Northern Star Resources
Annual Report 2019

Plain-text annual report

2 OU R VIS ION is to continue to build a safe, quality mining and exploration company focused OU R MIS S ION is to generate accretive earnings value for our Shareholders through on creating value for Shareholders. operational e(cid:909)ectiveness, gro(cid:90)th opportunities and exploration with a prime focus on success and meeting Shareholder expectations. Northern Star Resources Limited is an Australian mid cap gold miner that is positioned among the top 25 gold miners globally with costs in the lowest quartile of its peer group, no debt, asset diversity and an exciting pipeline of organic growth opportunities – another year of stellar achievements. 3 TABLE OF CONTENTS Key Highlights Chairman’s Address Safety People & Culture Sustainability Operations Review Resources and Reserves Risk Management Directors’ Report Remuneration Report Financial Report Shareholder Information Tenement Schedule Glossary Corporate Directory 4 7 8 10 12 14 22 26 30 42 74 134 136 156 157 SCOPE OF THIS REPORT The Northern Star 2019 Annual Report presents the operating and financial results for the period 1 July 2018 to 30 June 2019. Except where otherwise stated in the Company’s Corporate Governance Statement, the Company has followed the ASX Corporate Governance Council’s Principles and Recommendations (fourth edition) during FY19. NORTHERN STAR RESOURCES LIMITED ABN: 43 092 832 892 4 2019 ANNUAL REPORT | COMPANY H IGH LIGH TS 5 SAFETY ENVIRONMENT & SOCIAL FINANCIAL PERFORMANCE OPERATIONS & ASSETS We strive for safety excellence across the business Our Sustainability Vision is core to our strategy Delivering the highest rates of financial returns Our number one STARR Core Value is Safety 64% below sector average TRIFR 3.3 (sector 9.1) 45% reduction in LTIFR to 0.5 (sector 1.6) 2nd place overall at MERC Western Australian Mining Emergency Response Competition – Surface in 2019 A$1.34B Economic Value Add in FY19 NST has added over A$5.25B into the economies in which it operates since FY11 SDG Alignment NST aligned to the United Nations Sustainable Development Goals Materially adverse environmental incidents 0 Regulator fines for environmental incidents or non- compliance A$0 FY19 COMPANY HIGHLIGHTS 62% Total Shareholder Return in FY19 Outperforming the ASX Accumulation Index by 51% in FY19 50% increase in Final Dividend to A7.5¢ per Share FY19 Dividends declared of A13.5¢ per Share 8% increase in EBITDA to A$479M in FY19 Group 35% increase in Reserves 16% Reserve grade up from FY18 31% increase in Resources Pogo Maiden Reserve of 1.5Moz A$50M capital investment in FY19 Jundee 5% Record Production under NST ownership of 299koz Au sold in FY19 300% increase in Reserves under NST ownership to 1.6Moz Kalgoorlie 29% Record Production under NST ownership of 340koz Au sold in FY19 506% increase in Reserves under NST ownership to 2.2Moz 6 2019 ANNUAL REPORT | CHAIRMAN'S ADDRESS 7 Dear Shareholder As I write to you, I have just returned from the Diggers & Dealers mining forum in Kalgoorlie, where Northern Star won the coveted Dealer of the Year Award for our acquisition of the Pogo gold mine in (cid:36)laska(cid:17) (cid:55)he honour re(cid:565)ected the a(cid:69)ilit(cid:92) of (cid:92)our team to identify a great opportunity, the world-class nature of the Pogo mine and its ability to generate superior returns for Northern Star Shareholders. Of course, gold production is just a link in the chain for Northern Star. As we have always maintained, the ultimate objective is to ma(cid:91)imise financial returns while adhering to our ESG policies. The Pogo acquisition speaks volumes about Northern Star, the Company’s commercial strategy, its approach to investing in assets and its commitment to the highest environmental, social and governance (ESG) standards. At every level, Pogo meets or exceeds our requirements and illustrates how the right merger and ac(cid:84)uisition activit(cid:92) can create significant value for investors and other stakeholders alike. Pogo represented a textbook opportunity to combine Northern Star’s highly regarded operational skills with a Tier-1 gold deposit in a Tier-1 location. It is the perfect recipe. I am delighted to report that the widespread reforms we are introducing at the mine are already generating strong results, as evidenced by rising productivity, increasing production and falling costs. There is unquestionably more to be done on these fronts. But we are only nine months into what we said at the outset would be an 18-month process. The world-class nature of Pogo is demonstrated by the huge exploration success we have enjoyed in such a short time. With just six months of drilling, we have generated a maiden JORC Reserve of 1.5 million ounces. And the JORC Resource has been increased 43 per cent to 5.95Moz at the highly impressive grade of 9.6gpt. (cid:58)e(cid:519)ve al(cid:90)a(cid:92)s defined a (cid:55)ier(cid:16)(cid:20) asset as one (cid:90)hich is capa(cid:69)le of producing ~300,000oz a year for 10 years. The operational results to date, the (cid:69)enefits (cid:90)e are seeing from our change program and