CORPORATE DIRECTORY
INSERT COVER SHOT - KALGOORLIE
Need to include note on Governance Statement
2014 Annual Financial Report
CORPORATE DIRECTORY
TABLE OF CONTENTS
Corporate Directory
Chairman’s Address
Highlights
Review of Operations
Directors' Report
Auditor’s Independence Declaration
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
Statement of Cash Flows
Statement of Changes in Equity
Notes to the Consolidated Interim Financial Statements
Directors' Declaration
Independent Auditor’s Report
Additional Information
Tenement Schedule
DIRECTORS
Christopher Rowe
Bill Beament
John Fitzgerald
Peter O’Connor
COMPANY SECRETARY
Liza Carpene
(Non-Executive Chairman)
(Managing Director)
(Non-Executive Director)
(Non-Executive Director)
REGISTERED OFFICE/
PRINCIPAL PLACE OF BUSINESS
Level 1
1 Puccini Court
Stirling WA 6021
Australia
Telephone: +61 8 6188 2100
Facsimile: +61 8 6188 2111
Website: www.nsrltd.com
Email: info@nsrltd.com
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Inside Cover
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SHARE REGISTRY
Advanced Share Registry Limited
110 Stirling Highway
Nedlands WA 6009
Australia
Telephone: +61 8 9389 8033
Facsimile: +61 8 9389 7871
Website: www.advancedshare.com.au
HOME STOCK EXCHANGE
ASX Limited
Level 40, Central Park
152-158 St Georges Terrace
Perth WA 6000
Australia
ASX Code: NST
AUDITORS
Rothsay Chartered Accountants
Level 1, Lincoln House
4 Ventnor Avenue
West Perth WA 6005
Australia
Cover photograph: Graeme Posnett, Production Geologist at Plutonic Gold Mine (April 2014)
Photographer: Evan Collis
2014 Annual Financial Report
CHAIRMAN’S ADDRESS
Dear Shareholder
So much has been said and written by so many that I feel somewhat reluctant to join the chorus
exclaiming what an outstanding year 2013-14 was for your Company.
The headlines told Northern Star’s story of rapid growth by every measure. Your Company was the
best-performing stock in the ASX 200 index over the financial year, an achievement which reflected
our significant production growth, exploration success and strong operating results across the
board.
The strong performance was the result of the growth strategy we devised two years ago. This
strategy is clearly enunciated by the positioning statement on the front-page of our corporate
presentation, which describes Northern Star as an Australian gold miner for global investors.
The statement seeks to encapsulate our view of ourselves and provides a simple test by which we can measure virtually
everything we do. Based on our ongoing discussions with leading investment institutions around the world, we understand
the criteria by which they judge mining companies and we seek to ensure that everything we do is consistent with meeting
those benchmarks.
Much has been made of our recent transition from a 100,000ozpa gold producer to one which now targets 550,000-
600,000ozpa. While the overall figure is substantial – Northern Star is now the second-biggest ASX-listed gold miner – it is the
critical mass which comes with this production base which is more pertinent.
Equally, our acquisition of four gold projects over the past year is a direct consequence of our desire to achieve the lower
risk profile that is delivered through asset diversification.
Neither of these factors are the result of a shallow desire to be big for the sake of it. This is evidenced by our commitment to
target all-in sustaining costs of A$1,050 to A$1,100 an ounce as well as our strategy of remaining an Australian gold miner –
as emphasised in our positioning statement.
If production growth were our sole driver, we may well have acquired major overseas mines with lower grades and high
costs.
We haven’t done that, and we don’t intend to, because that would be contrary to our objective of being a gold miner
which is governed by a desire to maximise Shareholder returns.
With the key objectives of critical mass and project diversity now met, your Company has entered the new financial year
with the goal of growing mine lives at the top of its list of jobs to do.
To help ensure we achieve this next target, the Board has approved a A$50 million exploration budget for the coming year.
This is three times greater than that allocated for the past financial year and reflects both our commitment to growing the
mining inventory at each of our projects as well as our strong belief that much gold remains to be found in and around our
mines.
The decision to invest such a substantial sum in exploration was made in response to overwhelming geological evidence of
the potential to grow the mine lives of our operations. I look forward to the strong newsflow which this extensive program is
expected to generate over the course of this year.
Our commitment to exploration reflects our hunger to continue producing superior results at all levels of our business. This
means maintaining strong production and a keeping a tight lid on costs whilst growing mine lives.
Recent falls in the gold price mean that the need to maximise productivity and minimise costs is more essential than ever.
Northern Star has an outstanding productivity record, in part due to the efficiencies generated by our in-house mining
contracting model.
But we cannot afford to be complacent in this respect and I assure all Shareholders that our determination to grow mine
lives will be done in parallel with, and not instead of, an ongoing emphasis on safety and cost control.
Striking the right balance between growth and cost management will be a key driver of success in the gold industry as
companies seek to insulate themselves against lower prices while ensuring that they are well positioned to take full
advantage of a price recovery.
I believe we now have the right balance, the asset diversity and the scale to deliver strong results throughout the cycle.
As we look back on the results of the past year, it is important to remember that Northern Star’s success to date is due to the
skills and hard work of our talented team. On behalf of the Board, I would like to thank our management, staff, financial
institutions, contractors and suppliers for their outstanding work in helping the Company to achieve its goals.
I also thank our Shareholders, who have shown such strong support for the Company as we have pursued our strategy of
building an Australian gold miner for global investors.
I am confident that this strategy is well on track and I look forward to updating you on our progress as the year unfolds.
Yours sincerely
CHRIS ROWE
Chairman
30 September 2014
2014 Annual Financial Report
Page 1
HIGHLIGHTS
Northern Star: an Australian mid-cap gold miner for global investors with
scale, low costs, low debt and asset diversity – a year of achievements:
Plutonic Gold Mine acquired 1 February 2014
Kanowna Belle & Kundana (51% interest) acquired 1 March 2014
Jundee Gold Mine acquired, settled 1 July 2014
Diggers & Dealers “Dealer of the Year 2014”
Resources increased to 6.2Moz at 4.2gpt
Reserves increased to 1.2Moz at 5gpt
Record underlying profit of A$38.6M
Annual fully franked dividends of A3.5 cents per share
Our VISION is to continue to build a safe, quality mining and exploration
company focussed on creating value for Shareholders.
Our MISSION is to generate earning accretive value for our Shareholders
through operational effectiveness, growth opportunities and
exploration with a prime focus on success to deliver on our targets.”
Our CORE VALUES:
2014 Annual Financial Report
Page 2
REVIEW OF OPERATIONS
OVERVIEW
Northern Star Resources Limited (Northern Star) is an ASX 200 gold (Au) production
and exploration company with a Mineral Resource base of 6.2 million ounces and Ore
Reserves of 1.2 million ounces1, located in highly prospective regions of Western
Australia with a total land package of >10,000km2.
Northern Star remains focussed on delivering on its growth strategy objective of being
a significant gold company producing 550,000 to 600,000 ounces of gold per annum
from its five operating business units being the Paulsens, Plutonic, Kanowna Belle,
Kundana2 and Jundee Gold Mines (acquired 1 July 2014).
In parallel, the Company is rapidly progressing its exploration activities with the goal of
extending mine life at all our operations and creating an organic pipeline of future
projects.
OUR PEOPLE, HEALTH AND SAFETY, ENVIRONMENT AND COMMUNITY
Our People and Our Culture
Northern Star, through its employees and contractors, is committed to operating its
business at all levels based on its core values of: Safety, Teamwork, Accountability,
Respect and Results (STARR).
The Company has developed a committed and motivated high-calibre team
responsible for driving the Company’s successful acquisition expansion phase. As the
Company became the second largest ASX listed gold producer with the increase from
one to five operating business units during the last twelve months, Northern Star’s direct workforce grew to more than
1,000 following the acquisition of the Jundee Gold Mine on 1 July 2014, an increase of some 900%. This, together with
a contractor workforce of approximately 500, makes Northern Star a significant employer of Western Australian
people.
The Company acknowledges the dedication and hard work of its employees, contractors and suppliers, and it is
pleasing to see the expanded Northern Star Family embrace the opportunity to grow with the business further.
The STARR Core Values are the foundation for developing the culture within Northern Star, and align and enable our
employees and contractors to achieve Northern Star’s vision. During the Company’s rapid expansion, the
adherence to our STARR Core Values has never waned.
Northern Star values diversity in its workforce at all levels and is an equal opportunity employer, based on the best
person for the position at the time of recruitment. Through the integration of the new assets and the addition of the
incumbent tenured workforces, Northern Star’s overall female participation rate unfortunately declined to 12.03%
(2013: 18.75%) as a result. Management is committed to improving female participation rates in accordance with
our recruitment practices. The Company’s 2013-14 Workplace Gender Equality Report is located on our website at
http://www.nsrltd.com/corporate/corporategovernance.html. As our people are our greatest strength, the Company
continues to focus on the development of its people, and encourages their ability to challenge conventional
thinking and to work innovatively to produce superior results – but never to the detriment of safety.
Health and Safety
Northern Star values the health and safety of its employees and contractors, and it is the Company’s number one
focus. The Company drives initiatives, such as its Five STARR safety program which is behaviour based safety system
that rewards positive safety behaviour and increases focus on leading safety indicators, to continually raise
awareness on a day-to-day basis and further improve safety in the workplace. With the recent expansion of the
Company’s business through acquisition, the Company focussed heavily on the safe and effective integration of all
new assets and personnel into the Group.
The Company was pleased to report during the year that the Paulsens Mine Rescue
Team participated in the third annual Mining Emergency Response Competition in
September 2013 in Perth, and was placed second overall which was a fantastic
effort for a first time team for Northern Star. We also acknowledge our Kalgoorlie
Mine Rescue Team who were placed in the Best New Team category at the
surface competition held in May 2014. The skill and dedication of our Mine Rescue
teams is highly valued given the remote locations in which we operate.
1 As at 30 June 2014 – see ASX Release dated 4 August 2014.
2 51% interest in the East Kundana Joint Venture.
Photographs: (top) Underground Team at Kalgoorlie, led by General Manager Jim Coxon (left)
(bottom) Paulsens Mine Rescue Team at the Mining Emergency Response Competition
2014 Annual Financial Report
Page 3
REVIEW OF OPERATIONS
As at 30 June 2014, Northern Star’s Lost Time Injury frequency rate (LTIFR) was 2.4 (2013: 1.9) and its Total Reportable
Injury frequency rate (TRIFR) was 13.3 (2013: 11.4). Although these rates are comparable to the mining standard LTIFR
(2.5) and TRIFR (10.7) in Western Australia3, any injury is unacceptable and Northern Star remains focussed on
proactively reducing these lagging indicators.
The Company maintains its commitment to a safe environment and will continue to demand strong safety
performance. Safety is the first key core value of the organisation and is fundamental to the success of the business.
Environment
Northern Star is committed to managing its activities in an environmentally responsible manner. Through effective
management practices, and the commitment of its employees and contractors, Northern Star will ensure its activities
have a minimum impact on the environment.
Following the acquisition of its new operations, Northern Star has embraced its expanded environmental responsibility
and will continue to meet or exceed its statutory requirements on all of its tenure. The risks associated with
environmental incidents are taken into account as part of the Company’s normal course of business, and are
managed through risk assessments, introduction of preventative measures, ongoing review and monitoring, and
where necessary, effective and efficient corrective actions.
Community
Northern Star proactively engages with the Communities in which it operates, and acknowledges the Traditional
Owners of the land as key Stakeholders. The Company believes that the support and endorsement of its activities by
these Communities is fundamental to the long-term success of its business. Northern Star’s expanded family of
employees and contractors embrace an inclusive culture, and continue to strengthen relationships with all
Stakeholders.
The Company appreciates all of its new Stakeholders through the recent expansion of its business activities, in
particular its workforce.
Northern Star recognises the importance of its contribution to our local residential communities, such as Kalgoorlie, as
it is a significant employer of local people, utilises local suppliers where possible and participates in community
initiatives and activities. Northern Star also believes that it is important to participate in community initiatives that are
not directly related to our business, and to support worthwhile causes that can touch the lives of each and everyone
one of us. The Company and its employees are pleased to participate in and support initiatives such as the Telethon
Adventurers in the fight to find a cure for childhood cancer, City to Surf which supports people living with disability in
Western Australia and the Royal Flying Doctor Service which is a critical service to remote communities as well as our
FIFO operations.
MINE OPERATIONS REVIEW
Total Material Mined
Total Material Milled
Gold Grade
Gold Recovery
Gold Produced
Revenue
Cost of Sales
Depreciation & Amortisation
Operating EBIT
All in Sustaining Cost
Table 1 – Mine Operations Review
Measure
tonnes
tonnes
grams/tonne
%
ounces
A$000's
A$000's
A$000's
A$000's
A$/ounce sold
12 months
Paulsens
5 months
Plutonic
510,244
464,777
7.4
90%
100,041
143,039
(77,916)
(29,715)
35,408
1,105
360,852
399,317
3.9
83%
41,623
56,963
(45,802)
(10,577)
584
1,414
4 months
4 months
Kanowna Belle
302,383
352,375
4.0
91%
41,313
Kundana (51%)
72,450
76,184
13.7
97%
32,442
55,852
(47,022)
(3,800)
5,030
993
41,121
(23,920)
(3,511)
13,690
768
Total
1,245,929
1,292,653
5.8
90%
215,419
296,976
(194,661)
(47,603)
54,712
1,094
Performance for the 2014 financial year has been sourced from the Paulsens (12 months), Plutonic (5 months),
Kanowna Belle (4 months) and Kundana (4 months) gold mines. In the 2014 financial year, a total of 210,055 ounces
of gold was sold at an average price of A$1,410. All in sustaining cost in accordance with the new World Gold
Council reporting standard for the period was A$1,094 per ounce including allowance for rehabilitation (non-cash) of
A$30 per ounce.
During the period 1.3 million tonnes were milled at an average head grade of 5.8gpt Au for 215,419 ounces Au
recovered. Unprocessed ore stocks available for mill feed at the end of the period totalled 584,014 tonnes
containing 53,381 ounces Au. Gold in circuit at the end of the period totalled 20,974 ounces. Bullion on hand
amounted to 1,456 ounces. Both of these items are reflected in the accounts as gold in circuit at cost.
3 Source: Safety Performance in the Western Australian Mineral Industry, Accident and Injury Statistics 2012-2013, Department of Mines and Petroleum 2012-2013: LTIFR
2.5 and TRIFR 10.7 (Metalliferous Underground).
2014 Annual Financial Report
Page 4
REVIEW OF OPERATIONS
EXPLORATION
Paulsens In-Mine Drilling
The Paulsens Mine continued to drill the Upper Paulsens,
Voyager 1 and 2 Extensions down-plunge in concert with
the newly discovered Titan extension. Lateral extension
and exploration also targeted the Galileo and Southern
Gabbro vein mineralisation systems.
Plutonic In-Mine Drilling
The Plutonic Mine during the transition has focussed
predominantly on grade control drilling. Exploration is
now in progress and expected to develop extensions to
the existing mineral resource base in the Carribean, Baltic
Extension and Pacific East areas of the Mine.
Kalgoorlie Operations In-Mine Drilling
The Kundana and Kanowna Belle Operations continued
grade control extensions to the existing mineral resource
domains in concert with the large near-mine exploration
program upgrading the Pegasus Deposit. A recently
announced 763,000oz Au @ 11.4gpt Mineral Resource for
Pegasus (389,000oz Au Northern Star’s share – refer Table
2) is currently being accessed from the existing Rubicon
Mine. This will open a new mining area with further drilling
planned for all areas in the oncoming year.
Jundee Operations In-Mine Drilling
The Jundee Operations continued resources extensions
and grade control infill to and within the existing mineral
resource and reserve boundaries, and upgraded the
Mineral Resource at Midas, Nexus and Moneyline as at
30 June 2014. Subsequent to the year’s end, the Mineral
Resource increased 68% to 851,000oz @ 6.8gpt.
Paulsens Region
Kazput Coal Project
Northern Star announced the discovery of a significant
coal occurrence on the Electric Dingo Project at the
Kazput prospect, with further details provided in an ASX
release on 30 October 2013. Thick
thermal coal
intersections of up to 65m were encountered, with initial
analysis showing that the coal would be suitable for
fuelling a major base-load power station. Drilling to
potentially establish a JORC resource estimate has now
been completed. A maiden resource report is close to
being finalised.
Fortescue JV and Northern Star’s Regional
Exploration
Regional gold exploration continued on the Fortescue JV
and 100% Northern Star tenements in the Ashburton Basin
and Wyloo Dome areas. Regional targeting has been
completed and follow up soil and stream sediment
sampling is in progress.
Exploration focussed on near mine targets, including the
Paulsens East and Aries targets. In addition, soil sampling
programs were completed on regional targets.
Kalgoorlie Region
Ashburton Region
Extensive evaluation of
the Ashburton stand-alone
project was delayed in 2013. However, exploration for
additional free-milling oxide resources has continued. Soil
sampling programs were completed over several areas
with a number of geochemical targets generated.
Follow up RC drilling was completed at the Waugh East
prospect, with drilling planned to commence at the Titus
prospect shortly.
Work continued at regional targets in the Kalgoorlie area,
including RC drilling at the Ambition prospect (around
10km NW of Pegasus) and surface geochemical
sampling and RC drilling at the Red Eye prospect (around
10km NW of Kanowna Belle).
Mt Clement Project (ARV 80%: NST 20%)
(Antimony, Lead, Silver, Gold)
Artemis Resources Limited (ASX: ARV) announced a
maiden JORC compliant resource for the Eastern Hills
Taipan Zone, with a combined Indicated and Inferred
resource of 1.3 million tonnes at 1.7% Sb and 2.5% Pb (see
ASX: ARV release 29 November 2013 for more details).
Cheroona & Beatty Park Projects (Copper/Gold)
(RNI earning up to 70%)
A farm in agreement with Resource and Investment NL
(ASX: RNI) was announced on 4 December 2013. Initial
reconnaissance exploration by RNI identified a high-
grade copper-gold gossan at the T10 prospect, with rock
chip samples including assay results of 17.4% Copper,
8.84gpt Gold and 2.0gpt Silver
(see RNI ASX
Announcement 28 May 2014).
Photographs:
(top) Senior Exploration Geologist, Jodi Williams at the Pegasus Project
(left) Production Geologists Adam Baker and Chelsea Tutt in the Plutonic Core Farm
2014 Annual Financial Report
Page 5
REVIEW OF OPERATIONS
RESOURCES AND RESERVES
As at 30 June 2014, Northern Star’s JORC 2012 reported Consolidated Group Mineral Resource Estimate (inclusive of
Reserves) is 46 million tonnes at 4.2gpt Au for 6.2 million ounces (refer Table 2 below) and the Consolidated Group Mineral
Reserve Estimate is 7.4 million tonnes at 5.0gpt Au for 1.2 million ounces (refer Table 3 below).
The Consolidated Group Mineral Resource Estimate and the Consolidated Group Mineral Reserve Estimate includes the
acquisition of the Plutonic, Kanowna Belle and Kundana (51% interest) Gold Mines acquired during the 2013/2014 financial
year, and the Resources and Reserves attributable to the Jundee Gold Mine which the Company acquired on 1 July 2014.
The variation on the Northern Star Consolidated Group year on year Mineral Resource is highlighted in Table 2 where Mineral
Resources have increased by 4 million ounces Au from 2.2 million ounces Au as at 30 June 2013 year end to the current 6.2
million ounces Au Measured, Indicated and Inferred Mineral Resource.
The variation on the Northern Star Consolidated Group year on year Proved and Probable Reserve is highlighted in Table 3
where reserves have increased by 927,000oz Au from 257,000oz Au as at 30 June 2013 to the current 1.2 million ounces Au
Proven and Probable Reserve at 30 June 2014.
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 of the 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.
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.
