Slide 1: An Australian gold miner - for global investors
For personal use only An Australian gold miner - for global investors Annual Strategy Day - August 2019
Slide 2: Acknowledgement of Country
Acknowledgement of Country For personal use only Ngala kaaditj Whadjuk Noongar moort keyen kaadak nidja boodja 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. 2
Slide 3: Annual Strategy Day Agenda
Annual Strategy Day Agenda For personal use only Time Minutes Agenda Speaker 09:30 - 09:45 15 Registration & Acknowledgment to Country 09:45 - 09:50 5 Introduction Luke Gleeson - Investor Relations & Business Development 09:50 - 10:10 20 NST Strategy/Vision and Gold Macro Landscape Bill Beament - Ex
Slide 4: 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 5: NST Strategy/Vision and Gold Macro Landscape
For personal use only NST Strategy/Vision and Gold Macro Landscape
Slide 6: Golden Investment & Production Cycle Since 1970
Golden Investment & Production Cycle Since 1970 ▪ Historically, gold production peaks have coincided with the beginning of multi-year bull For personal use only markets ▪ Gold production last peaked in 2000/2001 and marked the beginning of what was a long, robust, sustained bull market ending in 201
Slide 7: History Repeats
History Repeats For personal use only 7 Source: National Bank of Canada
Slide 8: History Repeats
For personal use only History Repeats 8
Slide 9: Global Gold Landscape December 2018
Global Gold Landscape December 2018 ▪ There has been significant change in the gold landscape since the commencement of industry For personal use only consolidation Enterprise Value of Major Gold Companies Enterprise Value US$ Billion 9 * Data sourced from S&P Global Market Intelligence, Bloomberg &
Slide 10: Opportunity in Current Global Gold Landscape
Opportunity in Current Global Gold Landscape ▪ There is a significant value opportunity left behind following this consolidation For personal use only Enterprise Value of Major Gold Companies Enterprise Value US$ Billion Opportunity Opportunity 10 * Data sourced from S&P Global Market Intelligence &
Slide 11: Gold sector backdrop
Gold sector backdrop ▪ The Australian peer group has again delivered superior returns compared to the GDX peer group For personal use only with an average share price performance of +41%, outstripping the GDX peer average of +26% ▪ Over the past 12 months we have seen the Australian producers move t
Slide 12: Gold Sector performance – What drove the outperformance
Gold Sector performance – What drove the outperformance Northern Star’s share price performance of 107% ranks 3 out of 36 in the peer group^ and is significantly better than the median of (10%) ▪ The top 10 performing Summary of Northern Star vs. global peers – last 3 years(2) For personal use only
Slide 13: Northern Star Resources - Enacting the strategy
Northern Star Resources - Enacting the strategy ▪ NST has delivered and has now fully completed five consecutive Company strategies since 2010, well ahead of time. Pogo acquisition completes this 3 Year Vision For personal use only 3 Year Vision A global mid-cap and ASX100 sustainable gold producer
Slide 14: ESG a rapidly developing new focal point for investors
ESG a rapidly developing new focal point for investors ▪ Over US$19T of global funds under management now has an ESG filter to the investment process For personal use only 14
Slide 15: Growth in Tier-1 Jurisdictions
Growth in Tier-1 Jurisdictions ▪ Global Investors value mining exposure in Tier-1 jurisdictions, great for Australian Resources For personal use only ▪ Globally there are only 18 mines producing over 300kozpa in Tier-1 mining jurisdictions (Australia, US and Canada) ▪ There is a global trend of dimi
Slide 16: How will NST capitalise on this gold macro environment
How will NST capitalise on this gold macro environment For personal use only ▪ We have a clear roadmap and strategy in place ▪ Exceptional balance sheet and funding capability to fuel further growth ▪ Continue growing inventory, production and free cashflow through acquisition and investment in Tier
Slide 17: 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 18: The NST business model generating superior returns