the significant e(cid:91)ploration success alread(cid:92) (cid:565)o(cid:90)ing through sho(cid:90) we are well on track to establishing that platform at Pogo. Pogo is forecast to produce 200,000oz-240,000oz in the 12 months to 30 June, 2020. Importantly, production in the second half of the year is forecast to be in the range of 120,000oz- 140,000oz, further demonstrating the highly favourable trends being seen as we implement our operating model. (cid:51)ogo is still a (cid:90)ork in progress(cid:17) (cid:37)ut the (cid:69)enefits for our Shareholders were clear from the time of the acquisition, as shown by the fact that we raised A$175 million at A$6.70 a share in a placement to help fund the acquisition. In late July 2019, Northern Star shares traded at a record closing price of A$13.97. In times of a strong gold price, much is often made of rising production and total revenues. But all too often in the gold industr(cid:92), increases in these figures don(cid:519)t lead to increases in cash in the bank. Northern Star’s strong performance in this regard is highlighted by the fact that our cash and investments rose by A$73 million to A$361 million in the recent June quarter alone. And this increase came despite paying A$38 million in dividends and A$22 million in tax. This demonstrates the exceptional cash-generating capacity of our business. It also demonstrates Northern Star’s overall financial strength, (cid:90)ith no de(cid:69)t, consistent dividends e(cid:84)ual to (cid:25) per cent of our annual revenue, the ability to invest in organic gro(cid:90)th and outstanding free cash(cid:565)o(cid:90) generation(cid:17) (cid:55)he com(cid:69)ination of this strong financial position and our commitment to operating only in Tier-1 locations enables Northern Star to comply with some of the most ambitious ESG requirements in our industry. There is no doubt that Tier-1 locations provide a far preferable environment in which to meet our (cid:40)(cid:54)(cid:42) filters compared (cid:90)ith so man(cid:92) other parts of the (cid:90)orld(cid:17) In conclusion, it has been another stellar year for your Company. We acquired our third major operating asset and we have made huge strides in applying our expertise and systems to help unlock its full value. Our Australian operations are at the top of their game and our balance sheet is in outstanding shape. So much of the credit for these achievements must go to our highl(cid:92) talented and committed management team, sta(cid:909) and contractors. This is ultimately a people business. And our people are second to none. On behalf of the Board, a huge thank you for your hard work over the past year. I would also like to thank our Shareholders for the enormous support we have received, particularly in relation to Pogo. It is very comforting to kno(cid:90) that our (cid:54)hareholders are firml(cid:92) (cid:69)ehind the Company when we are making an investment of that scale and nature. I look forward to reporting to you throughout what I expect will be another highly successful year for Northern Star. While we are delighted with the progress at Pogo, we are in the enviable position of being able to invest in our new asset knowing that our Australian mines are performing extremely well, especially during a time of record-high Australian gold prices. Yours faithfully The Jundee and Kalgoorlie operations sold a combined 639,243oz at all-in sustaining cost of A$1,167/oz (US$817/oz) in the past financial (cid:92)ear, achieving the top end of the (cid:25)(cid:19)(cid:19),(cid:19)(cid:19)(cid:19)o(cid:93)(cid:16)(cid:25)(cid:23)(cid:19),(cid:19)(cid:19)(cid:19)o(cid:93) guidance range. They are forecast to produce 600,000oz- 660,000oz in the year to June 30, 2020. BILL BEAMENT Executive Chairman 26 August 2019 “This is ultimately a people business. And our people are second to none.” 8 Safety Safety Measures Lead Indicators are a positive initiative to measure and provide focus on future safety performances across the business and improve the safety culture amongst our workers. At Northern Star we have shifted our focus by using Lead Indicators to drive continuous improvement. A key performance indicator driven by these (cid:47)ead Indicators is the significant reduction in in(cid:77)ur(cid:92) statistics(cid:17) (cid:43)(cid:68)(cid:93)(cid:68)r(cid:71) (cid:918)(cid:71)ent(cid:76)fi(cid:70)(cid:68)t(cid:76)(cid:82)n (cid:68)n(cid:71) (cid:48)(cid:68)n(cid:68)(cid:74)e(cid:80)ent - key to identifying hazards and putting e(cid:909)ective controls in place to reduce the likelihood of harm to people, the environment and property. Personnel at all levels have an e(cid:91)pectation to engage in continuous ha(cid:93)ard identification and management. Task Observations - a formal process where workers are observed completing a specific task to ensure all aspects are performed in the correct manner. Task Observations are integral and allow us to detect at risk acts, procedures, job hazard analysis and standards before they result in an incident occurring, as well as recognise safe acts made by workers. Active Field Leadership - allows managers and supervisors to