Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Shareholder Meeting (November 2019)
17 slides from Northern Star Resources's shareholder meeting presentation, Nov 14, 2019
Slide 1: 2019 AGM Presentation
For personal use only An Australian gold miner - for global investors 2019 AGM Presentation
Slide 2: Resources & Reserves and Forward Looking Statements
Resources & Reserves and Forward Looking Statements For personal use only Mineral Resources and Ore Reserves The Mineral Resources and Ore Reserves information reported in accordance with the 2012 edition of the Joint Ore Reserves Committee’s Australasian Code for Reporting of Mineral Resources and
Slide 3: NST Operations – Tier-1 Assets, Tier-1 Locations
NST Operations – Tier-1 Assets, Tier-1 Locations ▪ NST manages a simplified business with a For personal use only strong organic growth outlook; with 3 Tier-1 assets in Tier-1 locations ▪ Market cap is A$5.8B with sector leading balance sheet; A$372M cash and equivalents and no debt ▪ FY20 group gui
Slide 4: FY19 Key Highlights
FY19 Key Highlights For personal use only Financial Underlying Net FY19 dividends Record Performance Total Shareholder Profit of A$179M; declared A13.5¢ underlying FCF Return of 62% Group EBITDA up per share; Final of A$104M in 8% to A$480M dividend up 50% June Qtr of FY19 Acquisition of the Record
Slide 5: Sustainability in FY19
Sustainability in FY19 We strive to deliver responsible environmental and social For personal use only business practices that lead to both the creation of strong economic returns for our Shareholders, and shared value for our Stakeholders. Safety Social Environmental We strive for safety excellence
Slide 6: Value Creation – delivering returns to Shareholders
Value Creation – delivering returns to Shareholders ▪ NST’s strategy of balancing organic growth with well executed M&A has generated over A$5.6B of For personal use only value for Shareholders since the first acquisition in 2010 and <7% of this value uplift has been from equity raised ▪ This strate
Slide 7: Delivering Reserve and Resource Growth per share
Delivering Reserve and Resource Growth per share ▪ Through value accretive organic and inorganic growth NST has been able to successfully grow For personal use only Resource and Reserve life on a per share basis for its Shareholders ▪ NST announced a 31% increase in Resources to 20.8Moz at 4.1gpt (g
Slide 8: A$76M Global Investment in Future Growth
A$76M Global Investment in Future Growth ▪ A$76M exploration and drilling commitment for FY2020 is a record commitment For personal use only ▪ Pogo will continue to be a major focus with outstanding in-mine and near mine opportunities ▪ Strong commitment to Jundee growth with major investment in-min
Slide 9: FY20 Production and Cost Guidance
FY20 Production and Cost Guidance For personal use only ▪ Group production 800,000-900,000oz at an AISC A$1,200-A$1,300/oz ▪ Growth capital non-sustaining of A$116 million – Pogo, Jundee and Moonbeam Growth ▪ Exploration record spend of A$76 million – Pogo, Jundee and South Kalgoorlie ▪ Second half
Slide 10: Jundee – Going from strength to strength
Jundee – Going from strength to strength For personal use only ▪ A significant FY19: Record 299koz sold at an AISC of A$981/oz ▪ Resources up 7% to 4.55Moz and Reserves up 3% to 1.6Moz ▪ Mining & processing of Ramone open pit material commenced in the June quarter ▪ FY20: Guidance 260,000- 280,000oz
Slide 11: Update on Echo Resources transaction
Update on Echo Resources transaction ▪ For personal use only Late August NST launched a cash bid for the remaining 78.3% of Echo Resources shares ▪ NST shareholding is now 98.3%, with compulsory acquisition to be concluded in early December 2019 ▪ Echo Resources assets include; ▪ Key strategic 1,600
Slide 12: Pogo – Enacting the business model
Pogo – Enacting the business model ▪ Pogo is a world-class 10Moz gold endowment that has produced ~4Moz at an average grade of ~13gpt over For personal use only the past 13 years at an average of ~300,000ozpa ▪ Pogo has a JORC Resource of 5.95Moz at 9.6gpt and a maiden JORC Reserve of 1.5Moz at 7.5g
Slide 13: Pogo – Development improvements on track
Pogo – Development improvements on track For personal use only Total monthly NSMS metres (excludes contractor metres) Target of ▪ Development metres increased in Q1 with August & September at 1,600 Sep Qtrly Avg 1,500m per 1,306m month 76% increase with arrival of 1,400 metres advance; on track to 1
Slide 14: Pogo – Stoping contribution continues to improve
Pogo – Stoping contribution continues to improve ▪ Pogo remains mining constrained until new stoping areas come on line which is part of the 18 For personal use only month transition plan announced at acquisition ▪ September has been highest stoping tonnes contribution with 32kt @ 8.6gpt for 9koz mi
Slide 15: Pogo Plant 30% upgrade – Confidence to expand
Pogo Plant 30% upgrade – Confidence to expand For personal use only ▪ Focus is now on optimising current throughput ▪ Current capacity of processing plant is ~1Mtpa ▪ Plant expansion to 1.3Mtpa to be delivered by early CY2021 at a capital cost of ~US$30M (US$10M spend in FY2020) ▪ Potential to furth
Slide 16: Kalgoorlie – Concentrated centre, great infrastructure
Kalgoorlie – Concentrated centre, great infrastructure For personal use only ▪ FY19 record production, at top end of guidance with 340,007oz sold at AISC of A$1,330oz (US$931/oz) ▪ FY20 continues organic production growth profile with guidance of 340,000oz-380,000oz at an AISC of A$1,260-A$1,370 (US
Slide 17: Northern Star Resources Limited
For personal use only Northern Star Resources Limited ASX Code: NST An Australian mid cap gold miner – for global investors Investor Enquiries: Luke Gleeson, Investor Relations Level 1, 388 Hay Street, Subiaco 6008 Western Australia T: +61 8 6188 2100 E: info@nsrltd.com W: www.nsrltd.com Inventum 3D
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