Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Investor Day (August 2018)
125 slides from Northern Star Resources's investor day presentation, Aug 3, 2018
Slide 1: An Australian gold miner – for global investors
For personal use only An Australian gold miner – for global investors Corporate Strategy Day - August 2018
Slide 2: Disclaimer
Disclaimer Competent Persons Statements The information in this announcement that relates to exploration results, data quality, geological interpretations for the Company’s Project areas is based on information compiled by Michael Mulroney, a Competent Person who is For personal use only a Member of
Slide 3: Acknowledgement of Country
Acknowledgement of Country Ngala kaaditj Whadjuk Noongar moort keyen kaadak nidja boodja For personal use only We acknowledge Whadjuk Noongar people as the original custodians of the land on which we meet today. We pay our respects to their elders past, present and future. 3
Slide 4: Corporate Strategy Day Agenda
Corporate Strategy Day Agenda For personal use only Time Minutes Agenda Speaker 13:00 Registration 13:00 - 13:15 Working Lunch 13:15 - 13:20 5 Introduction Luke Gleeson - Investor Relations & Business Development 13:20 - 13:45 25 Gold Macro Landscape, NST Strategy and Vision Bill Beament - Executive
Slide 5: Strategy and Vision
For personal use only An Australian gold miner – for global investors Strategy and Vision
Slide 6: Gold Sector Backdrop
Gold Sector Backdrop Since March 2016 the Australian gold index as represented by the AS30XGD index has on the whole outperformed For personal use only both the GDX and the USD gold price by a considerable margin on a currency adjusted basis expressed in $USD That outperformance spread has widened o
Slide 7: Gold Sector Backdrop
Gold Sector Backdrop Breaking down the last 12 months of share price performance of the GDX constituents highlights the respective For personal use only outperformance of the 7 listed Australian companies represented in the index This outperformance has been delivered by the generation of superior f
Slide 8: Introduction – Globally Relevant Gold Miner
Introduction – Globally Relevant Gold Miner ASX 100, top 25 global gold producer with all For personal use only mines in Western Australia; +600koz per annum Paulsens Operations +3Moz Gold Camp at an AISC of ~A$1,075/oz (US$795/oz) Central Tanami Project +5Moz Gold Camp Market cap is A$4.4B, with a
Slide 9: Northern Star Resources – Enacting the strategy
Northern Star Resources – Enacting the strategy NST has now fully completed five consecutive Company strategies since 2009, well ahead of time For personal use only 3 Year Vision A global mid-cap and ASX100 sustainable gold producer The What focused on superior Shareholder value creation Tier 1 Asse
Slide 10: Organic growth - delivering returns to Shareholders
Organic growth - delivering returns to Shareholders This strategy of organic growth has generated over A$3.8B of value for Shareholders since NST’s first gold acquisition in 2010 and only 7% of this value uplift has been from equity raised For personal use only NST has achieved this through operatio
Slide 11: Growth around our Tier Assets has been the core focus
Growth around our Tier 1 Assets has been the core focus Globally there are only 17 mines (down from 23 in 2017) producing over 300kozpa in Tier 1 mining jurisdictions; production is declining in these regions due to a lack of discoveries and significant Reserve depletion For personal use only NST ha
Slide 12: Focused on being positioned at bottom quartile of global cost curve
Focused on being positioned at bottom quartile of global cost curve NST has a continual focus of positioning the business at the bottom of the global cost curve For personal use only BMO Global CY19E AISC Cost Curve 1,400 Q4 1,200 1,000 Q3 Average US$772/Oz Q2 US$/oz 800 NST US$652/Oz Q1 600 400 200
Slide 13: NST has again delivered best in class returns, globally
NST has again delivered best in class returns, globally NST continues to deliver best in class financial returns in the global gold industry over 5 years For personal use only 40% 40% 30% GDX 5 Yr Avg Return on Equity 27% GDX 5 Yr Avg Return on Invested Capital 30% 20% 20% 0% 10% -20% Sector Average
Slide 14: Organic growth – still delivering the best returns for our Shareholders
Organic growth – still delivering the best returns for our Shareholders NST has been able to consistently grow production, resource and reserve life on a per share basis for its For personal use only Shareholders since 2010 and has been our key focus for the past 4 years Reserves increased to 4Moz a
Slide 15: Consistent Reserve growth year on year
Consistent Reserve growth year on year Total Reserves has increased by 332% since acquiring the Jundee and Kalgoorlie assets 4 years ago For personal use only At an asset level Reserves have increased by 344% at Jundee and by 316% at Kalgoorlie after mining depletion, more growth is likely in 2019 J