assess and measure the e(cid:909)ectiveness of implemented ha(cid:93)ard controls in the field (cid:90)hilst providing guidance and leadership(cid:17) Inspections - a formal process allowing us to identify hazards in the (cid:90)orkplace and measure ho(cid:90) e(cid:909)ectivel(cid:92) ha(cid:93)ards are (cid:69)eing managed in continuously changing conditions. Inspections are vital ensuring both legislative and Company requirements are met. CHART 1 LOST TIME INJURY FREQUENCY RATE 3 2 1 0 FY17 FY18 FY19 LTIFR Sector UG Metalliferous LTIFR NST CHART 2 TOTAL RECORDABLE INJURY FREQUENCY RATE 15 10 5 0 FY17 FY18 FY19 TRIFR Sector UG Metalliferous TRIFR NST 2019 ANNUAL REPORT | SAFETY 9 Emergency Response and Crisis Management Northern Star is committed to developing the capabilities of our emergency response team across our operations. In the last 12 months we have worked tirelessly to build an internal structure to support our (cid:38)ertificate III in (cid:48)ine (cid:40)mergenc(cid:92) (cid:53)esponse and (cid:53)escue in Australia. (cid:55)he training o(cid:909)ers a holistic vie(cid:90) of all aspects of emergenc(cid:92) rescue from fighting (cid:90)ildfire to road crash rescue, the a(cid:69)ilit(cid:92) to search and rescue underground, respond to aviation incidents and provide emergenc(cid:92) medical first response(cid:17) We strive for excellence and have participated in several mines rescue events, committing to developing the emergency response skills and leadership capabilities within our team. We attended the Mining Emergency Response Competition (MERC) – Surface, in Western Australia this year (as pictured), and achieved overall ranking placed second. This has been a great achievement for the team but also an acknowledgment that we are developing team capabilities to ensure we are prepared to respond to any incident. The surface and underground competitions always test our ability to work as a unit, the scenarios are very realistic and highlight most emergency situations that could potentially occur. To support our emergency services, it has been our goal to establish strong communication channels between sites and management to ensure we have a supportive and positive relationship well before a critical incident. Our leaders have participated in world-class training on crisis and emergency management. From business as usual to emergency response, emergency management, strategic planning to crisis management, we have developed strong leadership on sites to enable resilience and understanding of impacts and requirements in all roles across operations. Despite having operations across two continents our preparedness empo(cid:90)ers us to manage our risks (cid:90)ith kno(cid:90)ledge and confidence, knowing that we can support our employees at any site. SAFETY It matters and starts with you. TEAMWORK Together we can. ACCOUNTABILITY The responsibility lies with you. RESPECT To get it you must give it. RESULTS We deliver on our promises. STARR It’s what we stand for. Training (cid:55)as(cid:78) (cid:54)(cid:83)ecific (cid:55)raining (cid:55)ask specific training across the (cid:69)usiness has (cid:69)een mapped to the relevant National Standard in Australia, enabling employees to cross– pollinate across our sites, gaining experience and knowledge with minimal disruption to our business operations. Interactive computer-based training programs have been designed specificall(cid:92) for plant operators and supervisors(cid:17) (cid:55)he material is process plant specific and covers the characteristics of all unit operations, including safety and procedural. This includes critical process variables, control loops and interlocks, and alarm response requirements. The interactive program is available through eLearning. In the past year, employees have attained a total of 13,660 task-based competencies. These competencies were either newly achieved or refreshed. Incident Investigation “By focusing on controls Highly specialised, tailor-made incident investigation training continued across the business to improve and upskill the workforce. SAFETY SNAPSHOT 13,660 task-based competencies attained by workers 7% significant reduction in injury statistics to 3.3 64% below industry average of 9.1 1,337 employees trained in Northern Star’s key safety measures of elimination, substitution and engineering, Northern Star will continue to lead the industry on underground safety performance.” – Melissa Collins Principal - Health & Safety Northern Star focused on incident investigation training for supervisors, to improve the quality of the investigations and to develop actions that can prevent recurrence of similar incidents. This can lead to improved safety, reduced damage and better productivity. 6.3% of our employees were trained across 5 sites and 2 continents during FY19. Internal Auditor Training Internal auditor training was introduced to improve auditing skills in relation to safety, across the business. Our internal auditors can no(cid:90) perform an e(cid:909)ective, value(cid:16)adding audit against the (cid:38)ompan(cid:92)(cid:519)s standards and processes in relation to safety. 