2014 Annual Financial Report
Page 6
REVIEW OF OPERATIONS
Table 2 – Consolidated Group Gold Mineral Resources Estimate (inclusive of Reserves) effective 30 June 2014
2014 Annual Financial Report
Page 7
GOLD MINERAL RESOURCES Year on As at 30 June 2014Year Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces CompetentOunces Based on attributable ounces Au(000's) (gpt) (000's) (000's) (gpt) (000's) (000's) (gpt) (000's) (000's) (gpt) (000's) Person(000's) SurfacePaulsens- - - 573 2.6 47 169 2.6 14 742 2.6 61 3- Belvedere- - - 168 3.5 19 99 5.0 16 267 4.1 35 3- Merlin- - - - - - 523 1.4 24 523 1.4 24 3- Mt Clement (20%)- - - - - - 226 1.8 13 226 1.8 13 7- Underground- Upper Paulsens55 9.6 17 135 11.3 49 143 5.4 25 333 8.5 91 1(1) Voyager (Voy1, Voy2, Titan)407 8.9 117 111 9.8 35 72 8.6 20 590 9.1 172 1(121) Stockpiles161 2.9 15 - - - - - - 161 2.9 15 5 Gold in Circuit- - 3 - - - - - - - - 3 (1) Subtotal Paulsens623 7.6 152 987 4.7 150 1,232 2.8 112 2,842 4.5 414 (118) SurfaceMt Olympus- - - 6,038 2.3 448 9,138 2.2 632 15,176 2.2 1,080 2- Peake- - - 113 5.2 19 3,544 3.3 380 3,657 3.4 399 2- Waugh- - - 347 3.6 40 240 3.6 28 587 3.6 68 3- Zeus- - - 508 2.1 34 532 2.2 38 1,040 2.2 72 3- Electric Dingo- - - 98 1.6 5 444 1.2 17 542 1.3 22 3- Romulus- - - - - - 329 2.6 27 329 2.6 27 3- Subtotal Ashburton- - - 7,104 2.4 546 14,227 2.5 1,122 21,331 2.4 1,668 - UndergroundPlutonic East 33 6.7 7 89 6.4 18 724 5.8 136 846 5.9 161 4161 NW Extension - Indian11 6.0 2 268 5.6 48 659 5.1 109 939 5.3 159 4159 NW Extension - Caspian- - - 361 6.2 72 237 5.2 40 599 5.8 112 4112 Zone 19 : Baltic339 5.6 61 52 6.0 10 703 4.8 108 1,093 5.1 178 4178 Zone 19 : Baltic Extended- - - 169 5.0 27 424 5.1 70 593 5.1 96 496 Zone 61 : Caribbean87 6.3 18 35 6.2 7 428 6.1 84 550 6.1 109 4109 Zone 124 : Spur - Area 13445 9.8 14 845 6.5 177 1,147 4.9 181 2,037 5.7 372 4372 Zone 124 : Cortez - Med - Adr81 6.0 16 94 5.2 16 322 4.1 42 496 4.6 74 474 Zone 124 North : Pacific- - - 107 5.2 18 250 5.1 41 356 5.1 59 459 Zone 124 North : Timor- - - 436 6.1 85 230 4.8 36 666 5.6 121 4121 - Stockpiles15 3.6 2 15 3.6 2 2 Gold in Circuit4 - 4 4 Subtotal Plutonic611 6.3 123 2,456 6.1 478 5,121 5.1 845 8,188 5.5 1,446 1,446 Surface433 2.8 38 433 2.8 38 538 Underground1,741 4.8 269 2,875 4.9 455 2,037 4.7 305 6,653 4.8 1,029 51,029 Stockpiles66 3.9 8 793 1.0 24 859 1.2 32 32 Gold in Circuit15 - 15 15 Subtotal KB1,807 5.0 292 3,668 4.1 479 2,470 4.3 344 7,945 4.4 1,115 1,115 Raleigh North2 80.1 4 0 106.7 0 2 82.1 5 5 Subtotal Kundana2 80.1 4 0 106.7 0 - - - 2 82.1 5 5 East Kundana Joint Venture(EKJV) SurfaceHornet Pit (51%)86 3.7 10 2 1.6 0 88 3.6 10 510 Underground- Raleigh (50%)28 66.2 61 9 41.6 12 17 47.5 25 54 56.5 97 597 Hornet (51%)66 24.3 52 63 19.0 38 136 7.5 33 264 14.4 123 5123 Rubicon (51%)5 19.4 3 71 13.4 30 73 11.8 28 148 12.8 61 561 Pegasus (51%)- - - 715 11.9 273 346 10.5 116 1,060 11.4 389 6389 Stockpiles4 15.6 2 4 15.6 2 2 Subtotal EKJV103 35.3 117 943 12.0 363 572 11.0 202 1,618 13.1 683 683 Subtotal Kalgoorlie1,912 6.7 413 4,611 5.7 843 3,042 5.6 546 9,565 5.9 1,802 1,802 UndergroundBartonCardassian30 6.0 6 58 6.1 11 11 6.7 2 99 6.1 20 320 Gateway27 5.4 5 429 7.4 102 303 5.3 52 758 6.5 158 3158 Hamptons- - - 65 5.8 12 - - 65 5.8 12 312 Invicta- - - 60 6.6 13 36 20.0 23 96 11.6 36 336 Nexus/Moneyline/Midas- - - 46 8.7 13 1,164 9.4 350 1,210 9.3 363 3363 Nim3 / Champagne100 9.9 32 277 9.1 81 74 6.2 15 450 8.8 127 3127 Westside / Lyons157 8.7 44 118 6.2 24 36 6.1 7 311 7.4 74 374 Wilson- - - 47 7.8 12 18 8.6 5 65 8.0 17 317 Subtotal Jundee Underground313 8.5 86 1,099 7.6 267 1,641 8.6 454 3,053 8.2 807 807 - Stockpiles Underground102 4.3 14 102 4.3 14 14 Open Pit188 1.0 6 188 1.0 6 6 Low grade789 0.7 18 789 0.7 18 18 Mill Cone Base28 2.3 2 28 2.3 2 2 Gold in Circuit4 4 4 Subtotal Jundee Stockpiles1,107 1.2 44 1,107 1.2 44 44 Subtotal Jundee1,420 2.8 130 1,099 7.6 267 1,641 8.6 454 4,159 6.4 851 851 TOTAL RESOURCES4,565 5.6 818 16,257 4.4 2,284 25,263 3.8 3,079 46,086 4.2 6,181 4,793 Note :1. Mineral Resources are inclusive of Reserves.2. Mineral Resources are reported at various gold price guidelines: (a. A$1,850/oz Au - Paulsens, EKJV) (b. A$1,650/oz Au, Plutonic, Kanowna) (c.A$,1475/oz Au Jundee).3. Rounding may result in apparent summation differences between tonnes, grade and contained metal content.4. Numbers are 100% NST attributable (East Kundana Joint Venture partners Rand Mining Limited and Tribune Resources Limited for tonnes and contained ounces are not reported).5. The year on year variance in ounces is based on this Annual Report and the Northern Star Annual Operations Report 2013.Competent Persons1. Simon Lawson. 2. Graeme Bland. 3 Brook Ekers. 4. Luke Barbetti. 5. Darren Cooke. 6. Alan Pederson. 7. Artemis Company report.JUNDEE GOLD PROJECTASHBURTON GOLD PROJECTPLUTONIC GOLD PROJECTKALGOORLIE GOLD PROJECTKanowna Belle KundanaINFERRED (Inf)TOTAL (MI&Inf)PAULSENS GOLD PROJECTMEASURED (M) INDICATED (I)
REVIEW OF OPERATIONS
Table 3 – Consolidated Group Mineral Reserves Estimate effective 30 June 2014
2014 Annual Financial Report
Page 8
GOLD MINERAL RESERVESYear on As at 30 June 2014PROVED PROBABLEPROVED and PROBABLE Year Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Ounces Based on attributable ounces Au(000's) (gpt) (000's) (000's) (gpt) (000's) (000's) (gpt) (000's) Competent Person(000's) PAULSENS GOLD PROJECTSurfacePaulsens- - - 424 2.3 31 424 2.3 31 2- Belvedere- - - 129 3.2 13 129 3.2 13 2- Underground- Upper Paulsens1 7.7 0 108 5.3 19 109 5.4 19 111 Voyager (Voy1, Voy2, Titan)121 5.3 20 117 5.9 22 238 5.6 43 1(94) Stockpiles161 2.9 15 - - - 161 2.9 15 4 Gold in Circuit- - 3 - - - - 3 (1) Subtotal Paulsens282 4.2 39 779 3.4 85 1,061 3.6 124 (81) ASHBURTON GOLD PROJECTSurfaceMt Olympus248 3.6 29 113 3.6 13 361 3.6 42 2- Peake- - - 47 5.3 8 47 5.3 8 2- Waugh- - - - - - - - - - Zeus- - - - - - - - - (3) Electric Dingo- - - - - - - - - - Romulus- - - - - - - - - - Subtotal Ashburton248 3.6 29 160 4.1 21 408 3.8 50 (3) PLUTONIC GOLD PROJECTUndergroundPlutonic East 35 5.3 6 101 4.8 16 136 5.0 22 322 NW Extension - Indian27 5.8 5 46 6.2 9 73 6.1 14 314 NW Extension - Caspian2 6.3 0 127 6.2 25 129 6.2 26 326 Zone 19 : Baltic42 4.5 6 0 5.2 0 42 4.5 6 36 Zone 19 : Baltic Extended- - - - - - - 3- Zone 61 : Caribbean9 7.3 2 7 7.9 2 15 7.5 4 34 Zone 124 : Spur - Area 13483 7.9 21 - 83 7.9 21 321 Zone 124 : Cortez - Med - Adr40 4.9 6 12 4.6 2 52 4.9 8 38 Zone 124 North : Pacific- - - 4 6.7 1 4 6.7 1 31 Zone 124 North : Timor3 8.6 1 15 10.2 5 17 10.0 6 36 - Stockpiles15 3.6 2 15 3.6 2 2 Gold in Circuit4 4 4 Subtotal Plutonic254 6.5 53 313 5.9 60 566 6.2 113 113 Kanowna BelleSurface- - - - - - - - - Underground99 4.5 14 1,115 5.0 178 1,214 4.9 193 5193 Stockpiles66 3.9 8 793 1.0 24 859 1.2 32 32 Gold in Circuit15 - 15 15 Subtotal KB165 7.0 37 1,908 3.3 203 2,073 3.6 240 240 Raleigh North7 7.4 2 0 - - 7 7.4 2 42 Subtotal Kundana7 7.4 2 0 - - 7 7.4 2 2 East Kundana Joint Venture(EKJV)SurfaceHornet Pit (51%)- - - - 4- UndergroundRaleigh (50%)80 13.5 35 - - - 80 13.5 35 435 Hornet/Rubicon (51%)129 14.4 60 159 9.9 51 288 11.9 110 4110 Pegasus (51%)- 403 9.8 127 403 9.8 127 4127 Stockpiles4 15.6 2 4 15.6 2 2 Subtotal EKJV212 14.1 96 562 9.8 178 775 11.0 274 274 Subtotal Kalgoorlie384 10.9 135 2,470 4.8 380 2,854 5.6 515 515 UndergroundBartonCardassian22 5.9 4 64 6.2 13 86 6.1 17 617 Gateway25 5.2 4 417 7.4 100 442 7.3 104 6104 Hamptons- - - 71 5.4 12 71 5.4 12 612 Invicta- - - 65 6.9 14 65 6.9 14 614 Nexus/Moneyline/Midas- - - - - - - 6- Nim3 / Champagne87 9.8 27 288 8.8 81 375 9.0 109 6109 Westside / Lyons160 8.7 45 129 6.2 26 289 7.6 71 671 Wilson- - - 46 7.9 12 46 7.9 12 612 Subtotal293 8.6 81 1,080 7.4 258 1,373 7.7 339 339 StockpilesUnderground102 4.3 14 102 4.3 14 614 Open Pit188 1.0 6 188 1.0 6 66 Low grade789 0.7 18 789 0.7 18 618 Mill Cone Base28 2.3 2 28 2.3 2 2 Gold in Circuit4 4 4 Subtotal Jundee Stockpiles1,107 1.2 44 1,107 1.2 44 44 Subtotal Jundee1,400 2.8 125 1,080 7.4 258 2,480 4.8 383 383 TOTAL RESERVES2,568 4.6 380 4,802 5.2 804 7,369 5.0 1,184 927 Note :1. Mineral Reserves are reported at the following gold prices of A$1,450/oz Au. Jundee is at A$1,415 Au price and the Ashburton is at A$1,650/oz Au.2. Tonnages include allowances for losses resulting from mining methods with tonnages rounded to the nearest 1,000 tonnes.3. Ounces are estimates of metal contained in the Mineral Reserve and do not include allowances for processing losses. 4. Numbers are 100% NST attributable (East Kundana Joint Venture partners Rand Mining Limited and Tribune Resources Limited for tonnes and contained ounces not reported).5. The year on year variance in ounces is based on this Annual Report and the Northern Star Annual Operations Report 2013.Competent Persons1. Roger Bryant. 2. Shane Mcleay (Entech Pty Ltd). 3. Jeff Brown. 4. Bryn Jones. 5. Stasi Capsanis. 6.Darren Stralow.JUNDEE GOLD PROJECTKALGOORLIE GOLD PROJECTKundana
DIRECTORS’ REPORT
The Directors of Northern Star Resources Limited (Northern Star) present their report together with the consolidated financial
report for the year ended 30 June 2014.
DIRECTORS
The Directors in office at the date of this report, and at any time during the financial year, are as follows. Directors were in
office for the entire year unless otherwise stated.
Name and Qualifications
Experience, Special Responsibilities and Other Directorships
Christopher K G Rowe
BA, MA Economics and Law
Independent Non-Executive Chairman
Appointed: 20 February 2003
Mr Rowe has practised as a lawyer both in the United Kingdom and in Western Australia
before becoming a full time consultant to the mining and oil and gas industries. He has
been chairman or deputy chairman of a number of public listed mining and oil and gas
related companies in Australia and North America, holding both executive and non-
executive positions.
William J (Bill) Beament
B.Eng-Mining (Hons)
Managing Director
Appointed: 20 August 2007
Peter O’Connor
MA, Economics and Political Science,
Trinity College, Dublin University;
Barrister-at Law, The Kings Inn, Dublin
Independent Non-Executive Director
Appointed: 21 May 2012
John D Fitzgerald
CA, Fellow FINSIA, GAICD
Independent Non-Executive Director
Appointed: 30 November 2012
Michael G Fotios
BSc (Hons), MAusIMM
Non-Executive Director
Appointed: 4 September 2009
Resigned: 24 October 2014
COMPANY SECRETARY
Liza Carpene
MBA, AGIA, ACIS, GAICD
Company Secretary
Appointed: 15 April 2013
Mr Rowe is currently Chairman of Target Energy Limited (since January 2010) and was
previously a director of Tangiers Petroleum Limited (from April 2008 to October 2010).
Mr Rowe is a member of the Audit Committee, and Chair of the Nomination and
Remuneration Committees.
Mr Beament is a mining engineer with more than 19 years’ experience in the resource
sector. Previously he held several senior management positions, including General Manager
of Operations for Barminco Limited with overall responsibility for 12 mine sites across Western
Australia and General Manager of the Eloise Copper Mine in Queensland. Mr Beament is
the current President of Western Australian School of Mines Graduate Association
representing over 3,000 graduates.
Mr Beament is a member of the Nomination Committee.
Mr O’Connor has extensive global experience in the funds management industry, both in
public and private companies in developed and emerging economies. He was co-founder,
director and deputy chairman of IMS Selection Management Ltd which had $10 billion
under management or advice from 1998-2008. Following the sale of IMS to BNP Paribas in
2008, he was deputy chairman of FundQuest UK Ltd with $35 billion of assets under
management from 2008-2010.
Mr O’Connor was previously a Director and Chairman of ASX listed Brazilian Metals Group
Limited (from May 2011 to October 2012), LSE listed Advance Developing Markets Fund
(from October 1998 to April 2012) and TSX listed NEO Material Technologies Inc (from
December 1993 to June 2012).
Mr O’Connor is a member of the Audit, Nomination and Remuneration Committees.
Mr Fitzgerald has over 25 years resource financing experience and has provided project
finance and corporate advisory services to a large number of companies in the resource
sector.
Mr Fitzgerald is the Managing Director of Optimum Capital Pty Ltd, a corporate advisory
business focussed on the mining sector. He has previously held senior positions at NM
Rothschild & Sons, Investec Bank Australia, Commonwealth Bank and HSBC Precious Metals.
Mr Fitzgerald is a Chartered Accountant, a Fellow of the Financial Services Institute of
Australasia and a graduate member of the Australian Institute of Company Directors.
Mr Fitzgerald is a Non-Executive Director of Mungana Goldmines Limited (from June 2009)
and was previously Chairman of Integra Mining Limited.
Mr Fitzgerald is the Chair of the Audit Committee and a member of the Nomination and
Remuneration Committees.
Mr Fotios has qualifications in Geology specialising in Economic Geology with extensive
experience in exploration throughout Australia working with gold, base metals, tantalum, tin
and nickel from exploration to feasibility over the last 26 years. He previously held positions
with Homestake Australia Limited and Sons of Gwalia Limited.
Mr Fotios is currently Executive Director of Redbank Copper Limited (from September 2012)
and Non-Executive Director of Swan Gold Mining Limited (from September 2012), General
Mining Corporation Limited (from June 2012), Horseshoe Metals Limited (from May 2012) and
Pegasus Metals Limited (from December 2009). Mr Fotios was previously a director of Stirling
Resources Limited (from September 2012 to November 2012).
Mr Fotios was a member of the Nomination and Remuneration Committees.
Ms Carpene has worked in the mining industry for more than 18 years and has significant
experience in corporate administration, human resources, IT and community relations. Most
recently, Ms Carpene was Company Secretary/CFO for listed explorer Venturex Resources
Limited and previously held various site and Perth based management roles with Great
Central Mines, Normandy Mining, Newmont Australia, Agincourt Resources and Oxiana.
2014 Annual Financial Report
Page 9
DIRECTORS’ REPORT
DIRECTORS’ MEETINGS
The number of Directors’ meetings and attendance by each Director in the capacity of a Director of the Company from the
beginning to the end of the period are:
DIRECTORS’ MEETINGS
AUDIT
REMUNERATION
NOMINATION
Director
Christopher Rowe
Bill Beament
John Fitzgerald
Michael Fotios
Peter O'Connor
Attended
20
19
20
7
19
Held
20
20
20
7
20
Attended
2
*
3
*
3
Held
3
*
3
*
3
Attended
7
*
7
3
6
Held
7
*
7
4
7
Attended
2
2
2
1
2
Held
2
2
2
1
2
MEETINGS OF COMMITTEES
* Not a member of the relevant committee
Table 4: Director Attendance at Meetings
CORPORATE STRUCTURE
Northern Star Resources Limited is a company limited by shares that is incorporated and domiciled in Australia. Northern Star
Resources Limited has prepared a consolidated financial report incorporating the entities that it controlled during the
financial year as follows:
Northern Star Resources Limited – parent entity
Northern Star Mining Services Pty Ltd – 100% owned subsidiary
Northern Star (Kanowna) Ltd – 100% owned subsidiary - acquired 1 March 2014
(including subsidiary Kundana Gold Pty Ltd)
Gilt-Edged Mining NL – 100% owned subsidiary - acquired 1 March 2014
(including subsidiary EKJV Management Pty Ltd)
Kanowna Mines Ltd – 100% owned subsidiary - acquired 1 March 2014
GKL Properties Pty Ltd – acquired 1 March 2014
PRINCIPAL ACTIVITIES
The principal activities of the Group are:
mining of gold deposits at Paulsens, Plutonic, Kanowna Belle and Kundana (Jundee from 1 July 2014);
construction and development of extensions to existing gold mining operations at all locations, and
exploration for gold deposits in the Ashburton, Kalgoorlie and Plutonic regions of Western Australia.
The entity’s operations are discussed in the Review of Operations section at the front of this report.
FINANCIAL OVERVIEW
Revenue
EBITDA(1)
EBIT(2)
Net Profit / (loss) (3)
Underlying Profit / (loss) (4)
Cash flow from Operating Activities
Cash flow from Investing Activities
Sustaining Capital
Non Sustaining Capital
Exploration
Free Cash flow
Average Gold Price /ounce
Earnings per share (cents/share)
Table 5 – Financial Overview
Financial Year End
30 June 2014
296,976
99,666
52,063
24,007
38,633
98,679
(49,964)
(36,815)
0
(13,149)
48,715
A$1,410
5.0
Financial Year End
30 June 2013
144,236
63,785
37,560
28,328
28,328
65,892
(63,551)
(30,132)
(18,190)
(15,229)
2,341
A$1,552
6.6
Change
152,027
35,881
14,503
(4,321)
10,305
32,787
13,587
(6,683)
18,190
2,080
46,374
(A$142)
(1.6)
%
Change
106%
56%
39%
(15%)
36%
50%
(21%)
22%
N/A
(14%)
1,981%
(9%)
(24%)
(1) EBITDA is calculated as follows: Profit before Income Tax plus depreciation and amortisation plus finance cost plus one off acquisition and redundancy charges
(2) EBIT is calculated as follows: Profit before Income Tax plus finance costs plus one off acquisition and redundancy charges
(3) Net Profit is calculated as net profit after taxation
(4) Underlying Profit is calculated as net profit plus one off acquisition and redundancy charges
Reference to $ in the Directors’ Report refers to Australian dollars (A$).
2014 Annual Financial Report
Page 10
DIRECTORS’ REPORT
Profit
For the financial year ended 30 June 2014 the Company reported a net profit of $24 million (2013: $28.3 million).
Reconciliation between the net profit after tax and the Group’s underlying profit is outlined in Table 6. This reconciliation is
an unaudited non-IFRS measure that, in the opinion of the Board, provides useful information to assess the operating
performance of the Group.
Underlying profit for 30 June 2014 was $38.6 million which was 36% higher than the underlying profit for the previous financial
year. Increased gold production from the Company’s recent acquisitions resulted in revenue increasing by 106% to $297
million for the financial year. Revenue was impacted somewhat by a decline in average gold price realised of 9%.
Underlying profit and net profit differences are reconciled as follows:-
Profit Reconciliation
Net Profit
Acquisition Costs
Redundancy Costs
Underlying Profit
Table 6 – Profit Reconciliation
$000s
24,007
7,382
7,245
38,634
Underlying EBITDA was $99.7 million for the financial year ended 30 June 2014, which was an increase of 51% over the
corresponding period. Depreciation and amortisation charges in the 2014 financial year were up 82% with the increase
largely attributable to the purchase of the Plutonic, Kanowna Belle and Kundana gold mines. Underlying EBIT was up by 31%
to $49 million for the 2014 financial year the increase reflecting the strong performance of the newly acquired mines.
Corporate costs for the financial year increased by $3.4 million in line with the increased scale of the Group.
Balance Sheet
Current assets as at the 30 June 2014 increased by 149% against the prior year balance date. The increase was largely a
result of cash on hand increasing by $26.6 million and inventories (gold in circuit and ore stocks) increasing by $50.6 million
which is a reflection that Northern Star had three operating processing centres during the period.
Non-current assets increased by $138 million largely through the addition of the Plutonic, Kanowna Belle and Kundana mine
assets.
Increases in trade payables ($22.7 million) and provisions ($17.3 million) are in line with the addition of the three mines and
the associated employee complement.
Non-current liability increases are reflective of the increase in employee entitlements and the higher environmental liability
provisions. Contributed equity increased through the capital raising of net $125.6 million.
Review of Cash Flow
Cash flow from operating activities for the 12 months ended 30 June 2014 was $98.7M which was $32.8 million higher than
the previous financial year ($65.9 million).
receipts from customers increased by 114% due to higher gold production offset by a reduction in gold price of 9% from
the previous year; and
supplier payments increased by $126 million reflecting the increases the overall scale of the Company.
Cash flows from investing activities decreased by 21% after allowance for the purchase of the Barrick mines. Lower
exploration spend was a result of the fall in gold price which necessitated a review of discretionary spending. Sustaining
capital increased by $6.7 million in line with the new mine additions.
Dividends
Dividends paid to Members during the 2014 financial year were as follows:
Dividend Rate
2.5 cents per share
1.0 cent per share
Record Date
16 August 2013
13 March 2014
Payment Date
27 September 2013
4 April 2014
Franking
100% franked
100% franked
After balance date the following dividend was proposed by the Directors.
Dividend Rate
2.5 cents per share
Record Date
15 September 2014
Payment Date
3 October 2014
Franking
100% franked
The financial effect of this dividend has not been brought to account in the financial statement for the period ended 30
June 2014 and will be recognised in subsequent financial reports.
2014 Annual Financial Report
Page 11
DIRECTORS’ REPORT
CAPITAL STRUCTURE
As at 30 June 2014, the Company had 579,404,804 fully paid ordinary shares and 1,791,666 unlisted options on issue.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
The following significant changes in the state of affairs of the Company occurred during the period:
Northern Star entered into an agreement with Barrick Gold Corporation to acquire all the assets of Plutonic Gold Mine.
The acquisition was completed on 1 February 2014. Further details of the transaction are discussed in Note 33.
Northern Star entered into an agreement with Barrick Gold Corporation to acquire all the assets of Kanowna Belle and
Kundana Gold Mines (inclusive of Barrick's 51% interest in the East Kundana Joint Venture). The acquisition was
completed on 1 March 2014. Further details of the transaction are discussed in Note 34.
Northern Star raised ~$128.9 million through the placement of ~150 million shares at $0.86 via an institutional placement
and share purchase plan.
Other than noted elsewhere in this report, there were no other significant changes in the state of affairs of the Group
that occurred during the year under review.