Slide 16: Consistent Production growth year on year
Consistent Production growth year on year Production has increased by 38% across both operations on the back of Resource/Reserve upgrades For personal use only 700 JUNDEE + KALGOORLIE MINED PRODUCTION (SINCE ACQUISTION) 600 500 NST acquired Operations July 2014 THOUSAND OUNCES 400 300 200 100 0 2014
Slide 17: Gold Macro Landscape
For personal use only An Australian gold miner – for global investors Gold Macro Landscape
Slide 18: Supply/demand dynamics improving… but production is declining
Supply/demand dynamics improving… but production is declining Jewellery demand increasing (especially in China/India) For personal use only Mine supply saw increase in 2016 but expected to decline Central bank buying likely to remain modest (China/Russia) Is the industry going through peak gold??? G
Slide 19: Trend is for both global Gold Reserves and Production to decline
Trend is for both global Gold Reserves and Production to decline Since 2013 Reserve life of the top five global producers has declined by 24% For personal use only Production from the top five producers is also forecast to decline by 15% from 2013 to 2018 Underinvestment in exploration, little M&A a
Slide 20: The only outperformers was the Australian Gold Industry
The only outperformers was the Australian Gold Industry Like other Australian gold producers we have outperformed by sticking to our disciplines In 2017 Seniors producers traded at higher levels than intermediate/junior producers For personal use only However in 2018 intermediate producers especiall
Slide 21: Senior Producers – They have the largest mines
Senior Producers – They have the largest mines Barrick has consistently held a majority of the top 5 mines by production For personal use only 21
Slide 22: Senior Producers – Their operations have scale and size
Senior Producers – Their operations have scale and size Top 3 seniors have narrowed focus onto larger +300kozpa operations For personal use only Remaining continue to focus on high-margin operations Note: Percentages indicate contribution to total gold production. 22 Source: Company Reports & Presen
Slide 23: Senior Producers – Their mines are in Tier jurisdictions
Senior Producers – Their mines are in Tier 1 jurisdictions For personal use only 23
Slide 24: Gold sector's transition to underground operations
…Gold sector’s transition to underground operations Gold mines broken down for open pit / underground / combined For personal use only The clear trend is operations globally are transitioning underground Note: Percentages indicate contribution to total gold production. May not add up due to rounding
Slide 25: Building out the strategy for the next years
Building out the strategy for the next 5 years Northern Star is committed to continue expanding our competitive advantages in: specialist underground mining, geology, processing and growing our Human Capital to continue to deliver industry leading financial returns to its Shareholders For personal u
Slide 26: A proven track record of outperformance; regardless of gold price
A proven track record of outperformance; regardless of gold price Over the last 5 years Northern Star has outperformed both the US Gold Price and its GDX Indexed Top 50 For personal use only gold mining listed peers significantly NST Share Price vs GDX Gold Miners Index and Gold Price 700 405% 600 5
Slide 27: Company Performance, Achievements & Outlook
For personal use only An Australian gold miner – for global investors Company Performance, Achievements & Outlook
Slide 28: FY2018 Highlights
FY2018 Highlights Millennium Commercial Production delivered For personal use only Delivery of production from discovery in 3 years SKO Acquisition and Integration Win/Win M&A and key infrastructure to underpin organic growth Kanowna Plant Optimisation Record throughput in 25 years process plant lif
Slide 29: STARR Core Values – the Decision Compass
STARR Core Values – the Decision Compass For personal use only • Zero harm targets SAFETY • Enabling culture • Continual improvement • Cooperative TEAMWORK • No-one left behind • No blame or excuses • Clarity of role ACCOUNTABILITY • Ownership of outcomes • Recognition of influence • Visual positive
Slide 30: Health & Safety
Health & Safety Safety Management is integrated into all For personal use only Leadership roles and business planning to drive safe behaviours to deliver sustainable results We collaborate with our contract partners to ensure they are aligned to also meet our business goals An engaged workforce whom
Slide 31: The Importance of Culture and our People
