Northern Star Resources Ltd · ASX:NST
Northern Star Resources — FY2020 Earnings Presentation
24 slides from Northern Star Resources's earnings presentation, Aug 19, 2020
Slide 1: FY2020 Full Year Results
FY2020 Full Year Results An Australian Gold Miner for Global Investors
Slide 2: Resources & Reserves, Forward Looking Statements
Resources & Reserves, Forward Looking Statements Mineral Resources and Ore Reserves The Mineral Resources, Ore Reserves and exploration results information reported in accordance with the 2012 edition of the Joint Ore Reserves Committee’s Australasian Code for Reporting of Mineral Resources and Ore
Slide 3: The Australian Gold Miner for Global Investors - FY20 Highlights
The Australian Gold Miner for Global Investors FY20 Highlights Final dividend Underlying FCF of FY20 Underlying NPAT increases 27% to A$423M increases 69% to 9.5¢ps After investing ~A$206M in growth A$291M Special 10¢ps capital & exploration dividend Gold Sold (koz) 900 Ore Reserves Consistent, indu
Slide 4: Integrated Sustainability – Core business alignment
Integrated Sustainability – Core business alignment Our Sustainability Vision “Delivering responsible environmental and social business practice that lead to both the creation of strong economic returns for our Shareholders, and shared value for our Stakeholders.” Our Sustainability Framework Ecosys
Slide 5: Health, Safety and our COVID-19 Response
Health, Safety and our COVID-19 Response Social Responsibility and the health and safety of all Stakeholders sits at the very core of the Northern Star business ▪ NST moved early and decisively to implement a suite of strict COVID-19 mitigation measures, both at our Australian and Alaskan Operations
Slide 6: FY20 Financial Highlights
FY20 Financial Highlights Financials Units FY20 FY19 Change Statutory Profit after tax A$M 258.3 154.7 67% Underlying Profit after tax1 A$M 291.0 171.9 69% EBITDA2 A$M 745.4 479.7 55% Operating mine Cash flow3 A$M 901.6 587.6 53% Net mine Cash flow4 A$M 559.2 362.0 54% Group underlying free cash flo
Slide 7: Mine Site Cash Flow
Mine Site Cash Flow Record Cash Flow generated by NST’s Tier-1 asset base ▪ Strong mine cash flow in Mine Cashflow (A$M) FY20 902 - Operating cash flow A$902M - Net mine cash flow A$559M 588 ▪ KCGM cash flow to increase with full 12 month 559 contribution in FY21 377 308 ▪ Pogo’s transition complete
Slide 8: Robust EBITDA Margins
Robust EBITDA Margins All Operations continue to generate strong cash margins ▪ In FY20, Jundee and Kalgoorlie Operational EBITDA Margin Operations generated strong EBITDA margins of 64% and 42% respectively 64% ▪ Pogo’s contribution set to increase in FY21 with the 52% operation now successfully tr
Slide 9: Record earnings in FY20
Record earnings in FY20 ▪ Underlying net profit up 69% to A$291M ▪ Revenue up 41% from increased gold sold and higher realised prices ▪ Operating costs being well managed with the increase in mining activity and production across the Group’s operations with the inclusion of KCGM (50%) and investment
Slide 10: FY20 - Investment for future growth
FY20 - Investment for future growth NST’s Tier-1 investments in FY20 has laid the platform for significant near term returns 156 710 130 49 9 76 803 677 266 694 1,318 58 Cash June 2019 Operating Sust. Capex Growth Capex Exploration M&A Invest Equip. Borrowings Equity Dividends Paid FX Cash June 2020
Slide 11: Strong Balance Sheet
Strong Balance Sheet Amortisation of A$400M Term Loan (A$M) ▪ A key differentiator of the NST business is its balance sheet; this strength has 150 allowed significant organic investment and accretive acquisitions resulting in 100 100 superior returns to Shareholders 50 ▪ Record A$423M of underlying
Slide 12: Dividends; increasing returns to Shareholders