SUBSEQUENT EVENTS
Subsequent to the period end, the Company announced:
a final dividend of 2.5 cents per share to Shareholders on the record date of 15 September 2014 , payable on 3 October
2014;
an updated Resources and Reserves Statement effective as at 30 June 2014 which was released on the 4 August 2014;
the completion of the acquisition on 1 July 2014 of the Jundee Gold Mine from Newmont Mining Corporation for cash
consideration of A$82.5 million. As part of the acquisition, the Group drew down A$70 million from its A$100 million credit
facility with Investec Bank Plc; and
the issue of 7,854,843 fully paid ordinary shares in return for waiving the right of first refusal to buy the Jundee Gold Mine,
and the issue of 170,012 fully paid ordinary shares as a result of a cashless conversion of options.
There are no other matters or circumstances that have arisen since 30 June 2014 that have or may significantly affect the
operations, results, or state of affairs of the Group in future financial years.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Company holds licences and abides by Acts and Regulations issued by the relevant mining and environmental
protection authorities. The Company has a policy of at least complying with, but in most cases exceeding, its statutory
environmental performance obligations. These licences, Acts and Regulations specify limits and regulate the management
of various environmental management issues, including discharges to the air, surface water and groundwater associated
with the Company’s mining operations as well as the storage and use of hazardous materials.
All environmental performance obligations are monitored by the Board and subjected from time to time to Government
agency audits and site inspections. No environmental breaches have occurred or have been notified by any Government
agencies during the year ended 30 June 2014.
DIRECTORS’ INTERESTS
The relevant interest of each Director in the share capital as notified by the Directors to the Australian Securities Exchange in
accordance with Section 205G(1) of the Corporations Act 2001, at the date of this report is as follows:
Name of Director
Christopher Rowe
Bill Beament
John Fitzgerald
Peter O'Connor
Michael Fotios (as at 24 October 2013)
SHARE OPTIONS
Fully Paid
Ordinary Shares
4,412,590
14,109,252
60,000
500,000
29,050,374
Options
-
Exercise Price
-
Details of Options
-
-
-
-
-
-
-
-
-
-
-
-
-
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Type
Employee Options
Employee Options
Employee Options
Employee Options
Employee Options
Employee Options
Number
333,333
250,000
250,000
125,000
333,333
250,000
Exercise Price
$1.50
$0.95
$1.22
$1.22
$1.81
$1.05
Expiry Date
Expiring on 27 February 2015
Expiring on 15 April 2015
Expiring on 27 August 2015
Expiring on 1 November 2015
Expiring on 27 February 2016
Expiring on 15 April 2016
2014 Annual Financial Report
Page 12
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
A. Introduction
This report details the nature and amount of remuneration for Directors and Executive of Northern Star Resources Limited.
The information provided in the Remuneration Report includes remuneration disclosures that are audited as required by
Section 308(3C) of the Corporations Act 2001.
For the purposes of this report, Key Management Personnel (KMP) of the Group are defined as those persons having
authority and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly,
including any Director (whether Executive or otherwise) of the parent company. Northern Star’s KMP are defined as:
Directors, Chief Operating Officer, Chief Financial Officer and Company Secretary.
For the purposes of this report the term “Executive” includes the Managing Director, Chief Operating Officer, Chief Financial
Officer and Company Secretary.
Details of KMP during the Year:
Non-Executive Directors
Christopher Rowe
Non-Executive Chairman
Peter O’Connor
Non-Executive Director
John Fitzgerald
Michael Fotios*
Non-Executive Director
Non-Executive Director
Executives
Bill Beament
Managing Director
Raymond Parry
Chief Financial Officer
Liza Carpene
Stuart Tonkin**
Company Secretary
Chief Operating Officer
* Resigned 24 October 2013
** Appointed 2 September 2013
B. Remuneration Governance
Board Oversight
The Board is responsible for ensuring that the Group’s remuneration structures are aligned with the long-term interests of the
Company and its Shareholders. Accordingly, the Board has an established Remuneration Committee to assist it in making
decisions in relation to KMP remuneration.
Remuneration Committee
The Remuneration Committee currently comprises all Independent Non-Executive Directors. The Remuneration Committee
comprised of three independent Non-Executive Directors for the entire period and one non-independent Non-Executive
Director until 24 October 2013.
The Remuneration Committee is responsible for reviewing and recommending to the Board:
the Company’s Remuneration Policy and framework (including determining short term incentives (STIs) key performance
indicators and long term incentives (LTIs) performance hurdles, and vesting of STIs/LTIs),
senior executives’ remuneration and incentives (including KMP and other senior executives),
non-executive individual remuneration and the aggregate pool for approval by Shareholders (as required),
superannuation arrangements, and
remuneration by gender.
Executive remuneration is reviewed annually having regard to individual and business performance, relevant comparative
information (such as the Australasian Gold & General Mining Industry Remuneration Report by Aon Hewitt), and internal and
independent external information.
In order to ensure that this Committee is fully informed when making remuneration recommendations, the Committee
receives reports from Management, independent sources, empirical market data and may draw on services from a range
of other external sources if required.
Use of Remuneration Consultants
The Remuneration Committee consulted with external sources during the period to obtain information in relation to
reviewing the Executive and Non-Executive remuneration and mix of remuneration.
During the year ended 30 June 2014 no remuneration recommendations, as defined by the Corporations Act, were
provided by remuneration consultants.
C. Principles Used to Determine the Nature and Amount of Remuneration
Remuneration Philosophy
The performance of the Company depends upon the quality of its Directors and Executives. To succeed and endure, the
Company must attract, motivate and retain highly skilled Directors and Executives.
To this end, the Company embodies the following principles in its remuneration framework:
provides for competitive rewards to attract and retain high calibre Executives;
2014 Annual Financial Report
Page 13
DIRECTORS’ REPORT
aligns the incentives of Executives with the long-term interests of Company Shareholders by linking rewards to
Shareholder value; and
establishes appropriate key performance indicators and hurdles in relation to variable Executive remuneration.
In accordance with good corporate governance practices, the structure of Non-Executive Director and Executive
management remuneration is separate and distinct.
Non-Executive Director Remuneration
The Board’s objective is to set aggregate remuneration at a level which provides the Company with the ability to attract
and retain Directors of the highest calibre, whilst incurring a cost which is acceptable to Shareholders.
Non-Executive Directors’ fees are paid within an aggregate limit (currently $500,000 per annum – approved in 2011) which is
approved by the Shareholders from time to time. Retirement payments, if any, are agreed to be determined in accordance
with the rules set out in the Corporations Act as at the time of a Director’s retirement or termination.
The Board reviews on an annual basis the manner in which it apportions the aggregate remuneration amongst Non-
Executive Directors at its discretion, and the amount of aggregate remuneration sought to be approved by Shareholders.
When undertaking the annual review process, the Board considers the amount of Non-Executive Director fees being paid by
comparable companies within the S&P ASX200 with similar market capitalisation, responsibilities and experience of the Non-
Executive Directors.
The Board has increased its current individual Directors’ Fees effective 1 July 2014 as detailed below in Section D, whilst
remaining within the current aggregate limit of $500,000 per annum.
Executive Director and Senior Executive Remuneration
The Board’s objective is to reward Executives with a level and mix of remuneration commensurate with their position and
responsibilities within the Company and so as to:
motivate and reward Executives for Company and individual performance,
ensure continued availability of experienced and effective management, and
ensure total remuneration is competitive by market standards.
In reviewing the level and make-up of Executive total remuneration, the Remuneration Committee ensures remuneration
reflects the market salary for a position and individual of comparable responsibility and experience. Remuneration is
compared with the external market by reviewing industry salary surveys, sourcing empirical market data and other
evaluation methods during the recruitment process. Target positioning of total remuneration against market is between the
50th and 75th percentile. If required, the Remuneration Committee may engage an external consultant to provide
independent advice in the form of a written report detailing market levels of remuneration for comparable Executive roles.
Total remuneration for the 2014 financial year consisted of a mix of:
fixed remuneration; and
“at risk” variable remuneration, comprising STIs and LTIs.
Component
Consist of
Objective
Link to Performance FY2014
REMUNERATION STRUCTURE FOR 1 JULY 2013 TO 30 JUNE 2014
Fixed Remuneration
(TFR)
Base salary, superannuation
and other non-cash benefits
Short-term Incentives
(STI)
Cash payments targeted at a
percentage of TFR
Long Term Incentives
(LTI)
Performance Shares/Loans or
Share Options based on a
percentage of TFR
To provide a base level of remuneration
which is both appropriate for the position
and competitive in the market
To provide an “at risk” incentive to reward
Executives in a manner which aligns this
element of
the
creation of Shareholder wealth through
the achievement of annual performance
measures
remuneration with
To provide a market competitive STI
opportunity
To provide an “at risk” grant to incentivise
and motivate Executives to pursue the
long term growth and success of the
Company
To provide a market competitive LTI
opportunity
To support retention of Executives and
key personnel
Annual performance of Company and individual.
Combination of specific Company Key Performance
Indicators (KPIs) (65%):
KPI 1: Financial outcome: increase in NPAT on
FY2013 by 5%;
KPI 2: Stretch production: 5% above budget;
and
KPI 3: Social Licence:
safety
measures, no
significant environmental or
community related incidents, achievement of
diversity targets
reduction
in
Individual KPI and personal performance at least
satisfactory (35%).
Vesting at year 3 on achievement of performance
hurdles:
Relative Total Shareholder Return: target 50% of
peers (RMS, SLR, SAR, RRL, RSG, EVN, NGF, KCN,
OGC, SBM);
Total Shareholder Return: target 15% compound
annual growth rate; and
Resource / Reserve Replacement: maintaining at
least 2 years of Reserves and 4 years of Resources
at Paulsens.
Board reserves the right to vest LTIs at its discretion.
Following a review by the Remuneration Committee subsequent to the end of the financial year, the Board resolved to set
the STI KPIs and the LTI hurdles as follows for the 2015 financial year:
2014 Annual Financial Report
Page 14
DIRECTORS’ REPORT
REMUNERATION STRUCTURE FOR 1 JULY 2014 TO 30 JUNE 2015
Component
Link to FY Performance 2015
TFR
Salaries awarded effective 1 July 2014 used as base for determining value component for FY2015 STIs and LTIs.
Short-term Incentives
(STI)
Combination of specific Company Key Performance Indicators (KPIs) (65%):
KPI 1: Financial outcome (20%): Achieve FY2015 Budget NPAT as approved by the Board4:
o 10% payable on Budget NPAT achievement, and
o then pro-rata for each additional percentage point above Budget achievement – max payable (20%) at 10% above Budget
NPAT;
KPI 2: Production (15%): Production within stated guidance 550-600koz
o payable pro-rata from 575koz: 0% @ 575koz to 15% @ 625koz); and
KPI 3: Costs (15%): AISC within stated guidance A$1,050 to A$1,100
o pro-rata 0% at A$1,075 to 15% at A$1,025
KPI 4: Social Licence (15%): reduction in safety measures, no environmental or community incidents, increase in diversity targets by
5% from 2014 numbers
Individual KPI and personal performance at least satisfactory (35%).
Long Term Incentives
(LTI)
Vesting at year 3 on achievement of performance hurdles:
Relative Total Shareholder Return (40%): target 50% of peers5 (SLR, SAR, RRL, RSG, EVN, KCN, OGC, SBM, NCM);
Total Shareholder Return (40%): target 15% compound annual growth rate; and
Resource / Reserve Replacement (20%): maintaining at least 2 years of Reserves based on the annualised Company production
and 6 years of Resources.
Board reserves the right to vest LTIs at its discretion.
D. Non-Executive Director Remuneration
2014 Remuneration of Non-Executive Directors
For the 2014 financial year, the Non-Executive Directors were paid base fees associated with their duties as Directors and
members of Board Committees. The policy for Non-Executive Director base fees was $135,000 per annum for the Non-
Executive Chairman and $85,000 per annum for other Non-Executive Directors, inclusive of superannuation contributions.
The Chair of the Audit Committee received an additional $25,000 per annum in recognition of the additional level of
commitment and responsibility. Refer to the table below for amounts paid for the period.
Total Non-Executive Director Remuneration - FY2014
Total remuneration paid or payable to Non-Executive Directors for the period ended 30 June 2014 was:
Salary /
Consulting
Fees
Year
$
STI Cash
Payment^
$
Directors
Christopher Rowe
Peter O’Connor
John Fitzgerald *
*Appointed 20 November 2012
Michael Fotios**
**Resigned 24 October 2013
2014
2014
2014
2013
2014
2013
135,000
84,996
100,000
57,197
26,505
77,500
Non-Executive Director Remuneration – FY2015
-
-
-
-
-
-
Super
$
-
-
10,250
5,530
-
-
Options
$
-
281,492
-
-
-
-
Total
$
135,000
366,488
110,250
62,727
26,505
77,500
Remuneration
Consisting of Options
During the Year
%
0.0%
76.8%
0.0%
0.0%
0.0%
0.0%
The Board has increased its individual Directors’ Fees effective 1 July 2014 as detailed below, whilst remaining within the
current aggregate limit of $500,000 per annum.
Name
Christopher Rowe
Peter O’Connor
John D Fitzgerald
Base Salary
(at 30/6/14)
Termination
Benefit
Base Salary
(from 1/7/14)
Termination
Benefit
$135,000
$85,000
$110,000*
None
None
None
$150,000
$110,000
$135,000*
None
None
None
* Includes $25,000 in recognition of additional commitment and responsibility as Chair of the Audit Committee.
The Board will seek approval from Shareholders to increase the aggregate fee limit at the 2014 Annual General Meeting to
enable the Board to expand its membership as required in line with the growth of the Company.
E. Executive Remuneration
2014 Executive Remuneration
Remuneration for the 2014 financial year consisted of a mix of:
fixed remuneration; and
variable remuneration, comprising STIs and LTIs*.
*In relation to the 2014 financial year, LTIs were allocated in November 2013 following approval of the Performance Share Plan at the Annual General Meeting.
4 KPI 1 (based on 20% of total STI) will be measured against target NPAT performance for the year as set by the Board. Target NPAT performance requirements have
not been disclosed due to commercial sensitivity but will be disclosed in the FY2015 Remuneration Report showing the performance achieved versus the target
performance required and the relevant bonus amount based on this performance.
5 Peer group for FY2015 reviewed and modified effective 1 July 2014.
2014 Annual Financial Report
Page 15
DIRECTORS’ REPORT
Fixed Remuneration
Individual Executives’ base salaries for the 2014 financial year were:
Name
Position
Bill Beament
Managing Director
Raymond Parry
Chief Financial Officer
Liza Carpene
Stuart Tonkin
Company Secretary
Chief Operating Officer (Appointed 2 September 2013)
Base Salary
(30/6/13)
Base Salary Increase
(%) for 2013/14
Base Salary
(at 1/7/13 to 30/6/14)
495,000
287,000
227,273
N/A
0.25%
0.25%
0.00%
N/A
496,238
287,718
227,273
425,000
* Statutory increase in superannuation contributions was attributed to base salary due to individual contributions cap of $25,000.
Following a review by the Remuneration Committee subsequent to the end of the 2014 financial year, the Board
determined the following remuneration package adjustments to individual Executives effective 1 July 2014:
Name
Position
Bill Beament
Managing Director
Raymond Parry
Chief Financial Officer
Liza Carpene
Company Secretary
Stuart Tonkin
Chief Operating Officer
Base Salary
Increase (%)
effective 1/7/2014
Base Salary
(at 1/7/14)
Superannuation
(capped)
Total Fixed
Remunderation
Potential
STI %
Potential
LTI %
31.6%
0.0%
32.0%
11.8%
725,000
287,718
300,000
475,000
25,000
25,000
25,000
25,000
750,000
312,718
325,000
500,000
35%*
25%
25%
35%*
65%*
35%
35%
65%*
*Adjusted: refer to Variable Remuneration section below.
These adjustments were approved after considering the substantial growth in Company size and operational production
profile, levels of increased responsibility, Company and individual performance, and remuneration of peer companies
based on market capitalisation and production profiles.
As part of the review, the Remuneration Committee also considered industry data from the Australasian Gold & General
Mining Industry Remuneration Report 2014 as well as a report commissioned specifically in relation to Executive
Remuneration (Aon Hewitt/McDonald). The Aon Hewitt/McDonald general remuneration report is based on data collected
from organisations in a survey group representing gold and other mining companies. The report on Executive Remuneration
considered data in relation to the Company’s designated peer group as well as other ASX200 comparative mining
companies. This comparator group reflects the key talent market for Northern Star and therefore competitiveness against
this group is required to attract and retain key talent. Fixed remuneration is targeted between the 50th and 75th percentile
of the market comparator group, with consideration of individual performance reviews determining final remuneration.
Variable Remuneration – STIs
STIs paid in the 2014 financial year were for the performance by eligible Executives in the 2013 financial year. The overall
target STI amount available for 2013 financial year was up to 50% of TFR for each Executive. The STI was made up of a site
performance measure and growth bonus of up to 35% (see table below) and an additional bonus of 15% of TFR should
ounces produced exceed budget by greater than 10% and the market capitalisation of Northern Star increased by greater
than 50% for the financial year period. The Board, however, retained absolute discretion to increase the STI to reward
exceptional performance, and to reduce the award depending on the Company’s performance.
Key Performance Indicators 2013
Measure
Safety Metrics
Production Budget
Production Growth
To ensure a safe working environment in terms of Loss Time Injuries and Total Recordable Injuries
Attainment of tonnes, grade and ounces for the financial year budget
Grow production profile to 400ktpa
Reserve and Resource Metrics
Increase reserves to 150koz and resources to 1.0moz
Business Development
Share Price Metrics
Confidential KPI
Share price increase by 25% over the financial year
The Remuneration Committee approved STIs for KMP for the 2013 financial year based on Company KPI achievement and
personal KPI performance based on the KMP’s TFR for the period (refer table on next below).
STIs relating to the 2014 financial year were based on up to 50% of TFR for the Managing Director, and up to 25% of TFR for
Other Executives. KPIs (corporate and individual) for the 2014 financial year were:
Key Performance Indicators 2014
Measure
KPI 1: Financial Outcome (35%)
Increase in NPAT on FY2013 by 5%
KPI 2: Stretch Production (15%)
Increase in production above budget by 5%
Achievement
Did not achieve
Partially achieved on a weighted basis due to change in
scale of business
KPI 3: Social Licence (15%)
Reduction in safety measures, no Environmental or
Community incidents, achievement of diversity targets
Did not achieve Safety/Diversity
Achieved Environmental/Community
Individual KPIs/Personal Performance
(35%)
As determined for each individual Executive
Majority achieved or set aside due to increased workload
associated with significant corporate activity involving the
acquisition of four operating mines
Whilst the majority of the Company KPIs were not achieved, the Board recognised the significant achievements during the
period, and exercised its discretion to award 80% of the potential of Executives’ STIs on the following basis:
outstanding performance during the year in acquiring the four operating mines promoting the Company to the second
biggest ASX listed gold producer in Australia;
2014 Annual Financial Report
Page 16
DIRECTORS’ REPORT
increase in Northern Star’s share price by ~115% over the 12 month period to 30 June 20146 resulting in it being the best
performing stock in the ASX200 for FY2014; and
dedication and commitment to the Company’s overall performance and growth.
As a result, STI payments for the 2014 financial year to Executive KMP were recommended as follows and will be paid in
October 2014:
Name
Position
Bill Beament
Managing Director
Raymond Parry
Chief Financial Officer
Liza Carpene
Stuart Tonkin
Company Secretary
Chief Operating Officer
*Pro-rata based on commencement date of 15 April 2013.
**Appointed 2 September 2013 – pro-rata entitlement.
Variable Remuneration – LTIs
STI Payment For FY 2014
Paid In FY 2015
STI Payment For FY 2013
Paid In FY 2014
$208,495
$62,543
$50,113
$75,000**
$134,288
$80,573
$14,479*
N/A
During the 2014 financial year, Performance Shares were issued to six Executives and ten senior staff in accordance with the
Performance Share Plan approved by Shareholders at the Annual General Meeting in November 2013. This Plan provides
the Board with the discretion to grant Performance Shares on an annual basis to certain Executives that will vest subject to
the satisfaction of performance hurdles, as determined by the Board. Shareholder approval was obtained at the 2013
Annual General Meeting to issue LTIs in the form of Performance Shares to the Managing Director without seeking further
Shareholder approval to a maximum of 3,000,000 shares. To date 1,000,000 Performance Shares have been issued to the
Managing Director.
The LTI arrangements have been designed to motivate and incentivise Executives to drive the Company’s long term
performance to deliver greater returns to Shareholders. The hurdles defined for the 2014 financial year will be measured at
year three (2016) against (1) a Relative Total Shareholder Return against a group of peers, (2) Total Shareholder Return
targeting compound annual growth of 15% and (3) Resource/Reserve Replacement for the Paulsens Gold Mine (hurdle
changed for FY2015). In order to achieve vesting of LTIs by Executives, the set hurdles must be achieved as at 30 June of the
measurement year, along with continued employment and satisfactory performance reviews in all years.
The Performance Share Plan also provides an appropriate framework to incentivise other key Company employees who are
not at the Executive level as may be determined from time to time. For the sake of simplicity the comments here focus on
incentivising of Executives, but the framework will apply in the same manner for select non-Executives, with differing
percentage performance requirements against similar measures.
Accordingly, under the Performance Share Plan, senior Executives will be granted Performance Shares (outlined below), with
vesting of any Performance Shares subject to the satisfaction of performance hurdles.
Each Performance Share represents an actual legal interest in a share in the Company on day one of the vesting period,
with the Share being forfeited for no consideration should the vesting condition not be met. Under the terms of the
Performance Share Plan, the Shares are issued to the Executive at their current market value, with the Executive required to
pay this market value amount in order to take up the Share offer. The Company will provide the Executive with a loan to
fund the acquisition price. The loan is interest-free and is secured against the Shares in the form of a holding lock preventing
all dealing in the Shares. The loan is limited recourse, such that if the Shares are forfeited, this is treated as full repayment
against the loan balance. While a loan balance remains outstanding, any dividends paid on the Shares will be
automatically applied towards the repayment of the loan.
In making the loan in respect of newly issued Shares, there is no cash cost to the Company, as the Shares are newly issued,
with the loan essentially being an obligation to repay the amount due when the Shares are sold or forfeited. This also means
that no funds are raised upon the issue of the Shares.
In substance, the Performance Share Plan operates in the same way as an option plan, therefore provided the size of the LTI
award is reasonable and there are appropriate vesting conditions, it should be viewed in the same light as an option plan.
The following Performance Shares were issued to KMP in relation to the 2014 financial year.
Name
Bill Beament
Raymond Parry
Liza Carpene
Stuart Tonkin
Position
Managing Director
Chief Financial Officer
Company Secretary (Appointed 15 April 2013)
Chief Operating Officer
No of Performance
Shares Issued for
FY2013/14 Period
1,000,000
425,000
325,000
500,000
Remaining
Loan Value
30/6/2014
720,814
306,346
234,264
360,407
Note: Shares issued at 5 Day VWAP of $0.7304 on 20 November 2013, and loan values have been reduced due to the payment of interim dividends paid in April 2014.
