Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Merger or Acquisition (May 2014)
20 slides from Northern Star Resources's merger presentation, May 2014
Slide 1: The Jundee Acquisition
THE JUNDEE ACQUISITION Northern Star: now Australia’s Second Largest Gold Producer May 2014
Slide 2: Disclaimer
Disclaimer Competent Persons Statements The information in this announcement that relates to Paulsens and Ashburton mineral resource estimations, exploration results, data quality, geological interpretations, potential for eventual economic extraction and estimates of exploration potential, is based
Slide 3: Creating a New Australian Gold Mining Icon
Creating a New Australian Gold Mining Icon Northern Star Resources (ASX: NST) has entered into a binding agreement to acquire the Jundee mine in Western Australia from Newmont Yandal Operations Pty Ltd (“Newmont”), a wholly owned subsidiary of Newmont Mining Corporation, for A$82.5 million Acqui
Slide 4: Transaction Parameters
Transaction Parameters Consideration Northern Star has agreed to pay A$82.5 million in cash consideration to Newmont, payable on completion of the transaction Northern Star has received a credit approved commitment letter from Investec Bank Group (“Investec”) for an increased revolving debt faci
Slide 5: Critical mass, substantial inventory and low costs
Critical mass, substantial inventory and low costs Paulsens Ashburton Reserves 204koz at 5.4 gpt Reserves 53koz at 3.7 gpt Resources 532koz at 5.7 gpt Resources 1.7Moz at 2.4 gpt FY14F Production 100 - 115koz Jundee FY14F All-in Sustaining Costs(1) A$900 - $1,050/oz Reserves 411koz at 4.3 gpt Mine L
Slide 6: Australia's Second Largest Gold Miner by Production
Australia’s Second Largest Gold Miner by Production Northern Star has grown its forecast gold production to >550koz per annum FY2015 Production(1) 800 2,400 2,265 Legend 700 Australian Operations Only 600 550 Contains International Operations FY2015 Production (koz) 500 425 423 400 369 350 311 304 3
Slide 7: Enhanced Scale & Market Positioning
Enhanced Scale & Market Positioning New Peers Previous Peers 8,000 7,811 Legend 1,400 Australian Operations Only 1,200 1,154 Contains International Operations 1,000 821 Market Cap. (A$mm)1 800 699 645 575 600 510 375 352 400 246 209 188 183 169 200 95 0 Northern Star Kingsgate Alacer Gold Resolute R
Slide 8: Transformational Acquisition: Northern Star will become a +550,000ozpa Producer
Transformational Acquisition Northern Star will become a +550,000ozpa Producer Northern Star pre the Units Northern Star post the Acquisition Change Acquisition Reserves Moz 1.1 1.5 38% Resource Moz 5.9 6.4 9% Portfolio Metrics FY15 Production koz >3501 >550 57% All-In Sustaining Costs A$/oz <A$1,05
Slide 9: Benefits for Northern Star Shareholders
Benefits for Northern Star Shareholders The acquisition transforms Northern Star into the second-largest ASX listed gold miner Marks Northern Star’s third major acquisition in the past six months, during which forecast production has increased from Leading Australian Focused Gold ~100koz per a
Slide 10: Jundee – Asset Overview
Jundee – Asset Overview Stoping underground mining Mine Metrics Conventional CIL plant with a hard rock processing capacity of approximately 1.35mmtpa 1995: Commenced mining from open pits History 1997: Barton deeps underground ore bodies commenced 2012: Mining ceases from open pit Mineralization is
Slide 11: Jundee – Historical Performance
Jundee – Historical Performance Underground ore to waste mined Underground ore mined Ore Mined (kdmt) Waste mined (kdmt) Grade mined (g/t) Ore mined - stoping (kdmt) Ore mined - develoment (kdmt) 13.28 11.59 10.96 532 9.53 443 320 436 781 535 534 714 1,077 631 6.63 584 554 523 595 1,077 1,027 959 1,
Slide 12: Jundee – Geology
Jundee – Geology Jundee is located within the Northern Yandal Archean Greenstone Belt and comprises structurally controlled lode mineralisation The local succession is dominated by mafic-ultramafic rocks and dolerite sills and is approximately 2200 m thick Gold mineralisation is controlled by a brit
Slide 13: Jundee – Exploration Upside
Jundee – Exploration Upside Jundee tenements comprise 420 km2 with more than 1,000 identified mineralised lodes containing many high-grade point anomalies Overview The Westside system currently provides the majority of Jundee underground reserves Systematic drill testing of this system is continuing
Slide 14: Key reasons to invest in Northern Star
Key reasons to invest in Northern Star Strong cashflow, low debt and regular dividends Critical production mass of +550,000ozpa Project diversity from five high-grade mines Security of tenure from having all mines in Australia Targeting Group all-in sustaining cash costs of Paulsens Ashburton ~A$1,0
Slide 15: Contact Details
Northern Star Resources An Australian gold miner – for global investors Contact Details: Bill Beament – Managing Director +61 8 6188 2100 Email – info@nsrltd.com / Website – www.nsrltd.com May 2014
Slide 16: Appendix – Resource & Reserve Statement
Appendix – Resource & Reserve Statement GOLD MINERAL RESOURCES 1 GOLD MINERAL RESERVES1 As at 30 June 2013 MEASURED (M) INDICATED (I) INFERRED (Inf) TOTAL (MI&Inf) As at 31 December 2012 PROVED PROBABLE PROVED and PROBABLE Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounc
Slide 17: Appendix – Resource & Reserve Statement (cont'd)
Appendix – Resource & Reserve Statement (cont’d) Table 3 – Plutonic Resources (inclusive of Reserves) and Reserves As of 31 December 2012 Table 3 - Reserves and Resources figures have been excerpted from those published in Barrick Gold Corporation’s Annual Information Form for the year ended 31 Dece
Slide 18: Appendix – Resource & Reserve Statement (cont'd)
Appendix – Resource & Reserve Statement (cont’d) Table 4 – Kanowna Resources (inclusive of Reserves) and Reserves As of 31 December 2012 Table 4 - Reserves and Resources figures have been excerpted from those published in Barrick Gold Corporation’s Annual Information Form for the year ended 31 Decem
Slide 19: Appendix – Resource & Reserve Statement (cont'd)
Appendix – Resource & Reserve Statement (cont’d) GOLD MINERAL RESOURCES 1 As at December 31, 2013 MEASURED (M) INDICATED (I) (M) + (I) INFERRED (Inf) TOTAL (MI & Inf) Tonnes Grade Ounces Tonnes Grade Ounces Ounces Tonnes Grade Ounces Tonnes Grade Ounces Based on attributable ounces (000's) (gpt) (00
Slide 20: Appendix – Resource & Reserve Statement (cont'd)
Appendix – Resource & Reserve Statement (cont’d) Table 6 – Jundee Resources (inclusive Reserves) as at 31 December 2013 Table 7 – Jundee Reserves as at 31 December 2013 Table 7 - 1) Mineral reserves are reported on a 100% basis; 2) Mineral reserves are reported to a gold price of Table 6 - 1) Minera
Northern Star Resources — Merger or Acquisition (May 2014) on 6ix