Northern Star Resources Ltd · ASX:NST
Northern Star Resources — H1 FY2021 Earnings Presentation
19 slides from Northern Star Resources's earnings presentation, Feb 10, 2021
Slide 1: FY21 Half Year Financial Results
For personal use only An Australian Gold Miner, For Global Investors FY21 Half Year Financial Results February 2021
Slide 2: Forward Looking Statements, Reserves & Resources
Forward Looking Statements, Reserves & Resources Forward Looking Statements For personal use only 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
Slide 3: A platform for growth and superior returns
A platform for growth and superior returns Targeting production of 2Mozpa from three Tier-1 production centres by FY271 For personal use only A sector-leading global gold miner currently producing Positioned for market leading growth across two Tier-1 1.6Mozpa with a pathway to 2Mozpa jurisdictions
Slide 4: FY21 Half Year Results - Key Financial Highlights
The Australian Gold Miner for Global Investors FY21 Half Year Results - Key Financial Highlights For personal use only Record 1H FY21 Record Underlying FCF Interim dividend Underlying NPAT of A$226M increases 27% to increases 63% to After investing ~A$108M in growth A$194M on pcp 9.5¢ps capital^ & e
Slide 5: Integrated Sustainability – Core business alignment
Integrated Sustainability – Core business alignment Our Sustainability Vision For personal use only “Delivering responsible environmental and social business practice that lead to both the creation of strong economic returns for our Shareholders, and shared value for our Stakeholders.” Our Sustainab
Slide 6: Health, Safety and our COVID-19 Response
Health, Safety and our COVID-19 Response For personal use only Social Responsibility and the health and safety of all Stakeholders sits at the very core of the Northern Star business ▪ NST moved early and decisively to implement a suite of strict COVID-19 mitigation measures, both at our Australian
Slide 7: 1H FY21 Financial Highlights
1H FY21 Financial Highlights For personal use only Financials Unit H1 FY21 H1 FY20 Change Statutory Profit after tax A$M 185 127 46% Underlying Profit after tax1 A$M 194 120 63% EBITDA2 A$M 472 322 47% Operating mine Cash flow3 A$M 544 358 52% Net mine Cash flow4 A$M 339 202 68% Group underlying fre
Slide 8: Mine Site Cash Flow
Mine Site Cash Flow Strong Cash Flow generated by NST’s Tier-1 asset base For personal use only ▪ Robust mine cash generation in 1H FY21 with: Mine Cashflow (A$M) 544 - Operating mine cash flow A$544M - Net mine cash flow A$339M ▪ Strong growth in Pogo contribution, despite management of CV-19 358 s
Slide 9: Robust EBITDA Margins
Robust EBITDA Margins All operations continue to generate strong EBITDA margins For personal use only ▪ EBITDA from operations Operational EBITDA Margin1 A$517M at a margin of 46% ▪ Jundee and Kalgoorlie Operations maintaining strong 64% EBITDA margins 60% ▪ Pogo’s contribution increasing with minin
Slide 10: Record Earnings in 1H FY21
Record Earnings in 1H FY21 ▪ Underlying net profit up 63% to A$194M on pcp For personal use only ▪ Revenue up 34% from increased gold sold and higher realised prices ▪ Group costs expected to fall by 10% over the next three years ▪ Operating costs being well managed against the increase in activity
Slide 11: 1H FY21 – Investment for future growth
1H FY21 – Investment for future growth Low capital investment to unlock near term substantial production growth For personal use only Group Cash Flow (A$M) 114 57 426 51 11 8 32 325 200 677 4 317 Cash Jun-20 Operating Sust. Capex Growth Exploration M&A Invest Other Invest Equipment Debt Dividends FX
Slide 12: Strong Balance Sheet
Strong Balance Sheet Amortisation of Term Loan (A$M) Balance sheet strength has allowed For personal use only ▪ significant organic investment and 150 accretive acquisitions resulting in superior 100 returns to Shareholders 75 50 ▪ A$226M of underlying free cash flow in 1H FY21 (A$116M pcp) supports
Slide 13: Dividends; increasing returns to Shareholders
Dividends; increasing returns to Shareholders H1 FY21 interim dividend up 27% to A9.5cps fully For personal use only ▪ franked (A$110.5M) – on NSTs expanded post-merger 647 capital base ▪ Record date 9 March 2021; Payment date 30 March 2021 536 ▪ Dividends consistently paid to Shareholders 10.0 ▪ Di
Slide 14: Appendix
For personal use only Appendix
Slide 15: Simplified and complementary asset portfolio
Simplified and complementary asset portfolio For personal use only 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$1,222/oz) Au Reserves: 1.6Moz Au @ 3.6g/t Au Res
Slide 16: Consistent Resource and Reserve Growth
Consistent Resource and Reserve Growth 10.8 Mozs 12,000 For personal use only 35 ▪ Group Mineral Resources increased 67% (12.7Moz) to 31.8Moz1 31.8 Mozs ▪ Group Ore Reserves increased 102% (5.5Moz) to 10.8Moz2 30 10,000 25 5.4 Mozs 20.8 Mozs 8,000 4.0 Mozs Reserve Koz 15.9 Mozs Resource Mozs 20 3.5
Slide 17: FY21 Guidance
FY21 Guidance For personal use only FY21 Guidance NST Production (koz) AISC (A$/oz) Growth Capex (A$M) Yandal Operations 270 - 300 1,200 - 1,275 37 Kalgoorlie Operations 270 - 300 1,650 - 1,750 12 KCGM (50%) - NST 220 - 240 1,470 - 1,570 99 Australian Operations 760 - 840 1,440 - 1,540 148 Pogo Oper
Slide 18: Three large-scale production centres
Three large-scale production centres Simplified business structure with three Tier-1 production centres1 For personal use only Kalgoorlie Operations Yandal Operations North American Operations Carosue Dam KCGM 250kozpa 550kozpa target target Jundee and Thunderbox Bronzewing 200kozpa 400kozpa target
Slide 19: Northern Star Resources Limited
For personal use only Northern Star Resources Limited ASX Code: NST An Australian gold miner – for global investors Investor Enquiries: Rebecca Ciotti 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 19
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