Slide 1
December 2014
Half-Year Results
17 February 2015
Northern Star Resources
An Australian gold miner - for global investors
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 Australian Institute of Geoscientists), who is a full-time employee of Northern Star Resources Limited. Mr Ekers has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" for the Group reporting. Mr Ekers consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.
The information in this announcement that relates to mineral resource estimations, exploration results, data quality, geological interpretations and potential for eventual economic extraction, is based on information compiled by Darren Cooke, (Member Australian Institute of Geoscientists), who is a full-time employee of Northern Star Resources Limited. Mr Cooke has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" for the Pegasus, Rubicon and Hornet Deposit and the Ambition prospect. Mr Cooke consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.
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.
2
Financial Highlights for the Year to 31 Dec 2014
Sales revenue: A$412.1m
Net Profit after tax: A$51m including one offs of acquisition costs of A$7.2m & restructure costs of A$4m Cash flow from operations of: A$128.7m generating underlying Company free cash flow of A$106.6m Dividend: Interim dividend doubled from 1 cent to 2 cents fully franked
Return on Equity of 17.6% for the half (35.2% on an annualised basis) Cash and Cash Equivalents on hand at 31 Dec: A$119.1m
Debt: A$35m at 31 Dec; post half year's end debt reduced to A$20m
60,000
50,000
40,000
30,000
20,000
10,000
-
16,285
Net Profit After Tax
28,328
21,964
38,633
51,098
450
400
350
300
250
200
150
100
50
-
110 99
Revenue
144
297
412
FY 11 FY 12 FY 13 FY14 1H15
3
FY 11 FY 12 FY 13 FY14 1H15
Financial Highlights for the Year to 31 Dec 2014
NST has increased the interim dividend 100% from 1 cent to 2 cents per share
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
-
45,359 49,373
EBITDA
63,785
99,666
153,219
100,000
90,000
80,000
70,000
60,000
40,000
30,000
20,000
10,000
-
EBIT
36,777
52,063
90,149
FY 11 FY 12 FY 13 FY14 1H15
FY 11 FY 12 FY 13 FY14 1H15
140,000
120,000
100,000
80,000
60,000
40,000
20,000
16,574
Cash & Cash Equivalents
82,387
64,962
55,775
119,100
0.04
0.03
0.02
0.01
0.025
Dividends per share
0.035 0.035
0.02
-
FY 11 FY 12 FY 13 FY14 1H15
4
0
FY12 FY13 FY14 1H15
The Profit Centres in 1H15
1H15 was the first in which the combined business was operating all of the businesses operating mines
Kundana operations achieved acquisition payback in 7 months
Kanowna Belle operations achieved acquisition payback within 8 months
Jundee is set to achieve acquisition payback in 7 months
350,000
300,000
Ounces Produced
288,937
350,000
300,000
288,937
Ounces Produced by Site
250,000
200,000
215,419
250,000
200,000
150,000
100,000
50,000
86,522
67,206
88,614
150,000
100,000
50,000
110,714
53,851 46,382 40,428 37,561
-
FY 11 FY 12 FY 13 FY14 1H15
0
Total Jundee Kundana Kanowna Belle Plutonic Paulsens
5
1H15 Mining Operations Review
During 1H15 NST sold 292,840oz at an AISC cost of A$1,057/oz which included a A$49/oz non-cash
rehabilitation cost as per World Gold Council reporting standards
|
Measure
|
6 months
Paulsens
|
6 months
Plutonic
|
6 months
Kanowna Belle
|
6 months
Kundana (51%)
|
6 months
Jundee
|
Total
|
|
Total Material Mined
|
tonnes
|
245,808
|
419,381
|
314,383
|
156,766
|
665,922
|
1,802,260
|
|
Total Material Milled
|
tonnes
|
248,902
|
430,270
|
389,652
|
142,549
|
632,970
|
1,844,343
|
|
Gold Grade
|
grams/tonne
|
5.24
|
3.61
|
4.03
|
12.05
|
5.89
|
5.35
|
|
Gold Recovery
|
90%
|
81%
|
92%
|
98%
|
92%
|
91%
|
|
Gold Produced
|
ounces
|
37,561
|
40,428
|
46,382
|
53,851
|
110,714
|
288,937
|
|
|
|
Revenue
|
$'000
|
55,658
|
58,877
|
63,381
|
78,957
|
155,255
|
412,129
|
|
Cost of Sales
|
$'000
|
37,272
|
53,167
|
44,022
|
23,887
|
73,964
|
232,312
