Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Diggers & Dealers 2015
27 slides from Northern Star Resources's conference presentation, Aug 4, 2015
Slide 1: Northern Star Resources
For personal use only Northern Star Resources An Australian gold miner – for global investors August 2015
Slide 2: Disclaimer
Disclaimer Competent Persons Statements The information in this announcement that relates to exploration results, data quality, geological interpretations and Mineral Resource estimations for the Company’s Kanowna, EKJV, Kundana and Carbine Project areas is based on information compiled by Darren Co
Slide 3: A business first and a mining company second
A business first and a mining company second NST has been able to generate a return on equity well above some of Australia’s household blue-chip investment names For personal use only NST’s return on equity for FY14 was 34% & has averaged 48% since the 1st acquisition in 2010 In the first half of FY
Slide 4: A business first and a mining company second
A business first and a mining company second Consistent fully-franked dividend payer A$183m of underlying company For personal use only since June-12 with over A$57M returned to free cash flow in FY 2015. Strong Financial Discipline shareholders. Recently doubled the interim Balance Sheet. Debt free
Slide 5: FY2015: Resources and Reserves
FY2015: Resources and Reserves Group Resources 8.9Moz1; up 44% from FY14; even after mining 0.6Moz in FY15 For personal use only Last 12 months NST has added 2.7Moz of Resource at a cost of just A$19/oz (US$14/oz) Measured and Indicated Resources have grown by 42% to 4.4Moz, significantly underpinni
Slide 6: FY2016: Production and cost guidance
FY2016: Production and cost guidance Key FY2016 forecasts: For personal use only Total gold production of 535,000-570,000oz All-in sustaining costs of A$1,050-A$1,100/oz (US$760-US$800/oz) A$35M investment in Exploration following on from the success in FY15 To replicate the organic growth t
Slide 7: Jundee: A great mine getting better
Jundee: A great mine getting better FY2015 gold sold 223,727oz at an AISC of A$1,008/oz ;(US$730/oz), well above guidance For personal use only FY2016 guidance 210,000-220,000oz at AISC of A$1,000 - A$1,050/oz; (US$725-US$760/oz) Resources 1.35Moz, up 166% and Reserves 0.6Moz, up 45% even after mini
Slide 8: Jundee: On the cusp of a new era
Jundee: On the cusp of a new era First 700 vertical metres of the Jundee deposit has produced 5Moz since 1996 For personal use only Recently completed eight deep hole drill program targeting structural geological information was a huge technical success, intercepting significant structures with mine
Slide 9: Kundana: A corridor of riches
Kundana: A corridor of riches FY2015 gold sold 103,051oz at an AISC of A$711/oz ;(US$520/oz), within guidance For personal use only FY2016 guidance 100,000-110,000oz at AISC of A$850 - A$900/oz; (US$615- US$655/oz) Resources 1.6Moz, up 134% and Reserves 0.45Moz, up 61% even after mining 111koz in FY
Slide 10: Jundee: Numerous new targets in a mature field
Jundee: Numerous new targets in a “mature” field Jundee Previous Geological Interpretation For personal use only By necessity, reliant largely on geophysical datasets: • Limited bedrock exposure • Original drill hole geology logs are inconsistent • Suffers because geophysical datasets are strongly i
Slide 11: Jundee: Numerous new targets in a mature field
Jundee: Numerous new targets in a “mature” field Jundee New Geological Previous Interpretation Geological Interpretation For personal use only By necessity, Based on factreliant largely - surface on geophysical mapping datasets: and collection of chips from 6,500 drill holes • Limited bedrock exposu
Slide 12: Kanowna Belle: A great Goldfields address
Kanowna Belle: A great Goldfields address FY2015 gold sold 96,223oz at an AISC of A$1,021/oz (US$740/oz), well above guidance For personal use only FY2016 guidance 80,000-85,000oz at AISC of A$1,050 - A$1,100/oz; (US$760-800/oz) Resources 1.2Moz, up 8% and Reserves 0.2Moz, after mining 101koz in FY1
Slide 13: Kal Exploration – Well drilled doesn't mean well explored