LTIs for the 2015 financial year will be issued in the same manner as for the 2013 financial year, except quantums will be
based on the modified potential LTI percentage levels for the Managing Director and the Chief Operating Officer, and in
accordance with the new LTI hurdles as detailed previously in this report7.
The issue of the 2015 financial year LTIs will be issued subsequent to this report in October 2014.
6 5DVWAP 30 June 2013 $0.58. 5DVWAP 30 June 2014 $1.26.
7 Managing Director and Chief Operating Officer now receive STIs at 35% and LTIs at 65% per annum.
2014 Annual Financial Report
Page 17
DIRECTORS’ REPORT
Total Remuneration - 2014
Total remuneration paid or payable to KMP for the year ended 30 June 2014 was:
Executive
Executive Directors
Bill Beament
Other Executives
Raymond Parry
Liza Carpene
Stuart Tonkin*
Year
2014
2013
2014
2013
2014
2013
2014
Salary /
Consulting
Fees
$
496,238
493,939
287,718
287,000
227,273
48,369
354,167
Other
Benefits (1)
$
STI Cash
Payment^
$
9,343
19,961
1,431
2,071
2,576
357
416
134,288
150,223
80,573
90,134
14,479
-
-
Super
$
25,000
27,121
25,000
25,000
23,295
4,837
20,833
Options
$
250,706
257,457
-
14,553
85,213
10,973
-
Total
$
915,575
948,701
394,722
418,758
350,261
64,806
375,000
Remuneration
Consisting of
Options During the
Year
%
Percentage of
Performance
Related
Remuneration
%
27.4%
27.1%
0.0%
3.5%
24.3%
16.9%
0.0%
42.0%
42.9%
20.4%
25.0%
28.46%
16.9%
0.0%
* Appointed 2 September 2013
(1)Other Benefits include: vehicle allowance, telephone allowance, salary continuance insurance and professional membership fees.
Executive Contracts
Executive
Term of Agreement
Executive Directors
Base Salary
(at 30/6/13)
Base Salary
(at 1/7/14)
Termination
Notice
Termination
Benefit
Bill Beament
Commencing 30 July 2010 – open ended
496,238
725,000
3 Months
12 Months
Other Executives
Raymond Parry
Commencing 4 October 2010 – open ended
Liza Carpene
Stuart Tonkin
Commencing 15 April 2013 – open ended
Commencing 2 September 2013 – open ended
287,000
227,273
425,000
287,000
300,000
475,000
1 Month
1 Month
1 Month
None
None
None
F. Equity Instrument Holdings
(i) Shareholdings
The number of ordinary shares in the Company held during the financial year by each Director of Northern Star and any
other KMP of the Group, including their personally related parties, are as follows:
2014
Name
Directors
Christopher Rowe
Bill Beament*
John Fitzgerald
Peter O'Connor
Michael Fotios (as at 24 October 2013)
Key Management Personnel
Ray Parry*
Stuart Tonkin*
Liza Carpene*
Balance at the beginning of the year
Net Change during the year
Balance at the end of the year
3,986,195
12,284,735
-
200,000
29,050,374
904,813
-
-
426,395
1,824,517
60,000
300,000
-
91,666
631,628
336,628
4,412,590
14,109,252
60,000
500,000
29,050,374
996,479
631,628
336,628
* Includes Performance Shares which are still subject to performance hurdles at 30 June 2016.
2013
Name
Directors
Christopher Rowe
Bill Beament
John Fitzgerald
Peter O'Connor
Michael Fotios
Peter Farris (as at 30 November 2012)
Key Management Personnel
Ray Parry
Karen Brown (as at 15 April 2013)
Liza Carpene
Balance at the beginning of the year
Net Change during the year
Balance at the end of the year
5,410,514
14,670,000
0
100,000
49,539,374
999,998
378,334
1,191,666
-
-1,424,319
-2,385,265
0
100,000
-20,489,000
-750,000
526,479
735,332
-
3,986,195
12,284,735
0
200,000
29,050,374
249,998
904,813
1,926,998
-
2014 Annual Financial Report
Page 18
DIRECTORS’ REPORT
(ii) Option Holdings
The number of options over ordinary shares in the Company held during the financial year by each Director of Northern Star
and any other KMP of the Group, including their personally related parties are as follow:
2014
Name
Directors
Christopher Rowe
Bill Beament
John Fitzgerald
Peter O'Connor
Michael Fotios (as at
24 October 2013)
Key Management Personnel
Ray Parry
Stuart Tonkin
Liza Carpene
2013
Name
Directors
Christopher Rowe
Bill Beament
John Fitzgerald
Peter O'Connor
Michael Fotios
Peter Farris
(as at 30 November 2012)
Key Management Personnel
Ray Parry
Karen Brown
(as at 15 April 2013)
Liza Carpene
Balance at the
beginning of the
year
Granted
during the
year
Exercised
during the year
Forfeited, expired or
cancelled during the
year
Balance at the
end of the year
Vested and
exercisable at the
end of the year
-
2,000,000
-
750,000
-
-
-
500,000
-
-
-
-
-
-
-
-
-
(2,000,000)
-
(750,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
500,000
250,000
Balance at the
beginning of the
year
Granted
during the
year
Exercised
during the year
Forfeited, expired or
cancelled during the
year
Balance at the
end of the year
Vested and
exercisable at the
end of the year
1,864,681
8,500,000
-
-
5,000,000
-
666,666
735,332
-
-
-
-
750,000
-
-
-
-
500,000
(1,864,681)
(6,500,000)
-
-
(5,000,000)
-
(666,666)
(735,332)
-
-
-
-
-
-
-
-
-
-
2,000,000
-
750,000
-
2,000,000
-
750,000
-
-
-
-
500,000
-
-
-
-
-
Options Issued during the period
There were no options granted as equity compensation benefit to KMPs during the period.
Options affecting remuneration in the current and future reporting period
The terms and conditions of each grant of options affecting remuneration in the current or a future report period are as
follows:
Grant Date
Vesting Date
Expiry Date
Exercise Price
29-Jun-12
3-Dec-12
15-Apr-13
15-Apr-13
29-Jun-12
3-Dec-12
15-Apr-14
15-Apr-15
28-Jun-14
28-Jun-14
15-Apr-15
15-Apr-16
$0.91
$0.91
$0.95
$1.05
Value Per Option At
Grant Date
$0.2570
$0.5910
$0.2350
$0.2800
Performance
Achieved
Exercised 26-Jun-14
Exercised 10-3-14
Remain employed
Remain employed
% Vested
100%
100%
100%
60%
Options granted under the plan carry no dividend or voting rights.
Details of options over ordinary shares in the Company provided as remuneration to KMP are shown below. Once vested,
each option is convertible into one ordinary share of Northern Star upon payment of the exercise price and prior to the
expiry date. The exercise price of options is based on the weighted average price at which the Company’s shares are
traded on the Australian Securities Exchange during the week up to and including the date of grant.
Name
Bill Beament
Peter O'Connor
Liza Carpene
Year of
Grant
Years In Which
Options Vest
Number of Options
Granted
Value of Options at
Grant Date
Number of Options
Vested During the Year
% Vested
2012
2012
2013
2013
2012
2012
2014
2015
2,000,000
750,000
250,000
250,000
$514,208
$443,563
$58,701
$70,109
-
-
250,000
-
100%
100%
100%
60%
The assessed fair value at grant date of options granted to the individuals is allocated equally over the period from grant
date to vesting date, and the amount is included in the remuneration tables above. Fair values at grant date are
independently determined using a Black-Scholes option pricing model that takes into account the exercise price, the term
of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk-free interest rate for the term of the option.
Shares provided on exercise of remuneration options.
2014 Annual Financial Report
Page 19
DIRECTORS’ REPORT
Name
Executive Directors
Bill Beament
Other KMPs
Peter O'Connor
Date of Exercise
of Options
Number of Ordinary Shares
Issued on Exercise of
Options During the Year
Value at Exercise
Date
$
26-Jun-14
10-Mar-14
812,889
259,528
1,040,417
236,170
The amounts paid per ordinary share on the exercise of options at the date of exercise were as follows:
Exercise Date
26-Jun-14
10-Mar-14
Amount Paid Per Share
$1.28
$0.91
The above conversion did not result in the Company receiving any funds as the options were converted through the
Company’s cashless conversion mechanism which results in less shares being issued. No amounts are unpaid on any shares
issued through the exercise of options.
(iii) Other Related Party Transactions with Key Management Personnel
Michael Fotios (resigned on 24 October 2014) is a related party, and is:
a. a Shareholder and Director of Delta Resource Management Pty Ltd. During the year, no amounts were paid to Delta
Resources for services provided (2013: $562); and
b. a Shareholder and Director of Investmet Limited. During the year an amount of $4,840 was paid to this business for
corporate advice at normal commercial rates (2013: 58,400).
Bill Beament is a related party, and:
a. has a minor beneficial interest in a shareholding of Australian Underground Drilling Pty Ltd (a former Director who
resigned in June 2014). During the year an amount of $7,397,675 was paid to this business for drilling services at normal
commercial rates (2013: $6,886,439);
b. has a minor beneficial interest in a shareholding in Premium Mining Personnel Pty Ltd. During the year, an amount of
$6,202,673 was paid to this business for supplying specialist mining labour at normal commercial rates (2013: $5,327,172);
and
is the sole director and has a beneficial interest in a shareholding in Mining & Infrastructure Group Pty Ltd. During the year
an amount of $7,100 was paid to this business for serviced vehicle expenses at normal commercial rates in relation to Mr
Beament’s remuneration contract (2013:$18,800).
c.
In addition to the above, the Group had the followings receivables and payables from related parties noted above:
2014
$000's
Assets
Trade Receivables
57
2013
$000's
63
Liabilities
Trade Payables
(1,193)
(2,210)
(iv) Long Term Incentive Shares Issued to KMP
Shares issued pursuant to this plan (LTI Shares) are for services rendered by eligible employees and Directors. The Company
believes that LTI Shares provide effective remuneration for eligible employees and Directors for their ongoing commitment
and contribution to the company. Where the Company offers to issue LTI Shares to eligible employees and Directors, the
Company may offer to provide the employee a limited recourse, interest free loan to be used for the purposes of
subscribing for the LTI Shares in the Company.
The table below includes details of LTI Shares issued to KMP:
30 June 2014
Bill Beament
Liza Carpene
Raymond Parry
Stuart Tonkin
Date shares
granted
Loan expiry
date
20/11/2013
20/11/2013
20/11/2013
20/11/2013
30/06/2016
30/06/2016
30/06/2016
30/06/2016
Issue
Price
0.73
0.73
0.73
0.73
Balance at
the start of
year
Granted During
the period
Forfeited
during the
period
-
-
-
-
1,000,000
325,000
425,000
500,000
-
-
-
-
Balance at
the end of
the Period
1,000,000
325,000
425,000
500,000
Vested at
end of the
period
-
-
-
-
On 20 November 2013, 4,090,000 shares were issued to KMP and other personnel of the Company at an issue price of
$0.7304 per share. Corresponding non-recourse loans totalling $2,987,336 were entered into in accordance with the
Company's LTI Share Plan as part of their remuneration. As at 30 June 2014, the non-recourse loan had reduced to
$2,948,130.
2014 Annual Financial Report
Page 20
DIRECTORS’ REPORT
Summary of Key Loan terms:
a. Loan Amount
b. Interest rate
c. Term of Loan
d. Vesting Conditions
$0.7304 per share
0%
20 November 2013 - 30 June 2016
(1) Achievement of Performance Hurdles Measured at End of Year 3, being 30 June 2016
(2) Continued employment
(3) Personal Performance reviews must be satisfactory in all years
The loans are non-recourse and are secured against the Performance Shares held by the relevant participants.
The Board may, at its discretion, agree to forgive a loan made to a participant. The fair value at grant date of $1,250,808
was calculated using the Black Scholes pricing model that took into account the term, the underlying value of the shares
exercise price, the impact of dilution and the risk-free interest rate:
Inputs used in Black Scholes pricing model to value LTI shares granted include:
a. Exercise Price
b. Market price of shares at grant date
c Expected volatility of the Company's shares
d. Weighted average risk free interest rate
e. Time to Maturity
$0.7304
$0.7100
68.12%
2.77%
2 years
The expected volatility during the term of the options is based around assessments of the volatility of similar-sized listed
companies, including newly listed entities and entities in similar industries at grant date.
The value of the instruments has been expensed on a proportionate basis for each financial year from grant date to vesting
date. The proportion of the value of the instrument which was expensed and accounted for in the share option reserve was
$291,383 for the year ended 30 June 2014.
< This is the end of the audited Remuneration Report. >
CORPORATE GOVERNANCE STATEMENT
The Company’s 2014 Corporate Governance Statement has been released as a separate document and is located on our
website at http://www.nsrltd.com/corporate/corporategovernance.html.
INDEMNIFICATION AND INSURANCE OF OFFICERS
The Company has paid a premium to insure the Directors and Officers of the Company and its controlled entities. Details of
the premium are subject to a confidentiality clause under the contract of insurance. The liabilities insured are costs and
expenses that may be incurred in defending civil or criminal proceedings that may be brought against the Directors and
Officers in their capacity as officers of entities in the Group.
AUDITOR INDEPENDENCE
The Auditor’s independence declaration for year ended 30 June 2014 under Section 307C of the Corporations Act 2001 has
been received and can be found on the next page.
NON-AUDIT SERVICES
No other services were provided by the Auditor.
ROUNDING
The amounts contained in this report and in the financial statements have been rounded to the nearest $1,000 (where
rounding is applicable) as permitted under ASIC Class Order 98/0100. The Company is an entity to which the Class Order
applies.
Signed in accordance with a resolution of the Directors.
BILL BEAMENT
Managing Director
Perth, Western Australia
30 September 2014
2014 Annual Financial Report
Page 21
AUDITOR’S INDEPENDENCE DECLARATION
2014 Annual Financial Report
Page 22
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Year Ended 30 June 2014
Revenue from operations
Mine operating costs
Gross profit
Other Income
Exploration expenses
Acquisition costs
Redundancy costs
Corporate expenses
Net loss on financial assets held at fair value through profit or loss
Finance costs
Government Royalty expense
Gain/(Loss) on derivatives
Depreciation and amortisation
Profit before Income Tax
Income tax expense
Profit for the Year
Other comprehensive income
Notes
2 (a)
3 (a)
Group
30 June 2014
30 June 2013
$'000
296,976
(179,166)
117,810
$'000
144,236
(60,960)
83,276
2 (b)
3,788
2,253
(5,544)
(7,382)
(7,245)
(10,193)
(592)
(1,800)
(7,328)
1,726
(47,604)
35,636
(5,854)
-
-
(6,790)
(5,747)
(783)
(3,353)
-
(26,225)
36,777
11
5
(11,629)
(8,449)
24,007
28,328
-
-
Total Comprehensive Income for the Year
24,007
28,328
Total Comprehensive Income Attributed to:
Owners of the Company
Earnings Per Share
Basic earnings/(loss) per share (cents per share)
Diluted earnings/(loss) per share (cents per share)
24,007
28,328
Cents per
Shares
Cents per
Shares
4
4
5.0
5.0
6.7
6.6
The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.
2014 Annual Financial Report
Page 23
STATEMENT OF FINANCIAL POSITION
For the Year Ended 30 June 2014
Group
30 June 2014
30 June 2013
Notes
$'000
$'000
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventory
Prepayments
Derivative financial instrument
Other current assets
Total Current Assets
Non-Current Assets
Investments
Property, plant & equipment
Exploration tenements
Mine Development
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Derivative financial instrument
Financial Liabilities
Provisions
Current tax liabilities
Other liabilities
Total Current Liabilities
Non-Current Liabilities
Financial Liabilities
Derivative financial instrument
Provisions
Deferred tax liabilities
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Retained earnings
TOTAL EQUITY
7 (a)
8
9
10
11
12
13
14
15
16
17
11
18 (a)
19 (a)
6 (b)
18 (b)
11
19 (b)
6 (b)
20
21
82,387
13,665
63,104
11,225
3,024
400
55,775
1,713
12,405
-
-
4
173,805
69,897
2,906
60,639
69,049
90,197
222,791
396,596
37,449
333
2,143
18,618
5,228
-
2,224
42,876
30,462
8,813
84,376
154,272
14,449
-
6,163
1,297
4,620
610
63,771
27,139
3,804
965
73,042
10,804
88,615
152,386
5,069
-
2,902
8,827
16,798
43,937
244,210
110,335
193,808
395
50,007
244,210
66,765
691
42,879
110,335
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
2014 Annual Financial Report
Page 24
Net Cash From Operating Activities
7 (b)
STATEMENT OF CASH FLOWS
For the Year Ended 30 June 2014
Cash Flows From Operating Activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest received
Finance costs
Net Income taxes paid
Cash Flows From Investing Activities
Payments for property, plant & equipment
Payments for equity investments
Proceeds from sale of property, plant and equipment
Proceeds from financial asset
Payments for development of mining properties
Exploration and evaluation expenditure
Acquisition of Mine
Net Cash Used In Investing Activities
Cash Flows From Financing Activities
Proceeds from issue of shares and conversion of options
Payments for dividends
Payments for share issue costs
Net Proceeds /(Repayments) from financing facility
Net Cash From Financing Activities
Net Decrease In Cash And Cash Equivalents
Cash and Cash Equivalents at 1 July
Cash and Cash Equivalents at 30 June
Group
30 June 2014
30 June 2013
Notes
$'000
$'000
308,506
(200,603)
1,624
(1,804)
(9,044)
98,679
(11,106)
-
(233)
24
(25,500)
(13,149)
(125,995)
(175,959)
128,856
(16,393)
(3,288)
(5,284)
144,375
(74,590)
2,147
(750)
(5,290)
65,892
(30,363)
(1,318)
8
-
(16,649)
(15,229)
-
(63,551)
1,368
(14,842)
-
1,946
103,891
(11,528)
26,612
55,775
82,387
(9,187)
64,962
55,775
7 (a)
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
2014 Annual Financial Report
Page 25
STATEMENT OF CHANGES IN EQUITY
Balance at 30 June 2012
Equity issues net of transaction costs
Share based payments
Transfer from option reserve
Dividend Paid
Total comprehensive income for the period
Notes
3 (b)
Share
Capital
$'000
64,613
1,368
71
713
-
-
Group
Reserves
$'000
503
Retained
Earnings
$'000
29,393
Total Equity
$'000
94,508
-
901
(713)
-
-
-
-
-
1,368
972
-
(14,842)
28,328
(14,842)
28,328
Balance at 30 June 2013
66,765
691
42,879
110,335
Equity issues net of transaction costs
Share based payments
Transfer from option reserve
Dividend Paid
Other
Total comprehensive income for the period
3 (b)
125,568
84
1,391
-
-
-
-
1,095
(1,391)
-
-
-
-
-
-
(16,393)
(486)
24,007
125,568
1,179
-
(16,393)
(486)
24,007
Balance at 30 June 2014
193,808
395
50,007
244,210
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
2014 Annual Financial Report
Page 26
NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
(i) Basis of Preparation
The financial report is a general purpose financial report, prepared by a for-profit entity, in accordance with the
requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the
Australian Accounting Standards Board (AASB). The financial report has been prepared on a historical cost basis, except for
derivative financial instruments and available-for-sale assets which have been measured at fair value.
The financial statements are presented in Australian dollars, which is the parent company’s functional and presentation
currency, and all values are rounded to the nearest thousand dollars ($’000) unless otherwise stated. The Group is of a kind
referred to in Class Order 98/0100, issued by the Australian Securities and Investments Commission, relating to the “rounding
off” of amounts in the financial report. Amounts in the financial report have been rounded off in accordance with that class
order to the nearest thousand dollars.
(ii) Statement of Compliance
The financial statements comply with Australian Accounting Standards and International Financial Reporting Standards
(IFRS).
(iii) New, revised or amending Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued
by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
Any significant impact on the accounting policies of the consolidated entity from the adoption of these Accounting
Standards and Interpretations are disclosed below. The adoption of these Accounting Standards and Interpretations did not
have any significant impact on the financial performance or position of the consolidated entity.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
AASB 10 Consolidated Financial Statements
The consolidated entity has applied AASB 10 from 1 July 2013, which has a new definition of 'control'. Control exists when
the reporting entity is exposed, or has the rights, to variable returns from its involvement with another entity and has the
ability to affect those returns through its 'power' over that other entity. A reporting entity has power when it has rights that
give it the current ability to direct the activities that significantly affect the investee's returns. The consolidated entity not
only has to consider its holdings and rights but also the holdings and rights of other shareholders in order to determine
whether it has the necessary power for consolidation purposes.
AASB 11 Joint Arrangements
The consolidated entity has applied AASB 11 from 1 July 2013. The standard defines which entities qualify as joint
arrangements and removes the option to account for joint ventures using proportional consolidation. Joint ventures,
where the parties to the agreement have the rights to the net assets are accounted for using the equity method. Joint
operations, where the parties to the agreements have the rights to the assets and obligations for the liabilities, will
account for its share of the assets, liabilities, revenues and expenses separately under the appropriate classifications.
AASB 12 Disclosure of Interests in Other Entities
The consolidated entity has applied AASB 12 from 1 July 2013. The standard contains the entire disclosure requirement
associated with other entities, being subsidiaries, associates, joint arrangements (joint operations and joint ventures) and
unconsolidated structured entities. The disclosure requirements have been significantly enhanced when compared to
the disclosures previously located in AASB 127 'Consolidated and Separate Financial Statements', AASB 128 'Investments
in Associates', AASB 131 'Interests in Joint Ventures' and Interpretation 112 'Consolidation - Special Purpose Entities'.
AASB 13 Fair Value Measurement and AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB
13
The consolidated entity has applied AASB 13 and its consequential amendments from 1 July 2013. The standard provides
a single robust measurement framework, with clear measurement objectives, for measuring fair value using the 'exit
price' and provides guidance on measuring fair value when a market becomes less active. The 'highest and best use'
approach is used to measure non-financial assets whereas liabilities are based on transfer value. The standard requires
increased disclosures where fair value is used.
AASB 119 Employee Benefits (September 2011) and AASB 2011-10 Amendments to Australian Accounting Standards
arising from AASB 119 (September 2011)
The consolidated entity has applied AASB 119 and its consequential amendments from 1 July 2013. The standard
eliminates the corridor approach for the deferral of gains and losses; streamlines the presentation of changes in assets
and liabilities arising from defined benefit plans, including requiring remeasurements to be presented in other
comprehensive income; and enhances the disclosure requirements for defined benefit plans. The standard also
changed the definition of short-term employee benefits, from 'due to' to 'expected to' be settled within 12 months.
