Northern Star reports strong quarter with production at upper end of Guidance

Production on track to rise 40% over next three years with costs to fall 10%. Gold sales of 227,532oz at upper end of quarterly production guidance; All-in cost of A$1,752/oz and average realised price of A$2,493/oz; Hedge book reduced to just 13% of next three years’ production

HIGHLIGHTS
 Gold sold in the September quarter of 227,532oz; This was at the upper end of the published quarterly guidance range of 207,000-233,000oz
 Outstanding performance at Yandal and Pogo:
o Australian Operations (including 50% KCGM) sold 176,526oz at an AISC of A$1,544/oz (US$1,081/oz)*
o Pogo Operations sold 51,006oz at an AISC of US$1,199/oz, quarterly costs were 14.5% lower than FY20
 Group all-in cost (AIC) of A$1,752/oz (US$1,226/oz), demonstrating low capital intensity for growth
 Average realised price of A$2,493/oz in the September quarter; This included sales of ~65,000oz into hedged positions, reducing the hedge book to approximately 13% of the next three years’ production
 Strong underlying free cash flow of A$132M generated during September quarter; This was despite investing ~A$42M in growth capital and exploration
 Unaudited NPAT of ~A$100M; Operating mine cashflow of A$254M; Net mine cashflow of A$170M
 Cash, bullion and investments of A$470M at 30 September 2020 after repaying A$200M of corporate bank debt on 6 July and paying out A$200M (or A27cps) in fully franked dividends in the quarter
 September quarter production:

o Yandal Gold Operations: 79,946oz mined and 73,743oz sold at an AISC A$1,209/oz (US$846/oz)

o KCGM Gold Operations (50% Ownership): 46,018oz mined and 53,959oz sold at an AISC A$1,461/oz (US$1,023/oz)

o Kalgoorlie Gold Operations: 64,064oz mined and 48,824oz sold at an AISC A$2,116/oz (US$1,481/oz)

o Pogo Gold Operations: 59,988oz mined and 51,006oz sold at an AISC US$1,199/oz

 Annual production forecast to grow at industry-leading rate of 40% to 1.25Moz over next three years, with low capital intensity; Costs expected to fall by 10%

 Reserves double to 10.8Moz(on price of A$1,750/oz (US$1,225/oz)); Resources increase 67% to 31.8Moz

 Strong September quarter results from Northern Star and Saracen (ASX: SAR) highlight the outstanding combined growth profile and cash generating capacity of the companies under the proposed merger.

Northern Star Executive Chair Bill Beament said the results highlighted the ongoing strength of the Yandal Operations, the
successful ramp-up of production at Pogo and further benefits from the changes being implemented at KCGM.

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