An Australian Mid Cap Global gold miner – Growing Against the Tide Annual General Meeting - November 2018
ASX Listing Rule 5.23 Disclosures, foreign estimates, foreign exchange conversion and forward looking statements ASX Listing Rule 5.23 Disclosures The Mineral Resources information in this report is extracted from the report entitled “Pogo JORC Resource” dated 16 October 2018 available at www.nsrltd.com and www.asx.com. Northern Star confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Northern Star confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. The information on Mineral Resources other than Pogo in this report is extracted from the report entitled ‘ "Reserve & Resource Update and Corporate Outlook ’ dated 2 August 2018 and is available to view on Northern Star Resources Limited’s website (https://www.nsrltd.com/) and the ASX (www.asx.com.au). Northern Star confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Northern Star confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. Limitation on information relating to the Pogo mine reserves, and SMM Pogo and SC Pogo All information in this presentation in relation to SMM Pogo and SC Pogo, and the Pogo mine – except resources but including historical production, mineral reserves, historic costs and other historical financial information and life of mine plans – has been sourced from Sumitomo Metal Mining Co., Ltd. and Sumitomo Corporation (together, "Sumitomo"), and their related bodies corporate (including SMM Pogo and SC Pogo). Additionally, all FY2019 guidance in relation to the Pogo mine in this presentation has been based on this information. Northern Star has conducted legal due diligence in relation to the Transaction, but has not independently verified all such information, and no representation or warranty, express or implied, is made as to its fairness, accuracy, correctness, completeness or adequacy of any information relating to the Pogo mine or SMM Pogo and SC Pogo. Neither Sumitomo nor SMM Pogo and SC Pogo have prepared this presentation, nor have Sumitomo or SMM Pogo and SC Pogo authorised its release. Foreign Estimate Note and Cautionary Statement - mineral reserves for the Pogo mine The information in this presentation that relates to the mineral reserves of the Pogo mine has been extracted from the ASX announcement titled “Northern Star Acquires Pogo Gold Mine in Alaska” released to ASX on 30 August 2018. A copy of this announcement is available at https://www.nsrltd.com/investor-media/news/ or www.asx.com.au. Such information was originally extracted from SMM Pogo’s internal report entitled "End-of-Year 2017 Resource and Reserve Report" dated 29 March 2018, which sets out the mineral resources and mineral reserves of the Pogo mine as at 31 December 2017. The mineral reserves estimates for the Pogo mine in this report have been prepared using the Canadian NI 43-101 Standards, but such estimates are not fully compliant with those standards. Accordingly, the mineral reserves estimates for the Pogo mine are not, and do not purport to be, compliant with the JORC Code and are therefore classified as "foreign estimates" under the ASX Listing Rules. A Competent Person under the JORC Code has not yet done sufficient work to classify such foreign estimates as Ore Reserves in accordance with the JORC Code, however Northern Star notes the similarity of the Canadian NI 43-101 Standards and the JORC Code. It is uncertain that following evaluation and/or further possible exploration work that these foreign estimates will be able to be reported as Ore Reserves in accordance with the JORC Code. For details as to the reliability of the mineral reserve estimates for the Pogo mine included in this presentation and the other information required to be included pursuant to ASX Listing Rule 5.12 in respect of those estimates, refer to the ASX announcement titled “Northern Star Acquires Pogo Gold Mine in Alaska” released to ASX on 30 August 2018. Forward looking statements 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 or correctness of the information, opinions and conclusions contained in this announcement. To the maximum extent permitted by law, none of Northern Star Resources Limited, its directors, employees or agents, advisers, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it. This announcement is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any security, and neither this announcement nor anything in it shall form the basis of any contract or commitment whatsoever. This announcement may contain forward looking statements that are subject to risk factors associated with gold exploration, mining and production businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, Reserve estimations, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. Effect of rounding A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation. * Currency conversions have been converted at a currency of AUD/USD conversion rate of A$0.75 2
Introduction – An Australian listed gold miner with global scale ASX 100, top 25 global gold producer with mines in Western Australia and North America; 850koz- 900koz per annum at an AISC of A$1,050/oz – A$1,150/oz (US$787- US$862/oz)* Market cap is A$5.2B, with a sector-leading balance sheet; A$277M cash & equivalents and no Tanami Project Pogo Mine (100%) Paulsens +5Moz Gold Camp +8Moz Gold Camp debt 3Moz Gold Camp NST’s manages a simplified business with a strong Jundee growth outlook; production set to grow to 10Moz Gold Camp 875kozpa † in FY2019 with 3 Tier-1 assets in Tier-1 USA (Alaska) locations Track record of fully-franked dividends since 2012 Kalgoorlie Operations 19Moz Gold Camp with a stated dividend policy of paying out 6% of revenue Governed by the adage “a business first and a mining company second” AUSTRALIA † Midpoint of FY2019 Guidance 3
FY2018 – Key Highlights Full year dividend Financial EPS* of 32.1¢ up Group EBITDA* Record Net Profit* up 11%. Taking Performance 2% on pcp A$443M up 4% on of A$194M total payments to pcp 9.5¢ per share Jundee & Reserves Acquisition and Record Operational Kalgoorlie Ops Performance increased to 4Moz production run integration of the both achieved rate of 184koz and Resources to South Kalgoorlie 300kozpa run rate 15.9Moz † achieved in 4Q18 Operations Expanded our A$865M 19% Female Enviroment 50% reduction in Indigenous contribution into participation, well & Social LTIFR to 0.9 vs Ranger program the Australian above industry sector avg of 2.7 across all Economy average operations * From continuing operations 4 † Refer to Listing Rule 5.23 Disclosure on page 2 3
FY2018 - Strong operational performance NST has organically grown production and EBITDA at its Up 21% world class operations in FY2018 Gold Sold at both the Jundee and Kalgoorlie Operations combined increased by 21% Combined EBITDA increased by 15% to A$486M FY2018 gold sold 570,110oz at an AISC of A$1,029/oz Up 15% (US$771/oz*) (1) Jundee operations: 284,745oz sold at AISC of A$870/oz (US$652/oz*) (1) Kalgoorlie operations: 261,589oz sold at AISC of A$1,174/oz Up 9% (US$880/oz*) (1) (1) This information is extracted from the ASX announcement on 18 July 2018 June Quarterly Activities Report and is available to view at www.nsrltd.com. or www.asx.com.au 5
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