Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Investor Presentation (February 2017)
17 slides from Northern Star Resources's investor presentation, Feb 27, 2017
Slide 1: An Australian gold miner – for global investors
An Australian gold miner – for global investors BMO Presentation - February 2017
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 Paulsens and Jundee Project areas is based on information compiled by Brook Ekers (Member Aust
Slide 3: Introduction - Third biggest Australian listed Gold Miner
Introduction - Third biggest Australian listed Gold Miner We are a top 25 global gold producer; +500koz per annum at AISC of ~US$770/oz Market cap is A$2.6B and we have a sector Paulsens Operations +3Moz Gold Camp Central Tanami Project leading balance sheet; A$303m in cash & +5Moz Gold Camp equival
Slide 4: A business first, mining is how we deliver value
A business first, mining is how we deliver value NST is uniquely positioned to continue to deliver above average returns to its Shareholders 35% 35% 30% 27% 5 Year Average Return on Invested Capital (%) 5 Year Return on Equity (%) 25% 25% 15% 15% 5% 5% -5% -5% -15% -15% 5yr Peer Average -3% 5yr Peer
Slide 5: Australian Gold Producers trading on low multiples
Australian Gold Producers trading on low multiples NST is trading on a 12 month trailing EV/EBITDA* multiple of 5.5x compared to the Bloomberg Mid Tier gold producer average of 9.6x Applying these multiples to the comparable average sees NST trading at a significantly higher valuation, especially wh
Slide 6: 2016 - Another standout year
2016 - Another standout year Key FY2016 Operational Outcomes Total Reserves grew Reserve conversion Resources increased by 33% to 2Moz cost of A$50/oz to 9.25Moz Key Half Year Financial Outcomes Net Profit after Tax up Earnings per share A$303m Cash & 61% to A$104.6m up 60% to A17.4¢ Equivalents; No
Slide 7: Financial Highlights for First Half FY2017
Financial Highlights for First Half FY2017 NST has been able to grow earnings, profit margins and payouts to Shareholders consistently for years EBITDA EBITDA Margin 250 60% 53% EBITDA is up 21% $216.4 $218.8 EBITDA margins are up 24% 47% 50% 42% 200 $165.6 $180.6 38% 40% 35% 36% $148.3 A$ (m) 150 2
Slide 8: FY2017: Production and Cost Guidance
FY2017: Production and Cost Guidance Total gold production of 485,000-515,000oz at an AISC of US$750-US$790/oz A$130M to be spent on investing capital following on from the great successes in FY2016, including: A$60M for drilling to bring more Resources into Reserves and convert new discoveries into
Slide 9: Production Next Year set to grow to 600kozpa
Production Next Year set to grow to 600kozpa Cashflow set to lift to another level with group production growing organically next year; heading to a 600koz per annum producer Investing A$60m in drilling to bring more Resources into Reserves and convert new discoveries into Resources to support produ
Slide 10: Jundee: A big mine…..and getting bigger
Jundee: A big mine…..and getting bigger FY2016: Resources 1.25Moz and Reserves up 21% to 720,000oz, even after mining 228koz FY2016: 210,000oz sold at an AISC of US$755/oz, EBITDA Margin of 55% FY2017: Guidance 220,000-230,000oz at an AISC of US$750-$790/oz 6.75Moz of continuous gold production over
Slide 11: Kalgoorlie Operations: Rapid, low-cost growth
Kalgoorlie Operations: Rapid, low-cost growth FY2016: Resources 3.6Moz, up 17% and Reserves up 0.9Moz up 48%, after mining 216koz FY2016: 207,000oz sold at an AISC of US$628/oz, EBITDA Margin of 56% FY2017: Guidance 200,000-210,000oz at an AISC of US$712-$750/oz 6.45Moz of gold production over the p
Slide 12: Paulsens: The Founding Asset
Paulsens: The Founding Asset FY2016: Resources: 0.3Moz and Reserves 0.1Moz, after mining 91koz FY2016: 80,000oz sold at an AISC of US$824/oz, EBITDA Margin of 41% FY2017: Guidance 65,000-75,000oz at AISC of US$900-$938/oz 0.85Moz of continuous gold production over the past 11 years, averaged of 75ko
Slide 13: Central Tanami Project “CTP”: Emerging Growth Region
Central Tanami Project “CTP”: Emerging Growth Region The Tanami region is an exciting new area that is rapidly GROUNDRUSH (NST Earning to 60%) developing a reputation for major gold discoveries Open Pit Production NST operations are contiguous to the world class 150km (Newmont) of 610koz Tanami Gold
Slide 14: Why Invest in Northern Star
Why Invest in Northern Star Highly profitable: Record half year net profit after tax of A$104.6M, up 61%; EBITDA margin of 53%; track record of dividends, paid A10¢ps in 2016 (up 100% from 2015) Strong balance sheet: no debt; A$303M in cash & equivalents (31 December 2016) Emphasis on financial retu
Slide 15: Northern Star Resources
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
Slide 16: Appendix
Appendix Northern Star Resources An Australian gold miner – for global investors February 2017
Slide 17: Management team with a proven track record
Management team with a proven track record Shares Performance Rights/Options Board - Successful record in discovering and developing mines Total 600M 12.4M Bill Beament Executive Chairman (Mining Engineer) * As at 20 Feb 2017 Lead Independent Director John Fitzgerald (Resource Finance and Banking) S
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