Slide 1: KCGM Mill Optimisation Pre-Feasibility Study Update
KCGM Mill Optimisation Pre-Feasibility Study Update June 2022
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: World class gold assets in Tier-1 locations
World class gold assets in Tier-1 locations Pogo 7.3Moz Resource 1.8Moz Reserve US Our Purpose (Alaska) To generate superior returns for our shareholders, while providing positive benefits for our stakeholders, through operational effectiveness, exploration and active portfolio management Yandal 9.8
Slide 5: KCGM: One of the world's most significant gold mines
KCGM: One of the world’s most significant gold mines A Tier-1 world-class gold operating asset; 100% ownership Ranked Top 8 globally by Reserve* Moz Reserve Base of Global Operating Assets (27.4Moz Mineral Resource & 11.9Moz Ore Reserve) 50 297km2 of tenure, hosting +30km of the Boulder-Lefroy
Slide 6: Optimising KCGM aligns to our strategy
Optimising KCGM aligns to our strategy RESPONSIBLE PROFITABLE LOWER LONG MINE PREMIUM EESG GROWTH COSTS LIFE VALUATION SUPERIOR SUSTAINABLE SUSTAINABLE SUSTAINABLE SUSTAINABLE SHAREHOLDER NST ~2Mozpa 1st HALF COSTS +20 YEARS RETURNS Supports social Continuous Lowers KCGM AISC Growth and defi
Slide 7: Major progress at KCGM but more optimisation to come
Major progress at KCGM but more optimisation to come Progress • Resource increase to 27.4Moz • Material movement more • Maximised capacity to 13Mtpa • FY21 gold production of over • Reserve increase to 11.9Moz than doubled to +65Mtpa • Operating expenditure focus 472koz at AISC of A$1,385/oz 2½ year
Slide 8: KCGM: Currently 13Mtpa milling capacity
KCGM: Currently 13Mtpa milling capacity koz KCGM Ex-KCGM Pathway to 650kozpa by FY26 remains unchanged 1,200 Increase near-term capital investment; material movement to 80-100Mtpa 1,000 Enviable optionality: 800 Open pit and underground mines with significant installed 600 infrastructure 400
Slide 9: Flashback to Investor Day July 2021
Flashback to Investor Day July 2021 9
Slide 10: Pre-feasibility study: Three expansion options being considered
Pre-feasibility study: Three expansion options being considered Size of bubble represents All three mill expansion options are Free Cash Flow financially compelling 1 (post tax) At gold price of A$2,250/oz: 24 17 IRR: 13–26% INCREASING IRR (%) Mtpa Mtpa 70% Payback: 3-5 years Bolt-on Refurbish
Slide 11: Pre-feasibility study: Three expansion options being considered
Pre-feasibility study: Three expansion options being considered All three expansion options1 deliver meaningful Incremental Gold Production vs AISC operational benefits: 300 Gold production growth of 100–200kozpa2 200 KCGM AISC reduction up to A$200/oz2 Incremental Renewables deliver emissions
Slide 12: Pre-feasibility study: Optimising the feed source
Pre-feasibility study: Optimising the feed source ORE SOURCE ORE SOURCE MILL EXPANSION Current 17-24 Mtpa OPTIONS 17-24Mtpa 4-6 Mtpa Open Pit 6-8 Mtpa Open Pit Reserve Grade: 1.7g/t AISC reduction up to A$200/oz 1-2 Mtpa Simplified plant design Underground 4-6 Mtpa Underground Increased reliabil
Slide 13: Pre-feasibility study: A simplified flow sheet
Pre-feasibility study: A simplified flow sheet Fimiston mill revitalisation Lower operating costs Increased reliability for next 30 years Tailings FIM Tailings Dam ROM Gyratory Stockpile SAG Mill Crusher Flotation Tail Flotation Tail Thickener (New) Leach/Adsorption Electrowinning Rougher & Acid Was
Slide 14: 2030 Pathway to reduce emissions by 35%
2030 Pathway to reduce emissions by 35% Leveraging strategic option value from recent acquisition of Goldfields Power (Parkeston, Kalgoorlie) PFS: Four Options KCGM Up to 60% renewable power 14
Slide 15: Indicative schedule from FID
Indicative schedule from FID Task Year 1 Year 2 Year 3 Year 4 Engineering and Design Construction Commissioning and Ramp-up Throughput 13 Mtpa 17-24 Mtpa 3 Options Capital Cost (A$M) From A$440M to A$1,400M 15% 35% 35% 15% Inclusive of ~20% contingency 15
Slide 16: Capital management framework
Capital management framework CAPITAL FINANCIAL RISK ALLOCATION STRENGTH1 MANAGMENT Organic growth A$1.4B liquidity 3 year hedge book2 Active portfolio management Net Debt/EBITDA less than zero (1.1Moz at A$2,446/oz) Dividends maintained Project capex self-funded Free cash flow genera
Slide 17: Risk considerations in the current inflationary environment
Risk considerations in the current inflationary environment Current environment KCGM - Our competitive advantage Macro Recession fears, stagflation risk, policy uncertainty Tier-1 location in Kalgoorlie, with substantial existing infrastructure Inflation Impact of capital and costs on the project De
Slide 18: Optimising KCGM to further strengthen Northern Star
Optimising KCGM to further strengthen Northern Star Low cost, low emission Tier-1 global gold mine Asset KCGM Significant in-mine resource growth potential Leverages extensive technical and operational skills Material increase in free cash flow generation Production Kalgoorlie Consolidates
Slide 19: Next steps
Next steps Embark on final study phase - Optimise the best pathway to generate superior returns for our shareholders Remain agile given risk considerations in the current inflationary environment Progressive updates over FY23 on the outcome of our KCGM feasibility study work 19
Slide 20: Questions?
NORTHERN = NORTHERN ST/ Se -
Slide 21: 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 21