Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Diggers & Dealers Conference 2020
35 slides from Northern Star Resources's conference presentation, Oct 12, 2020
Slide 1: Northern Star and Saracen Diggers & Dealers Conference
For personal use only Northern Star and Saracen Diggers & Dealers Conference 12 October 2020 Not for release to US wire services or distribution in the United States
Slide 2: Forward looking statement and disclaimer
Forward looking statement and disclaimer For personal use only Forward Looking Statements Northern Star Resources Limited and Saracen Mineral Holdings Limited have jointly prepared this announcement based on information available to them. No representation or warranty, express or implied, is made as
Slide 3: Reserves and Resources
Reserves and Resources For personal use only ASX Listing Rules Disclosures This announcement contains estimates of Northern Star's and Saracen's respective ore reserves and mineral resources, as well as estimates of Kalgoorlie Consolidated Gold Mines Pty Ltd's (KCGM) ore reserves and mineral resourc
Slide 4: An Australian Gold Miner, For Global Investors
For personal use only An Australian Gold Miner, For Global Investors Diggers & Dealers 2020
Slide 5: NST Business: Tier-1 Assets in Tier-1 Locations
NST Business: Tier-1 Assets in Tier-1 Locations ▪ ASX listed; Top 15 Global Gold Producer For personal use only ▪ NST manages a simplified business; with 4 large scale US Tier-1 assets in Tier-1 locations; world class geology Pogo Operations (100%) (Alaska) +11Moz Gold Camp ▪ Sector leading ESG cred
Slide 6: Strong Near Term Production Growth Outlook
Strong Near Term Production Growth Outlook The NST Team has a proven track record of For personal use only Oz Production by Centre + delivering production growth, with a 76% increase Guidance mid point for next three years over the last four years 1,400 The platform that NST has built is outstanding
Slide 7: NST Pogo - Growing to 300kozpa
NST Pogo - Growing to 300kozpa ▪ FY21 guidance 180,000oz to Pogo’s Five Underground Mining Zones For personal use only 220,000oz at AISC of US$1,200- US$1,400/oz FUN ZONE NORTH ZONE - 6% of feed FY21 ▪ Growing to 300kozpa by FY23 through - Resource 0.9Moz @ 11.8g/t - 9% of feed FY21 - Resource 1.0Mo
Slide 8: NST Yandal Operation - Jundee Baseload
NST Yandal Operation - Jundee Baseload ▪ FY21 guidance 270,000-300,000oz at an AISC of For personal use only A$1,200-A$1,275/oz ▪ Jundee is a productive and low-cost operation, with FY20 gold production of 300koz at an AISC of Jundee Mine and A$1,095/oz Processing Facility ▪ Jundee consists of a 2.2
Slide 9: NST Yandal - Incorporating Bronzewing region
NST Yandal - Incorporating Bronzewing region Incorporation of Bronzewing/Orelia into the near-term Yandal For personal use only plan to take Yandal production to +400kozpa by FY23 ▪ Near term production growth from addition of open pit opportunities within expanded Yandal Operations area acquired th
Slide 10: Kalgoorlie - concentrated centre, great infrastructure
Kalgoorlie - concentrated centre, great infrastructure and significant leverage to the gold price For personal use only Kalgoorlie to 300kozpa ▪ FY21 guidance of 270,000-300,000oz at AISC of A$1,650-A$1,750/oz ▪ FY20 production of 317koz at AISC A$1,564/oz ▪ Currently processing capacity of 3.2Mtpa
Slide 11: Saracen: ASX Gold Producer Diggers and Dealers Presentation
For personal use only ASX 100 GOLD PRODUCER DIGGERS AND DEALERS PRESENTATION 12TH OCTOBER 2020
Slide 12: The all-Australian growth stock
The all-Australian growth stock More production: FY21 guidance 600 - 640koz @ AISC A$1,300 - 1,400/oz For personal use only More cash flow: Net cash A$48m 30 June 2020 (v net debt A$21m ~6 months ago More mine life: +10 years based on 8.6Moz Reserves at 30 June 2020 Conservative management:
Slide 13: Carosue Dam - Overview
Carosue Dam - Overview Production doubling to 250kozpa… For personal use only …afforded by the transformational growth of Karari - Dervish 2.0Moz in Reserve (including baseload Karari - Dervish 1.0Moz) Mill expansion imminent - Throughput rises to 3.2Mtpa (currently 2.4Mtpa), recovery increa
Slide 14: Thunderbox - Overview
Thunderbox - Overview ‘Does what it says on the tin’ (~100% reconciliation to date) For personal use only 1.7Moz in Reserve Growth opportunities include: “Thunderground” - 720koz Reserve @ 2.0g/t, high productivity, low cost, long life simple underground mine, stoping underway, materials han
Slide 15: Thunderbox - It does what it says on the tin
Thunderbox - It does what it says on the tin The long game: D Zone open pit ramping-up: For personal use only ▪ Simple, low cost, robust ▪ Progressively lower strip / higher grade ▪ >2 years of soft oxide (benefiting mill throughput / unit costs) “Thunderground”… Ramping up to >2Mtpa ore; grade
Slide 16: Diggers & Dealers Conference October 2020
For personal use only Diggers & Dealers Conference 12 October 2020 Northern Star Resources Limited Saracen Minerals Holdings Limited ASX: NST ASX: SAR ABN: 43 092 832 892 ABN: 52 009 215 347 Kalgoorlie Consolidated Gold Mines Pty Ltd (ABN: 97 009 377 619) is the Manager of the KCGM Operations for th
Slide 17: Introduction
For personal use only Introduction • Tier-1 asset in a Tier-1 mining jurisdiction, previously “hidden” in global major miners… enter Saracen and Northern Star • Landmark increase in Reserves to 9.7Moz (100%) supporting 15 year mine life • FY21 guidance 440 - 480koz at AISC of A$1,470-A$1,570/oz (100
Slide 18: Asset overview
