Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Investor Presentation (June 2015)
23 slides from Northern Star Resources's investor presentation, Jun 15, 2015
Slide 1: Northern Star Resources: An Australian gold miner – for global investors
Northern Star Resources An Australian gold miner – for global investors June 2015
Slide 2: Disclaimer
Disclaimer Competent Persons Statements The information in this announcement that relates to mineral resource and reserve estimations, exploration results, data quality, geological interpretations and potential for eventual economic extraction, is based on information compiled by Brook Ekers (Member
Slide 3: Team with a track record
Team with a track record Shares Options Board – Successful record in discovering and developing mines Total 593M 2.9M BILL BEAMENT Managing Director (Mining Engineer) * As at 10 June 2015 Non-Executive Chairman – Independent CHRIS ROWE (Barrister and Solicitor) Share price: A$2.16 Non-Executive Dire
Slide 4: A global mid-cap gold miner
A global mid-cap gold miner Production of 550,000-600,000ozpa; Market cap A$1.3B (593M shares at A$2.16) FY2015 AISC ~A$1,050-A$1,100/oz; (US$810-US$850/oz) Five operating mines, all in Western Australia Recently announced Central Tanami JV will add to production profile A$131M of underlying company
Slide 5: 550-600koz production from six world-class gold camps
550-600koz production from six world-class gold camps NST has six world-class production centres that have produced cumulatively over +22Mozs to date Paulsens & Ashburton Tanami Project +5Moz Gold Camp The goal in 2015 is to realise the Operations +3Moz Gold Camp potential of these deposits by great
Slide 6: A global mid-cap gold miner
A global mid-cap gold miner NST has a proud history of outperformance through value adding M&A, operational performance, exploration success and paying dividends to Shareholders Return on Equity is a key focus for NST Jundee Acquisition KB & Kundana Acquisition Plutonic Acquisition NST Share Price 3
Slide 7: A business first and a mining company second
A business first and a mining company second Consistent fully-franked dividend payer A$131m of underlying company since June-12 with over A$57M returned to free cash flow in the first 9 Financial Discipline shareholders. Recently doubled the interim months of FY 2015. Debt free. dividend from A$1cps
Slide 8: A business first and a mining company second
A business first and a mining company second NST has averaged a Return on Equity of over 30% for the last five years, NST is debt free with cash & equivalents of A$111M and has a history of paying dividends to shareholders NST has delivered underlying Company free cash flow of over A$131M in the fir
Slide 9: Growth within the right corporate structure
Growth within the right corporate structure NST has been able to grow production whilst maintaining a low level of corporate overheads when compared to its ASX and North American peer group NST has paid out over A$57M (US$44.5M) to Shareholders since establishing dividends in Aug-2012 Recently doubl
Slide 10: A business first and a mining company second
A business first and a mining company second NST is trading on EV/EBITDA multiples (4.7x EV/EBITDA*) compared to the Macquarie research global gold Intermediary producer average of 7.8x NST dividend yield is at the upper end of its peer group Shareprice NST is trading on cheap multiples vs global pe
Slide 11: Well on the way to replicating the success of Paulsens
Well on the way to replicating the success of Paulsens NST is well positioned to replicate the success achieved at Paulsens in coming quarters Paulsens Purchased the mine in July 2010 and paid back in seven months In the first two years of ownership, NST has taken a six month mine life to now 5 year
Slide 12: The core focus for NST is mine life extension
The core focus for NST is mine life extension Our six assets have produced +22M ounces to date and at current production levels of 600kozpa it is the equivalent of a 3% reserve depletion 1H15 discovery cost of A$30/oz; (US$23/oz) This reflects our strong belief that there is an enormous amount of hi
Slide 13: A$50M exploration plan already paying dividends
A$50M exploration plan already paying dividends 13
Slide 14: Kundana: a corridor of riches
Kundana: a corridor of riches FY2015 guidance 100,000-110,000oz at AISC of A$800 - A$850/oz; (US$615- US$655/oz) YTD 76koz at an AISC of A$675/oz ;(US$520/oz) Comprises 4 producing deposits: Raleigh, Rubicon, Hornet and the rich Pegasus discovery now in production Seven analogous targets to the 1.1M
Slide 15: Pegasus: A case study in Return on Invested Capital
Pegasus: A case study in Return on Invested Capital Stage 1 mining of the recently defined Pegasus deposit represents a return of invested capital of 500% to NST Pegasus offers significant growth potential, resource of 1.1Moz @ 11.6gpt, discovered 24 months ago Pegasus set for long mine life, with K
Slide 16: Jundee: still one of Australia's best mines
Jundee: still one of Australia’s best mines Purchased from Newmont for A$82.5M; (US$63.5M) First production in 1995; consistent production with 6.1Moz to date Free cash flow generation of A$1.3B in past five years Two resource updates in the past six months, now 1.15Moz supporting at least 4 year mi
Slide 17: Jundee: still one of Australia's best mines
Jundee: still one of Australia’s best mines Jundee project is now over 1.1Mozs, Feb 2015 Resource update did not include a number of lodes or drilling In-mine drilling is focused on known in-fill areas, unmined east-west structures and depth extensions 17 Page 17
Slide 18: Plutonic: 24 years young
Plutonic: 24 years young First production in 1990; consistent results with 5.4Moz to date Tier One infrastructure; replacement cost A$250M Resources of 1.45Moz, supporting 5-7 year mine-life Numerous opportunities to grow inventory through conversion of Resources to Reserves (historic conversion rat
Slide 19: Kanowna Belle: a great Goldfields address
Kanowna Belle: a great Goldfields address First production in 1994; consistent results with 4.9Moz produced (Dec 2015) FY2015 guidance 80,000-85,000ozpa at AISC of A$1,100-A$1,150/oz; (US$850-US$885/oz) YTD production of 69koz at an AISC of A$1,099/oz; (US$845/oz) Key opportunities have quickly deve
Slide 20: Paulsens: the cornerstone
Paulsens: the cornerstone First production in 2005; total production to date of 770Koz at 7.7gpt FY2015 guidance 80,000-90,000oz at AISC of A$1,100-A$1,150/oz; (US$850- US$885/oz) Resources of +400,000oz, supporting 5 year mine life Significant results from Voyager 2 should underpin production for n
Slide 21: NST & Indigenous Community engagement
NST & Indigenous Community engagement Martu Ranger Program Initiated in 2012 to provide productive employment for local Indigenous people Wiluna Martu Rangers work with our Jundee mine on environmental compliance Program generates A$150,000 per annum of income and employs up to six Martu people Rece
Slide 22: Why invest in Northern Star
Why invest in Northern Star Global-scale gold miner with all assets in Australia – second biggest ASX-listed gold producer Critical mass from 550koz-600kozpa production; asset diversity from five high-grade, low-cost mines ASIC ~A$1,050-$A1,100/oz; (US$810-US$850/oz) with robust margins Focused on g
Slide 23: Northern Star Resources: Contact Details
Northern Star Resources An Australian Mid Cap gold miner – for global investors Contact Details: Luke Gleeson – Investor Relations +61 8 6188 2100 Email – info@nsrltd.com / Website – www.nsrltd.com June 2015
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