The NST business model generating superior returns ▪ NST has delivered sector leading returns at its Kalgoorlie and Jundee mines since taking ownership in 2014 For personal use only ▪ The proven NST integration and operating business model is currently being implemented at the Pogo operation with th
Slide 19: 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$7.5B of value for Shareholders since the first acquisition in 2010 and <6% of this value uplift has been For personal use only from equity raised ▪ This strate
Slide 20: Company Performance, Achievements & Outlook
For personal use only Company Performance, Achievements & Outlook
Slide 21: FY2019 Company Highlights
FY2019 Company Highlights ▪ Safety Performance - 75% reduction in TRIFR to 3.7 (sector 9.6) CY2018 For personal use only ▪ Standalone CY2018 Sustainability Report highlighting ESG performance ▪ Invested in Capability & Culture – Leadership to Graduates & Apprentices ▪ Invested in Innovation & Busine
Slide 22: FY2020 Production and Cost Guidance
FY2020 Production and Cost Guidance For personal use only ▪ Group production 800,000-900,000oz at 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 o
Slide 23: Core Values - Our Decision Compass
Core Values - Our Decision Compass For personal use only Zero harm Continuous improvement One Team No blame or excuses Role clarity “Extreme ownership” Listen to learn Respect all diversity Clear metrics Do what we say we’ll do 23
Slide 24: NST Safety Performance leading the sector
NST Safety Performance leading the sector Lost Time Injury Frequency Rate FY2019 NST again delivered significant For personal use only ▪ Underground Metalliferous improvement in reducing LTIFR rate by 45% to 3.0 0.5 (sector LTIFR of 1.6) and TRIFR maintained at 3.3 (sector TRIFR is 9.1) 2.0 1.0 ▪ Sa
Slide 25: Pogo acquisition - consistent with previous Year Vision
Pogo acquisition - consistent with previous 3 Year Vision 3 Year Vision A global mid-cap and ASX100 sustainable gold producer focused on superior shareholder value creation For personal use only Establish concentrated centres to maximise Develop functional disciplines and corporate Find new concentr
Slide 26: A business model that delivers Shareholder returns
A business model that delivers Shareholder returns A Reliable and Proven Strategy to Maximise Value which has been in place for 9 years on NST Assets For personal use only Initiative Description ▪ Maximise operational cashflow to recover acquisition purchase price and strengthen balance sheet for Pa
Slide 27: Case Study – Jundee delivering superior organic growth
Case Study – Jundee delivering superior organic growth ▪ Integrated NST Culture and Strategy to JUNDEE - PRODUCTION, RESERVES AND RESOURCES For personal use only ensure aligned activity at Jundee 5,000 792% increase in Resources ▪ Investment in drilling to grow Resources 4,000 300% increase in Reser
Slide 28: Case Study – Pogo journey underway
Case Study – Pogo journey underway ▪ Integrating NST Culture and Strategy to For personal use only POGO - PRODUCTION, RESERVES AND RESOURCES ensure aligned activity at Pogo 7,000 43% increase in Resources 130% increase in Reserves Significant investment in drilling, so far 6,000 Thousand Ounces ▪ 5,
Slide 29: A business model that delivers Shareholder returns
A business model that delivers Shareholder returns Progress on executing NST Strategy at Pogo is well underway to Maximise Value for a long-life Asset Initiative Description For personal use only ▪ Maximise operational cashflow to recover acquisition purchase price and strengthen balance sheet for f
Slide 30: The NST business model delivers value
The NST business model delivers value ▪ NST continues to deliver sector leading returns to its Shareholders by growing mine lives and For personal use only continually optimising its assets through the adaptation of the NST business model and growing Net Asset Value across its Tier-1 assets ▪ The re
Slide 31: Financial Strength & Business Focus
For personal use only Financial Strength & Business Focus
Slide 32: Company Overview
Company Overview For personal use only Stock code (ASX) : NST Share price as at 1 August 2019: A$12.07 Market capitalisation (1 Aug 2019) (639.6 million shares on issue): A$7.7B (US$5.4B) Cash, bullion & investments as at 30 June 2019 A$361M (US$253M) Corporate Bank debt Nil Enterprise value A$7.5B