10 2019 ANNUAL REPORT | PEOPL E & CULTUR E 11 People & Culture Culture In (cid:41)e(cid:69)ruar(cid:92) (cid:21)(cid:19)(cid:20)(cid:28) (cid:90)e conducted our first engagement and culture survey, followed by direct employee feedback sessions across all sites. As part of the recommendations and areas of focus, an Employee Experience position was formed to ensure consistent, aligned experiences of stakeholders across all Northern Star operations. Underpinned by our STARR Core Values, the culture program is focused on achieving a ‘One Team’ approach. People Performance Northern Star’s expansion into North America has only strengthened our belief that our people, values and culture are at the heart of our success. The appointment of an Executive Manager – Capability (cid:9) (cid:38)ulture further re(cid:565)ected this commitment (cid:90)ithin the (cid:69)usiness and resulted in a number of key developments. This role allows a streamlined focus on organisational culture, attraction, retention, development, talent identification, mental health and (cid:90)ell(cid:69)eing(cid:17) (cid:36)fter a significant (cid:92)ear of gro(cid:90)th, as at (cid:22)(cid:19) (cid:45)une (cid:21)(cid:19)(cid:20)(cid:28) (cid:49)orthern (cid:54)tar employed 1,743 people across all sites. This includes an increase of 6% in graduates and 68% in apprentices. Mental Health & Wellness FY19 saw the launch of Mindsight, our purpose designed mental health and wellness program. Mental health is one of the most significant issues impacting society and the communities in which we live. This has been highlighted by the impact of FIFO Work Practices Mental Health Inquiry undertaken by the Western Australian Government. At the core of Mindsight, Northern Star is setting a target for 20% of our workforce to be accredited in Mental Health First Aid by 2020 to provide critical support, understanding and referral to colleagues, families and community members. Three months into the launch of the program at 30 June 2019, we have trained 149 employees (8.5% of our workforce) with strong demand across all sites to participate in the training. Regular wellness tips, TelePsych assessments, our Employee Assistance Program and manager training form part of Mindsight. Leadership Development & Talent ID Program Northern Star launched a pilot Talent ID program with 120 employees. Psychometric assessments incorporating personality, key drivers, critical reasoning, and other technical and experience factors were combined to generate personalised development plans – fast tracking career growth and enabling succession mapping. This has been enhanced through an additional 5 tier leadership development program inclusive of agile decision making, people management, strategic thinking, and project and resource management. ALIGNING FOR GROWTH PERFORMANCE Superior performance enables growth G R O W T H STRATEGY Developing and execution of a strategy delivers growth CULTURE Preserving culture protects the growth outcomes CORE VALUES Our Core Values are the foundations of our growth It matters and starts with you. Together we can. The responsibility lies with you. To get it you must give it. We deliver on our promises. PEOPLE & CULTURE SNAPSHOT 16.4% Female employment participation 160 Mental Health First Aiders trained and accredited as at the Report date 68% increase in Apprentices >80% Employees are shareholders HUMAN CAPITAL - DEVELOPING CAPABILITY FOR GROWTH ATTRACT Global Company Strong Growth Tier-1 Operations Job Security Underground Specialists E M P L O Y E E W E L L B E I N G RETAIN Work/life balance High Performance Culture Career Advancement Incentive Plans (STI and LTIs) Over 80% of employees are Shareholders DEVELOP High Potential Talent Screening Fast track development Bespoke Leadership Programs Coaching and Mentoring Framework Cross-site exchange Our people, values and culture are at the heart of our success. 12 2019 ANNUAL REPORT | SUSTAINABI LITY 13 Sustainability Our Sustainability Vision is core to our strategy and integrated across our business. We consider good governance united with social and environmental responsibility to be a key enabler of sustainable growth, and by operating our business in this manner, we can optimise: • Business growth and performance • Management of environmental impacts • Identification of stakeholder shared value opportunities • Management of social impacts In early 2019, we took the step of announcing our support for the United Nations Sustainable Development Goals (UN SDGs). The UN SDGs present a powerful platform for businesses to help overcome some of the most significant economic, social and environmental challenges faced in recent history. We will be reporting on our alignment and contribution to the UN SDGs in our forthcoming Sustainability Report covering calendar year 2019, to be released in early 2020. Our Sustaibability Reports can be accessed at www.nsrltd.com/ investor-media/reports/annual-reports/. FIGURE 1 UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS “Sustainability to Northern Star is delivering responsible environmental and social business practices that lead to both the creation of strong economic returns for our Shareholders, and shared value for our stakeholders.” – Dr Guy Singleton Social Responsibility & External Relations Manager SUSTAINABILITY SNAPSHOT View our most recent Sustainability Report Visit www.nsrltd.com/sustainabilityreport2018 2019 First stand-alone ESG Investor Roadshow United Nations SDGs aligned reporting 2018 First disclosure of climate related risk OUR SUSTAINABILITY JOURNEY 2010 Purchase of the Paulsens gold mine from Intrepid. 