Annual leave that is not expected to be wholly settled within 12 months is now discounted allowing for expected salary
levels in the future period when the leave is expected to be taken.
2014 Annual Financial Report
Page 27
NOTES TO THE FINANCIAL STATEMENTS
AASB 127 Separate Financial Statements (Revised), AASB 128 Investments in Associates and Joint Ventures (Reissued)
and AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint
Arrangements Standards
The consolidated entity has applied AASB 127, AASB 128 and AASB 2011-7 from 1 July 2013. AASB 127 and AASB 128 have
been modified to remove specific guidance that is now contained in AASB 10, AASB 11 and AASB 12 and AASB 2011-7
makes numerous consequential changes to a range of Australian Accounting Standards and Interpretations. AASB 128
has also been amended to include the application of the equity method to investments in joint ventures.
AASB 2012-2 Amendments to Australian Accounting Standards - Disclosures - Offsetting Financial Assets and Financial
Liabilities
The consolidated entity has applied AASB 2012-2 from 1 July 2013. The amendments enhance AASB 7 'Financial
Instruments: Disclosures' and requires disclosure of information about rights of set-off and related arrangements, such as
collateral agreements. The amendments apply to recognised financial instruments that are subject to an enforceable
master netting arrangement or similar agreement.
AASB 2012-5 Amendments to Australian Accounting Standards arising from Annual Improvements 2009-2011 Cycle
The consolidated entity has applied AASB 2012-5 from 1 July 2013. The amendments affect five Australian Accounting
Standards as follows: Confirmation that repeat application of AASB 1 'First-time Adoption of Australian Accounting
Standards' is permitted; Clarification of borrowing cost exemption in AASB 1; Clarification of the comparative information
requirements when an entity provides an optional third column or is required to present a third statement of financial
position in accordance with AASB 101 'Presentation of Financial Statements'; Clarification that servicing of equipment is
covered by AASB 116 'Property, Plant and Equipment', if such equipment is used for more than one period; clarification
that the tax effect of distributions to holders of equity instruments and equity transaction costs in AASB 132 'Financial
Instruments: Presentation' should be accounted for in accordance with AASB 112 'Income Taxes'; and clarification of the
financial reporting requirements in AASB 134 'Interim Financial Reporting' and the disclosure requirements of segment
assets and liabilities.
AASB 2012-10 Amendments to Australian Accounting Standards - Transition Guidance and Other Amendments
The consolidated entity has applied AASB 2012-10 amendments from 1 July 2013, which amends AASB 10 and related
standards for the transition guidance relevant to the initial application of those standards. The amendments clarify the
circumstances in which adjustments to an entity's previous accounting for its involvement with other entities are required
and the timing of such adjustments.
Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine and AASB 2011-12 Amendments to Australian
Accounting Standards arising from Interpretation 20
The consolidated entity has applied Interpretation 20 and its consequential amendments from 1 July 2013. The
Interpretation clarifies when production stripping costs should lead to the recognition of an asset and how that asset
should be initially and subsequently measured. The Interpretation only deals with waste removal costs that are incurred in
surface mining activities during the production phase of the mine.
AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel
Disclosure Requirement
The consolidated entity has applied 2011-4 from 1 July 2013, which amends AASB 124 'Related Party Disclosures' by
removing the disclosure requirements for individual key management personnel ('KMP'). Corporations and Related
Legislation Amendment Regulations 2013 and Corporations and Australian Securities and Investments Commission
Amendment Regulation 2013 (No.1) now specify the KMP disclosure requirements to be included within the directors'
report.
(iv) New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2014.
The consolidated entity's assessment of the impact of these new or amended Accounting Standards and Interpretations,
most relevant to the consolidated entity, are set out below.
AASB 9 Financial Instruments and its consequential amendments
This standard and its consequential amendments are applicable to annual reporting periods beginning on or after 1
January 2017 and completes phases I and III of the IASB's project to replace IAS 39 (AASB 139) 'Financial Instruments:
Recognition and Measurement'. This standard introduces new classification and measurement models for financial
assets, using a single approach to determine whether a financial asset is measured at amortised cost or fair value. The
accounting for financial liabilities continues to be classified and measured in accordance with AASB 139, with one
exception, being that the portion of a change of fair value relating to the entity's own credit risk is to be presented in
other comprehensive income unless it would create an accounting mismatch. Chapter 6 'Hedge Accounting'
supersedes the general hedge accounting requirements in AASB 139 and provides a new simpler approach to hedge
accounting that is intended to more closely align with risk management activities undertaken by entities when hedging
financial and non-financial risks. The consolidated entity will adopt this standard and the amendments from 1 July 2017
but the impact of its adoption is yet to be assessed by the consolidated entity.
AASB 2012-3 Amendments to Australian Accounting Standards - Offsetting Financial Assets and Financial Liabilities
The amendments are applicable to annual reporting periods beginning on or after 1 January 2014. The amendments
add application guidance to address inconsistencies in the application of the offsetting criteria in AASB 132 'Financial
Instruments: Presentation', by clarifying the meaning of 'currently has a legally enforceable right of set-off'; and clarifies
2014 Annual Financial Report
Page 28
NOTES TO THE FINANCIAL STATEMENTS
that some gross settlement systems may be considered to be equivalent to net settlement. The adoption of the
amendments from 1 July 2014 will not have a material impact on the consolidated entity.
AASB 2013-3 Amendments to AASB 136 - Recoverable Amount Disclosures for Non-Financial Assets
These amendments are applicable to annual reporting periods beginning on or after 1 January 2014. The disclosure
requirements of AASB 136 'Impairment of Assets' have been enhanced to require additional information about the fair
value measurement when the recoverable amount of impaired assets is based on fair value less costs of disposals.
Additionally, if measured using a present value technique, the discount rate is required to be disclosed. The adoption of
these amendments from 1 July 2014 may increase the disclosures by the consolidated entity.
AASB 2013-4 Amendments to Australian Accounting Standards - Novation of Derivatives and Continuation of Hedge
Accounting
These amendments are applicable to annual reporting periods beginning on or after 1 January 2014 and amends AASB
139 'Financial Instruments: Recognition and Measurement' to permit continuation of hedge accounting in circumstances
where a derivative (designated as hedging instrument) is novated from one counter party to a central counterparty as a
consequence of laws or regulations. The adoption of these amendments from 1 July 2014 will not have a material impact
on the consolidated entity.
AASB 2013-5 Amendments to Australian Accounting Standards - Investment Entities
These amendments are applicable to annual reporting periods beginning on or after 1 January 2014 and allow entities
that meet the definition of an 'investment entity' to account for their investments at fair value through profit or loss. An
investment entity is not required to consolidate investments in entities it controls, or apply AASB 3 'Business Combinations'
when it obtains control of another entity, nor is it required to equity account or proportionately consolidate associates
and joint ventures if it meets the criteria for exemption in the standard. The adoption of these amendments from 1 July
2014 will have no impact on the consolidated entity.
Annual Improvements to IFRSs 2010-2012 Cycle
These amendments are applicable to annual reporting periods beginning on or after 1 July 2014 and affects several
Accounting Standards as follows: Amends the definition of 'vesting conditions' and 'market condition' and adds
definitions for 'performance condition' and 'service condition' in AASB 2 'Share-based Payment'; Amends AASB 3 'Business
Combinations' to clarify that contingent consideration that is classified as an asset or liability shall be measured at fair
value at each reporting date; Amends AASB 8 'Operating Segments' to require entities to disclose the judgements made
by management in applying the aggregation criteria; Clarifies that AASB 8 only requires a reconciliation of the total
reportable segments assets to the entity's assets, if the segment assets are reported regularly; Clarifies that the issuance
of AASB 13 'Fair Value Measurement' and the amending of AASB 139 'Financial Instruments: Recognition and
Measurement' and AASB 9 'Financial Instruments' did not remove the ability to measure short-term receivables and
payables with no stated interest rate at their invoice amount, if the effect of discounting is immaterial; Clarifies that in
AASB 116 'Property, Plant and Equipment' and AASB 138 'Intangible Assets', when an asset is revalued the gross carrying
amount is adjusted in a manner that is consistent with the revaluation of the carrying amount (i.e. proportional
restatement of accumulated amortisation); and Amends AASB 124 'Related Party Disclosures' to clarify that an entity
providing key management personnel services to the reporting entity or to the parent of the reporting entity is a 'related
party' of the reporting entity. The adoption of these amendments from 1 July 2014 will not have a material impact on the
consolidated entity.
Annual Improvements to IFRSs 2011-2013 Cycle
These amendments are applicable to annual reporting periods beginning on or after 1 July 2014 and affects four
Accounting Standards as follows: Clarifies the 'meaning of effective IFRSs' in AASB 1 'First-time Adoption of Australian
Accounting Standards'; Clarifies that AASB 3 'Business Combination' excludes from its scope the accounting for the
formation of a joint arrangement in the financial statements of the joint arrangement itself; Clarifies that the scope of the
portfolio exemption in AASB 13 'Fair Value Measurement' includes all contracts accounted for within the scope of AASB
139 'Financial Instruments: Recognition and Measurement' or AASB 9 'Financial Instruments', regardless of whether they
meet the definitions of financial assets or financial liabilities as defined in AASB 132 'Financial Instruments: Presentation';
and Clarifies that determining whether a specific transaction meets the definition of both a business combination as
defined in AASB 3 'Business Combinations' and investment property as defined in AASB 140 'Investment Property' requires
the separate application of both standards independently of each other. The adoption of these amendments from 1
July 2014 will not have a material impact on the consolidated entity
(v) Significant Accounting Estimates and Assumptions
Significant accounting judgments
In the process of applying the Group’s accounting policies, management has made the following judgments, apart from
those involving estimations, which have the most significant effect on the amounts recognised in the financial statements.
Exploration and evaluation assets
The Group’s accounting policy for exploration and evaluation expenditure is set out at Note 1. The application of this policy
necessarily requires management to make certain estimates and assumptions as to future events and circumstances. Any
such estimates and assumptions may change as new information becomes available. If, after having capitalised
expenditure under the policy, it is concluded that the expenditures are unlikely to be recovered by future exploitation or
sale, then the relevant capitalised amount will be written off to the statement of comprehensive income.
2014 Annual Financial Report
Page 29
NOTES TO THE FINANCIAL STATEMENTS
Critical accounting estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future
events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of certain assets and liabilities within the next annual reporting period are:
Impairment of assets
In determining the recoverable amount of assets, in the absence of quoted market prices, estimations are made regarding
the present value of future cash flows using asset-specific discount rates and the recoverable amount of the asset is
determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates.
The recoverable amounts of cash generating units and individual assets have been determined based on the higher of
value-in-use calculations and fair values. The calculations require the use of estimates and assumptions. It is reasonably
possible that the gold price assumption may change which may then impact our estimated life of mine determinant and
may then require a material adjustment to the carrying value of tangible assets.
The Group reviews and tests the carrying value of assets when events or changes in circumstances suggest that the carrying
amount may not be recoverable. Assets are grouped at the lowest level for which identifiable cash flows are largely
independent of cash flows of other assets and liabilities. If there are indications that impairment may have occurred,
estimates are prepared for future cash flows of the mining assets. Expected future cash flows used to determine the value in
use of tangible assets are inherently uncertain and could materially change over time. They are significantly affected by a
number of factors including reserves and production estimates, together with economic factors such as spot gold prices,
discount rates, estimates of costs to produce reserves and future capital expenditure.
Provisions for restoration costs
Restoration costs are a normal consequence of mining, and the majority of this expenditure is incurred at the end of a
mine’s life. In determining an appropriate level of provision consideration is given to the expected future costs to be
incurred, the timing of these expected future costs (largely dependent on the life of the mine), and the estimated future
level of inflation.
The ultimate cost of restoration is uncertain and costs can vary in response to many factors including changes to the
relevant legal requirements, the emergence of new restoration techniques or experience at other mine-sites. The expected
timing of expenditure can also change, for example in response to changes in reserves or to production rates.
Changes to any of the estimates could result in significant changes to the level of provisioning required, which would in turn
impact future financial results.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined using the Black-Scholes model. Should the
assumptions used in these calculations differ, the amounts recognised could significantly change.
Commitments - Exploration
The Group has certain minimum exploration commitments to maintain its right of tenure to exploration permits. These
commitments require estimates of the cost to perform exploration work required under these permits. These have been
disclosed in Note 24.
Determination of Mineral Resources and Ore Reserves
The Group reports its Mineral Resources and Ore Reserves in accordance with the Joint Ore Reserves Committee (JORC)
“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” – the JORC Code. The
information on Mineral Resources and Ore Reserves is prepared by Competent Persons as defined by the JORC Code.
There are numerous uncertainties inherent in estimating Mineral Resources and Ore Reserves. Assumptions that are valid at
the time of estimation may change significantly when new information becomes available.
Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the
economic status of reserves and may, ultimately, result in the reserves being restated. Such changes may impact asset
carrying values, depreciation and amortisation rates, deferred stripping costs and provisions for restoration.
Recoverability of deferred income tax assets
The Group recognises deferred income tax assets in respect of tax losses and temporary differences to the extent that the
future utilisation of these losses and temporary differences is considered probable. Assessing the future utilisation of these
losses and temporary differences requires the Group to make significant estimates related to expectations of future taxable
income.
Estimates of future taxable income are based on forecast cash flows from operations and the application of existing tax
laws. To the extent that future cash flows and taxable income differ significantly from estimates, this could result in significant
changes to the deferred income tax assets recognised, which would in turn impact future financial results.
Fair value of derivative financial instruments
The Group assesses the fair value of its financial derivatives in accordance with the accounting policy stated in Note 1. Fair
values have been determined based on well established valuation models and market conditions existing at the reporting
date. These calculations require the use of estimates and assumptions. Changes in assumptions concerning gold prices and
volatilities could have significant impact on the fair valuation attributed to the Group’s financial derivatives. When these
assumptions change or become known in the future, such differences will impact asset and liability carrying values in the
period in which they change or become known.
The Company does not have any hedging in place at the end of the financial period.
2014 Annual Financial Report
Page 30
NOTES TO THE FINANCIAL STATEMENTS
(vi) Summary of Significant Accounting Policies
Basis of consolidation
The consolidated financial statements include the financial statements of Northern Star Resources Limited (“the Company”),
and its subsidiary (“the Group” or “Group”). The financial statements of subsidiaries are prepared for the same reporting
period as the parent company, using consistent accounting policies. Adjustments are made to bring into line any dissimilar
accounting policies that may exist.
Where an entity has been acquired during the year, its results are included in consolidated results from the date control
commenced.
Unrealised gains and losses and inter-entity balances resulting from transactions with or between controlled entities are
eliminated in full on consolidation.
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief financial decision
maker. The chief financial decision maker, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the board of directors that makes strategic decisions.
Jointly arrangements
The proportionate interests in the assets, liabilities and expenses of a joint arrangement have been incorporated in the
financial statements under the appropriate headings. Details of the joint arrangements are set out in Note 30.
Business combinations
Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on
which control is transferred to the Group. Control is the power to govern the financial and operating policies of an entity so
as to obtain benefits from its activities.
The Group measures goodwill at the acquisition date as:
The fair value of the consideration transferred; less
The net recognised amount (generally fair value) of the identifiable assets and liabilities assumed.
Transaction costs, other than those associated with the issue of debt or equity securities, that the Group incurs in connection
with a business combination are expensed as incurred.
Goodwill that arises on the acquisition of subsidiaries is included in intangible assets.
Goodwill is measured at cost less accumulated impairment losses. In respect of equity-accounted investees, the carrying
amount of goodwill is included in the carrying amount of the investment, and any impairment loss is allocated to the
carrying amount of the equity-accounted investee as a whole.
Cash and cash equivalents
Cash and short-term deposits in the statement of financial position comprise cash at bank and in hand and short-term
deposits with an original maturity of three months or less. For the purposes of the statement of cash flows, cash and cash
equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.
Trade and other receivables
Receivables are initially recognised at fair value and subsequently measured at amortised cost, less allowance for doubtful
debts. Current receivables for GST are due for settlement within 30 days and other current receivables within 12 months.
Cash on deposit is not due for settlement until rights of tenure are forfeited or performance obligations are met.
Inventories
Gold in circuit and ore stockpiles are physically measured or estimated and valued at the lower of cost or net realisable
value. The stockpile amount is determined by reference to mining cost, including amortisation at the relevant stage of
production.
Consumables and spares are valued at the lower of cost and net realisable value. Any provision for obsolescence is
determined by reference to specific stock items identified.
Plant and equipment
Items of plant and equipment are stated at their cost less accumulated depreciation and impairment losses.
Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets
includes the cost of material and direct labour, any other costs directly attributable to bringing the asset to a working
condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are
located.
Depreciation is calculated on a straight line basis to write off the net cost of each item of property, plant and equipment
(excluding land) over their estimated expected useful lives as follows:
Buildings
Plant and equipment
Motor vehicles
Office furniture and equipment
1-15 years
1-10 years
1-5 years
1-5 years
Mine specific items of property, plant and equipment are depreciated over the life of mine. The life of mine expectation is
reviewed periodically.
2014 Annual Financial Report
Page 31
NOTES TO THE FINANCIAL STATEMENTS
Exploration and Evaluation Expenditure
Costs related to the acquisition of properties that contain resources are allocated separately to specific areas of interest.
These costs are capitalised until the viability of the area of interest is determined.
Exploration and evaluation expenditure is stated at cost and is accumulated in respect of each identifiable area of interest.
Such costs are only carried forward to the extent that they are expected to be recouped through the successful
development of the area of interest (or alternatively by its sale), or where activities in the area have not yet reached a stage
which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active
operations are continuing. Accumulated costs in relation to an abandoned area are written off to the statement of
comprehensive income in the period in which the decision to abandon the area is made.
The company reviews the carrying value of each area of interest at each reporting date and any exploration expenditure
which no longer satisfies the above policy is written off.
Restoration costs expected to be incurred are provided for as part of exploration, evaluation, development or production
phases that give rise to the need for restoration.
Development expenditure
When the technical and commercial feasibility of extracting a mineral resource has been demonstrated the resource enters
its development phase. The costs of the assets are transferred from exploration and evaluation expenditure and reclassified
into development expenditure and include past exploration and evaluation costs and development costs. Although
development expenditure is not amortised, it is tested annually for impairment.
Mine Development expenses
Capitalised development costs are amortised on a unit-of-production basis over the economically recoverable resources of
the mine. The unit of account will be ounces produced.
Capitalised development costs include exploration and evaluation expenditure previously deferred relating to that ore
body. Separate calculations are undertaken for each ore body.
Impairment of assets
At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. Where an
indicator of impairment exists, the Group makes a formal estimate of recoverable amount. Where the carrying amount of
an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount.
Recoverable amount is the greater of fair value less costs to sell and value in use. It is determined for an individual asset,
unless the asset’s value in use cannot be estimated to be close to its fair value less costs to sell and it does not generate
cash inflows that are largely independent of those from other assets or groups of assets, in which case, the recoverable
amount is determined for the cash-generating unit to which the asset belongs. When the carrying amount of an asset or
cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is written down to its recoverable
amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset.
Derecognition of financial assets and liabilities
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
derecognised when:
the rights to receive cash flows from the asset have expired;
the Company retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full
without material delay to a third party; or
the Company has transferred its rights to receive cash flows from the asset and either
has transferred substantially all the risks and rewards of the asset, or
has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the
asset.
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expired. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the
statement of comprehensive income.
Restoration, rehabilitation, and environmental costs
The Group recognises any legal restoration obligation as a liability at the time a legal liability exists. The carrying amount of
the long lived assets to which the legal obligation relates is increased by the restoration obligation costs and amortised over
the producing life of the asset. A provision is raised for the restoration and rehabilitation of each mine site. Restoration and
rehabilitation works can include facility decommissioning and dismantling; removal or treatment of waste materials; land
rehabilitation; and site restoration. The extent of the work required and the associated costs are dependent on the relevant
regulatory requirements and the group’s environmental policies.
2014 Annual Financial Report
Page 32
NOTES TO THE FINANCIAL STATEMENTS
Financial Instruments
Non-Derivative Financial instruments
Available-for-Sale Financial Assets
Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale or are not
classified in any of the other categories of financial assets. Available-for-sale financial assets are recognised initially at fair
value plus any directly attributable transaction costs.
Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses are
recognised in other comprehensive income and presented in the fair value reserve in equity. When an investment is
derecognised, the cumulative gain or loss in equity is reclassified to profit or loss.
Available-for-sale financial assets comprise equity securities.
Financial Assets at Fair Value Through Profit or Loss
A financial asset is classified as at fair value through profit or loss if it is classified as held-for-trading or is designated at such
on initial recognition. Financial assets are designated at fair value through profit or loss if the Group manages such
investments and makes purchase and sale decisions based on their fair value in accordance with the Group’s documented
risk management or investment strategy. Attributable transactions costs are recognised in profit or loss as incurred. Financial
assets at fair value through profit or loss are measured at fair value and changes therein are recognised in profit or loss.
Financial asset designated at fair value through profit or loss comprise investments in equity securities that otherwise would
have been classified as available-for-sale.
Other Non-Derivative Financial Instruments
Non-derivative financial instruments comprise trade and other receivables, cash and cash equivalents, loans and
borrowings and trade and other payables.
Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value through profit
and loss, any directly attributable transaction costs. Subsequent to initial recognition non-derivative financial instruments are
measured at amortised costs.
Derivative Financial Instruments
The Group occasionally uses derivative financial instruments such as gold options and gold forward contracts to manage
the risks associated with commodity price.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
measured to their fair value. Changes in the fair value of derivatives are recorded in the statement of comprehensive
income.
The fair value of derivative financial instruments that are traded on an active market is based on quoted market prices at
the statement of financial position date. The fair value of financial instruments not traded on an active market is determined
using appropriate valuation techniques.
A financial instrument is recognised if the Group becomes a party to the contractual provisions of the instrument. Financial
assets are derecognised if the Group’s contractual rights to the cash flows from the financial assets expire or if the Group
transfers the financial asset to another party without retaining control or substantially all risks and rewards of the asset.
Financial liabilities are derecognised if the Group’s obligations specified in the contract expire or are discharged or
cancelled.
Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less from the
acquisition date that are subject to an insignificant risk of changes in their fair value, and are used by the Group in the
management of its short-term commitments. Bank overdrafts that are repayable on demand and form an integral part of
the Group’s cash management are included as a component of cash and cash equivalents for the purpose of the
statement of cash flows.
All borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction
costs. After initial recognition, interest-bearing borrowings are subsequently measured at amortised cost using the effective
interest method. Fees paid on the establishment of loan facilities that are yield related are included as part of the carrying
amount of the borrowings.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for
at least 12 months after the reporting date.
Trade and other payables
Trade payables and other payables are recognised initially at fair value and subsequently at amortised cost and represent
liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when
the Group becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts
are unsecured and usually paid within 30 days of recognition.