Slide 33: Best in Class Returns & Capital Management
Best in Class Returns & Capital Management ▪ Consistent superior returns delivered to Shareholders; For personal use only 5yr Avg Return on Equity vs GDX 5 year TSR of 853%1 40% ▪ Sector leading 5 year average Return on Equity of 30% 30% 30% and Return on Invested Capital of 27% 20% 10% ▪ Demonstrat
Slide 34: FY2019 - A year of investment for future growth
FY2019 - A year of investment for future growth ▪ NST’s investments in FY2019 has set the business up for further growth across its Tier-1 assets For personal use only A$160M invested to drive organic growth A$360M Pogo Acquisition to drive 104 further growth 380 95 A$70M paid out to 66 Shareholders
Slide 35: NST well positioned to leverage current gold price strength
NST well positioned to leverage current gold price strength For personal use only ▪ Current hedge book offers Hedge Position significant upside to record gold 45 NST has fewer hedged 1,800 price versus the peer group ounces at a higher price 40 compared to its ASX Peer ▪ Use hedging to protect key G
Slide 36: Cost focused business with competitive advantages
Cost focused business with competitive advantages NST proactively manage input costs and For personal use only ▪ FY2019 Group Operating Costs1 continues to competitively test market for cost reductions ▪ Last 5 years have realised A$118M of cost Taxes, Royalties & Other reductions on contracted serv
Slide 37: Cost transition at Pogo taking shape
Cost transition at Pogo taking shape For personal use only Pogo average US$ monthly cost1 Demobilised mining contractor in Jan 22 21 ▪ 2019 20 ▪ Significant fleet investment in 2H 19 FY2019 ▪ Further costs improvements will remain US$M 18 18 a focus in FY2020 ▪ FY2020 monthly costs expected to be 16
Slide 38: Capital investment for production growth
Capital investment for production growth FY2020 growth capital of A$116M is primarily allocated Growth Capital (A$M) For personal use only 116 to the following key projects: 95 ▪ A$44M developing and bringing online new mining areas at Pogo. This also includes A$7M on processing infrastructure to de
Slide 39: ESG & Culture
For personal use only ESG & Culture
Slide 40: Environmental, Social & Governance Values are core at NST
Environmental, Social & Governance Values are core at NST For personal use only Environmental Compliance Transparency • Zero significant incidents or regulator fines Climate Change • Portfolio of assets in good standing • Inaugural sustainability report FY17 • Effective risk management • CY Reportin
Slide 41: Environmental, Social & Governance Values are core at NST
Environmental, Social & Governance Values are core at NST For personal use only ▪ We consider good governance to be a key enabler of sustainable growth ▪ By practicing good governance, we can optimise: ▪ Business growth - protecting and developing our human capital ▪ Optimise performance efficiencie
Slide 42: ESG - Governance
ESG - Governance ▪ Board Composition, 7 Directors; Executive Chairman & 6 Non-Executive Independent Directors For personal use only ▪ Two new appointees, Mary Hackett (Mechanical Engineer) and Nick Cernotta (Mining Engineer) ▪ Superior skills matrix with the current Board ▪ Diversity; 33% Female Non
Slide 43: Aligning for Growth
Aligning for Growth For personal use only Performance Superior performance enables growth Strategy Developing and execution of a strategy delivers growth G R Culture Preserving culture protects the O growth outcomes W T Our Core Values are the foundations of our growth H STARR Core Values 43
Slide 44: Human Capital - Developing Capability for Growth
Human Capital - Developing Capability for Growth For personal use only • Global Company • Work/life balance • High Potential Talent Snr Leaders • Strong Growth • High Performance Screening • Tier-1 Operations Culture • Fast track • Job Security • Career Advancement development Managers • Underground
Slide 45: Ready for Growth - World Class Talent Program
Ready for Growth - World Class Talent Program For personal use only NST Talent mapping program enables comprehensive workforce development John Smith planning essential to our growth, providing: ▪ Early identification of employee capability ▪ Customised employee development plans ▪ Succession mappin
