Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Shareholder Meeting (November 2016)
18 slides from Northern Star Resources's shareholder meeting presentation, Nov 29, 2016
Slide 1: Northern Star Resources AGM Presentation
Northern Star Resources AGM Presentation An Australian gold miner – for global investors November 2016
Slide 2: Disclaimer
Disclaimer Competent Persons Statements The information in this announcement that relates to mineral resource estimations, data quality and geological interpretations for the Company’s Paulsens, Ashburton and Jundee Project areas, is based on information compiled by Brook Ekers, a Competent Person w
Slide 3: Third biggest Australian listed Gold Miner
Third biggest Australian listed Gold Miner Northern Star is an ASX100, Australian stock exchange listed gold miner Paulsens & Ashburton Operations Strong balance sheet; no debt; A$350M +3Moz Gold Camp Central Tanami Project +5Moz Gold Camp in cash & equivalents 30 Sep 2016 Market cap is A$2.2B and a
Slide 4: FY16 – Another standout year
FY16 – Another standout year Key Operational Outcomes 561,000oz sold at Total Reserves Resources increased AISC of A$1,041/oz increased by 33% to to 9.25Moz 2Moz Key Financial Outcomes Net Profit After Tax Underlying free cash Dividends increased up 65% to a record flow of A$224.3M and 40% to 7¢ per
Slide 5: Efficient Capital Allocation - Return on Invested Capital
Efficient Capital Allocation - Bucking the 5 year trend Superior returns on invested capital continues to be the focus driving investment decisions Capital is forced to compete internally for project funding to ensure NST continues to generate a sector leading Return on Equity 39% and a Return on In
Slide 6: Efficient Capital Allocation - Return on Equity
Efficient Capital Allocation - Bucking the 5 year trend Superior returns on invested capital continues to be the focus driving investment decisions Capital is forced to compete internally for project funding to ensure NST continues to generate a sector leading Return on Equity 39% and a Return on In
Slide 7: Efficient Capital Allocation - FCF Yield to Enterprise Value
Efficient Capital Allocation - Bucking the 5 year trend Superior returns on invested capital continues to be the focus driving investment decisions Capital is forced to compete internally for project funding to ensure NST continues to generate a sector leading Return on Equity 39% and a Return on In
Slide 8: Efficient Capital Allocation - AISC Cost Curve
Efficient Capital Allocation - Bucking the 5 year trend Superior returns on invested capital continues to be the focus driving investment decisions Capital is forced to compete internally for project funding to ensure NST continues to generate a sector leading Return on Equity 39% and a Return on In
Slide 9: Efficient Capital Allocation - Capital Intensity Ratio
Efficient Capital Allocation - Bucking the 5 year trend Superior returns on invested capital continues to be the focus driving investment decisions Capital is forced to compete internally for project funding to ensure NST continues to generate a sector leading Return on Equity 39% and a Return on In
Slide 10: Future Global Gold Trends
Future Global Gold Trends Substantial reduction in major discoveries world wide; In 2015 greenfield discoveries cost US$189 per ounce, NST costs were US$14 per ounce for the same period Majority of future gold production is heading underground, in Australia 56% of production is now from underground
Slide 11: Northern Star continues to buck the global trend
Northern Star continues to buck the global trend Production amongst the majors is set to decline over the next three years by 8%, whilst NST is growing gold production by 20% in the same period and with the potential to outperform Production centres with scale (+200,000ozpa) and exploration potentia
Slide 12: 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 A$130M to be spent on investing capital following on from the great successes in FY16 A$60M for targeted drilling to bring more Resources into mine plans and convert discoveries into Resour
Slide 13: Jundee: A big mine…..and getting bigger
Jundee: A big mine…..and getting bigger FY16: Resources 1.25Moz and Reserves up 21% to 720,000oz, even after mining 228koz FY16: 210,000oz sold at an AISC of A$1,007/oz FY17: Guidance 220,000-230,000oz at an AISC of A$1,000-A$1,050/oz 6.75Moz of continuous gold production over the past 21 years, ave
Slide 14: Kalgoorlie Operations: Rapid, low-cost growth
Kalgoorlie Operations: Rapid, low-cost growth FY16: Resources 3.6Moz, up 17% and Reserves up 0.9Moz up 48%, after mining 216koz FY16: 207,000oz sold at an AISC of A$837/oz FY17: Guidance 200,000-210,000oz at an AISC of A$950-A$1,000/oz 6.45Moz of gold production over the past 23 years, average of 28
Slide 15: Paulsens: The Founding Asset
Paulsens: The Founding Asset FY16: Resources 0.3Moz and Reserves 0.1Moz, after mining 91koz FY16: 80,000oz sold at an AISC of A$1,099/oz FY17: Guidance 65,000-75,000oz at AISC of A$1,200-A$1,250/oz 0.85Moz of continuous gold production over the past 11 years, averaged of 75kozpa with a peak year of
Slide 16: Central Tanami Project: Next Tier of Growth
Central Tanami Project: Next Tier of Growth Previous Newmont asset which produced 2.1Moz over 18 years to 2005, average of 120kozpa with a peak year of 170koz; only mined mineralisation via pits to a deep of <125m Production ceased after mining of the Groundrush pit, where 610koz at 4.3gpt was recov
Slide 17: Why Invest in Northern Star
Why Invest in Northern Star Highly profitable: Net profit after tax 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 Strong balance sheet: no debt; A$350M in cash & equivalents (30 Sep 2016) Emphasis on financial returns: Past 5 years average TS
Slide 18: Northern Star Resources
Northern Star Resources An Australian Mid Cap gold miner – for global investors Contact Details: November 2016 Luke Gleeson – Investor Relations +61 8 6188 2100 Email – info@nsrltd.com / Website – www.nsrltd.com
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