Borrowings
All borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction
costs. After initial recognition, interest-bearing borrowings are subsequently measured at amortised cost using the effective
interest method. Fees paid on the establishment of loan facilities that are yield related are included as part of the carrying
amount of the borrowings.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for
at least 12 months after the reporting date.
2014 Annual Financial Report
Page 33
NOTES TO THE FINANCIAL STATEMENTS
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. Where the Group expects some or all of a provision to be
reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when
the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of comprehensive
income net of any reimbursement. If the effect of the time value of money is material, provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of
money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due
to the passage of time is recognised as a finance cost.
Employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave, and any other employee entitlements
expected to be settled within twelve months of the reporting date are measured at their nominal amounts based on
remuneration rates which are expected to be paid when the liability is settled. Long service leave liabilities are measured at
current cost for those employees with greater than 5 years’ service up to the reporting date. Consideration is given to future
wage and salary levels, experience of employee departures and period of service. Employee entitlements expenses and
revenues arising in respect of wages and salaries, non-monetary benefits, annual leave, long service leave, sick leave and
other entitlements are charged against profits on a net basis. Contributions are made to employee superannuation plans
and are charged as expenses when incurred.
Share-based payment transactions
The Group may provide benefits to employees (including directors) of the Group in the form of share based payment
transactions, whereby employees render services in exchange for shares or rights over shares (‘equity-settled transactions’).
The cost of these equity-settled transactions with employees is measured by reference to the fair value at the date at which
they are granted.
Share-based payments – options and performance rights with an exercise price:
The fair value of these payments is determined using a Black-Scholes option pricing model that takes into account the
exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of
the underlying share, the expected dividend yield and the risk free interest rate for the term of the option. The fair value of
the options granted is adjusted to reflect market conditions, but excludes the impact of any non-market vesting conditions.
Non-market vesting conditions, if any, are included in assumptions about the number of options likely to be exercisable.
Share-based payments – Employee Shares.
The fair value of these payments is determined based on the share price at the date the rights have been accepted by
employees.
Revenue recognition
Revenue from the sale of goods is measured at the fair value of the consideration received or receivable. Revenue is
recognised when the significant risk and rewards of ownership have been transferred to the buyer, recovery of the
consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no
continuing management involvement with the goods, and the amount of revenue can be measured reliably.
Interest revenue
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest
rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset
to the net carrying amount of the financial asset.
Borrowing costs
Borrowing costs are recognised in the statement of comprehensive income in the period in which they are incurred except
borrowing costs that are directly attributable to the acquisition, construction, or production of a qualifying asset that
necessarily takes a substantial period to get ready for its intended use or sale. In this case, borrowing costs are capitalised as
part of the cost of such a qualifying asset.
Tax consolidations
Northern Star Resources Limited is the head entity in the tax-consolidated group comprising its wholly-owned subsidiary. The
effective date of implementation was 9 March 2011 for the tax-consolidated group. Northern Star Resources Limited
accounts for the consolidated group’s current and deferred tax amounts. These tax amounts are measured as if each
entity in the tax consolidated group continues to be a standalone taxpayer in its own right. In addition to its own current and
deferred tax amounts, Northern Star Resources Limited also recognises the current tax liabilities (or assets) and the deferred
tax assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated
group.
Income tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted
or substantively enacted by the statement of financial position date.
Deferred income tax is provided on all temporary differences at the statement of financial position date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities are
2014 Annual Financial Report
Page 34
NOTES TO THE FINANCIAL STATEMENTS
recognised for all taxable temporary differences, except where the deferred income tax liability arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and
unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry-forward of unused tax assets and unused tax losses can be utilised, except where the
deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or
liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is
no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be
utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the
asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the reporting date.
Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the extent that it
has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the statement of
comprehensive income.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same
taxation authority.
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the taxation authority. In these circumstances the GST is recognised as part of the cost of acquisition of
the asset or as part of an item of the expense as applicable.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or
payable to, the taxation authority is included as part of receivables or payables in the statement of financial position. Cash
flows are included in statement of cash flows on a gross basis. The GST components of cash flows arising from investing and
financing activities that are recoverable from, or payable to, the taxation authority are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation
authority.
Contributed equity
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share
options are recognised as a deduction from equity, net of any tax effects. Dividends on ordinary shares are recognised as a
liability in the period in which they are declared.
Treasury shares
The Company operates the Northern Star Employee Share Trust (Trust). The main purpose of the Trust is to hold unvested
employee incentive shares as part of Northern Star’s Employee Share Scheme. Under AASBs, the Trust qualifies as an equity
compensation plan special purpose entity and its results are included in those for the Consolidated Entity. Any shares held
by the Trust are accounted for as treasury shares and treated as a reduction in the number of publicly held shares of the
Company and the Consolidated Entity.
Earnings per share (EPS)
Basic EPS is calculated as net profit attributable to members, adjusted to exclude costs of servicing equity (other than
dividends) and preference share dividends, divided by the weighted average number of ordinary shares, adjusted for any
bonus element. Diluted earnings per share are determined when the Company has on issue potential ordinary shares which
are dilutive. It is calculated by dividing net profit attributable to members, adjusted to exclude costs of servicing equity
(other than dividends) and any expenses associated with dividends and interest of dilutive potential ordinary shares, by the
weighted average number of ordinary shares (both issued and potentially dilutive) adjusted for any bonus element.
2014 Annual Financial Report
Page 35
NOTES TO THE FINANCIAL STATEMENTS
2. REVENUE
(a) Revenue from operations
Sale of gold
Sale of silver
(b) Other Income
Interest Income
Other
Total Revenue
3. EXPENSES
(a) Mine operating costs
Mining Expenses
Processing Expenses
Site Administration Expenses
(b) Operating costs
Exploration expenses
Administration
Personnel expenses
Acquisition Cost
Redundancy Cost
Shares based payments
Net loss on financial assets held at fair value through profit or loss
Finance costs
Government Royalty expense
(Gain)/Loss on derivatives
Depreciation
Amortisation
Total Expenses
4. EARNINGS PER SHARE
Basic profit/(loss) per share (cents)
Diluted profit/(loss) per share (cents)
Group
30 June 2014
30 June 2013
$'000
$'000
296,263
144,057
713
179
296,976
144,236
1,727
2,061
3,778
2,200
53
2,253
300,764
146,489
Group
30 June 2014
30 June 2013
$'000
$'000
98,062
44,284
36,820
179,166
5,544
5,302
3,712
7,382
7,245
1,179
592
1,800
7,328
(1,726)
15,252
32,352
85,961
32,575
19,311
9,073
60,960
5,854
5,818
-
-
-
972
5,747
783
3,353
-
7,486
18,740
48,753
265,127
109,713
Group
30 June 2014
30 June 2013
$'000
5.0
5.0
$'000
6.7
6.6
Profit/(loss) used to calculate earnings per share ($'000)
24,007
28,328
Weighted average number of ordinary shares during the period used in calculation of basic
profit/(loss) per share
481,545,715
421,050,679
Weighted average number of ordinary shares during the period used in calculation of
diluted profit/(loss) per share
483,337,381
429,279,762
2014 Annual Financial Report
Page 36
NOTES TO THE FINANCIAL STATEMENTS
5. INCOME TAX
(a) Income tax expense
Current tax
Deferred tax
Adjustment for current tax of prior periods
Income tax expense
(b) Numerical reconciliation of income tax expense to prima facie tax payable
Profit (Loss) before income tax
Tax at the Australian tax rate of 30%
Tax effect of amounts which are not deductible/ (taxable) in calculating taxable income:
Share-based payments
Tax offset - Research and development
Trading stock
Sundry items
Subtotal
Research and development tax credit
Adjustments for current tax of prior periods
Subtotal
Income tax reported in the statement of profit or loss
6. DEFERRED INCOME TAX
(a) Deferred tax assets
At 1 July 2012
(Charged)/credited to Profit or loss
At 30 June 2013
Adjustments for prior years
(Charged)/credited to Profit or loss
At 30 June 2014
Provisions
Investments
Employee
Benefits
$'000
$'000
$'000
-
-
-
16,630
16,630
-
1,724
1,724
(1,743)
-
(19)
308
116
424
5,624
6,048
The balance comprises temporary differences attributable to:
Employee benefits
Provisions
Accruals
Investments
Other
Gross deferred tax assets at 30 June 2014
Group
30 June 2014
30 June 2013
$'000
$'000
9,591
(652)
8,939
2,690
11,629
8,007
2,172
10,179
(1,730)
8,449
35,637
36,777
10,691
11,033
56
260
(1,803)
81
9,285
(346)
2,690
2,344
11,629
Other
$'000
705
224
929
5,074
6,003
(475)
(298)
-
(81)
10,179
-
(1,730)
(1,730)
8,449
Total
$'000
1013
2,064
3,077
(1,743)
27,328
28,662
6,048
16,630
5,986
(19)
17
28,662
2014 Annual Financial Report
Page 37
NOTES TO THE FINANCIAL STATEMENTS
6. DEFERRED INCOME TAX (continued)
(b) Deferred tax liabilities
Mine Properties
Inventories
$'000
7,296
4,101
11,397
4,886
16,283
$'000
371
136
507
6,335
6,841
At 1 July 2012
Charged/(credited) to Profit or loss
At 30 June 2013
Adjustments for prior years
Charged/(credited) to Profit or loss
At 30 June 2014
The balance comprises temporary differences
attributable to:
Exploration and evaluation expenditure
Mine Properties
Property Plant and Equipment
Inventories
Accrued Income
Other
Gross deferred tax liabilities at 30 June 2014
Set off deferred tax assets
Net deferred tax liabilities
(c) Income tax liability
Opening Balance
Tax paid
Current Tax
Adjustments for current tax of prior periods
Current charges deferred tax assets
Total income tax liability
Other
$'000
-
-
-
887
15,455
16,342
Total
$'000
7,667
4,237
11,904
887
26,675
39,466
15,284
15,785
975
6,841
549
32
39,466
(28,662)
10,804
Group
30 June 2014
30 June 2013
$'000
4,620
(9,044)
8,939
60
652
5,228
$'000
3,633
(8,321)
10,179
1,301
(2,172)
4,620
The Deferred Tax Asset brought to account for the period will only be obtained if:
(i) the Company derives future assessable income of a nature and of an amount sufficient to enable the benefit to be
realised;
(ii) the Company continues to comply with the conditions for deductibility imposed by tax legislation; and
(iii) the Company is able to meet the continuity of ownership and/or continuity of business tests under tax legislation
Tax Consolidation
The head entity, in conjunction with other members of the tax-consolidation group, have entered into a tax funding
arrangement which sets out the funding obligations of members of the tax-consolidation group in respect of tax amounts.
The tax funding arrangements require payments to/from the head entity equal to the current tax liability/ (asset) assumed
by the head entity and any tax-loss deferred tax asset assumed by the head entity, resulting in the head entity recognising
an inter-company receivable/(payable) equal in amount to the tax liability/ (asset) assumed. The inter-entity receivables/
(payable) will be at call.
Contributions to fund the current tax liabilities are payable as per the tax funding arrangement and reflect the timing of the
head entity's obligation to make payments for the liabilities to the relevant tax authorities. The head entity in conjunction
with other members of the tax-consolidated group has also entered into a tax sharing arrangement. The tax sharing
agreement will provide for the determination of the allocation of income tax liabilities between the entities should the head
entity default on its tax payment obligations. No amounts have been recognised in the financial statements in respect of this
agreement as payment of any amounts under the tax sharing agreement is considered remote.
2014 Annual Financial Report
Page 38
NOTES TO THE FINANCIAL STATEMENTS
7. CASH AND CASH EQUIVALENTS
(a) Cash and Cash Equivalents
Cash at bank
Cash on Deposit
Total Cash and Cash Equivalents
Group
30 June 2014
30 June 2013
$'000
$'000
80,887
1,500
82,387
19,163
36,612
55,775
The Group’s exposure to interest rate risk is discussed in Note 31. The maximum exposure to credit risk at the end of the
reporting period is the carrying amount of each class of cash and cash equivalents mentioned above.
(b) Reconciliation of Net Profit/(Loss) after Tax to Net Cash From Operations
Profit/(Loss) after income tax for the year
Non-Cash Items:
Depreciation and amortisation
Acquisition Royalty Payments
Net loss on financial assets held at fair value through
profit or loss
Gain on Derivatives
Net (gain)/loss on sale of non-current assets
Net (gain)/loss on sale of Exploration Tenements
Interest Income
Share-based payments
Movements in Provisions
Exploration expenditure written off
(Increase)/Decrease in Assets:
Trade and other receivables
Inventories
Deferred taxes
Prepaid expenses
Increase/(Decrease) in Liabilities:
Trade and other payables
Income tax liability
Net Cash From Operating Activities
8. TRADE AND OTHER RECEIVABLES
Amounts receivable from:
Trade Debtors
Sundry debtors
Goods and services tax recoverable
Fuel Rebates
Other receivables
Total Trade and other receivables
24,007
-
47,882
-
589
(1,726)
(23)
-
(103)
1,179
4,664
5,770
9,495
6,307
1,978
-
-
(1,949)
608
98,679
28,328
-
26,233
-
(8)
-
(53)
972
7120
4,303
53
(3,328)
(2,064)
158
(58)
4,236
65,892
Group
30 June 2014
30 June 2013
$'000
$'000
2,945
7,874
2,406
440
-
107
40
906
195
465
13,665
1,713
Fair Value and Risk Exposure
(a) Due to the short term nature of these receivables, their carrying value is assumed to approximate their fair value.
(b) The maximum exposure to credit risk is the fair value of receivables. Collateral is not held as security.
(c) Details regarding interest risk exposure are disclosed in Note 31.
(d) Other receivables generally have repayments between 30 and 90 days.
(e) Transactions between Northern Star Resources Limited and its subsidiaries consist of intercompany loans, upon which no
interest is charged and no repayment schedule exists. The intercompany loans have no set repayment date and the fair
value approximates the carrying value of the receivable.
2014 Annual Financial Report
Page 39
NOTES TO THE FINANCIAL STATEMENTS
9. INVENTORY
Consumables and spares
Ore Stockpiles
Gold In Circuit
Total Inventory at cost
10. PREPAYMENTS
Prepayments
Newmont – Jundee Acquisition Deposit
11. DERIVATIVE FINANCIAL INSTRUMENTS
Financial Derivative Assets
Current: Cash flow hedge asset
Non-current: Cash flow hedge asset
Financial Derivative Liabilities
Current: Cash flow hedge liability
Non-current: Cash flow hedge liability
Group
30 June 2014
$'000
30 June 2013
$'000
22,802
17,240
23,061
63,104
1,688
5,680
5,037
12,405
Group
30 June 2014
$'000
30 June 2013
$'000
2,225
9,000
11,225
-
-
-
Group
30 June 2014
$'000
30 June 2013
$'000
3,024
-
333
965
-
-
-
-
From time to time, the Group is party to derivative financial instruments, in the normal course of business, in order to hedge
exposure to fluctuations in commodity prices. During the year, the company entered into two gold hedging contracts with
Investec Bank, in which 100,000 ounces and 50,000 ounces were hedged at prices of $1,462 and $1,415 respectively, over a
period of 2 years. As at 30 June 2014, the Group had 110,200 ounces outstanding at an average price of A$1,434 to be
delivered into over the period from 20 July 2014 to 31 December 2015. The Groups gold revenues and cash flows are
affected by commodity product prices, which are volatile and cannot be accurately predicted. The objective for holding
these commodity derivatives is to protect the operating revenues and cash flows related to a portion of the future gold sales
from the risk of significant declines in commodity prices, which helps ensure the Company's ability to fund the capital
budget. The net fair value of commodity hedges at 30 June 2014 was an asset of $1.72m (2013: Nil)
12. OTHER CURRENT ASSETS
Dampier Gold Royalty
Other assets
13. INVESTMENTS
Group
30 June 2014
$'000
30 June 2013
$'000
400
-
400
-
4
4
Group
30 June 2014
$'000
30 June 2013
$'000
Investment in listed entities – at fair value
2,906
2,224
Reconciliation of Other Financial Assets
Balance bought forward
Investment acquired for cash as part of business
combination
Shares acquired for cash
Shares disposed for cash
Realised gain on sale of available for sales securities
Fair value loss at year end
Investment in listed entities – at fair value
2014 Annual Financial Report
2,224
1,195
100
(24)
3
(592)
2,906
6,653
-
1,318
-
-
(5,747)
2,224
Page 40
NOTES TO THE FINANCIAL STATEMENTS
14. PROPERTY, PLANT AND EQUIPMENT
Group
30 June 2014
30 June 2013
$'000
$'000
Plant and equipment at cost
Accumulated depreciation
Motor Vehicles at Cost
Accumulated depreciation
Buildings at cost
Accumulated depreciation
Office equipment at cost
Accumulated depreciation
96,986
(41,060)
55,926
2,701
(1,715)
986
10,138
(7,074)
3,064
1,276
(612)
664
60,639
Plant and
equipment
Motor
Vehicles
Office
equipment
Buildings
$'000
$'000
$'000
$'000
53,586
(14,603)
38,983
1,722
(689)
1,033
3,904
(1,604)
2,300
824
(264)
560
42,876
Total
$'000
2014 Reconciliation of property, plant and
equipment
Carrying amount at beginning of the year
Additions
Acquired as part of Asset acquisition (a)
Acquired as part of Business combination (b)
Disposals
Transfer from Construction in Progress
Depreciation charge
Carrying amount at end of the year
(a) Refer to Note 33 - Asset Acquisition for more information
(b) Refer to Note 34 - Business combination for more information
38,983
34,715
6,548
13,383
(528)
(23,467)
(13,708)
55,926
1,033
-
98
308
-
-
(453)
986
560
312
-
-
-
-
(209)
664
2,301
42,876
50
636
959
-
-
(882)
3,064
35,077
7,282
14,650
(528)
(23,467)
(15,252)
60,639
Plant and
equipment
Motor
Vehicles
Office
equipment
Buildings
$'000
$'000
$'000
$'000
2013 Reconciliation of property, plant and
equipment
Carrying amount at beginning of the year
Additions
Disposals
Depreciation charge
Carrying amount at end of the year
18,143
27,306
(421)
(6,045)
38,983
772
548
(212)
(75)
1,033
572
2,301
-
(573)
2,300
396
333
(6)
(163)
560
2014 Annual Financial Report
Total
$'000
19,883
30,488
(639)
(6,856)
42,876
Page 41
NOTES TO THE FINANCIAL STATEMENTS
15. EXPLORATION AND EVALUATION COSTS
Exploration costs brought forward
Exploration capitalised during the year
Exploration costs now written off
Transfer to development expenditure
Acquired as part of Asset Acquisition (a)
Acquired as part of Business Combination (b)
Exploration costs carried forward
(a) Refer to Note 33 - Asset Acquisition for more information
(b) Refer to Note 34 - Business combination for more information
Group
30 June 2014 30 June 2013
$'000
$'000
30,462
7,032
(159)
-
1,500
30,214
69,049
24,785
15,229
(4,303)
(5,249)
-
-
30,462
A regular review is undertaken of each area of interest within exploration and evaluation to determine the
appropriateness of continuing to carry forward costs in relation to that area of interest. Exploration and evaluation assets
are assessed for impairment if sufficient data exists to determine the technical feasibility and commercial viability or facts
and circumstances suggest that the carrying amount exceeds the recoverable amount. During the impairment review
for the year ended 30 June 2014, the recoverable amount of certain assets was assessed as lower than the carrying
amount which resulted in a write off of $159,000 on exploration and evaluation assets.
16. DEVELOPMENT EXPENDITURE
Development expenditure brought
(acquired)
forward
Transfer from exploration and evaluation costs
Acquired as part of Asset Acquisition (a)
Acquired as part of Business Combination (b)
Development expenditure this year
Accumulated amortisation
Development expenditure carried forward
(a) Refer to Note 33 - Asset Acquisition for more
information
(b) Refer to Note 34 - Business combination for more information
17. TRADE AND OTHER PAYABLES
Trade payables
Accruals
Other payables
Total Trade and other payables
Fair Value and Risk Exposures
Group
30 June 2014
30 June 2013
$'000
8,813
-
19,879
48,671
45,185
(32,352)
90,197
$'000
5,654
5,249
-
-
47,319
(49,409)
8,813
Group
30 June 2014
30 June 2013
$'000
11,365
20,027
6,057
37,449
$'000
14,449
-
610
15,059
(i) Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value.
(ii) Details regarding liquidity risk are disclosed in Note 31.
(iii) Trade and other payables are unsecured and usually paid within 30 days of recognition.
2014 Annual Financial Report
Page 42
NOTES TO THE FINANCIAL STATEMENTS
18. FINANCIAL LIABILITIES
(a) Current
Hire Purchase / Loan Agreements
Total Financial Liabilities
(b) Non-Current
Hire Purchase / Loan Agreements
Total Financial Liabilities
Risk Exposures
Group
30 June 2014 30 June 2013
$'000
$'000
2,143
2,143
3,804
3,804
6,163
6,163
5,069
5,069
Details of the group’s exposure to risks arising from financial liabilities are set out in Note 31.
The Group has entered into various Hire Purchase / Loan Agreements for the Purchase of Plant and Equipment. The
interest rates are fixed and are payable over a period of up to 18 months.
Financing Arrangements
The group had an undrawn borrowing facility at the end of the reporting period of $100 Million from Investec.
19. PROVISIONS
(a) Current
Provision for annual leave
Provision - Other
Total Provisions
(b) Non-Current
Provision for long service leave
Provision for rehabilitation
Total Provisions
Reconciliation of provision for rehabilitation:
Carrying amount at beginning of the year
Increase during the year
Acquired as part of business combination (a)
Accretion
Carrying amount at end of the year
Group
30 June 2014
30 June 2013
$'000
$'000
13,201
5,417
18,618
7,519
65,523
73,042
2,676
19,685
43,162
-
65,523
1,297
-
1,297
226
2,676
2,902
2,676
-
-
-
2,676
(a) Refer to Note 34 - Business combination for more information.
The provision for rehabilitation represents the legal obligation for rehabilitation over tenement areas acquired and other non-
current assets acquired. The timing of the provision is based on licences in existence at the end of the financial year.