For personal use only Asset overview Robust plan to deliver profitable production growth: • Production to rise to +675,000ozpa by FY28, key drivers: 100% basis 800 • Focus on large, low cost mining areas that maximise fleet productivity 700 • East wall remediation, integrated with the expedited 600
Slide 19: Asset overview
For personal use only Asset overview Stockpiles Fimiston mill Oroya Brownhill Croesus Fimiston South Golden Pike Mt Percy Mt Charlotte underground 19
Slide 20: Asset overview
Asset overview Long life: For personal use only • 9.7Moz Reserve provides 15 year mine life visibility; New mine plan de-risks production • Fimiston South Stage 2 key environmental approval received, enabling schedule optimisation KCGM production profile* FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29
Slide 21: Open pit mining
Open pit mining Fimiston South: For personal use only • Drilling has significantly grown the Fimiston South drill results system to the south and at depth • Of particular interest are the very strong results from the “saddle” returned post Resource estimation, including: • 23.8m @ 66.1g/t • 11.0m @
Slide 22: Underground mining
Underground mining Fimiston: For personal use only • The world-class Fimiston deposit has produced >65Moz Fimiston Underground drill results at a mined grade of 5.0g/t since 1893 • Historic underground workings extend to ~1,400m below surface • Historic drilling intersects mineralisation at depths o
Slide 23: Mount Charlotte
Mount Charlotte • >5.5Moz has been produced from Mt Charlotte to July 2020, despite mining continuously since the 1960’s, For personal use only discoveries continue to be made in close proximity to existing workings • Strong emphasis on increasing exploration in and around the Mt Charlotte operation
Slide 24: Northern Star and Saracen: A Compelling Combination
Northern Star and Saracen: For personal use only A Compelling Combination Diggers & Dealers Conference 12 October 2020
Slide 25: Creating a platform for growth & superior returns
Creating a platform for growth & superior returns For personal use only Targeting production of 2Mozpa from three Tier-1 production centres by FY271 A sector-leading global gold miner currently producing Positioned for market leading growth across two Tier-1 1.6Mozpa with a pathway to 2Mozpa jurisdi
Slide 26: Transaction rationale
Transaction rationale For personal use only A highly accretive transaction, creating a Top-10 global gold producer with high-margin assets located exclusively in Tier-1 jurisdictions1 • Combined portfolio of high quality assets concentrated in three logical production centres exclusively in Tier-1 j
Slide 27: Three large-scale production centres
Three large-scale production centres1 For personal use only Kalgoorlie Operations Yandal Operations North American Operations Reserves: 287Mt @ 1.4gpt for 13.3Moz Reserves: 66Mt @ 2.2gpt for 4.6Moz Reserves: 5.9Mt @ 8.0gpt for 1.5Moz Resources: 516Mt @ 1.8gpt for 30.5Moz Resources: 139Mt @ 2.3gpt fo
Slide 28: Three large-scale production centres
Three large-scale production centres For personal use only Simplified business structure with three Tier-1 production centres1 Kalgoorlie Operations Yandal Operations North American Operations Carosue Dam KCGM 250kozpa 550kozpa target target Jundee and Thunderbox Bronzewing 200kozpa 400kozpa target
Slide 29: Geological endowment - a major value driver
Geological endowment - a major value driver For personal use only Consolidation of world-class gold systems, exclusively in Tier-1 locations1 Kalgoorlie Operations Yandal Operations North American Operations 10.0 110 9.0 100 Ore Reserve Grade (g/t) 90 8.0 80 7.0 70 6.0 Moz Au 60 127 years 5.0 produc
Slide 30: Alignment on sustainability and culture
Alignment on sustainability and culture For personal use only Northern Star and Saracen are fully aligned in their approach to sustainability and culture. The companies were founded upon the same principles, which have been instrumental to their success Northern Star Core Values Saracen Core Values
Slide 31: Compelling Board and senior management
Compelling Board and senior management For personal use only Proven Board and senior management team to continue to drive value creation for shareholders Approach to Board and management MergeCo Board of Directors ⚫ Board and management team reflects the depth and significant expertise of both Sarac
Slide 32: Unique Synergies and Savings overview
Unique Synergies and Savings overview For personal use only Transaction unlocks A$1.5-2.0B NPV in pre-tax synergies expected to be delivered over the next 10 years via geographic, operational and strategic synergies Synergies overview Synergies breakdown (%) & examples • Procurement Savings: Conserv
Slide 33: Australian gold landscape re-defined
Australian gold landscape re-defined 30 For personal use only 29 MergeCo creates a new, high-quality large-cap alternative in the Australian gold market The28only large cap with 100% production exposure in Tier-1 jurisdictions1 27 Percentage of FY21 production 57 % 100% from Tier-1 jurisdictions 26
Slide 34: Relative positioning
Relative positioning For personal use only Merger creates a global Top-10 gold producer, with a unique portfolio of assets all located in Tier-1 jurisdictions Market capitalisation (A$B) Production Guidance (koz)1,2 Newmont 69.8 Newmont 6,950 Barrick 69.2 Barrick 5,734 Agnico Eagle 26.8 AngloGold 3,
Slide 35: Investor enquiries
Investor enquires For personal use only Kurt Walker (NST) Business Development & Investor Relations T: +61 8 6211 2620 E: info@nsrltd.com Troy Irvin (SAR) Corporate Development Officer T: +61 8 6229 9100 E: info@saracen.com.au PAGE 35
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