Dividends; increasing returns to Shareholders ▪ FY20 final dividend up 27% to A9.5cps fully franked (A$70M) 536 ▪ Special dividend of a further A10.0cps fully Cumulative dividends (A$M) franked (A$74M) cents per share (cps) ▪ FY20 payout up 100% to A27.0cps full franked 10.0 ▪ Dividend policy target
Slide 13: KCGM complements our simplified asset portfolio
KCGM complements our simplified asset portfolio 1. Kalgoorlie Operations (100%) Mine type: U/G Australia US Processing: CIL / CIP plant with throughput (Alaska) of 3.2Mtpa FY21e Production1: 270-300koz Au FY21e AISC2: A$1,700/oz (US$1,222/oz) Au Reserves: 1.6Moz Au @ 3.6g/t Au Resources3: 6.8Moz Au
Slide 14: Consistent Resource and Reserve Growth
Consistent Resource and Reserve Growth 10.8 Mozs 12,000 35 ▪ Group Mineral Resources increased 67% (12.7Moz) to 31.8Moz1 31.8 Mozs ▪ Group Ore Reserves increased 102% (5.5Moz) to 10.8Moz2 30 10,000 25 5.4 Mozs 20.8 Mozs 8,000 4.0 Mozs Reserve Koz 15.9 Mozs Resource Mozs 20 3.5 Mozs 6,000 10.2 Mozs 1
Slide 15: Proven Value Generation
Proven Value Generation $10,367 $11,104 ▪ NST’s strategy of balancing organic growth with well executed M&A has generated over A$10B of value for Shareholders since the first acquisition in 2010 ▪ This strategy has been achieved through operational excellence, investing heavily into exploration, gro
Slide 16: Tier-1 assets, Tier-1 addresses
Tier-1 assets, Tier-1 addresses ▪ Globally, there are only 18 mines producing +300kozpa in Tier-1 Mining Jurisdictions (Australia / USA / Canada)1 ▪ NST has an interest in 17% of these, with Pogo on track to join this list 12 Bubble size = combined regional production Yandal / Jundee Operations 10 1
Slide 17: FY21 Guidance
FY21 Guidance FY21 Guidance Production (koz) AISC (A$/oz) Growth Capex (A$M) Yandal / Jundee Operations 270 - 300 1,200 - 1,275 37 Kalgoorlie Operations 270 - 300 1,650 - 1,750 12 KCGM (50%) 220 - 240 1,470 – 1,570 99 Australian Operations 760 - 840 1,440 – 1,540 148 Pogo Operations (US) 180 - 220 U
Slide 18: Northern Star Resources Limited
Northern Star Resources Limited ASX Code: NST An Australian gold miner – for global investors Investor Enquiries: Kurt Walker Level 1, 388 Hay Street, Subiaco 6008 Western Australia T: +61 8 6188 2100 E: info@nsrltd.com W: www.nsrltd.com Inventum 3D Page Links click here 18
Slide 19: Appendix
Appendix
Slide 20: KCGM Highlights
KCGM Highlights ▪ Strong platform set for growth, with 15-year mine life visibility based on Reserves, with production set to ramp up to +675koz per annum by FY28 ORE RESERVES AND MINERAL RESOURCES AT 30 JUNE 2020 ▪ Successful transition to new JV ownership Ore Reserves 240Mt @ 1.3gpt for 9.7Moz1 (1
Slide 21: KCGM Fimiston Super Pit
KCGM Fimiston Super Pit ▪ Long-life robust mine plan that delivers beyond FY2034 based on current Ore Reserves of 9.7Moz (100%) ▪ Revised mine plan developed by the new JV partners in just 6 months of ownership ▪ The Oroya-Brown Hill Cutback (OBH) on the Eastern margin of the pit extracts the Fimist
Slide 22: Fimiston Open Pit Growth Potential
Fimiston Open Pit Growth Potential ▪ Historical drilling and drilling completed since NST/SAR ownership demonstrates significant upside potential both within and outside of the current Resource optimisation FIMISTON CROSS SECTION A-B 47,800mN A B ABOVE: Plan view of Fimiston cutback stages with the
Slide 23: Fimiston Underground
Fimiston Underground ▪ Deep drilling beneath the June 2020 open pit Resource demonstrates the continuity of Fimiston mineralisation at depth FIMISTON LONG SECTION FIMISTON CROSS SECTION 47,500mN 47,500mN ABOVE: Long projection of the Fimiston deposit showing extent of drill testing. RIGHT: E-W Cross
Slide 24: Mt Charlotte Underground
Mt Charlotte Underground ▪ More than 5.5Moz has been produced from Mt Charlotte to July 2020. Additional drilling and review of historical data has resulted in JORC (2012) Compliant Reserves of 510koz at 2.1gpt and Mineral Resources of 1.9Moz at 2.1gpt Location of Mt Charlotte in- ▪ The Mt Charlotte
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