2017 Release of the Company’s Inaugural Sustainability Report, highlighting key ESG performance. 2017 Alignment of reporting structures for key ESG functions (Safety, Governance and Sustainability) to either CEO or Executive Chairman. 2019 Release of the Company’s Sustainability Report independent of the Annual Financial Report. Board level ESG&S Committee formed. 2019 + BEYOND Disclosure of progress against the SDGs. Adoption of the TCFD reporting recommendations. 2003 IPO, East Kimberley focused exploration Company targeting nickel and gold. 2014 Purchase of the Kanowna Belle/Kundana & Jundee mines from Barrick & Newmont respectively. 2017 Inaugural participation in the Dow Jones/ RobecoSAM Sustainability Survey. 2018 Purchase of the Pogo mine in Alaska from Sumitomo. First disclosure of climate related risk. 2019 Announced alignment with the United Nations Sustainable Development Goals. First ESG Investor Roadshow. Modern Slavery Statement Released. 14 15 OPERATIONS REVIEW 16 2019 ANNUAL REPORT | OPERATIONS REVIEW | OPERATIONS 17 Operations Overview Northern Star is an ASX 100 gold production and exploration company with three Tier-1 assets located in Tier-1 locations in highly prospective and low sovereign risk regions of Australia and North America. Northern Star has a Mineral Resource base of 20.8 million ounces, and Ore Reserves of 5.4 million ounces, including a maiden Reserve at Pogo of 1.5Moz1. As the second largest Australian gold producer, Northern Star continues to deliver on its strategic objective of being a safe, quality gold company that delivers outstanding value to its Shareholders. During FY19, the Company sold 840,580 ounces of gold from its West Australian and Alaskan operations. Northern Star has a continued focus on organic growth of Resources and Reserves through highly successful exploration programs and by thoroughly appraising our existing mines to significantly extend their operating lives. The Company continues to advance exploration activities at Pogo, Jundee, Kalgoorlie and Tanami - see pages 20 and 21 of this Report for further details. In parallel, Northern Star is well positioned to continue to grow Resources and Reserves, production and free cashflow through investment in and acquisition of Tier-1 assets in Tier-1 jurisdictions. 1 As at 30 June 2019 - see ASX release of 1 August 2019. “The Northern Star business model delivers significant Shareholder returns - best in class returns.” – Luke Creagh Chief Operating Officer TABLE 1 MINE OPERATIONS REVIEW Measure Jundee Total Material Mined Total Material Milled Gold Grade Gold Recovery Gold Produced Gold Sold Revenue Cost of Sales Depreciation & Amortisation EBITDA tonnes tonnes grams/tonne % ounce ounce A$000's A$000's A$000's A$000's All in Sustaining Cost A$/ounce sold 2,092,558 2,207,099 4.6 90% 295,053 299,236 527,863 309,119 55,696 274,440 981 Kalgoorlie Operations 2,983,567 2,993,777 3.8 91% 334,527 340,007 620,245 513,032 141,939 249,149 1,330 Pogo^ Total*^ 783,505 796,318 8.1 89% 183,555 201,337 253,057 279,333 47,449 18,002 1,705 5,859,630 5,997,195 4.7 90% 813,134 840,580 1,401,165 1,101,484 245,084 541,591 1,296 FY19 Operations Northern Star operational performance for FY19 was delivered by our Australian assets, the Jundee and Kalgoorlie Operations; and our North American asset, the Pogo Operation located in Alaska, USA. Ownership of Pogo transferred to Northern Star on 28 September 2018, however financial benefit from the operation was effective from 1 July 2018. Our two development assets, the Tanami and Paulsens projects, continued with exploration activity throughout the year. During FY19, our three producing assets combined to sell a record 840,580koz at an AISC of A$1,296/oz, with our Australian assets achieving the top end of FY19 guidance with 639,243oz sold at an AISC of A$1,167/oz. Over the year, 6 million tonnes were milled at an average head grade of 4.7gpt Au for 813,133 ounces Au recovered. Unprocessed ore stocks available for mill feed at the end of FY19 contained 84,857 ounces Au. Gold in circuit at the end of FY19 totalled 21,753 ounces. These items are reflected in the accounts as ore stockpile and gold in circuit at cost, respectively. Jundee Operations produced and sold record ounces under Northern Star ownership at 295,053oz and 299,236oz respectively. Production was primarily from underground ore sources and was supported by the commencement of open pit mining at Ramone in the June quarter. It was a standout year of performance at Jundee with no Lost Time Injuries (LTIs), record underground tonnes mined (2.1Mt), record stope tonnes mined (1.5Mt) and record tonnes milled (2.2Mt). Kalgoorlie