Slide 46: Our Sustainability Journey
Our Sustainability Journey 2010 2017 2017 2018 >2019 For personal use only Purchase of the Paulsens Release of the Company’s Alignment of reporting structures for Release of the Company’s Disclosure of progress gold mine from Intrepid. Inaugural Sustainability key ESG functions (Safety, Sustainabili
Slide 47: NST aligning to the UN Sustainable Development Goals
NST aligning to the UN Sustainable Development Goals “Delivering responsible environmental and social business practices that For personal use only lead to both the creation of strong economic returns for our Shareholders and shared-value for our Stakeholders” Northern Star’s Sustainability Vision S
Slide 48: Social Licence to Operate at Northern Star
Social Licence to Operate at Northern Star Our Social Licence to Operate is important to the sustainability of our business. For personal use only We see community trust as a key aspect of maintaining our Social Licence to Operate. We achieve this by: ▪ Clearly identifying our stakeholders and under
Slide 49: Adding significant value to the economy
Adding significant value to the economy ▪ The resources industry in Australia contributed 45% of Australia’s total exports with gold being For personal use only our 4th largest export equating to A$19.3B in FY2018 ▪ NST directly contributed over A$1.34B of economic value add in FY2019 and has contri
Slide 50: Resources/Reserves and Exploration
For personal use only Resources/Reserves and Exploration
Slide 51: FY2019 Exploration Spend
FY2019 Exploration Spend For personal use only SUMMARY ▪ Group FY2019 exploration expenditure totalled A$66M ▪ A$60M Group Exploration budget reallocated and accelerated post Pogo acquisition 51
Slide 52: Group Resource and Reserve Update
Group Resource and Reserve Update For personal use only Fast start at Pogo NST Resource and Reserve Growth ▪ Substantial growth with only six 25,000 6,000 months of drilling data 5.4 Moz ▪ Significant in-mine growth still visible 5,000 before considering near mine 20,000 potential 4.0 Moz 20.8 Moz 4
Slide 53: Group Resource and Reserve Update
Group Resource and Reserve Update Pogo – Building a Mountain For personal use only ▪ Resource and Reserve growth is net of 915,000 mining depletion ▪ Stellar Resource increase propels Pogo towards 10Mozs endowment after only six months drilling ▪ Maiden Pogo 1.5Moz Reserve is just the first step wit
Slide 54: 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 55: FY2020 Jundee In-Mine
FY2020 Jundee In-Mine Planned In-Mine Spend of A$14M JUNDEE IN-MINE TARGETS For personal use only Next phase of in-mine exploration investment into major targets 5 CDN NTH ▪ EXTENSION ▪ New drill drive developments to support up to 14 UG Drill rigs operating 19 CDN ▪ Key new targets include Gateway
Slide 56: Jundee Regional Exploration
Jundee Regional Exploration JUNDEE REGIONAL TARGETS For personal use only Regional Spend of A$5M ▪ Regional land holding continued to deliver excellent exploration results and discoveries ▪ Expansion of the Ramone / Deep Well discovery ▪ Jundee North and Dragon open pit target evaluation ▪ Commencem
Slide 57: Kanowna Belle
Kanowna Belle KANOWNA BELLE UNDERGOUND TARGET AREAS For personal use only Forecast A$10.5M spend Looking NE In-Mine A Block (Troy, Hilder, Sims) ▪ Focus on higher grade A-D Block HW (Troy-Sims) Resource B Block conversion (East) ▪ Expand Velvet HW, Velvet Gap C Block (Reed) (Sims) ▪ Test for eastern
Slide 58: Kundana (100% NST)
Kundana (100% NST) Moonbeam Development For personal use only ▪ A$2.5M forecast for incremental extension targets ▪ Pope John, Xmas, Moonbeam systems at depth ▪ Extending Strzelecki trend south KUNDANA UNDERGROUND TARGETS STRZELECKI POPE JOHN XMAS MOONBEAM Pope John Lucifer Fault Fault. 58
Slide 59: EKJV (51% NST)
EKJV (51% NST) For personal use only FALCON DISCOVERY Falcon is the Focus ▪ Forecast A$2.8M (NST share) budget ▪ Major focus to bring Falcon trend to feasibility status ▪ K2 HW extensions northward from Pegasus ▪ Extensional drilling into RHP hanging wall positions (Hera) EKJV MINE TARGETS N Drake P
Slide 60: South Kalgoorlie
South Kalgoorlie In-Mine For personal use only ▪ Forecast A$2.2M spend on HBJ extensions, early success evident from NOZ extensions to extend mine life HBJ UNDERGROUND MINE LONG SECTION NOZ Extensions SOZ Extensions Jubilee Extensions 60