The Importance of Culture and our People Understanding and preserving NST culture has For personal use only been key to our success Since integration of the assets base, implementation of the NST operating model has delivered significant returns for Shareholders As the business grows organically, ma
Slide 32: Northern Star Resources – Enacting the strategy
Northern Star Resources – Enacting the strategy In FY18 at an operating level NST achieved some fantastic outcomes from it’s Tier 1 mining assets, operating For personal use only safely across the business, developing our human capital and positioning for future growth 3 Year Vision A global mid-cap
Slide 33: Northern Star's Operating Model has not changed
Northern Star’s Operating Model has not changed Established in 2010 by our first mine acquisition, NST’s operating model targets improved operational performance to For personal use only deliver significant value for Shareholders through a structured approach in 5 key areas Initiative Description ▪
Slide 34: Rapid Restoration of World Class Tier Assets
Rapid Restoration of World Class Tier 1 Assets For personal use only Continued proven results from exploration investment across all assets building Resources and Reserves Our mine life visibility is strengthened and planning horizon secured Cost focus and productivity assists cut-off grade assessme
Slide 35: Our Strategy has Delivered a Simplified Business
Our Strategy has Delivered a Simplified Business Strategy delivered to establish production For personal use only Exploration Focus concentration and scale from multi-million Paulsens Exploration Focus +3Moz Gold Camp Tanami ounce gold camps +5Moz Gold Camp Northern Star operates two +300kozpa produ
Slide 36: Consistent delivery of Guidance and Mine Life Extension
Consistent delivery of Guidance and Mine Life Extension NST 10 Year Production Profile For personal use only 800 750 700 Organic Growth Options Assumes Resource 650 Jundee, Kalgoorlie, Tanami, Paulsens Conversion 600 THOUSAND OUNCES 550 500 450 400 350 300 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY2
Slide 37: Finance Update
For personal use only An Australian gold miner – for global investors Finance Update
Slide 38: Overview
Overview Stock code (ASX) : NST For personal use only Share price: A$7.20 Market capitalisation (613.3 million shares on issue) : A$4.4B (US$3.3B) Cash, bullion & investments as at 30 June 2018 A$512M (US$380M) Bank debt Nil Enterprise value A$3.9B (US$2.9B) 3 month average daily turnover ~A$26M Sub
Slide 39: FY18 Another Year of Cash Flow Performance
FY18 Another Year of Cash Flow Performance 200 FY18 NST Group Cash Flow FY18 NST Group Free Cash Flow For personal use only 35 7 800 180 186 353 160 700 52 151 600 140 45 A$M A$M 52 7 120 500 5 63 100 7 400 443 63 5 403 80 300 60 200 40 100 40 20 - 30-Jun-17 30-Jun-18 Debt Equity Exploration M&A Inv
Slide 40: FY18 Procurement: another year of cost savings
FY18 Procurement: another year of cost savings NST’s continual focus on cost has delivered 4 consecutive years of procurement savings For personal use only This cost focus continues to deliver high profit margins across our operations FY18 Spend by location A$13.7M, 2% A$0.2M, 0% A$77.7M, 11% Intern
Slide 41: Margin improvement driving Shareholder returns
Margin improvement driving Shareholder returns NST’s focus on concentrated centres has simplified the business and delivered an increased production profile For personal use only The impact of this strategy can be observed in the EBITDA margin The higher margin continues to drive free cash flow and
Slide 42: Extending mine life and consistent delivery of guidance
Extending mine life and consistent delivery of guidance Paulsens Gold Mine Jundee Gold Mine Kalgoorlie Operations For personal use only IRR: 148% (historic) IRR: 156% (historic) IRR: 264% (historic) Generation of FCF: A$162M Generation of FCF: A$450M Generation of FCF: A$368M Average ASIC: A$1,146/o
Slide 43: Allocation of capital
Allocation of capital NST’s allocation of capital has been sector leading and the operating business model has allowed NST to deliver on all fronts; this approach has delivered sector leading returns for its Shareholders For personal use only Organic Growth Dividends & TSR Inorganic Growth Balance S
Slide 44: NST has again delivered best in class returns, globally
NST has again delivered best in class returns, globally NST continues to deliver best in class financial returns in the global gold industry over 5 years For personal use only 40% 40% 30% GDX 5 Yr Avg Return on Equity 27% GDX 5 Yr Avg Return on Invested Capital 30% 20% 20% 0% 10% -20% Sector Average
Slide 45: Environmental, Social & Corporate Governance
For personal use only An Australian gold miner – for global investors Environmental, Social & Corporate Governance
Slide 46: ESG Values at Northern Star: Planning for the long term