Kal Exploration – Well drilled doesn’t mean well explored CARBINE CAMP KANOWNA CAMP For personal use only PARADIGM NORTH (NST 100%) SIX MILE (NST 100%) • Potential northern repetition of GOLDEN EYE (NST 100%) the Paradigm Orebody • Shear hosted, sheeted • New vein discovered by field veins in Porphy
Slide 14: Plutonic: Rebuilding the Mine
Plutonic: Rebuilding the Mine FY2015 gold sold 80,141oz at an AISC of A$1,550/oz; (US$1,120/oz) For personal use only FY2016 guidance 75,000-80,000oz at AISC of A$1,350 - A$1,400/oz; (US$980 - US$1,015/oz) Resources 1.5Moz, up 2% and Reserves 0.2Moz, up 34% after mining 96koz in FY15 Maiden Hermes R
Slide 15: Paulsens: The Company-starter
Paulsens: The Company-starter FY2015 gold sold 77,642oz at an AISC of A$1,264/oz ;(US$916/oz) For personal use only FY2016 guidance 70,000-75,000oz at AISC of A$1,175 - A$1,225/oz; (US$850 – US$890/oz) Resources 0.4Moz, up 7% and Reserves 0.1Moz, after mining 76koz in FY15 Pipeline of additional fee
Slide 16: Central Tanami Project: Next round of growth
Central Tanami Project: Next round of growth For personal use only 16
Slide 17: Central Tanami Project: Next round of growth
Central Tanami Project: Next round of growth Northern Star has now settled the JV on the 2.7Moz Central Tanami Project with Tanami Gold NL For personal use only NST now has a 25% direct interest as a result of paying A$11m in cash and A$9M in script NST can increase its interest to 60% by sole fundi
Slide 18: Central Tanami Project: Next round of growth
Central Tanami Project: Next round of growth Northern Star’s Optimum Development and Operating Plan For personal use only 2016 – begin mill refurbishment program and order long lead items to re-establish processing capability 2015/16 - commence drilling program to delineate the deposit to 500 metres
Slide 19: Why invest in Northern Star
Why invest in Northern Star Global-scale gold miner with all assets in Australia Critical mass from +550kozpa production; asset diversity from five high-grade, low-cost For personal use only mines ASIC ~A$1,050-$A1,100/oz; (US$760-US$800/oz) with robust margins A$183M free cash flow in FY15; A$178M
Slide 20: Northern Star Resources
For personal use only Northern Star Resources An Australian Mid Cap gold miner – for global investors Contact Details: Luke Gleeson – Investor Relations +61 8 6188 2100 Email – info@nsrltd.com / Website – www.nsrltd.com August 2015
Slide 21: Team with a track record
Team with a track record Shares Options Board – Successful record in discovering and developing mines For personal use only Total 600M 4.3M BILL BEAMENT Managing Director (Mining Engineer) * As at 03 August 2015 Non-Executive Chairman – Independent CHRIS ROWE (Barrister and Solicitor) Share price: A
Slide 22: Resources (Part 1)
22 For personal use only Resources (Part 1)
Slide 23: Resources (Part 2)
Resources (Part 2) MINERAL RESOURCES As at 30 June 2015 MEASURED INDICATED INFERRED TOTAL RESOURCES For personal use only Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Based on attributable ounces Au (000's) (gpt) (000's) (000's) (gpt) (000's) (000's) (gpt) (000's)
Slide 24: Resources (Part 3)
Resources (Part 3) MINERAL RESOURCES As at 30 June 2015 MEASURED INDICATED INFERRED TOTAL RESOURCES For personal use only Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Based on attributable ounces Au (000's) (gpt) (000's) (000's) (gpt) (000's) (000's) (gpt) (000's)
Slide 25: Reserves (Part 1)
Reserves (Part 1) ORE RESERVES For personal use only As at 30 June 2015 PROVED PROBABLE TOTAL RESERVES Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Based on attributable ounces Au (000's) (gpt) (000's) (000's) (gpt) (000's) (000's) (gpt) (000's) PAULSENS GOLD PROJECT Underground Upper
Slide 26: Reserves (Part 2)
Zone 19 : Baltic 26 6.2 5 3 3.9 0 29 6.0 6 Zone 61 : Caribbean 69 5.4 12 104 4.6 15 173 4.9 28 Zone 124 : Spur - Area 134 87 6.0 17 40 7.3 9 128 6.4 26 Reserves (Part 2) Zone 124 : Cortez - Med - Adr Zone 124 North : Pacific 11 0 8.4 11.2 3 0 17 49 4.7 8.5 3 14 28 50 6.1 8.5 6 14 Zone 124 North : Ti
Slide 27: Reserves (Part 3)
East Kundana Joint Venture (EKJV) Underground Reserves (Part 3) Raleigh (50%) Rubicon / Hornet (51%) 89 107 13.1 10.2 38 35 17 180 10.6 7.3 6 42 106 287 12.7 8.4 43 77 Pegasus (51%) 3 4.8 0 1,219 7.9 310 1,222 7.9 310 Stockpiles 49 8.4 13 49 8.4 13 ORE RESERVES Subtotal EKJV 248 10.8 86 1,416 7.9 35