Slide 61: SKO – Exploring in the heart of the Goldfields
SKO – Exploring in the heart of the Goldfields For personal use only Loc ▪ Over 1,000km2 of 41 exploration and freehold tenure ▪ Extensive production history ▪ Contains strike continuation of Boulder-Lefroy fault system – key to the Golden Mile Boorara ▪ Plus all the major structural corridors of th
Slide 62: Tanami
Tanami CTP JV, Regional, WTP For personal use only ▪ Work in progress ▪ Largely greenfield exploration ▪ Geologically challenging ▪ Large resource upside ▪ High discovery potential 62
Slide 63: Pogo Geological Presentation
For personal use only Pogo Geological Presentation
Slide 64: Geological Setting of the Pogo Deposit
Geological Setting Geological Settingof ofthe thePogo PogoDeposit Deposit An Intrusion Related Gold Deposit in a World-Class District CONTINENTAL SCALE TECTONO-ELEMENTARY SCALE PROVINCIAL SCALE REGIONAL SCALE LOCAL SCALE For personal use only North America North American Cordillera Tintina Gold Belt
Slide 65: Pogo Deposit Scale Geology
Pogo Deposit Scale Geology A High-Grade Structurally-Controlled Stacked Vein System CONTINENTAL SCALE TECTONO-ELEMENTARY SCALE PROVINCIAL SCALE REGIONAL SCALE LOCAL SCALE For personal use only North America North American Cordillera Tintina Gold Belt Goodpaster District Pogo Mine DEPOSIT Mesothermal
Slide 66: Mine Exploration Framework
Mine Exploration Framework Conceptual Targeting Model Highlights Scale and Potential ▪ The Pogo deposit is a series of stacked north-west dipping veins offset by regional scale shear For personal use only zones with both vertical and lateral offset ▪ Late stage north-striking faults offset the flat-
Slide 67: Pogo Deposit Scale Geology
Pogo Deposit Scale Geology Scale of the System ▪ Mineralised structures poorly drilled at margins For personal use only ▪ Mineralisation remains open POGO 3D MODEL LIESE ZONE VEINS https://inventum3d.com/c/nsrltd/pogo A SOUTH POGO FUN ZONE NORTH ZONE A A B B A B B B A B A B A B A B 67
Slide 68: Resource & Reserve Trends
Resource & Reserve Trends Resource Reserve Update Demonstrates Strong Growth Through Drill Investment 10,000,000 POGO MID YEAR 2019 RESERVE & RESOURCE UPDATE For personal use only FEASIBILITY ACQUISITION 4.9Moz - UG Rigs increased from 4 to 9 (116km UG Drilling in FY19) Endowment - RES recalculated
Slide 69: Pogo Resource Methodology
Pogo Resource Methodology Ensuring high quality Resource ounces in line with Northern Star standards IN-SITU MATERIAL ABOVE CUTOFF (3.8gpt) For personal use only 1254 Level East ▪ All blocks in the model greater than the cutoff grade (3.8gpt) are summed to give an estimate ▪ This method does not tak
Slide 70: Pogo In-Mine & Near Mine Potential
Pogo In-Mine & Near Mine Potential A$20M FY2020 Exploration Budget Drill Intersections >3.8gpt (0.11 opt) For personal use only Assay Grade South Pogo East Deeps ▪ Continued Extension of vein systems (open in all directions) ▪ Conversion of Inferred Resources: Liese North Zone ▪ 12.2Mt @ 9.5gpt for
Slide 71: Near Mine Exploration: Central Veins
Near Mine Exploration: Central Veins Discovery of a New Stacked Vein System within 600m of the Existing Underground ▪ The Central Veins are interpreted to be an offset fault block of Liese-style veining & mineralisation For personal use only SURFACE Central Vein Example: 18-009: 4.6m@8.3gpt ▪ FY2019
Slide 72: Regional Potential - District scale camp
Regional Potential - District scale camp High quality exploration portfolio expanded with Stone Boy Project acquisition For personal use only POGO MINE CLAIMS SKIPPY ▪ Strong portfolio of early stage SHAW exploration prospects on the Pogo mine claim ▪ Key prospects include Burn, Cholla, Keri, Spring
Slide 73: Operational Capability
For personal use only Operational Capability
Slide 74: Operational Capability - Starts with the people
Operational Capability - Starts with the people ▪ Northern Star’s greatest advantage is in its Culture – For personal use only the way it does business ▪ Northern Star continues investing A$50M over the next 10 years to expand our specialist underground mining, geology and processing capability ▪ Ke
Slide 75: Operational Capability - Geology first
