Northern Star Resources Ltd Investor Day (Q&A Session) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Daniel Morgan - Barrenjoey Markets Pty Limited, Research Division - Analyst : First question is on all-in sustaining costs. Basically in this presentation, you're messaging that synergies from the merger are better or ahead, i.e., the non-tax synergies. You have also sold yet today some of your higher cost ounces in your business to Evolution. But your cost guidance is relatively flattish at $1,500 an ounce and also -- which compares around about what we've experienced in the most recent history. My question is, is your business facing massive underlying cost inflation, which these drivers are helping to arrest or what -- could you just comment on that?

Question: Daniel Morgan - Barrenjoey Markets Pty Limited, Research Division - Analyst : Okay. And my second question is just on the grade reconciliation of Super Pit. So Page 42, that slide there. When you say that you're starting to model the positive grade reconciliation that you've got more ore than you had expected and going through the stockpile slower. Just wondering, so you're starting to model this. To clarify, is this in the reserves? Or is this your business modeling where you're modeling it? And also how localized is this? Is this a particular part of the ore body? Or is this something maybe as an ongoing benefit?

Question: Daniel Morgan - Barrenjoey Markets Pty Limited, Research Division - Analyst : Portfolio question. You've just sold Kundana to Evolution. Is there more potential rationalization of the portfolio with the Kalgoorlie asset for the nonsuper pit or maybe Paulsens or what's in and out of what you would consider for the M&A piece? Is it very much seems like growth is not done on that side either.

Question: Daniel Morgan - Barrenjoey Markets Pty Limited, Research Division - Analyst : Okay. And second question, a little bit of accounting minutiae, so apologies. But the CapEx guidance you've given, the growth CapEx guidance, I just want to clarify these gross numbers. And what I mean by this is, in the past, there's been preproduction sales of gold that have been offset in the past from Saracen guidance, for instance, and also in the quarterly, there's preproduction that comes in the top bit from growth CapEx. But I just want to clarify the cutback numbers, is it gross dollars you're spending? Or is it net after some of the preproduction ounces?

Question: Hayden Bairstow - Macquarie Research - Analyst : Just a couple for me. Firstly, Stu, on Thunderbox versus Jundee, just to understand different economics of the 2 mill expansions and why Thunderbox looks better than Jundee. And then just circling back to Doyon, I just want to confirm what you were talking about before about $400 million proceeds being reinvested. So is that -- to get the return on that, is that (inaudible) and it's more likely to be lowering the cash cost at KCGM? Is that sort of where the potential return comes from?

Question: Hayden Bairstow - Macquarie Research - Analyst : Just on the $400 million from the Kundana sale. You sort of said it's not -- you're looking at investing it, but it's not on ounces. I mean, what is it, is it mill experiences to drive costs lower? Or all that should be used to grow ounces as well?

Question: Daniel Morgan - Barrenjoey Markets Pty Limited, Research Division - Analyst : Page 41, so that's the underground potential at the super pit. It's not in the mine plan. I'm just wondering if you could talk through what is the time frame for the drilling contemplation and when might earliest feed occur if it was a mineable proposition, basically, just looking for you to step me through how this opportunity might evolve over time?

Question: Daniel Morgan - Barrenjoey Markets Pty Limited, Research Division - Analyst : Maybe just a follow-up in your experience. So the company -- this is something the company has done with regenerating assets in the past like West Jundee, et cetera. What's been the experience of putting in these drill drives in terms of timing through to production? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 22, 2021 / 10:30PM, NST.AX - Northern Star Resources Ltd Investor Day (Q&A Session)