ESG Values at Northern Star: Planning for the long term Our Sustainability Vision: For personal use only Delivering responsible environmental and social business practices that lead to both the creation of strong economic returns for our Shareholders, and shared value for our stakeholders. “Operatin
Slide 47: ESG Highlight: Actively supporting the WA economy
ESG Highlight: Actively supporting the WA economy The mining industry and associated services contributed A$237B into the Australian economy and accounts for over For personal use only 1.1M full time employees across Australia representing 10% of total employment WA resources sector delivered $32B i
Slide 48: FY2018 Sustainability Performance
FY2018 Sustainability Performance For personal use only Environmental Compliance Transparency • Zero significant incidents or regulator fines • Portfolio of assets in good standing • Inaugural sustainability report FY17 Climate Change • Sustainability survey (CDP and DJSI) • Australian Voluntary Tax
Slide 49: ESG Highlight: Northern Star Aboriginal Ranger Program
ESG Highlight: Northern Star Aboriginal Ranger Program For personal use only Website viewers please visit https://youtu.be/_4xZarCWII4 49
Slide 50: Asset Overview
For personal use only An Australian gold miner – for global investors Asset Overview
Slide 51: FY2018 Achievements
FY2018 Achievements Expanded production at key operating centres of Jundee and Kalgoorlie For personal use only FY18 – Expanded production on the back of tripling of the reserve base in FY17 Jundee: plant upgrade increased capacity by >50% from 1.3Mtpa to >2Mtpa Kalgoorlie Operations: Kanowna Belle
Slide 52: Operations Overview
Operations Overview For personal use only KALGOORLIE OPERATIONS FY2018 261,589 @ A$1,174/oz FY2019 320,00-340,000oz @ A$1,140-1,250/oz 52
Slide 53: Kalgoorlie Operations: Rapid, low-cost growth
Kalgoorlie Operations: Rapid, low-cost growth Kalgoorlie Operations has expanded with the purchase of SKO For personal use only Underground Deposits – KB, RHP, ACRA JV CARBINE/PARADIGM Raleigh, Millennium & HBJ 3.2Mtpa Processing capacity – KB Kanowna Belle (2.0Mtpa) and Jubilee KB PLANT 2.0Mtpa Pro
Slide 54: Kalgoorlie Operations: FY2018 Achievements
Kalgoorlie Operations: FY2018 Achievements Record Northern Star ounces and EKJV ounces For personal use only Record KB processing throughput – 2Mtpa 330,810m of drilling – Surface, UG , RC, Diamond etc. SKO purchase – lots to find here SKO integration – part of the team already Toll treatment of exc
Slide 55: Kalgoorlie Operations – Kanowna Belle (100% NST)
Kalgoorlie Operations – Kanowna Belle (100% NST) Kanowna Belle is a +5Moz orebody, averaging 4koz For personal use only per vertical metre Underground Reserve has increased 12% to 0.6Moz and Resources increased 31% to 1.8Moz which underpins long mine life The Velvet deposit remains open up dip, alon
Slide 56: Kalgoorlie Operations – Kundana
Kalgoorlie Operations – Kundana Northern Star has a significant landholding covering the K2 and Strzelecki lodes For personal use only Three active mining areas – Millennium, Raleigh and Rubicon-Hornet-Pegasus (RHP) Kundana is key driver for organic growth – Pope John, Moonbeam, Christmas, Barkers e
Slide 57: Kalgoorlie Operations - EKJV (51% NST)
Kalgoorlie Operations - EKJV (51% NST) NST attributable Reserves of 0.65Moz at 6.2gpt and Resources of 1.0Moz For personal use only Multiple hanging wall lodes identified – adding reserves/resources in upper levels Moved to owner-operate model at EKJV in Q1 FY18, significant productivity gains achie
Slide 58: Kalgoorlie Operations – Kundana (100% NST)
Kalgoorlie Operations – Kundana (100% NST) Millennium operation in commercial production Q4 FY2018, Pope John access and vent system set up, mining method For personal use only simplified to increase productivity FY18 Resource of 2.1Moz, Reserves 0.65Moz. Moonbeam/Christmas still to add to Reserve E
Slide 59: South Kalgoorlie Operations – Overview
South Kalgoorlie Operations – Overview Northern Star acquired South Kalgoorlie Operations For personal use only (SKO) in April 2018 Comprises the operating 1.2Mtpa Jubilee processing facility, associated surface infrastructure, network of haul roads and borefields 30-40kozpa operating HBJ undergroun
Slide 60: South Kalgoorlie Operations – Overview
South Kalgoorlie Operations – Overview Demonstrates a “win-win” deal with sensible M+A For personal use only Additional mill capacity for Kalgoorlie Ops enabling >300kozpa production in FY19 Key processing infrastructure inherent value retained for many years to come, ~$100M replacement cost Operati
Slide 61: Kalgoorlie Operations – HBJ (100% NST)
Kalgoorlie Operations – HBJ (100% NST) HBJ is another significant historical mine (formerly owned by major) – >3Moz endowment Strong production history, open pit produced 1.4Moz, 7,000oz per vertical metre over a 1.25km strike For personal use only Open Pit Production 1.4Moz Underground Production 0