Operational Capability - Geology first For personal use only Kanowna Belle Diamond Drilling Performance ▪ First principal approach to mine planning; focus on integrity of geological information and getting ahead of mining front ▪ Increase speed of information flow; increasing speed of drilling is ho
Slide 76: Operational Capability - NSMS world class physicals
Operational Capability - NSMS world class physicals ▪ Underground Mining Services Division (NSMS) is effectively 600 For personal use only an “In House” Mining contractor; we do not follow a Metres advance per Jumbo traditional owner-miner model 500 Simplifies running the overall business; best of b
Slide 77: Operational Capability – Year of record processing
Operational Capability – Year of record processing Jundee - Processing tonnes For personal use only ▪ Another year of record throughput 2,500,000 72% increase from our Jundee and Kanowna Belle 2,000,000 since acquisition Mills tonnes (t) 1,500,000 ▪ Jundee processing capacity has 1,000,000 increased
Slide 78: Operational Capability – Innovation integrated
Operational Capability – Innovation integrated ▪ Fully funded A$5M per year embedded in our costs For personal use only for people, innovation and technology ▪ Committed to leveraging our people’s capability through embracing emerging technologies to drive continuous improvement ▪ We are a rapid ado
Slide 79: Operational Capability – Jundee case study
Operational Capability – Jundee case study Development Metres FY15 - FY22 2,000 Re-investment into drill drives For personal use only 1,800 1,600 and new mine areas 1,400 1,200 1,000 800 600 400 200 0 Capital Development Non Sustaining capital Development Operating Development Without NST business m
Slide 80: Operational Capability – Pogo is just getting started…
Operational Capability – Pogo is just getting started… ▪ Geology first; the building blocks in place For personal use only POGO - PRODUCTION, RESERVES AND RESOURCES with Reserve increase to 1.5Moz at 7.5gpt 7,000 and Resources of 5.95Moz at 9.6gpt 43% increase in Resources 6,000 130% increase in Res
Slide 81: Asset Overview
For personal use only Asset Overview
Slide 82: 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 ▪ FY2019 group performance 840,580oz sold at an AISC of A$1,296/oz (US$907/oz) ▪ Record year for company and Austr
Slide 83: Kalgoorlie Operation – Under NST business model
Kalgoorlie Operation – Under NST business model ▪ Since acquisition in 2014, Kalgoorlie Operation has For personal use only demonstrated year on year growth Kalgoorlie Operation - gold sold by FY ▪ At time of purchase, the production profile was ~200kozpa and there was ~380koz in Reserve 400,000 350
Slide 84: Kalgoorlie – Concentrated centre, great infrastructure
Kalgoorlie – Concentrated centre, great infrastructure For personal use only ▪ FY2019 record production at top end of guidance with 340,007oz sold at AISC of A$1,330oz (US$931/oz) ▪ FY2020 continues organic production growth profile with guidance of 340,000oz- 380,000oz at an AISC of A$1,260-A$1,370
Slide 85: Kalgoorlie – Kanowna Belle
Kalgoorlie – Kanowna Belle For personal use only ▪ Kanowna Belle ~7Moz endowment with substantial infrastructure and growth potential across all areas of the mine ▪ Consistent performance of production and Reserve replacement with Reserves of 0.7Moz and Resources of 1.9Moz ▪ Reserve grade has increa
Slide 86: Kalgoorlie – Kundana (100% NST)
Kalgoorlie – Kundana (100% NST) ▪ Kundana region continues to grow For personal use only production and offers operational flexibility ▪ Reserves of 0.6Moz and Resources of 1.4Moz ▪ Orebodies remain open at depth as well as along strike ▪ In FY20, Moonbeam underground will be established as producti
Slide 87: Kalgoorlie – EKJV (51% NST)
Kalgoorlie – EKJV (51% NST) NST attributable Reserves 0.55Moz of For personal use only ▪ Resource of 1.4Moz ▪ Committed capital of A$7M for expansion of drill drives to drill out Falcon and access Hera in FY20 ▪ Changes to stope methodology paying back – multi lift stopes and improved productivity ▪
Slide 88: Kalgoorlie – South Kalgoorlie Operation (SKO)