Operations continued its strong performance with FY19 achieving record production at the top end of guidance with 340,007oz sold at AISC of A$1,330oz. Production was delivered by the underground operations at Kanowna Belle, Kundana, EKJV and SKO; underpinned by outstanding infrastructure including processing capacity of 3.2Mtpa with two fully utilised process plants Kanowna Belle (2.0Mtpa) and Jubilee (1.2Mtpa). Since acquisition, Pogo has been transitioning to the Northern Star business model and results in FY19 reflected strong operational gains at all levels. Key changes over this period included a new development fleet for introduction of jumbo bolt and meshing techniques, transition to longhole stoping (LHS) methodology and increased diamond drilling to 8 underground drills. The implementation of the Northern Star business model continues in FY20, with Pogo on track to further improve productivity metrics to demonstrate a +1Mtpa production rate. OPERATIONS SNAPSHOT 840,580koz record sold from 3 tier-1 assets in FY19 A$95M investment in growth capital in FY19 * Northern Star completed the Pogo acquisition on 28 September 2018 but received financial benefit from 1 July 2018. All operational physical metrics presented are inclusive of September 18 quarter results of Pogo operations (i.e. Total Material Mine, Total Material Milled, Gold Grade, Gold Recovery, Gold Produced, Gold Sold and AISC/oz). ^ Financial performance metrics presented above (i.e. Revenue, Cost of Sales, Depreciation & Amortisation and Mine Operations EBITDA) are exclusive of September 18 quarter results of Pogo operations. Record throughput of 2.1Mt at Jundee & 2Mt at Kanowna Belle FY20 In FY20, an expansionary capital budget of A$116M has been approved to underpin substantial organic growth opportunities at the operations including: • A$44M developing and bringing online new mining areas at Pogo. This also includes A$7M on processing infrastructure to de- bottleneck the front end of the plant and increase capacity • A$24M development and infrastructure to bring Moonbeam underground online in Kalgoorlie • A$7M development for drill drives and access for new areas at 51% EKJV Operation • A$37M excavation of exploration drill platforms at Jundee as well as setting up access to new mining areas The Company will also invest a record A$76 million in exploration at Pogo, Jundee and South Kalgoorlie Operations. FY20 Production and Cost Guidance FY20 Group guidance is 800,000–900,000oz at an AISC of A$1,200-A$1,300/oz, as announced to the ASX on 1 August 2019. TABLE 2 FY20 PRODUCTION & COST GUIDANCE FY20 Production AISC Guidance Range Oz Oz A$/oz A$/oz Jundee 260,000 280,000 1,115 1,195 Kalgoorlie Operations 340,000 380,000 1,260 1,370 Pogo 200,000 240,000 1,210 1,320 NST TOTAL 800,000 900,000 1,200 1,300 18 2019 ANNUAL REPORT | OPERATIONS REVIEW | OPERATIONS 19 Operations cont’d TABLE 3 FINANCIAL OVERVIEW Revenue EBITDA1 Net profit2 Underlying net profit after tax3 Cash flow from operating activities Cash flow used in investing activities Sustaining capital Non sustaining capital Exploration Acquisition of assets Acquisition of businesses Payments for investments Proceeds from sale of business Other investing Free cash flow4 Underlying free cash flow5 Average gold price per ounce (A$) Gold mined (ounces)6 Gold sold (ounces)6 All-In Sustaining Costs (AISC) per ounce sold (A$)6 Cash and cash equivalents (A$ million) Basic earnings Per Share (cents) FY19 $’000 1,401,165 479,735 154,711 179,234 379,197 (648,136) (104,582) (95,092) (87,168) (1,726) (350,550) (10,056) - 1,038 (268,939) 145,793 1,764 904,651 840,580 1,296 266 24.4 FY18 $’000 964,025 443,268 194,113 211,522 353,061 Change $’000 437,140 36,467 (39,402) (32,288) 26,136 (247,294) (400,842) (85,963) (64,831) (45,373) (4,000) (17,461) (30,613) 533 414 105,767 185,982 1,704 612,254 570,110 1,029 443 32.1 (18,618) (30,261) (41,795) 2,274 (333,089) 20,557 (533) 624 (374,706) (40,189) 60 292,397 270,470 267 (177) (7.7) Change (%) 45% 8% (20)% (15)% 7% 162% 22% 47% 92% (57)% 1,908% (67)% (100)% 151% (354)% (22)% 4% 48% 47% 26% (40)% (24)% Unless otherwise stated, the metrics for the year ended 30 June 2019 as presented in the Financial Overview Table are exclusive of the September 18 quarter results of the Pogo operations. 1 EBITDA is earnings before interest, depreciation, amortisation and impairment and is calculated as follows: 30 Jun 2019 - Profit before Income tax ($214.8 million) plus depreciation ($77.4 million), amortisation ($170.1 million), impairment ($9.9 million) and finance costs ($11.6 million) less interest income ($4.1 million). 30 Jun 2018 - Profit before Income tax ($277.8 million) plus depreciation ($43.1 million), amortisation ($114.6 million), impairment ($11.8 million) and finance costs ($3.5 million) less interest income ($7.5 million). 2 Net Profit is calculated as net profit after taxation. 3 Underlying Net Profit is calculated as follows: 30 June 2019 - Net Profit after tax ($154.7 million) plus M&A ($6.7 million), plus impairment ($9.9 million), plus fair value adjustment on SGI warrants ($4.4 million loss), plus loss take-up on associates ($3.5 million). 