Slide 62: Northern Star's Acquisition and Operating Model - SKO
Northern Star’s Acquisition and Operating Model - SKO Using the same model as all previous transactions, NST’s acquisition and operating model has been applied to South For personal use only Kalgoorlie Operations. Initiative Description ▪ Ability to treat NST ore mined across the Kalgoorlie region,
Slide 63: Kalgoorlie Operations – Processing Flexibilty
Kalgoorlie Operations – Processing Flexibilty NST has two fully utilised For personal use only ACRA process plants: Kanowna Paradigm Belle (2.0Mtpa) and EXCESS TOLL TREATING OPTIONS IN DISTRICT KB Jubilee (1.2Mtpa) Kanowna Belle FY19 mining plan 3.8Mt including JV ore Millennium Raleigh Kalgoorlie -
Slide 64: Kalgoorlie Operations – Paradigm (100% NST)
Kalgoorlie Operations – Paradigm (100% NST) Located 35km north west of Kundana; well within trucking For personal use only distance to processing plants MY2018 open pit Reserve of 89koz, 1.1Mt @ 2.5g/t Expected to be fully permitted Q3 FY2019 Upside from current inferred/unmodelled material in pit s
Slide 65: Operations Overview
Operations Overview JUNDEE For personal use only FY2018 284,745oz @ A$870/oz FY2019 280,000-300,000oz @ A$895-980/oz 65
Slide 66: Jundee Processing Capacity Growth
Jundee Processing Capacity Growth Jundee processing capacity For personal use only increased from 1.3Mt/y to >2.0Mt/y in FY19 Jundee Expansion Project Completed Q2 ~A$15M total project cost – 7 months from Board approval to completion Key enabler for 300Kozpa production rate 66
Slide 67: Jundee Underground Mine Overview
Jundee Underground Mine Overview FY18 Resource of 4.3Moz up 34% and Reserve of ~1.6Moz up 14% despite depletion of 285koz, 10-year visibility For personal use only Our objective was to return Jundee to a 300koz pa operation within 24 months - Achieved in under 12 months Deakin Invicta Moneyline Hugh
Slide 68: FY2018: A Year of Growth at Jundee
FY2018: A Year of Growth at Jundee Total stope tonnes mined (1.22Mt) For personal use only Diamond Drill Metres Jumbo Development Metres Total ore tonnes mined (1.68Mt) 100000 5500 80000 5000 4500 Total ore tonnes mined in a quarter 60000 4000 40000 3500 3000 (0.47Mt) 20000 0 2500 2000 Total hard ro
Slide 69: Jundee FY2019 Drill Drives
Jundee FY2019 Drill Drives Significant investment in FY2019 to create drilling platforms for Reserve growth For personal use only Drill drives planned for: Armada, Nexus, Revelation, Gateway South and Zodiac (including vent) Dual purpose drives – will become access drives after drilling complete
Slide 70: Jundee Open Pit Opportunities
Jundee Open Pit Opportunities Open Pit Opportunities: For personal use only Processing capacity increase allows for additional ore sources Significant opportunities across the tenement package Drilling program continued in FY18 – focussed on open pit Reserves Jundee regional exploration targeting op
Slide 71: Jundee Open Pit Opportunities: Ramone
Jundee Open Pit Opportunities: Ramone Located 35km south east of For personal use only Jundee – trucking distance along existing haul roads MY2018 open pit Reserve of 74koz; 1.4Mt @ 1.7g/t 95% Recovery Permitting underway 2 stage mining plan commencing CY2019 First of many – Deep Well, Marley, Ziggy
Slide 72: Operations Overview – Where to from here?
Operations Overview For personal use only WHERE TO FROM HERE? - Simplified Business 72
Slide 73: Strategy Delivering a Simplified Business
Strategy Delivering a Simplified Business For personal use only FY2019 Focus Areas Concentrated Centres Consistent, Constant Producing >300Kozpa Sustainable Safety & Improvement & Production Results Optimisation Advanced Expansion Development & Innovation Plans Retention of our People 73 3
Slide 74: Processing “The Year of Processing”
For personal use only An Australian gold miner – for global investors Processing “The Year of Processing”
Slide 75: FY18 was the “Year of Processing at NST”
FY18 was the “Year of Processing at NST” Group Tonnes & Processing Cost 4,500,000 36 For personal use only 4,000,000 35 3,500,000 34 Processing Cost ($/t) Tonnes Processed 3,000,000 2,500,000 33 32 Tonnes increased 2,000,000 31 1,500,000 1,000,000 30 29 Processing unit cost reduced 500,000 28 0 27 Y
Slide 76: Jundee - challenging the status quo
Jundee - challenging the status quo YOY throughput growth, no longer mill constrained, lower production costs For personal use only JUN Tonnes & Recovery 2,000,000 100% 1,800,000 90% 1,600,000 80% Tonnes Processed 1,400,000 70% Recovery 1,200,000 60% 1,000,000 50% 800,000 40% 600,000 30% 400,000 20%
Slide 77: Jundee Expansion Project