|
|
Depreciation &
amortisation
|
$'000
|
10,701
|
11,217
|
4,020
|
5,919
|
31,214
|
63,071
|
|
Operating EBIT
|
$'000
|
4,245
|
(6,723)
|
13,527
|
48,492
|
46,077
|
105,618
|
|
All in Sustaining Cost
|
$/ounce sold
|
1,309
|
1,620
|
1,161
|
585
|
958
|
1,057
|
6
Financials Review
NST generated underlying Company free cash flow of A$106.6m in 1H15; up from A$6.4m in 1H13
Earnings per share are up 383% from 1.8cps to 8.7cps in 1H15
|
Half Year End
31 Dec 2014
|
Half Year End
31 Dec 2013
|
Change
|
% Change
|
|
Revenue
|
412,129
|
72,194
|
339,935
|
471%
|
|
EBITDA(1)
|
153,220
|
23,488
|
129,732
|
552%
|
|
EBIT(1)
|
90,149
|
10,213
|
79,936
|
783%
|
|
Net Profit
|
51,098
|
7,590
|
43,508
|
573%
|
|
Underlying profit(1)
|
62,405
|
7,590
|
54,816
|
722%
|
|
Cash flow from operating activities
|
128,757
|
24,575
|
104,182
|
424%
|
|
Cash flow from investing activities
|
(151,807)
|
(18,107)
|
(133,700)
|
738%
|
|
Underlying free cash flow(2)
|
106,669
|
6,468
|
100,201
|
1549%
|
|
Average gold price /ounce
|
1,407
|
1,416
|
(9)
|
-1%
|
|
Earnings per share (cents/share)
|
8.7
|
1.8
|
7
|
383%
|
(1) EBITDA; EBIT and Underlying Profit have been calculated by adding back one off acquisition ($7.2 million) and restructure ($4.1 million) expenses. Note: Underlying profit is a non-IFRS measure and is unaudited.
[2) Underlying free cash flow has been calculated as cash flow from operating activities minus cash flow from investing activities plus the adding back of the Jundee acquisition and bullion awaiting final settlement at 31 December 2014.
7
A$50m exploration plan already paying dividends
PROJECT DISCOVERY RESOURCE FEASIBILITY RESERVE PRODUCTION
Paulsens Gold Project
Southern Gabbro
Regional
Titan, Voyager 2 Extensions
Belvedere
Titan, Voyagers, UL
Ashburton
Plutonic Gold Project
Regional
Zone 114
Kazput (Coal) Waugh East
NE Pacific
Big Fish
Waugh Extensions
Baltic Extensions
Peake
Mt Olympus
Caribbean
Plutonic Mine
Regional
Regional / Zuleika Corridor
White Feather
Plutonic West
Salmon Barkers Christmas
Plutonic East
Barramundi
Sims
Pacific Eastern
Baltic West
KB, Rubicon, Raleigh, Hornet Mines
Pegasus
Kalgoorlie Gold Project
Red Eye
West Scotia
Millennium
Centenary
Strzelecki
Six Mile
Carbine
Fitzroy Chasers New Caledonia
Gourdis Vause Corridor
Stirling South
Moon South
Deep Well
Winter
Nexus South
Gringotts
Gateway Mine
Barton Mine
Jundee Gold Project
Regional
Nexus South
Jundee Extensional
Desert Dragon
Cook-Menzies
Nexus-Midas-Moneyline
Barton/Westside In-mine
Invicta In-mine
Wilson
Westside
Deakin
8
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
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Page 9
Pegasus offers significant growth potential, Resource of 1.1Moz @ 11.6gpt, discovered 24 months ago
Pegasus set for long mine life, with Kundana's historical conversion rate from Resource to Reserve running at ~80% Pegasus remains open at depth and along strike, highlighting significant potential for further resource increase Drilling is still on going at Pegasus and the flat lying Pode structure
Summary / Guidance
FY2015 Forecast of 550koz to 600koz at an AISC of A$1,050-A$1,100/oz
Capital Expenditure of A$100-A$110m, 95% of which will be spent on sustaining capital and
~$5m to bring the Pegasus deposit into production
NST is delivering into a gold price that is currently ~A$200/oz higher in the 2H of 2015
700
600
500
400
Midpoint of FY2015 Guidance 550-600koz at
A$1,050-A$1,100/oz
575
700
600
500
400
Mid point of FY2015 Production by Site
575
300
200
100
86 72 89
215
300
200
100
85 105 82.5 105
197.5
0
FY11 FY12 FY13 FY14 FY15
FY11 FY12 FY13 FY14 FY15
0
Paulsens Plutonic Kanowna EKJV Jundee Total
Paulsens Plutonic Kanowna EKJV Jundee Total
10
Northern Star Resources
An Australian Mid Cap gold miner - for global investors
Contact Details:
Luke Gleeson - Investor Relations +61 8 6188 2100
Email - [email protected] / Website - www.nsrltd.com
February 2015