slide 1: KCGM Mill Expansion: Positioning for Tomorrow
KCGM Mill Expansion Positioning for Tomorrow June 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: Presentation team
Presentation team Stuart Tonkin Managing Director & CEO Mr Tonkin is a mining engineer with more than 25 years’ experience working in the underground hard-rock mining industry. He joined Northern Star as Chief Operating Officer in 2013 before being appointed CEO in 2016 and Managing Director in 2021
Slide 4: Investing in our key global gold asset
Investing in our key global gold asset KCGM % NORTHERN STAR GROUP 100% ownership POGO 489koz KCGM 30% FY22 Gold Sold YANDAL 28Moz KALGOORLIE KCGM 50% Mineral Resource KALGOORLIE PRODUCTION CENTRE KCGM Carosue Dam 12Moz KCGM 60% Kalgoorlie Ops Ore Reserve 4
Slide 5: KCGM Mill Expansion aligns with our strategy
KCGM Mill Expansion aligns with our strategy Generate superior returns Strong cash flow generation World-class assets Profitable growth Responsible producer 5
Slide 6: KCGM Mill Expansion Project highlights
KCGM Mill Expansion Project highlights Key operational metrics 3YR 900kozpa FY29 13Mtpa 27Mtpa build time steady state FY24-FY28 KCGM Gold Sold 1,425/oz A$ Fimiston Processing Plant PLUS YR 2 ramp-up KCGM AISC NO INTERRUPTION TO OPERATIONAL CASH FLOW DURING BUILD Key financial metrics A$ 1.5B Equiv.
Slide 7: Financially compelling
Financially compelling Post-tax IRR Post-tax Payback Strong Balance Sheet A$2,600/oz gold price A$2,600/oz gold price Throughout build phase 19% 4.6yrs Net $1.3B Cash MATERIAL INCREASE IN FREE CASH FLOW GENERATION Fully Dividend policy Investment grade funded maintained credit 7 IRR = Internal rate
Slide 8: Investing to move down the cost curve
Investing to move down the cost curve… 2023 Global Gold Cost Curve 2,250 SUSTAINABLE 1st 2nd 3rd 4th BUSINESS Quartile Quartile Quartile Quartile 2,000 3–5 KCGM MILL EXPANSION 1,750 PRODUCTION CENTRES KCGM TODAY 1,500 1.8–2.2Moz AISC (US$/oz) 1,250 GOLD SOLD 1st Half 1,000 STEADY STATE FROM FY29
Slide 9: Delivering a stand-out tier-1 gold mine
…and delivering a stand-out tier-1 gold mine 2023 Global Gold Cost Curve 2,250 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 100% 2,000 gold production + KCGM MILL EXPANSION 1,750 K E Tier-1 jurisdiction KCGM TODAY 1,500 Y = AISC (US$/oz) 49 1,250 1,000 mines STEADY STATE FROM FY29 750 500 KCG
Slide 10: Moving KCGM into rare company
Moving KCGM into rare company FY26 FY29 TODAY KCGM PROFITABLE GROWTH PLAN KCGM MILL EXPANSION TOP 10 GLOBAL TOP 5 GLOBAL GOLD MINE1 GOLD MINE1 1,500 1,200 Gold production (koz) Tier-1 900 location Tier-1 Tier-1 location 600 Tier-1 location Tier-1 location Tier-1 location location Tier-1 Tier-1 locat
Slide 11: Lowering costs for greater returns
Lowering costs for greater returns KCGM KCGM KCGM Short Term Medium Term Long Term FY26 Growth Strategy Mill Expansion Project District Opportunity Production growth Lower AISC Exploration 472kozpa to 650kozpa 1st half global gold cost curve Underground and regional New fleet delivery +250kozpa1 Opt
Slide 12: Optimising long-term feed grade
Optimising long-term feed grade 28Moz 12Moz 80Moz gold mined over Mineral Resource Ore Reserve 130 years Extent of Drilling 12
Slide 13: Aligned with sustainability outcomes
Aligned with sustainability outcomes Community Water Power 13
Slide 14: KCGM Mill Expansion: A closer look
KCGM Mill Expansion A closer look…
Slide 15: A modern, simplified flow sheet
A modern, simplified flow sheet A sustainable reduction Simplified plant design Increased reliability in unit operating costs Tailings FIM Tailings Dam ROM Gyratory Stockpile SAG Mill Crusher Rougher & Flotation Tail Flotation Tail Scavenger Thickener (New) Leach/Adsorption Electrowinning Flotation
Slide 16: Stockpile cash conversion at improved margin
Stockpile cash conversion at improved margin ORE SOURCE PROCESSING PLANT 6-12Mtpa Open Pit 27Mtpa Milling cost reduction of A$7/t 4-8Mtpa Underground Known mineralisation Low technical risk 8-10Mtpa Utilisation of stockpile inventory Stockpiled Ore Rehandle cost: <5% of mining cost 16
Slide 17: Project approvals in place
Project approvals in place The Project area is within the existing footprint of the Fimiston Processing Plant. No new disturbed areas. Environmental approval requirements are well understood and have been well managed for decades. 17
Slide 18: Build schedule and capital cost breakdown
Build schedule and capital cost breakdown Task FY24 FY25 FY26 FY27 FY28 FY29 Engineering and Design Onsite Construction Commissioning Ramp-up Throughput 13Mtpa 13Mtpa 13Mtpa 23Mtpa 25Mtpa 27Mtpa Enabling Owners team costs works Infrastructure Capital Cost Breakdown (%) Major Equipment Package A$1.5B
Slide 19: KCGM Mill Expansion aligns with our strategy
KCGM Mill Expansion aligns with our 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 Wor
Slide 20: Northern Star Resources Limited
Northern Star Resources Limited ASX Code: NST Business First. Investor Enquiries: Sophie Spartalis T: +61 8 6489 2488 E: investorrelations@nsrltd.com W: www.nsrltd.com 20
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