Jundee Expansion Project Secondary crushing and gravity For personal use only circuit A$15M CAPEX – under budget Successful aggressive 7 month project schedule No reportable incidents No production impacts from construction work Hardrock throughput increased from 1.3 to >2 Mtpa Payback less than 6 m
Slide 78: Jundee - challenging the assumptions and winning
Jundee - challenging the assumptions and winning Challenging the assumptions on throughput and grind size in 2016 has resulted in a throughput increase of For personal use only >50% in the last 18 months 78
Slide 79: Jundee - challenging the assumptions and winning
Jundee - challenging the assumptions and winning Variability was an accepted norm, upgrades to the process control system has maximised For personal use only throughput, increasing set point by 32% May 2017 Variable at 250 t/h June 2018 Stable at 330 t/h 79 Process control system output showing Jund
Slide 80: Kanowna Belle – years old and breaking records
Kanowna Belle – 25 years old and breaking records YOY throughput growth, recovery maintained, highest monthly throughput achieved For personal use only KB Tonnes & Recovery 2,500,000 100 90 2,000,000 80 Throughput per annum, t May 2018 highest ever 70 production month (178,931t) Recovery, % 1,500,00
Slide 81: Kanowna Belle – continuing to debottleneck
Kanowna Belle – continuing to debottleneck TSF2 Cyclone Feed Pump Liquid Oxygen Upgrade Cyclone feed pump upgrade For personal use only Completed TSF expansion study Liquid oxygen facility upgrade Worlds first automation ready liner handler: Production 30% improvement in reline time 12 month payback
Slide 82: SKO Acquisition allows for increased throughput
SKO Acquisition allows for increased throughput For personal use only Jubilee Plant The SKO Jubilee Mill is located ~35km SSE of Kalgoorlie Additional 1.2Mtpa mill capacity, borefield, haul road, TSF Successfully processed Kundana ore during FY18 June quarter Outperformed all other NST sites in FY18
Slide 83: FY19 and Beyond
FY19 and Beyond Jundee Recovery Project – Targeting 5% increase in Recovery For personal use only Current blended recovery 89% Preliminary testwork indicates 94% achieved to flotation concentrate and flotation tailings leach Potential increase in ore reserves Kalgoorlie Expansion Project Flowsheets
Slide 84: Geology Update
For personal use only An Australian gold miner – for global investors Geology Update
Slide 85: Organic Growth Still Drives Value
Organic Growth Still Drives Value For personal use only Key to any production growth decision is growth within the Ore Reserve base No growth = diminished mine lives Continued growth = capacity for production increase or enhanced mine lives We have the assets, the people, the capacity to grow the ne
Slide 86: A large increase consolidates the year outlook
A large increase consolidates the 10 year outlook Jundee and Kalgoorlie assets continue to grow in Reserves and Resources For personal use only The charts are Resource and Reserve growth net of 612,000 mined ounces in FY18 FY18 Resource Growth FY18 Ore Reserve Growth 86
Slide 87: A$60M Exploration and Drilling Commitment
A$60M Exploration and Drilling Commitment For personal use only A$60M exploration and drilling commitment for FY2019 - largest ever Core focus is Resource conversion across the major production centres Phase 2 and 3 programs in the wings predicated on success 87 We have the assets, the people, the c
Slide 88: Flashback 2017 - The Zodiac Discovery
Flashback 2017 - The Zodiac Discovery Plan View (North at top) For personal use only Section view Looking East 88
Slide 89: Zodiac in 2018 – A Whole New System
Zodiac in 2018 – A Whole New System New mineralised system located 600-800 metres into the footwall of Jundee For personal use only Multiple mineralisation types and surfaces over 2kms – long term exploration program 89
Slide 90: Flashback 2017 – Ramone is a greenfield success
Flashback 2017 – Ramone is a greenfield success Prospect Hole ID From (m) To (m) Width (m) Grade (g/t) New discovery at Ramone – first success for Ramone NSRJAC02763 0 42 (EOH) 42 2.25 For personal use only NSRJAC02762 0 41 (EOH) 41 1.10 renewed regional exploration focus Prospect Hole ID NSRJAC0397
Slide 91: A New Mineralised Terrain has Emerged – First Mine Defined
A New Mineralised Terrain has Emerged – First Mine Defined For personal use only Maiden Ramone ore Reserve within 12 months of initial discovery – open all directions Multiple new opportunities emerging for ongoing drilling 91
Slide 92: The Year Ahead - Jundee
The Year Ahead - Jundee For personal use only Armada Expansion 39DDR Exploration and Follow up ZODIAC Ramone Underground Zodiac DDR commenced Plan for 2 dedicated rigs over 6 months Drilling commences in new DDR in CY2019 Proposal includes ~26,000m drilling into initial discovery areas Target is mai
Slide 93: The Year Ahead – Drilling KB Everywhere!