30 June 2018 - Net Profit after tax ($194.1 million), plus M$A ($5.2 million), plus impairment ($11.8 million), plus fair value adjustment on SGI warrants ($0.9 million gain), plus loss take-up on associates ($1.4 million). 4 Free Cash Flow is calculated as operating cash flow less investing cash flow. 30 Jun 19 - operating cash flow ($379.2 million) less investing cash flow ($648.1 million). 30 Jun 18 - operating cash flow ($353.1 million) less investing cash flow ($247.3 million). 5 Underlying Free Cash Flow is calculated as follows: 30 June 2019 - free cash flow ($268.9 million) plus M&A ($355.2 million), plus payments for Tanami put option ($20.0 million), plus payments for investments in associate and equity securities ($10.1 million), plus FY18 tax ($2.7 million), plus bullion awaiting settlement adjustments ($32.9 million), less working capital adjustments ($6.2 million). 30 June 2018 - free cash flow ($105.8 million) plus M&A ($21.5 million), plus payments for investments ($30.6 million), plus FY17 tax ($35.2 million), less bullion awaiting settlement adjustments ($2.5 million), less working capital adjustments ($4.6 million). 6 Gold mined, Gold sold & AISC/oz presented are inclusive of September 18 quarter results of Pogo operations. EBITDA, Underlying Net Profit, Underlying Free Cash Flow and All-in Sustaining Costs (AISC) are unaudited non IFRS measures. “Group EBITDA is up 8% on FY18 with all operations delivering strong operating cash flows.” – Ryan Gurner Chief Financial Officer Forward Looking Statements Northern Star has prepared this public report 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 public report. To the maximum extent permitted by law, none of Northern Star, 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 public report or its contents or otherwise arising in connection with it. This public report is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any security, and neither this public report nor anything in it shall form the basis of any contract or commitment whatsoever. This public report 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, Resource and 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. Profit For FY19, the Group reported a profit after tax of $154.7 million, a 20% reduction from FY18 (FY18: $194.1 million). Profit after tax for the Australian operations was $174.7 million and Pogo operations reported a loss after tax of $20.0 million. Revenue increased 45% to $1,401 million primarily driven by the average realised gold price per ounce being 4% higher (FY19: $1,764; FY18: $1,704) and a 37% increase in gold sold (FY19: 781,013oz (excludes September 18 quarter ounces for pogo); FY18: 570,110oz) driven by the acquisition of Pogo in September 2018. Cost of sales increased 77% to $1,101 million (FY18: $624 million) driven primarily by the acquisition of Pogo operations and increased production at the Australian operations which achieved record production during 2019 with a 12% increase in gold sold (FY19: 639,243oz; FY18: 570,110oz). Higher non-cash depreciation and amortisation charges were incurred during 2019 relating primarily to the finalisation of the purchase price allocation on the acquisition of Pogo operations and Kalgoorlie operations, which during 2019 included full year charges from South Kalgoorlie operations, which was acquired in April 2018. Finance charges were higher during 2019 (FY19: $11.6 million; FY18: $3.5 million) as the Company finalised a new credit facility. Group EBITDA was $479.7 million for the year ended 30 June 2019, which was an increase of 8% over the corresponding prior period. Finance costs increased by 234% (FY19: $11.6 million; FY18: $3.5 million) which was due to additional accretion charged on rehabilitation liabilities acquired from the Pogo acquisition and also additional finance charges on the Group’s financing facilities. An impairment charge of $9.9 million was recorded on exploration and evaluation assets (FY18: $11.8 million). Balance Sheet Current assets as at the 30 June 2019 decreased by 19% against the prior year balance date. The decrease was largely a result of cash and cash equivalents decreasing by $176.8 million following the completion of the Pogo acquisition, in addition the payment of $70.3 million in dividends during the year. Non-current assets increased by $531.2 million primarily from the acquisition of Pogo. A total of $40.3 million was added to exploration and evaluation assets through the Company’s continued investment in organic growth. Payments of $10.1 million for investments in associates and equity investments carried at fair value were made in the current period (FY18: $30.6 million). Current liabilities increased by 9.2% as at 30 June 2019 principally due equipment replacement at Pogo operations, which have been financed and non-current liabilities increased $115.1 million principally due to the recognition of a $75.2 million closure liability at Pogo on acquisition. During the year the Company Issued 26,119,402 shares at A$6.70 per share as part of Pogo acquisition. Cash Flow Cash flows from operating activities for the 12 months ended 