Kalgoorlie – South Kalgoorlie Operation (SKO) Reserve increase of 21% to 0.32Moz at 3gpt For personal use only ▪ ▪ High grade trend evolving from the Northern Ore Zone (NOZ) through to Mutooroo ▪ Successful implementation of triple-lift stoping with increased productivities and reduced dilution ▪ Tr
Slide 89: Jundee Operation – Under NST business model
Jundee Operation – Under NST business model For personal use only ▪ Since acquisition in 2014, Jundee Jundee - gold mined by FY production has grown ~32% 400,000 32% production At time of purchase, the production profile 350,000 ▪ growth since NST was ~220kozpa and there was ~410koz in 300,000 acqui
Slide 90: Jundee – Going from strength to strength
Jundee – Going from strength to strength For personal use only ▪ A significant FY2019: 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 the June quarter ▪ FY2020: Guidance 260,000- 280,000o
Slide 91: Jundee – Open pit opportunities realised
Jundee – Open pit opportunities realised For personal use only ▪ Open pit mining commenced at Ramone in late FY2019 ▪ Open pit Resources of 0.3Moz and Reserve of 0.12Moz ▪ All permitting, approvals and commissioning completed on schedule ▪ BGC awarded contract, mobilised to site March 2019 ▪ First o
Slide 92: Jundee – Growth opportunity in every direction
Jundee – Growth opportunity in every direction For personal use only ▪ Commitment of A$37M of expansionary capital for excavation of exploration drill drives and setting up access to new mining areas ▪ Continued production growth delivered by industry leading productivities ▪ Record year for ore ton
Slide 93: Pogo – The next Jundee
Pogo – The next Jundee ▪ Pogo is a world-class 10Moz gold endowment that has produced approximately 3.8Moz at an average grade of For personal use only 13.6gpt over the past 12 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
Slide 94: Pogo – June 2019 Quarter performance
Pogo – June 2019 Quarter performance ▪ Implementation of NST business model is on track For personal use only to achieve key objectives, with results reflecting strong operational gains at all levels ▪ Compared to March 2019 quarter, improvements Stoping tonnes mined per month include; 30,000 13 ▪ O
Slide 95: Pogo – Month on month improvement
Pogo – Month on month improvement ▪ Pogo is currently mining constrained until new For personal use only stoping areas come on line which is part of the 18 month transition plan announced at acquisition Pogo tonnes mined by category Jan-June FY2019 ▪ Processing shortfall is currently being 80,000 18
Slide 96: Pogo – Equipment selection set for success
Pogo – Equipment selection set for success ▪ New mining fleet now on site, supports current 450 Metres advance per Jumbo For personal use only and future mining requirements and the higher 400 expected productivities 350 Jun Average metres Jul to Dec Jundee Metres (m) 300 ▪ New equipment benefits in
Slide 97: Pogo – Development physicals continues to improve
Pogo – Development physicals continues to improve For personal use only Total monthly development metres advance (excludes contractor metres) ▪ New development fleet has been 1,600 Target of 1,500m delivered and commissioned per month 1,400 ▪ The implementation of bolting & 43% increase with arrival
Slide 98: Pogo – Successfully transitioning to longhole stoping
Pogo – Successfully transitioning to longhole stoping ▪ Transition to longhole stoping (LHS) is a key driver to the success at Pogo to deliver significant For personal use only cost reductions per tonne and greatly improve the mine’s profitability ▪ Existing method of cut & fill costs ~US$136/t mine
Slide 99: Pogo – NST’s proven business model will deliver again
Pogo – NST’s proven business model will deliver again ▪ The NST business model has been implemented at all our For personal use only operations with proven effectiveness ▪ There are many parallels between our Jundee and Pogo operations ▪ As a comparison; since the acquisition of Jundee, operating me
Slide 100: Operations – Additional leverage to increasing gold price
Operations – Additional leverage to increasing gold price ▪ Proven track record of rapid development and expedited production from discoveries For personal use only and Resources ▪ Large Resource base across multiple regions provides significant leverage to gold price ▪ Paradigm & Carbine area emerg
Slide 101: 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