The Year Ahead – Drilling KB Everywhere! For personal use only Some FY18 drilling not in MY18 Resource Extensive underground drilling program Targeting Velvet Lower, new hanging wall and footwall positions on Lowes, Lowes Extension Multiple new platforms Expanding the search with technology 93
Slide 94: The Year Ahead - Kundana 100%
The Year Ahead - Kundana 100% Next phase of growth for Moonbeam For personal use only K2 structure southern side of Lucifer Fault Bulk of Moonbeam FY2018 drilling not included in MY18 Resource Grade continues to strengthen with depth OPEN at DEPTH Millennium, Centenary and Pope John systems all open
Slide 95: The Year Ahead – EKJV Growth Drilling
The Year Ahead – EKJV Growth Drilling For personal use only 95
Slide 96: EKJV - K2 Growth
EKJV - K2 Growth For personal use only Major expansion of “K2 line” targeted Little drilling between Moonbeam and Pegasus, some scattered intersections at Drake Modest near surface expression is no deterrent Potential for another 1-2 “Pegasus” size systems 96
Slide 97: Next Generation Raleigh Growth
Next Generation Raleigh Growth Raleigh South exploration success has opened up the potential of the corridor For personal use only Over 2km of very limited surface drilling southwards to Golden Hind Phase 1 and 2 programs designed to scope potential for another Raleigh scale system We have already h
Slide 98: The Year Ahead – HBJ Underground Expansion
The Year Ahead – HBJ Underground Expansion For personal use only 98
Slide 99: SKO – Exploring in the heart of the Goldfields
SKO – Exploring in the heart of the Goldfields Over 1,000km2 of For personal use only exploration and freehold tenure Extensive production history Fragmented ownership dating back to 1980’s Contains strike continuation of Boulder-Lefroy fault system – key to the Golden Mile Plus all the major struct
Slide 100: Paulsens Revitalisation - 3D Seismic
Paulsens Revitalisation - 3D Seismic Paulsen Mine area For personal use only Over 170 line kms heritage cleared for access 12km2 new 3D seismic shoot completed in early June Data currently undergoing processing First results expected in current quarter 100
Slide 101: Tanami – Moving Forward
Tanami – Moving Forward Commenced drilling programs on CTP Plant Site sterilisation drilling selected targets at CTP South mining underway For personal use only centre Potential extensions to Hurricane- 4 DDH completed at Jims, visible gold Repulse system noted in logging 23 RC, 1DD completed RC dri
Slide 102: NSMS Capability, Innovation & Technology
For personal use only An Australian gold miner – for global investors NSMS Capability, Innovation & Technology
Slide 103: NSMS Division, an integral piece of premium underground capability
NSMS Division, an integral piece of premium underground capability Underground Mining Services Division is effectively an “In-house” mining contractor, we do not follow a For personal use only traditional owner-miner model This division helps to insulate Northern Star from industry wide cost inflati
Slide 104: Value of NSMS to NST
Value of NSMS to NST Simplifies running the overall business: Allows technical teams to focus on mine life, mine design & scheduling For personal use only NSMS focuses on operational execution; optimising people and equipment Reduced cost, equal or better productivities compared to an underground co
Slide 105: NSMS Case Study: EKJV Operation FY18
NSMS Case Study: EKJV Operation FY18 In 2017, NST identified the need to replace the underground mining contractor at EKJV For personal use only NSMS were able to mobilise all required equipment and execute taking over the Contract in 30 days NSMS signed over 290 people and recommenced mining servic
Slide 106: NSMS Case Study: EKJV Operation FY18
106 For personal use only - 70,000 10,000 20,000 30,000 40,000 50,000 60,000 80,000 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Contractor Jan-17 Contractor Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 RHP Stope Tonnes Sep-17 Oct-17 Nov-17 Dec-17 NSMS Jan-18 NSMS Feb-18 Mar-18 Apr-18 May-18 Jun-18
Slide 107: NSMS Moving forward, our preparedness
NSMS Moving forward, our preparedness NSMS is a premium service provider paralleled to best underground For personal use only pure play contracting businesses that delivers key benefits of Safety, Quality, Productivity, Cost Lean and efficient at capital employed, fleet utilisation, inventory manage
Slide 108: Innovation & Northern Star
Innovation & Northern Star For personal use only Northern Star pursues innovation to drive our operational effectiveness to be a leading global gold producer What does this look like: Implementing an idea to deliver a better overall business outcome “The value of an idea lies in the using of it” – T
Slide 109: Northern Star Investing in its core disciplines – a strategic advantage
Northern Star Investing in its core disciplines – a strategic advantage NST is investing A$50M over the next 10 years to continue For personal use only expanding our specialist underground mining, geology and processing capability – significant opportunities exist to leverage these disciplines for f
Slide 110: Innovation: Framework for success is set up, everyone has a voice
