Northern Star Resources Ltd · ASX:NST

Northern Star Resources — H1 FY2022 Earnings Presentation

21 slides from Northern Star Resources's earnings presentation, Feb 10, 2022

1. Slide 1: Results Presentation for Half Year to 31 Dec 2021

   Results Presentation for Half Year to 31 Dec 2021 10 February 2022

2. 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

3. Slide 3: Value creation strategy

   Value creation 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 Net Zero ambition by 3-5 world class Growth in Target +20Moz Enhance return on 205

4. Slide 4: 1H FY22 Overview

   1H FY22 Overview Underlying NPAT of A$108 million Underlying EBITDA of A$699 million at a robust margin of 39% Cash Earnings of A$430 million Interim fully franked dividend of A10cps Strong balance sheet Ramp up of Pogo in net cash position Mill Expansion Advancing organic Effective COVID Accelerati

5. Slide 5: 1H FY22 Operations recap

   1H FY22 Operations recap KALGOORLIE YANDAL POGO  Kalgoorlie sold 477koz at an AISC of  Yandal sold 212koz at an AISC of  Pogo sold 90koz at an AISC of A$1,536/oz A$1,440/oz US$1,743/oz  Mine operating cash flow1 was A$450  Mine operating cash flow was A$173  Mine operating cash flow was A$11 m

6. Slide 6: 1H FY22 Financial highlights

   1H FY22 Financial highlights Increased gold volumes drive rebase in financial performance Units 1H FY22 1H FY21 % Variance Key financials1  Revenue of A$1,807 million Revenue A$M 1,807 1,111 63 driven by higher gold sold EBITDA A$M 926 461 101 Underlying EBITDA A$M 699 474 47  Underlying NPAT of A

7. Slide 7: Underlying NPAT

   Underlying NPAT Bottom line impacted by increase in D&A post-merger 402 (A$M) 694 62 23 18 2 12 74 334 242 261 193 7 26 108 Underlying Revenue Operating Inventory D&A Tax Other Underlying Gain on sale Acquisition Impairment Con Other Tax Statutory NPAT Dec-20 Costs movement NPAT Dec-21 of Kundana re

8. Slide 8: Cash Earnings

   Cash Earnings Strong cash earnings of A$430M 242 15 (A$M) 517 64 926 205 699 148 430 261 Net Profit After Tax Tax & Net Finance D&A EBITDA Gain on Sale of Other Underlying EBITDA Tax & Net Interest Sustaining Capital Cash earnings Costs Kundana Assets Paid 8

9. Slide 9: Cash Flow

   Cash Flow Strong cash flow generation enables investing in the business while rewarding shareholders 144 249 (A$M) 626 18 127 65 56 361 107 3 772 528 Cash Jun-21 Operating Sust. Capex Growth Capex Exploration M&A/Divestments Equity Equipment Net Debt Dividends FX Cash Dec-21 cashflow Finance/Leases

10. Slide 10: Dividend Policy

    Dividend Policy Continued strong cash flows support capital returns 40.0 1,000 Cumulative Dividends 874  Updated Dividend Policy: 900 35.0  20-30% of Cash Earnings 757 800 30.0  Cash Earnings defined as 700 Underlying EBITDA less net interest 25.0 536 and tax paid and sustaining capital Ac/share

11. Slide 11: Balance Sheet - robust and flexible

    Balance Sheet - robust and flexible Liquidity Position at 31 December 2021 Disciplined capital allocation:  Balance between re-investment (organic / inorganic), dividends, retained earnings As at Financial metrics 31 Dec 2021 54% 46% A$1.29B Measure Target Range Leverage Ratio (Net Debt / EBITDA) L

12. Slide 12: Merger Accounting

    Merger Accounting Balance sheet adjustments Under Australian Accounting Standards, the merger between Northern Star and Saracen completed 12 February 2021 was deemed a “Business Combination” and is therefore accounted for using the “acquisition method”  FY22 depreciation and amortisation at A$600-7

13. Slide 13: On track to meet full year guidance

    On track to meet full year guidance Gold production weighted towards FY22 GUIDANCE UNITS KALGOORLIE YANDAL POGO TOTAL* second half of FY22, driven by increasing grades at Yandal and Gold Production koz 900 - 950 430 - 450 220 - 250 1,550 - 1,650 increasing mining rates at Pogo; AISC decreases over t

14. Slide 14: Future growth embedded in existing asset base

    Future growth embedded in existing asset base Group production outlook Production growth to 2Moz per year with declining Moz A$/oz AISC as quantity/quality of ounces increase 2.0 1,600  Kalgoorlie to 1.1Moz per year  KCGM increasing to 650koz in FY26 and 700koz in FY28, driven by: 1.5 1,200  Open

15. Slide 15: Asset timeline

    Asset timeline Multiple growth projects to deliver 2Mozpa by FY26 2.0Moz gold FY22 FY23 FY24 FY25 FY26 Resource Reserve Increase KCGM material movement to 80-100Mtpa Kalgoorlie KCGM Fleet Delivery 1,100koz 666Mt @ 1.8g/t 314Mt @ 1.5g/t FY22e: 900-950koz KCGM 650koz for 37.6Moz for 15.0Moz Fimiston S

16. Slide 16: Responsible growth - ambition for net zero 2050

    Responsible growth - ambition for net zero 2050  On 22 July 2021 we committed to a net zero ambition for 2050 % of CY2021 Scope 1 & 2 Emissions % of CY2021 Scope 1 & 2 Emissions  We have developed a solid by region by sources roadmap including Scope 1 and 2 emissions reduction targets for 3 2030,

17. Slide 17: Executing our clearly defined strategy

    Executing our clearly defined strategy Production growth Increasing cash embedded in existing returns to asset base shareholders Advancing future Responsible producer organic growth with proven track opportunities record Strong cash flow Active portfolio generation and management balance sheet 17

18. Slide 18: 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 18

19. Slide 19: Appendix: NPAT to Cash Earnings reconciliation

    Appendix: NPAT to Cash Earnings reconciliation HY FY22 HY FY21 Net Profit After Tax 261 183 Tax 137 86 Depreciation & Amortisation 517 183 Net Finance Costs 11 9 EBITDA 926 461 Impairment charges 12 9 M&A Related Items 23 4 Gain on Sale of Kundana Assets (242) - Other (20) - Underlying EBITDA 699 47

20. Slide 20: Appendix: AISC to Cost of Sales bridge

    Appendix: AISC to Cost of Sales bridge (A$M) 20

21. Slide 21: Appendix: FY22 Growth capital guidance

    Appendix: FY22 Growth capital guidance A$M FY21* FY22 Kalgoorlie Open Pit Development 197 196 FY22 Gross Growth Capital (A$M) Underground Development 42 27 Carosue Dam Mill and Paste Expansion 16 1 Other 45 37 70 Yandal Open Pit Development 55 82 261 Underground Development 100 86 Thunderbox Mill an

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