2014 Annual Financial Report
Page 43
NOTES TO THE FINANCIAL STATEMENTS
20. CONTRIBUTED EQUITY
(a) Issued Capital
Ordinary shares fully paid
(b) Movements in Ordinary Share Capital
Summary of Movements
Closing Balance at 30 June 2012
Equity issue net of transaction costs
Exercise of Options
Transfer from Option Reserve
Closing Balance at 30 June 2013
Equity issue net of transaction costs
Issue of employees shares
Exercise of Options
Transfer from Options Reserve
Employee share loan*
Closing Balance at 30 June 2014
Group
30 June 2014
30 June 2013
579,404,804
424,279,762
Number of Shares
Company
$'000
402,358,752
64,613
58,859
21,862,151
-
71
1,368
713
424,279,762
66,765
149,833,510
125,568
106,932
1,094,600
-
4,090,000
84
1,391
-
-
579,404,804
193,808
* Refer to Directors report for further details on the Groups LTI share scheme
(c) Unlisted Options
Northern Star had the following unlisted options on issue as at 30 June 2014:
Employee Options
Employee Options
Employee Options
Employee Options
Employee Options
Employee Options
Employee Options
NUMBER
EXERCISE PRICE
EXPIRY DATE
250,000
250,000
125,000
250,000
250,000
333,333
333,333
$0.95
$1.05
$1.22
$1.05
$1.22
$1.81
$1.50
Expiring on 15 April 2015
Expiring on 15 April 2016
Expiring on 1 November 2015
Expiring on 27 August 2014
Expiring on 27 August 2015
Expiring on 27 February 2016
Expiring on 27 February 2015
During the financial year, nil unlisted options expired (2013: 638,801), nil unlisted options were cancelled (2013: 125,000),
3,208,334 unlisted options were exercised (2013: 23,893,526) and no further unlisted options were granted during the
year (2013: 2,000,000).
(d) Terms and Conditions of Issued Capital
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company, to
participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on
shares held.
Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.
(e) Capital Management
When managing capital, management’s objective is to ensure the entity continues as a going concern as well as to
maintain optimal returns to Shareholders and benefits for other stakeholders. Management also aims to maintain a
capital structure that ensures the lowest cost of capital Management may in the future adjust the capital structure to
take advantage of favourable costs of capital and issue further shares in the market. Management has no current plans
to adjust the capital structure.
Total capital is equity as shown in the statement of financial position.
The Group is not subject to any externally imposed capital requirements.
2014 Annual Financial Report
Page 44
NOTES TO THE FINANCIAL STATEMENTS
21. SHARE-BASED OPTION RESERVE
Balance at the beginning of the year
Option exercised
Option forfeited
Option expense
Balance at the end of the year
GROUP
30 June 2014
30 June 2013
$'000
$'000
691
(1,391)
-
1,095
395
503
(665)
(48)
901
691
Nature and purpose of the reserve:
The Share-based option reserve is used to recognise the fair value of options issued but not exercised.
22. DIVIDENDS
Dividends paid during the financial year were as follows:
Final dividend for the year ended 30 June 2013 of 2.5 cents per ordinary share
Interim dividend for the year ended 30 June 2014 of 1.0 cents ordinary share
GROUP
30 June 2014
30 June 2013
10,607
5,786
16,393
10,599
4,243
14,842
The directors declared a final dividend for the year ended 30 June 2014 of 2.5 cents per ordinary share to be paid on 3
October 2014, a total estimated distribution of $14.5 million based on the number of ordinary shares on issue as at 26
August 2014. As the dividend was fully franked, there are no income tax consequences for the owners of Northern Star
Resources Limited relating to this dividend.
23. INTEREST IN SUBSIDIARY
Country of Incorporation
The Group consists of the Company and its wholly-owned controlled entity as follows:
Northern Star Mining Services Pty Limited
Northern Star (Kanowna) Ltd
Kundana Gold Pty Ltd
Gilt-Edged Mining NL
EKJV Management Pty Ltd
Kanowna Mines Ltd
GKL Properties Pty Ltd
24. COMMITMENTS AND CONTINGENT LIABILITIES
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Group
(a) Operating Commitments:
Commitments in relation to hire purchase arrangements under a master agreement with
various banks and lending institutions contracted for at the reporting date.
Within one year
Later than one year but not more than five years
Future Finance Charges
(b) Capital Commitments:
Commitments in relation to purchase of Property Plant and Equipment contracted for at
the reporting date, but not recognised as liabilities.
Within one year
Later than one year but not more than five years
2014 Annual Financial Report
30 June 2014
30 June 2013
$'000
$'000
2,143
3,804
5,948
(227)
5,721
1,082
-
1,082
5,771
4,217
9,988
(631)
9,357
493
-
493
Page 45
NOTES TO THE FINANCIAL STATEMENTS
24. COMMITMENTS AND CONTINGENT LIABILITIES (continued)
(c) Operating Lease Expenditure Commitments:
The Company leases its Head Office property located at level 1, 1 Puccini Court, Stirling
W.A. under an operating lease. The lease runs for a period of 3 years commencing on the
1st of May 2012, with an option to renew the lease for a further 5 years commencing on
the 1st of May 2015. Lease payments are increased every year to reflect market rentals,
currently CPI plus 1%.
Within one year
Later than one year but not more than five years
(d) Tenement Expenditure Commitments:
The Company and the Group are required to maintain current rights of tenure to
tenements, which require outlays of expenditure in 2013/2014. Under certain circumstances
these commitments are subject to the possibility of adjustment to the amount and/or
timing of such obligations, however, they are expected to be fulfilled in the normal course
of operations. Estimated minimum required expenditure on mining, exploration and
prospecting leases as at 30 June 2014 are:
Within one year
Later than one year but not more than five years
Later than five years
298
-
298
297
272
569
14,922
57,245
81,302
153,469
3,806
9,159
897
13,862
(e) Contingencies:
It is possible that native title, as defined in the Native Title Act 1993, might exist over land in which the Company has an
interest. It is impossible at this stage to quantify the impact (if any) that the existence of native title may have on the
operations of the Company. However, at the date of these accounts, the Directors are aware that applications for native
title claims have been accepted by the Native Title Tribunal over tenements held by the Company.
25. EMPLOYEE INCENTIVE SCHEME AND OTHER SHARE-BASED PAYMENTS
An employee incentive scheme has been established by Northern Star Resources Limited to provide eligible employees with
a potential ownership interest in the Company for the purpose of:
providing them with an opportunity to share in the growth in value of the Company,
encouraging them to improve the longer-term performance of the Company and its returns to Shareholders, and
assisting in the attraction, reward and retention of employees of the Company and its subsidiary.
These options/shares are granted at the discretion of the Board, who may take into account skills, experience, length of
service with the Company, remuneration level and such other criteria as considered appropriate. Shares and Options issued
pursuant to the scheme are issued free of charge. Shares issued under the Employee Share Plan are held in voluntary
escrow. Where options are issued, the option exercise price and expiry date, and the date(s) on which the rights may be
exercised, is determined by the Board. Options are unlisted and not quoted on the ASX, and transfers are restricted applied.
(a) Set out below are the summaries of employee shares granted as share based payments.
Grant Date
2014
30/1/2014
2013
10/1/2013
Balance at start
of the year
Granted during
the year
Forfeited or Cancelled
during the year
Balance at the
end of the year
129,579
106,932
70,720
58,859
-
-
236,511
129,579
2014 Annual Financial Report
Page 46
NOTES TO THE FINANCIAL STATEMENTS
25. EMPLOYEE INCENTIVE SCHEME AND OTHER SHARE-BASED PAYMENTS (continued)
(b) Set out below are the summaries of options granted as share based payments.
Expiry
Date
Exercise
Price
Balance at
start of the
year
Granted
during the
year
Exercised
during the
year
Forfeited,
Expired or
Cancelled
during the
year
Balance at
the end of
the year
Vested and
exercisable
at the end
of the year
15/04/2016
15/04/2015
1/11/2015
1/11/2014
27/08/2015
27/08/2014
28/06/2014
28/06/2014
27/02/2014
27/02/2015
27/02/2016
1.05
0.95
1.22
1.05
1.22
1.05
0.91
0.91
1.20
1.50
1.81
250,000
250,000
125,000
125,000
250,000
250,000
750,000
2,000,000
333,334
333,333
333,333
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(125,000)
-
-
(750,000)
(2,000,000)
(333,334)
-
-
-
-
-
-
-
-
-
-
-
-
-
250,000
250,000
125,000
-
250,000
250,000
-
-
-
333,333
333,333
-
250,000
125,000
-
250,000
-
-
-
333,333
-
Expiry
Date
Exercise
Price
Balance at
start of the
year
Granted
during the
year
Exercised
during the
year
Forfeited,
Expired or
Cancelled
during the
year
Balance at
the end of
the year
Vested and
exercisable
at the end
of the year
-
-
-
-
-
-
-
250,000
250,000
125,000
125,000
250,000
250,000
750,000
15/04/2016
15/04/2015
1/11/2015
1/11/2014
27/08/2015
27/08/2014
28/06/2014
28/06/2014
14/05/2013
30/06/2013
27/02/2014
27/02/2015
27/02/2016
17/10/2012
17/10/2013
17/10/2014
11/10/2013
11/10/2014
4/11/2012
4/11/2013
4/11/2014
30/07/2013
30/07/2013
30/07/2013
30/07/2013
4/09/2012
4/09/2012
4/09/2013
4/09/2013
4/09/2013
4/09/2013
1.05
0.95
1.22
1.05
1.22
1.05
0.91
0.91
0.80
0.80
1.20
1.50
1.81
0.35
0.50
0.65
0.20
0.25
0.15
0.20
0.25
0.20
0.20
0.20
0.20
0.05
0.05
0.10
0.10
0.10
0.10
2,000,000
375,000
375,000
333,334
333,333
333,333
333,334
333,333
333,333
333,333
333,333
333,334
333,333
333,333
250,000
250,000
250,000
250,000
500,000
333,333
500,000
6,500,000
5,000,000
333,333
-
-
-
-
-
-
-
-
-
-
-
(375,000)
(250,000)
-
-
-
-
-
-
(333,334)
-
(333,333)
-
(333,333)
-
(333,333)
-
(333,333)
-
(333,334)
-
(333,333)
-
(333,333)
-
(250,000)
-
(250,000)
-
(250,000)
-
(250,000)
-
(500,000)
-
(333,333)
-
(500,000)
-
- (6,500,000)
- (5,000,000)
(333,333)
-
-
-
-
-
-
-
-
-
-
(125,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
250,000
250,000
125,000
125,000
250,000
250,000
750,000
2,000,000
-
-
333,334
333,333
333,333
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Grant Date
2014
15/04/2013
15/04/2013
10/01/2013
10/01/2013
10/01/2013
10/01/2013
3/12/2012
29/06/2012
2/03/2012
2/03/2012
2/03/2012
Grant Date
2013
15/04/2013
15/04/2013
10/01/2013
10/01/2013
10/01/2013
10/01/2013
3/12/2012
29/06/2012
15/05/2012
15/05/2012
2/03/2012
2/03/2012
2/03/2012
25/08/2011
25/08/2011
25/08/2011
28/10/2010
28/10/2010
18/11/2010
18/11/2010
18/11/2010
30/07/2010
30/07/2010
30/07/2010
30/07/2010
11/09/2009
11/09/2009
11/09/2009
11/09/2009
11/09/2009
11/09/2009
2014 Annual Financial Report
Page 47
NOTES TO THE FINANCIAL STATEMENTS
26. COMPENSATION OF KEY MANAGEMENT PERSONNEL
Short-term employee benefits - cash fees and bonus
Post-employment benefits - superannuation
Equity based payments
Group
30 June 2014
30 June 2013
$'000
1,952
104
617
$'000
1,482
62
445
27. RELATED PARTY TRANSACTIONS
Michael Fotios (resigned on 24 October 2013) is a related party, and is:
(a) a Shareholder and Director of Delta Resource Management Pty Ltd. During the year, no amounts were paid to Delta
Resources for services provided (2013: $562);
(b) a Shareholder and Director of Investmet Limited. During the year an amount of $4,840 was paid to this business for
corporate advice at normal commercial rates (2013: 58,400).
Bill Beament is a related party, and:
(a) has a minor beneficial interest in a shareholding of Australian Underground Drilling Pty Ltd (a former Director who resigned
in June 2014). During the year an amount of $7,397,675 was paid to this business for drilling services at normal commercial
rates (2013: $6,886,439);
(b) has a minor beneficial interest in a shareholding in Premium Mining Personnel Pty Ltd. During the year, an amount of
$6,202,673 was paid to this business for supplying specialist mining labour at normal commercial rates (2013: $5,327,172);
and
(c) is the sole director and has a beneficial interest in a shareholding in Mining & Infrastructure Group Pty Ltd. During the year
an amount of $7,100 was paid to this business for serviced vehicle expenses at normal commercial rates in relation to Mr
Beament’s remuneration contract (2013:$18,800).
In addition to the above, the Group had the following receivables and payables from related parties
noted above:
2014
$000's
57
1,193
Group
2013
$000's
63
2,210
Assets
Trade Receivables
Liabilities
Trade Payables
28. AUDITOR'S REMUNERATION
Amounts received, or due and receivable, by Rothsay Chartered
Accountants for:
An audit review of the financial report of the entity and any other
entity in the consolidated group
Amounts received, or due and receivable, by entities not part of
Rothsay Chartered Accountants group for:
GROUP
30 JUNE 2014
30 JUNE 2013
$
$
128,000
57,800
Audit services - component auditors
95,000
-
2014 Annual Financial Report
Page 48
NOTES TO THE FINANCIAL STATEMENTS
29. SEGMENT INFORMATION
Management has determined the operating segments based on the reports reviewed by the Board that are used to make
strategic decisions. The Group operates in only one geographic segment (i.e. WA, Australia) and has identified 5 operating
segments as listed below.
The Group's reportable operating segments are:
1. Paulsens, WA Australia
2. Plutonic, WA Australia
3. Kundana, WA Australia
4. Kanowna, WA Australia
5. Exploration and Other
Exploration and Other mainly compromise projects in the exploration, evaluation and feasibility phase in WA, Australia.
These include the Asburton gold project, Kazput coal project, Fortescue JV project and ongoing EKJV exploration.
All of the Groups operations produces primarily gold, from which its revenue is derived. Revenue derived by the Group is
received from one customer, being the Perth Mint. The Registered Manager of the respective mine is responsible for budgets
and expenditure of the operations, which includes exploration activities on the mine's tenure.
The Group's Exploration Manager is responsible for budgets and expenditure relating to the Group's exploration and
feasibility studies. These exploration divisions do not ordinarily derive any income. Once a project generated by the
exploration division enters the production phase and commences generating income, that operation would then be
disaggregated from exploration and become reportable as a separate segment.
Paulsens
Plutonic
Kanowna
Kundana
$'000
56,963
56,963
584
$'000
55,852
55,852
5,030
$'000
41,120
41,120
13,690
Exploration
and Other
$'000
-
-
Total
$'000
296,976
296,976
(5,742)*
48,970
$'000
143,040
143,040
35,408
72,539
(5,426)
Sales to external customers
Total Segment revenue
Segment net operating profit
(loss) before income tax
Segment Assets
Segment Liabilities
Depreciation and
amortisation
58,427
85,393
63,607
69,049
349,016
(23,430)
(37,941)
(25,233)
29,715
10,577
3,800
3,511
Impairment loss before tax
-
-
-
Other non-cash expenses
(975)
(1,041)
(1,240)
-
-
*Includes redundancy cost of $198,000 in relation to the exploration division.
(i) Reconciliation of segment net profit (loss) before tax to operating profit (loss) before tax
Segment net profit (loss) before tax
Finance and other income
Realised gains/(losses) on financial assets
Share-based payments expense
Acquisition costs
Other corporate costs
Net gain/(loss) on gold hedge financing
Total net profit/(loss) before tax
2014 Annual Financial Report
-
-
159
-
(92,031)
47,603
159
(3,256)
Group
$'000
48,970
3,785
(589)
(1,179)
(7,382)
(9,696)
1,726
35,637
Page 49
NOTES TO THE FINANCIAL STATEMENTS
29. SEGMENT INFORMATION (continued)
(ii) Segment assets reconciliation to the Balance Sheet
Total assets for reportable segments
Unallocated assets
Derivative asset
Listed equity securities
Corporate cash and receivables
Total assets as per the balance sheet
(iii) Segment liabilities reconciliation to the Balance Sheet
Total liabilities for reportable segments
Unallocated liabilities
Deferred tax liabilities
Creditors and accruals
Provision for employee benefits
Provision for Income tax
Provision for Stamp Duty Payable
Finance leases
Derivative Liability
Total liabilities as per the balance sheet
Group
$'000
349,016
3,024
2,906
41,650
396,596
Group
$'000
(92,031)
(10,804)
(9,207)
(23,282)
(5,490)
(4,326)
(5,948)
(1,298)
(152,386)
30. JOINT VENTURES
Joint Ventures
FMG JV
Hardey Junction JV
Mt Clement JV
East Kundana Production JV
Kanowna West JV
Kalbarra JV
West Kundana JV
Carbine East JV
Principal Activities
Exploration
Exploration
Exploration
Exploration & Development
Exploration
Exploration
Exploration
Exploration
Group
30 June 2014
30 June 2013
25%
80%
20%
51%
60%
60%
75.5%
95%
25%
80%
20%
-
-
-
-
-
The joint ventures are not separate legal entities. They are contractual arrangements between participants for the
sharing of costs and outputs and do not in themselves generate revenue and profit. The joint ventures are of the type
where initially one party contributes tenements with the other party earning a specified percentage by funding
exploration activities; thereafter the parties often share exploration and development costs and output in proportion to
their ownership of joint venture assets. The joint ventures are accounted for in accordance with the Group's accounting
policy set out in Note 1.
2014 Annual Financial Report
Page 50
NOTES TO THE FINANCIAL STATEMENTS
31. FINANCIAL RISK MANAGEMENT
The Group’s principal financial instruments comprise cash, short-term deposits, borrowings and derivatives. The main
purpose of these financial instruments is to provide working capital for the Group’s operations and mine development.
The Group has various other financial instruments such as financial assets at fair value through profit and loss, trade
debtors, trade creditors and finance leases, which arise directly from its operations.
The main risks arising from the Group’s financial instruments are interest rate risk, liquidity risk, foreign currency risk,
commodity price risk and credit risk. The Board reviews and agrees on policies for managing each of these risks.
The Group holds the following financial instruments:
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial Derivative Asset
Other Financial Assets
Financial liabilities
Trade payables
Finance Leases
Derivative Financial Liability
(a) Interest rate risk
Group
30 June 2014
$'000
30 June 2013
$'000
82,387
25,290
3,024
2,906
37,449
5,948
1,298
55,775
1,713
-
2,224
14,449
11,232
-
At balance date the Group’s exposure to market risk for changes in interest rates relates primarily to the Company’s
short-term cash deposits and borrowings. The Group constantly analyses its exposure to interest rates, with consideration
given to potential renewal of existing positions, the mix of fixed and variable interest rates and the period to which
deposits may be fixed.
The Group had the following financial instruments exposed to
interest rates:
Group
Financial assets
Cash and cash equivalents
Financial liabilities
Finance Leases
Net exposure
Sensitivity
30 June 2014
$'000
30 June 2013
$'000
82,387
(5,948)
76,439
55,775
(11,232)
44,543
At 30 June 2014, if interest rates had increased/decreased by 1% (pre-tax) from the year end variable rates with all other
variables held constant, post-tax profit and equity for the Group and Parent would have been $532,000 higher/lower
(2013: $334,000 higher lower).
The 0.7% (post-tax) sensitivity is based on reasonably possible changes, over a financial year, using an observed range of
historical RBA movements over the last year.
(b) Liquidity risk
The Group manages liquidity risk by monitoring immediate and forecast cash requirements and ensuring adequate cash
reserves are maintained. A maturity analysis of financial liabilities is disclosed in the table below.
30 June 2014
Trade and other payables
Hire Purchase liabilities
Derivative liability
1 year or less
$'000
37,449
2,143
333
1-2 years
$'000
-
2,926
965
2 or more years
$'000
-
879
-
30 June 2013
Trade and other payables
Hire Purchase liabilities
Derivative liability
1 year or less
$'000
14,449
1,634
-
1-2 years
$'000
-
4,820
-
2 or more years
$'000
-
4,778
-
Total
$'000
37,449
5,948
1,298
Total
$'000
14,449
11,232
-
2014 Annual Financial Report
Page 51
NOTES TO THE FINANCIAL STATEMENTS
31. FINANCIAL RISK MANAGEMENT (continued)
(c) Foreign Currency Risk
The group's exposure to commodity risk arises from movements in the gold price. During the year the Group entered into
a hedge contract (refer Note 11) for specified quantities of gold on specific dates to partly manage the commodity risk.
(d) Commodity Price Risk
The group is exposed to the Australian Dollar currency risk on gold sales, which are denominated in US dollars. During the
year the Group entered into a hedge contract (refer Note 11) for specified quantities of gold on specified dates to partly
manage the commodity and currency risk.
Derivative assets and liabilities designated as cash flow hedges
The following table indicates the periods in which the cash flows associated with cash flow hedges are expected to
occur and are expected to impact profit and loss.
Net Hedged Asset
Fair Value
000's
1,726
Total
000's
155,762
(i) Sensitivity Analysis
Movement in Gold Price
Expected CashFlows
2 months
or less
000's
25,065
2-12
months
000's
89,762
1-2
years
000's
40,934
2 or more
years
000's
-
The following table summarises the sensitivity of financial instruments held at 30 June 2014 to movements in gold
price, with all other variables held constant. A 20% (2013: N/A) sensitivity rate is used to value derivative contracts
held and is based on reasonable assessment of the possible changes
Increase 20% (2013: N/A)
Decrease 20% (2013: N/A)
(e) Credit risk
Group
2014
000's
(30,807)
30,807
2013
000's
-
-
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to
the Group. The Group has adopted the policy of dealing with creditworthy counterparties and obtaining sufficient
collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults. Cash is
deposited only with institutions with a minimum credit rating of A (or equivalent) as determined by a reputable
credit rating agency e.g. Standard & Poor. The Group has all cash deposited with one bank. The Group does not
have any other significant credit risk exposure to a single counterparty or any group of counterparties having similar
characteristics.
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external
credit ratings (if available) or to historical information about counterparty default rates:
Cash and cash equivalents
Trade and Other Receivables
Group
30 June 2014
30 June 2013
$'000
82,387
25,290
$'000
55,775
1,713
The Consolidated Entity measures credit risk on a fair value basis. The carrying amount of financial assets recorded
in the financial statements, net of any provision for losses, represents the Consolidated Entity’s maximum exposure to
credit risk. All receivables noted above are due within 30 days. None of the above receivables are past due.
2014 Annual Financial Report
Page 52
NOTES TO THE FINANCIAL STATEMENTS
31. FINANCIAL RISK MANAGEMENT (continued)
(f) Net fair values
The net fair values of financial assets and financial liabilities at the reporting date are as follows:
Financial Assets
Cash and cash equivalents
Trade and Other Receivables
Investments - Listed
Financial Derivative Asset
Total Financial Assets
Financial Liabilities
Trade Payables
Finance Leases
Derivative Financial Liability
Total Financial Liabilities
Total carrying amount as per the
consolidated balance sheet
Consolidated Fair Value
2014
$'000
82,387
25,290
2,906
3,024
2013
$'000
55,775
1,713
2,224
-
2014
$'000
82,387
25,290
2,906
3,024
2013
$'000
55,775
1,713
2,224
-
113,607
59,713
113,607
59,713
37,449
5,948
1,298
44,695
14,449
11,232
-
25,681
37,449
5,948
1,298
44,695
14,449
11,232
-
25,681
The following table provide an analysis of financial instruments that are measured subsequent to initial recognition at
fair value, grouped into levels 1 to 3 based on the degree to which the fair value is observable.