Innovation: Framework for success is set up, everyone has a voice For personal use only Innovation Board Frequency: Quarterly Meetings Operating Committee Frequency: Monthly Meetings Sites Every person, every day 110
Slide 111: Innovation & Technology: What we are doing now
Innovation & Technology: What we are doing now Partnerships with solution providers is key to success For personal use only Resource identification – seismic surveys, alternative assaying techniques Continuous operations – pervasive UG communications, automation, survey and positioning systems, fume
Slide 112: Innovation Case Study: Minnovare Collaboration
Innovation Case Study: Minnovare Collaboration Collaborative approach with Minnovare for installation of technology on our production drill rigs with an For personal use only immediate benefit to operations (17% increase in metres drilled, 75% reduction of deviation at collar) Innovation partnership
Slide 113: Appendix A – Drill Results: Deep Well Regional Aircore Drilling
ASX ANNOUNCEMENT - 03 AUGUST 2018 APPENDIX A – DRILL RESULTS DEEP WELL REGIONAL AIRCORE DRILLING East N o rt h RL A zi F ro m Widt h G ra de ( g/ t P ro s pe c t H o le ID D ip To (m) For personal use only (M GA ) (M GA ) (M GA ) (M GA ) (m) (m) A u) Bonham NSRJAC05258 286937 7059262 535 -60 180 25
Slide 114: Ramone Area RC Drilling
ASX ANNOUNCEMENT - 03 AUGUST 2018 RAMONE AREA RC DRILLING P ro s pe c t H o le ID East (M GA ) N o rt h ( M G A ) R L (M GA ) D ip A zi ( M G A ) F ro m ( m ) To (m) Widt h ( m ) G ra de ( g/ t A u) NSRJRC11298 285150.2 7061243.3 552.4 -60 150 20 21 1 3.49 NSRJRC11299 285138.6 7061263.8 552.1 -60 15
Slide 115: Ramone Area RC Drilling
ASX ANNOUNCEMENT - 03 AUGUST 2018 RAMONE AREA RC DRILLING P ro s pe c t H o le ID East (M GA ) N o rt h ( M G A ) R L (M GA ) D ip A zi ( M G A ) F ro m ( m ) To (m) Widt h ( m ) G ra de ( g/ t A u) NSRJRC11353 285633.4 7060818.9 551.9 -60 150 140 141 1 3.09 147 148 1 1.65 NSRJRC11354 285694.8 70608
Slide 116: Moonbeam
ASX ANNOUNCEMENT - 03 AUGUST 2018 MOONBEAM E a s t ( M ine N o rt h ( M ine R L ( M ine D ip A zi ( de gre e s , G ra de H o le ID T o t a l D e pt h F ro m ( m ) T o (m) Widt h ( m ) T W (m) G rid) G rid) G rid) ( de gre e s ) M ine G rid) ( g/ t A u) MBCD16001 331677.0 6599742.1 342.4273 -59.91 51
Slide 117: Jundee (Regional Aircore) JORC Code Table 1
ASX ANNOUNCEMENT - 3 AUGUST 2018 Jundee (Regional Aircore) JORC Code, 2012 Edition – Table 1 Report Section 1 Sampling Techniques and Data For personal use only (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary Sampling techniques Nature and quali
Slide 118: JORC Table 1 Report (continued)
ASX ANNOUNCEMENT - 3 AUGUST 2018 Criteria JORC Code explanation Commentary Core is sampled on the width of the geological/mineralized structure with a minimum sample length of 0.3m and a maximum sample length of 1.2m. Total weight of each sample generally does not exceed 5kg. For personal use only I
Slide 119: JORC Table 1 Report (continued)
ASX ANNOUNCEMENT - 3 AUGUST 2018 Criteria JORC Code explanation Commentary Verification of sampling The verification of significant intersections by either independent or alternative company Significant intersections verified by corporate NSR personnel. and assaying personnel. For personal use only
Slide 120: JORC Table 1 Report (continued)
ASX ANNOUNCEMENT - 3 AUGUST 2018 Criteria JORC Code explanation Commentary Audits or reviews The results of any audits or reviews of sampling techniques and data. Historical audits of all Jundee data were carried out by previous operators. In 2012, Francois-Bongarcon (Agoratek International) conduct
Slide 121: JORC Table 1 Report (continued)
ASX ANNOUNCEMENT - 3 AUGUST 2018 Criteria JORC Code explanation Commentary Relationship between These relationships are particularly important in the reporting of Exploration Results. All the drill holes have been drilled on 60 degrees angle. mineralisation widths and If the geometry of the minerali
Slide 122: JORC Code Table 1: K2 Drake – Moonbeam Deposit
ASX ANNOUNCEMENT - 3 AUGUST 2018 JORC Code, 2012 Edition – Table 1 Report K2 Drake – Moonbeam Deposit - 30 June 2018 Section 1 Sampling Techniques and Data For personal use only (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary Sampling techniques
Slide 123: JORC Table 1 Report (continued)
ASX ANNOUNCEMENT - 3 AUGUST 2018 Criteria JORC Code explanation Commentary areas identified as having anomalous gold. Outside of mineralised zones spear samples were taken over a 4m interval for composite sampling. For personal use only For all sample types, the nature, quality and appropriateness o
Slide 124: JORC Table 1 Report (continued)
ASX ANNOUNCEMENT - 3 AUGUST 2018 Criteria JORC Code explanation Commentary Upon hole completion, all Northern Star commissioned holes were Gyroscopic surveyed, taking survey readings every 5m for improved spatial accuracy in a true north grid. Previous to this final downhole surveys were conducted t
Slide 125: JORC Table 1 Report (continued)
ASX ANNOUNCEMENT - 3 AUGUST 2018 Criteria JORC Code explanation Commentary shale) and intermediate volcanoclastics (Spargoville Formation). The K2E structure is present along the contact between the Victorious Basalt and Centenary shale For personal use only Drill hole Information A summary of all i