Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Diggers and Dealers 2016
18 slides from Northern Star Resources's conference presentation, Aug 3, 2016
Slide 1: Northern Star Resources – Diggers and Dealers 2016
For personal use only Northern Star Resources – Diggers and Dealers 2016 An Australian gold miner – for global investors August 2016
Slide 2: Disclaimer – Competent Persons Statements
Disclaimer Competent Persons Statements The information in this announcement that relates to data quality, geological interpretations and Mineral Resource estimations for the Company’s Paulsens, Ashburton, Jundee and Plutonic Project areas is based on information compiled by Brook Ekers For personal
Slide 3: Introduction - Third biggest Australian listed Gold Miner
Introduction - Third biggest Australian listed Gold Miner We are the third-biggest gold miner on the Australian stock exchange by both market For personal use only Paulsens & Ashburton cap and production; now in ASX100 Operations Central Tanami Project +3Moz Gold Camp Strong balance sheet; no debt;
Slide 4: FY 2016 - Key Financial Highlights
FY 2016 - Key Financial Highlights Key Resources Outcome For personal use only Total Reserves Measured and Reserve discovery increased by 33% to Indicated Resources cost of A$50/oz 2Moz increase 520koz to achieved in FY16 4.9Moz Key Financial Outcomes NPAT up 65% to Dividends Underlying free cash A$
Slide 5: Efficient Capital Allocation - Organic vs Inorganic Growth
Efficient Capital Allocation - Organic vs Inorganic Growth Superior returns on invested capital continues to be the focus driving investment decisions for NST For personal use only Capital is forced to compete internally for project funding to ensure NST continues to generate a sector leading Return
Slide 6: Lack of exploration success driving asset prices
Lack of exploration success driving asset prices Discovery costs in 2015 for greenfield discoveries were at US$189/oz 56% of gold production in Australia is now from underground vs 44% from open pit sources For personal use only Mine lives are getting shorter; since 2012 average reserve life has dec
Slide 7: Market Update – Diminishing Reserves
Market Update – Diminishing Reserves Forecast production of the global majors at current prices is set to decline 50% by 2026 For personal use only 2016 Level 50% 2026 Level Reduction 7
Slide 8: FY17: Production and Cost Guidance
FY17: Production and Cost Guidance Total gold production of 485,000-515,000oz at an AISC of A$1,000-A$1,050/oz (US$728-$765/oz)* For personal use only A$130M to be spent on investing capital following on from the great successes in FY16, including; A$60M for targeted drilling to bring more Res
Slide 9: Jundee: A big mine…..and getting bigger
Jundee: A big mine…..and getting bigger FY16 228,144oz mined and 209,572oz sold at an AISC of A$1,007/oz (US$733/oz) For personal use only FY17 guidance 220,000-230,000oz at an AISC of A$1,000-$1,050/oz (US$728-$765/oz) Resources: 1.25Moz and Reserves up 21% to 720,000oz, even after mining 228,000oz
Slide 10: Kalgoorlie Operations: Rapid, low-cost growth
Kalgoorlie Operations: Rapid, low-cost growth FY16 215,667oz mined and 207,123oz sold at an AISC of A$837/oz (US$610/oz) FY17 guidance 200,000-210,000oz at an AISC of A$950-$1,000/oz (US$692-$728/oz) For personal use only Resources 3.6Moz, up 17% and Reserves up 0.9Moz up 48%, after mining 216koz in
Slide 11: Kalgoorlie Operations: Rapid, low-cost growth
Kalgoorlie Operations: Rapid, low-cost growth Ramp up production at Kundana JV; Link Hornet, Rubicon and Pegasus orebodies with a decline which will also offer numerous production fronts and For personal use only provide the drill platform to make another step change in mineral inventory PEGASUS RUB
Slide 12: Kalgoorlie Operations: Rapid, low-cost growth
Kalgoorlie Operations: Rapid, low-cost growth Commence production at Millennium, 100% NST owned Kundana; Have started the underground access to the 50kozpa Millennium deposit, ahead of schedule For personal use only Resources of 419,000oz at 6.2gpt and maiden Reserve of 205,000oz; underpinning first
Slide 13: Kalgoorlie Operations: Rapid, low-cost growth
Kalgoorlie Operations: Rapid, low-cost growth Evaluate production at historical 100% NST owned Kundana mines; Barkers, Strzelecki, Centenary, Pope John Past production of 1.25Moz at 6gpt between 1990-2004 For personal use only Each of these ore surfaces historically produced 50-60koz per annum Strze
Slide 14: Kalgoorlie Operations: Rapid, low-cost growth
Kalgoorlie Operations: Rapid, low-cost growth Kanowna extension at depth and along strike; For personal use only Drill out depth extension to +5Moz orebody, historically averaging 4,000oz per vertical metre Continue to define Velvet discovery (recent result of 47.9m at 83.1gpt) and bring into produc
Slide 15: Paulsens: The Founding Asset
Paulsens: The Founding Asset FY16 production of 91,250oz mined and 80,278oz sold at an AISC of A$1,099/oz (US$800/oz) For personal use only FY17 guidance 65,000-75,000oz at AISC of A$1,200-$1,250/oz (US$874-$910/oz) Resources: 0.3Moz and Reserves 0.1Moz, after mining 91koz in FY16 Record cashflow ac
Slide 16: Central Tanami Project: Next Tier of Production Growth
Central Tanami Project: Next Tier of Production Growth Historically produced 2.1Moz, last major For personal use only production was from Newmont in 2005 when it produced 610,000oz at 4.3gpt over a 4 year period from the main deposit; Groundrush open pit The past 5 years has seen A$40M invested at G
Slide 17: Why Invest in Northern Star
Why Invest in Northern Star Highly profitable: Unaudited net profit up 65% to A$151.4M in FY16; underlying free cash flow of A$224.3M; dividends up 40% from A5¢ps to A7¢ps For personal use only Strong balance sheet: no debt; A$326M in cash, bullion & investments (30 June 2016) Emphasis on financial
Slide 18: Northern Star Resources – Contact Details
For personal use only Northern Star Resources An Australian gold miner – for global investors Contact Details: Luke Gleeson – Investor Relations +61 8 6188 2100 Email – info@nsrltd.com / Website – www.nsrltd.com August 2016