Level 1: fair value measured are those derived from quoted prices (unadjusted) in active markets for identical assets
or liabilities that the group can access at the measurement date.
Level 2: fair value measured are those derived from inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly or indirectly.
Level 3: fair values measured are those derived from valuation techniques that include inputs for the asset or liability
that are not based on observable market data (unobservable inputs).
30 June 2014
Assets
Listed shares are fair value
Derivative asset
$'000
Level 1
2,906
-
$'000
Level 2
-
3,024
Liabilities
Derivative liabilities
-
1,298
$'000
Level 3
-
-
-
30 June 2013
$'000
Level 1
$'000
Level 2
$'000
Level 3
Assets
Listed shares are fair value
2,224
Derivative asset
Liabilities
Derivative liabilities
-
-
-
-
-
-
-
-
$'000
Total
2,906
3,024
1,298
$'000
Total
2,224
-
-
The fair value of financial instruments traded in active markets is based upon quoted market price at the end of the
reporting period. The quoted market price is the quoted bid prices that are included in Level 1. The fair value of
financial instruments that are not traded in an active market is determined using valuation techniques. The Group
makes a number of assumptions based upon observable market data existing at each reporting period. If all
significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
The fair values of the financial assets and financial liabilities included in the level 2 categories above have been
determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with
the most significant inputs being the discount rate that reflects the credit risk of counterparties.
2014 Annual Financial Report
Page 53
NOTES TO THE FINANCIAL STATEMENTS
32. PARENT ENTITY INFORMATION
(a) Information relating to Northern Star Resources Limited:
Results of the parent entity
Profit/(Loss) for the period
Other comprehensive income for the year
Total comprehensive income for the year
Financial position of the parent entity at year end
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net Assets
Contributed equity
Reserves
Retained earnings
Total equity
Parent Entity
30 June 2014 30 June 2013
$'000
$'000
2,591
-
2,591
23,106
-
23,106
151,451
130,182
281,633
29,866
28,488
58,353
69,334
77,109
146,443
23,522
14,806
38,328
223,280
108,115
193,808
395
29,077
223,280
66,765
691
40,659
108,115
(b) Details of any guarantees entered into by the parent entity in relation to the debts of its subsidiary
Refer to Note 24.
(c) Details of any contingent liabilities of the parent entity
Refer to Note 24.
(d) Details of any contractual commitments by the parent entity for the acquisition of plant, and equipment
There are no contractual commitments by the parent entity for the acquisition of property, plant and equipment as
at reporting date.
(e) Tax Consolidation
The Company and its 100% owned controlled entities have formed a tax consolidated group. Members of the group
entered into a tax sharing arrangement in order to allocate income tax expense to the wholly owned controlled
entities. The head entity of the consolidated group is Northern Star Resources Limited.
33. ASSET ACQUISITION
On 21 December 2013, Northern Star Resources Limited executed a Sale and Purchase Agreement with Barrick Gold
Corporation to purchase the Plutonic Gold mine assets. The total consideration paid by Northern Star Resources
amounted to $42,167,461, which comprised of $25m cash consideration and the assumption by Northern Star
Resources of certain liabilities (including Trade payables and Employee Entitlements) totalling $17,167,461.
The acquisition was completed on 1 February 2014. The transaction has been accounted for using the guidelines as
set out in AASB 3 "Business Combination".
Details of the purchase consideration and assets acquired are as follows:
Fair Value
000's
1,500
400
100
7,282
9,080
457
3,470
19,879
42,167
Pastoral Leases
Dampier Gold Royalty
Dampier Gold Shares
Plant & Equipment
Inventory Consumables
Inventory Ore
Gold In Circuit
Mining Development
Net Assets Acquired
2014 Annual Financial Report
Page 54
NOTES TO THE FINANCIAL STATEMENTS
34. BUSINESS COMBINATION
On 23 January 2014, Northern Star Resources Limited announced that it had agreed to acquire Barrick Gold
Corporation's 100% owned Kanowna Belle Gold Mine, inclusive of Barrick's 51% interest in the East Kundana Joint
Venture and on site production facilities for a total of $75 million cash consideration.
The $75 million cash consideration was funded through a combination of:
- existing cash reserves;
- a new $50 million debt facility; and
- $100 million capital raising via a two-tranche private placements with institutional investors
The transaction was completed and effective 1 March 2014. The net assets acquired in the business combination
are as follows:
Nets Assets acquired
Cash and cash equivalent
Trade and other receivables
Inventory - trading stock
Consumables stores
Investments
Plant and equipment
Mine Development
Exploration and evaluation
Accounts Payable
Accruals - workforce related
Other accruals
Rehabilitation provision
Net Assets acquired
Fair value
000's
1,627
9,406
33,375
10,625
1,195
14,650
48,671
30,214
(6,090)
(11,648)
(13,863)
(43,162)
75,000
Total Consideration paid
$75,000
Acquisition related costs of $7.4 million have been excluded from the consideration transferred and have been recognised
as an expense in profit or loss in the current year.
We note that the fair values assigned to identifiable assets and liabilities above are presented on a provisional basis. As at
the date of this report, taxation and fair value allocations are not yet finalised. The group will recognise any adjustments to
these provisional values as a result of completing the fair value accounting within twelve months following the acquisition
date.
Impact of acquisition on the results of the Group
Included in the profit for the year is $18.7 million attributable to the additional business generated by the Kalgoorlie
Operations. Revenue for the year includes $97 million in respect of these assets.
Had the business combination been effected at 1 July 2013, the revenue of the Group would have been $291 million and
the profit for the year would have been $57 million on a pro-rata basis. The directors of the Group consider these ‘pro-forma’
numbers to represent an approximate measure of the performance of the combined group on an annualised basis and to
provide a reference point for comparison in future periods.
35. EVENTS SUBSEQUENT TO YEAR END
Subsequent to the period end, the Company announced:
a final dividend of 2.5 cents per share to Shareholders on the record date of 15 September 2014 , payable on 3 October
2014;
an updated Resources and Reserves Statement effective as at 30 June 2014 which was released on the 4 August 2014;
the completion of the acquisition on 1 July 2014 of the Jundee Gold Mine from Newmont Mining Corporation for cash
consideration of A$82.5m. As part of the acquisition, the Group drew down A$70 million from its A$100 million credit
facility with Investec Bank Plc; and
the issue of 7,854,843 fully paid ordinary shares in return for waiving the right of first refusal to buy the Jundee Gold Mine,
and the issue of 170,012 fully paid ordinary shares as a result of a cashless conversion of options.
There are no other matters or circumstances that have arisen since 30 June 2014 that have or may significantly affect the
operations, results, or state of affairs of the Group in future financial years.
2014 Annual Financial Report
Page 55
DIRECTORS’ DECLARATION
In accordance with a resolution of the Board of Directors, I state that:
In the opinion of the Directors:
1.
(a)
the financial statements, notes and audited remuneration disclosures included in the Directors’ Report of
the Company and the Group are in accordance with the Corporations Act 2001, including:
i.
giving a true and fair view of the Group’s financial position at 30 June 2014 and of the performance
for the year ended on that date; and
ii.
complying with Accounting Standards and Corporations Regulations 2001; and
(b)
(c)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable; and
the remuneration disclosures set out in the Directors’ Report (as part of the audited Remuneration Report)
for the year ended 30 June 2014 comply with Section 300A of the Corporations Act 2001.
2.
3.
The Company has included in the notes to the financial statements an explicit and unreserved statement of
compliance with International Financial Reporting Standards (IFRS).
This declaration has been made after receiving the declarations required to be made to the Directors in
accordance with Section 295A of the Corporations Act 2001 for the financial year ending 30 June 2014.
On behalf of the Board
BILL BEAMENT
Managing Director
Perth, Western Australia
30 September 2014
2014 Annual Financial Report
Page 56
INDEPENDENT AUDITOR’S REPORT
2014 Annual Financial Report
Page 57
INDEPENDENT AUDITOR’S REPORT
2014 Annual Financial Report
Page 58
ADDITIONAL INFORMATION
The following additional information required by the ASX Listing Rules is current as at 29 September 2014.
EQUITY SECURITIES HOLDER INFORMATION
Ordinary Shares
587,429,659 quoted fully paid ordinary shares (NST). All ordinary shares carry one vote per share.
Distribution of Fully Paid Ordinary Shares
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,000+
Total Holders
No of Holders
1,233
2,774
1,557
2,539
332
8,435
No of Shares
% of Issued Capital
716,749
8,099,895
12,306,636
73,139,261
493,167,118
587,429,659
0.122
1.379
2.095
12.451
83.953
100.000
360 Shareholders held less than a marketable parcel (<$500) of ordinary fully paid shares based on the current market price
($1.31).
Twenty Largest Holders of Ordinary Fully Paid Shares
No of Shares
1. National Nominees Limited
2. HSBC Custody Nominees (Australia) Limited
J P Morgan Nominees Australia Limited
3.
4. Citicorp Nominees Pty Limited
5. Mr William James Beament
6.
7.
8. Wyllie Group Pty Ltd
9.
BNP Paribas Noms Pty Ltd
Yandal Investments Pty Ltd
Lujeta Pty Ltd
Little Breton Nominees Pty Ltd
RBC Investor Services Australia Nominees Pty Limited
10. Multi Metal Consultants Pty Ltd
11.
12.
13. Gunz Pty Ltd
14. National Nominees Limited
15. Mrs Catherine Anne Wilkinson
16. Mr Hendrius Petrus Indrisie
17.
18.
19.
20. AMP Life Limited
Zero Nominees Pty Ltd
Kyim Pty Ltd
Leefab Pty Ltd
TOTAL
Options
143,768,695
89,246,188
80,953,914
24,492,195
12,872,624
7,941,464
7,854,843
3,566,852
3,200,000
3,132,725
2,912,590
2,869,186
2,791,022
2,261,874
2,165,000
2,011,628
2,000,000
2,000,000
2,000,000
1,714,062
399,754,862
% Issued Capital
24.474
15.193
13.781
4.169
2.191
1.352
1.337
0.607
0.545
0.533
0.496
0.488
0.475
0.385
0.369
0.342
0.340
0.340
0.340
0.292
68.052
1,541,666 unlisted options with various exercise prices and expiry dates (refer table below). Options do not carry a right to
vote. Voting rights will be attached to the unissued shares when the options have been exercised.
Expiry Date
27/2/2015
15/4/2015
27/8/2015
1/11/2015
27/2/2016
15/4/2016
No of Options
Exercise Price
No of Holders
333,333
250,000
250,000
125,000
333,333
250,000
$1.50
$0.95
$1.22
$1.22
$1.81
$1.05
1
1
1
1
1
1
Holding >20%
Issued under employee incentive scheme
Issued under employee incentive scheme
Issued under employee incentive scheme
Issued under employee incentive scheme
Issued under employee incentive scheme
Issued under employee incentive scheme
Substantial Shareholders
The substantial Shareholders as disclosed in the substantial shareholding notices received by the Company are:
No of Shares
83,623,543
54,998,314
Holding
14.23%
9.36%
Name
BlackRock Group
Van Eck Associates Corporation
Restricted Securities
The following securities are held in escrow:
Ordinary Shares:
Unlisted Options:
12,118,835
375,000
On-Market Buy-Back
Currently there is no on-market buy-back of the Company’s securities.
2014 Annual Financial Report
Page 59
TENEMENT SCHEDULE
Tenement No.
M15/0993
M15/1413
M16/0181
M16/0182
M16/0308
M16/0309
M16/0325
M16/0326
M16/0421
M16/0428
M16/0436
M24/0924
M16/0005
P16/2482
P16/2483
P16/2484
P16/2485
P16/2486
P16/2487
P16/2488
P16/2489
P16/2490
P16/2491
P24/4184
P24/4185
P24/4186
M16/0411
L16/0056
L16/0057
L16/0059
L16/0075
M16/0027
M16/0188
M16/0239
P16/2508
M27/0182
M27/0219
M27/0228
E27/0457
L26/0198
L27/0049
L27/0050
L27/0051
L27/0052
L27/0083
L27/0087
M27/0018
M27/0022
M27/0023
M27/0053
M27/0092
M27/0103
M27/0114
M27/0122
M27/0123
M27/0128
M27/0157
M27/0197
M27/0198
P27/1843
P27/1844
P27/1845
P27/1846
P27/1878
P27/1880
P27/1881
P27/1882
E24/0151
M27/0202
P24/4017
P24/4146
P24/4149
P24/4498
P24/4499
P24/4500
P24/4501
P24/4502
P24/4503
P24/4538
P24/4818
P24/4819
P24/4820
P26/3366
P26/3367
P26/3368
P26/3369
P26/3769
P26/3788
P26/3979
P26/3980
P26/3981
P26/3982
P26/3983
P27/1682
P27/1686
P27/1687
P27/1743
P27/2024
P27/2025
P27/2026
P27/2099
P27/2100
P27/2101
P27/2102
M27/0041
M27/0072
M27/0196
P27/1847
M27/0037
M27/0063
M27/0191
P27/1688
L27/0060
L27/0061
Interest %
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
0%
95%
95%
95%
95%
95%
95%
95%
95%
95%
95%
95%
95%
95%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
60%
60%
60%
100%
100%
100%
100%
100%
100%
100%
Project Name and Location
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
East Kundana JV, Kalgoorlie
Carbine (Photios) Option, Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine East (Westex), Kalgoorlie
Carbine Paradigm, Kalgoorlie
Carbine Zuleika, Kalgoorlie
Carbine Zuleika, Kalgoorlie
Carbine Zuleika, Kalgoorlie
Carbine Zuleika, Kalgoorlie
Carbine Zuleika, Kalgoorlie
Carbine Zuleika, Kalgoorlie
Carbine Zuleika, Kalgoorlie
Carbine Zuleika, Kalgoorlie
Four Mile Hill, Kalgoorlie
Four Mile Hill, Kalgoorlie
Four Mile Hill, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Golden Valley, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kalgoorlie Regional Gold Project, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna, Kalgoorlie
Kanowna Belle, Kalgoorlie
Kanowna Belle, Kalgoorlie
Kanowna Belle, Kalgoorlie
Kanowna Belle, Kalgoorlie
Kanowna Mining Centre, Kalgoorlie
Kanowna Mining Centre, Kalgoorlie
Tenement No.
L27/0062
M27/0049
M27/0057
M27/0127
M27/0133
M27/0159
M27/0164
M27/0232
M27/0245
M27/0272
M27/0287
M27/0406
M27/0420
M27/0438
P27/1840
P27-1840
M27/0414
M27/0415
P27/1826
P27/1827
P27/1828
P27/1829
P27/1830
P27/1831
P27/1832
P27/1833
P27/1834
P27/1835
P27/1836
P27/1837
P27/1838
P27/1839
P27/1841
P27/1842
P27/1887
M27/0047
M27/0059
M27/0073
M27/0181
E24/0152
E24/0153
E26/0140
L16/0028
L16/0038
L16/0039
L16/0040
L16/0054
L16/0069
L16/0071
L16/0104
L16/0105
L16/0106
L16/104
L24/0183
L24/0184
L24/0205
L24/0206
M15/0669
M15/1351
M16/0072
M16/0073
M16/0074
M16/0075
M16/0087
M16/0097
M16/0157
M16/0260
M16/0408
M16/0438
M16/0440
M16/0441
M24/0142
M24/0435
M24/0606
M24/0626
M26/0680
M26/0681
M26/0687
M26/0688
P16/2575
P24/4229
P24/4230
P24/4236
P24/4237
P26/3573
P26/3574
M16/0366
M16/0367
M27/0175
M27/0378
M16/0213
M16/0214
M16/0218
M16/0310
E08/2232
E08/2393
E08/2395
E08/2456
E08/2472
E08/2474
E08/2475
E08/2499
E08/2565
E08/2566
E08/2567
E08/2568
E08/2569
E08/2570
L08/0103
P08/0653
P08/0670
E08/2310
E08/2487
E52/2815
Interest %
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
75.50%
75.50%
75.50%
75.50%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Project Name and Location
Kanowna Mining Centre, Kalgoorlie
Kanowna Mining Centre, Kalgoorlie
Kanowna Mining Centre, Kalgoorlie
Kanowna Mining Centre, Kalgoorlie
Kanowna Mining Centre, Kalgoorlie
Kanowna Mining Centre, Kalgoorlie
Kanowna Mining Centre, Kalgoorlie
Kanowna Mining Centre, Kalgoorlie
Kanowna Mining Centre, Kalgoorlie
Kanowna Mining Centre, Kalgoorlie
Kanowna Mining Centre, Kalgoorlie
Kanowna Mining Centre, Kalgoorlie
Kanowna Mining Centre, Kalgoorlie
Kanowna Mining Centre, Kalgoorlie
Kanowna West, Kalgoorlie
Kanowna West, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kanowna West JV, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Kundana, Kalgoorlie
Six Mile, Kalgoorlie
Six Mile, Kalgoorlie
West Kundana JV, Kalgoorlie
West Kundana JV, Kalgoorlie
West Kundana JV, Kalgoorlie
West Kundana JV, Kalgoorlie
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton, Ashburton
Ashburton (Nth Star), Ashburton
Ashburton (Nth Star), Ashburton
Ashburton (Nth Star), Ashburton
2014 Annual Financial Report
Page 60
TENEMENT SCHEDULE
Tenement No.
E52/3008
P08/0646
P52/1420
E08/1166
E08/1189
E08/1763
E08/1842
E08/1843
E08/1844
P08/0546
E80/2612
E08/1650
E08/2494
E08/1628
E08/1629
E08/1630
E08/1631
E08/1632
E08/1633
E08/1741
E08/1878
E08/1915
E08/1916
E08/1949
E08/1950
E08/1961
E08/1985
E08/1986
E08/1992
E08/2000
E08/2003
E08/2034
E08/2038
E08/2039
E08/2065
E08/2067
E08/2114
E08/2250
E08/2258
E08/2280
E08/2281
E08/2282
E08/2293
E08/2294
E08/2295
E08/2296
E08/2353-I
E08/2354-I
E08/2364
E47/1395
E47/1396
E47/1535
E47/1549
E47/1677
E47/1735
E47/1773
E47/1833
E47/1879
E47/2035
E47/2171
E47/2236
E47/2292
E47/2587
E47/2636
E52/2484
E52/2730-I
E52/2786
P47/1237
E80/4001
E08/1187-I
E08/1845
E52/1941
E52/3024
E52/3025
E52/3026
M52/0639
M52/0640
M52/0734
M52/0735
G53/0020
L53/0052
L53/0060
L53/0068
L53/0069
L53/0070
L53/0071
L53/0072
L53/0073
L53/0075
L53/0099
L53/0100
L53/0102
L53/0112
L53/0113
L53/0117
L53/0136
L53/0137
L53/0138
L53/0142
L53/0143
L53/0153
L53/0169
L53/0174
M53/0155
M53/0156
M53/0182
M53/0191
M53/0192
M53/0196
M53/0197
M53/0198
M53/0199
M53/0221
M53/0226
Interest %
100%
100%
100%
80%
80%
80%
80%
80%
80%
80%
100%
100%
100%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Project Name and Location
Ashburton (Nth Star), Ashburton
Ashburton (Nth Star), Ashburton
Ashburton (Nth Star), Ashburton
Cullen JV, Ashburton
Cullen JV, Ashburton
Cullen JV, Ashburton
Cullen JV, Ashburton
Cullen JV, Ashburton
Cullen JV, Ashburton
Cullen JV, Ashburton
East Kimberley (Northern Star), Kimberley
Electric Dingo , Ashburton
Eleven Bells, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
FMG JV, Ashburton
Kimberley, Kimberley
Metawandy Creek, Ashburton
Metawandy Creek, Ashburton
Mt Olympus, Ashburton
Mt Olympus, Ashburton
Mt Olympus, Ashburton
Mt Olympus, Ashburton
Mt Olympus, Ashburton
Mt Olympus, Ashburton
Mt Olympus, Ashburton
Mt Olympus, Ashburton
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Tenement No.
M53/0228
M53/0229
M53/0230
M53/0235
M53/0236
M53/0237
M53/0245
M53/0246
M53/0247
M53/0248
M53/0249
M53/0250
M53/0326
M53/0347
M53/0372
M53/0412
M53/0413
M53/0414
M53/0441
M53/0446
M53/0451
M53/0452
M53/0461
M53/0477
M53/0478
M53/0479
M53/0480
M53/0492
M53/0535
M53/0536
M53/0537
M53/0538
M53/0539
M53/0540
M53/0541
M53/0552
M53/0588
M53/0589
M53/0611
M53/0707
M53/0708
M53/0711
M53/0712
M53/0836
M53/0874
M53/0895
M53/0911
M53/0929
M53/0935
M53/0940
M53/0966
E08/1649
E08/1744
E08/1745
E08/2240
E08/2251
E08/2252
E08/2555
E08/2556
E08/2558
E08/2559
E08/2560
E47/1134
E47/1553
L08/0012
L08/0013
L08/0014
L08/0015
L08/0081
L08/0091
L08/0092
L08/0113
M08/0099
M08/0196
M08/0222
P08/0516
P08/0543
P08/0565
P47/1313
P47/1637
E52/2509
L52/0040
L52/0041
L52/0048
L52/0052
L52/0054
L52/0055
L52/0056
L52/0070
L52/0071
L52/0074
M52/0308
M52/0309
M52/0591
M52/0592
P52/1394
M52/0148
M52/0149
M52/0150
M52/0170
M52/0171
M52/0222
M52/0223
M52/0263
M52/0264
M52/0289
M52/0295
M52/0296
M52/0300
M52/0301
E08/2613
E08/2614
Interest %
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Project Name and Location
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Operations - Jundee, East Murchison
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Paulsens, Ashburton
Peak Hill (Northern Star), Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic, Peak Hill
Plutonic/Marymia, Peak Hill
Plutonic/Marymia, Peak Hill
Plutonic/Marymia, Peak Hill
Plutonic/Marymia, Peak Hill
Plutonic/Marymia, Peak Hill
Plutonic/Marymia, Peak Hill
Plutonic/Marymia, Peak Hill
Plutonic/Marymia, Peak Hill
Plutonic/Marymia, Peak Hill
Plutonic/Marymia, Peak Hill
Plutonic/Marymia, Peak Hill
Plutonic/Marymia, Peak Hill
Plutonic/Marymia, Peak Hill
Plutonic/Marymia, Peak Hill
Wyloo, Ashburton
Wyloo, Ashburton
2014 Annual Financial Report
Page 61
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2014 Annual Financial Report