30 June 2019 was $379.2 million which is $26.1 million higher than the previous financial year driven principally by increased revenues from higher gold sold and gold price received for the year. This was offset by higher payments to suppliers and employees which now includes Pogo operations. Cash flows from investing activities increased by 162% as a result of the $350.5 million Pogo acquisition in September 2018 (FY18: $17.5 million on South Kalgoorlie and Western Tanami acquisitions). In addition, payments for exploration and evaluation increased by $41.8 million (FY19: $87.2 million; FY18: $45.3 million), of which $18.8 million related to exploration at Pogo since acquisition and $20.0 million paid for an additional 15% interest in the Central Tanami Project. Cash flows from financing activities included proceeds from issue of shares of $177.4 million relating predominantly to the capital raising associated with the Pogo acquisition (FY18: $4.6 million) and dividends totalling $70.3 million (FY18: $63.3 million) paid to Shareholders. 20 2019 ANNUAL REPORT | OPER ATI ONS R EVIEW | EXPL ORAT ION 21 Exploration USA ALASKA AUSTRALIA Paraburdoo Halls Creek Wiluna Paraburdoo Kalgoorlie Coolgardie Wiluna PERTH Coolgardie Kalgoorlie PERTH Halls Creek Lajamanu ALICE SPRINGS Lajamanu Northern Star operates three concentrated operational centres – Jundee and Kalgoorlie in Western Australia, and Pogo in Alaska. In addition, Northern Star continues exploration projects at the Tanami Project and Paulsens. Fairbanks Delta Junction 1 Pogo Operations +8MOZ GOLD CAMP ALICE SPRINGS USA ALASKA ANCHORAGE Valdez Kilometres 250 500 Miles 155 310 0 0 Kilometres 250 500 Miles 155 310 0 0 Fairbanks Seward Delta Junction 1 ANCHORAGE Valdez Seward Juneau AUSTRALIA Lajamanu Halls Creek 5 Following completion of the Pogo acquisition in September 2018, underground drilling e(cid:91)panded significantl(cid:92) (cid:90)ith a focus on (cid:53)esource definition and conversion across all ma(cid:77)or ore s(cid:92)stems (cid:11)(cid:47)iese, (cid:54)outh Pogo, Fun Zone, North Zone and X-Vein) in the underground mining areas. Juneau Surface drilling activity also increased substantially with the discovery of the ne(cid:90) (cid:38)entral (cid:57)eins (cid:93)one leading to the definition of a maiden Resource for the discovery. 2 Jundee Operations +10MOZ GOLD CAMP Jundee Operations Jundee Operations Resource extension drilling within the mine was successful with increases in the Mineral Resource and Ore Reserve inventory. Exploration drilling from the 39 Level drill drive platform slowed during FY19 with the focus on the growth of new mineralised areas at Lyons South, Cardassian and Throssel trends. Exploration of the Zodiac discovery continued with a program of deep exploration wedge drill holes in the initial discovery area. Adjacent to Zodiac is a large mineralised corridor which will be the focus of future long-term exploration programs. Underground development to provide a range of new drilling platforms across the Jundee mine is in progress as part of a renewed exploration focus inside the mine corridor. 4 Paraburdoo 2 Wiluna Coolgardie Kalgoorlie 3 PERTH ALICE SPRINGS Jundee Regional (cid:54)urface e(cid:91)ploration of defined anomalies from the (cid:69)road scale regional aircore drilling programs in the Ramone area continued with success at Ziggy-Marley, Mosely and Tosh prospects. Fairbanks Drilling beneath the new Ramone open pit has progressed rapidly to define a potential underground mining target (cid:90)ith the (cid:53)amone s(cid:92)stem open in all directions. ANCHORAGE Delta Junction (cid:49)umerous significant ne(cid:90) drilling targets in the surrounding (cid:39)eep (cid:58)ell area (cid:90)ill (cid:69)e the focus of resource definition drilling in the coming (cid:92)ears(cid:17) Seward Valdez Juneau Kilometres 250 500 Miles 155 310 0 0 South Kalgoorlie Operations Underground and surface diamond drilling increased Ore Reserves within the northern portion of the mine with new underground drilling platforms completed. Extensions to the Northern Ore Zone and Jubilee Resources were achieved with underground drilling activity increasing to continue the expansion of the in-mine Mineral Resource inventory. Regional exploration within the extensive South Kalgoorlie tenement package began to generate early success with potential new discoveries at Clonago, Samphire and Glasswing prospects. Resource definition and e(cid:91)ploration drilling programs (cid:90)ill e(cid:91)pand into additional areas FY20. 4 Paulsens +3MOZ GOLD CAMP At Paulsens, analysis of the 3D seismic survey information led to surface drilling of new exploration targets south of the Paulsens Mine. (cid:40)(cid:91)tensions to the (cid:48)ine (cid:54)e(cid:84)uence lithologies (cid:90)ere identified (cid:90)ith further drilling planned into new target areas. 5 Tanami Project +5MOZ GOLD CAMP Central Tanami (Northern Star 40%) Work continued on regional aircore drilling and geophysical programs across the project highlighting the under-explored nature of the region. Drilling programs at Hurricane-Repulse and Jims achieved excellent results highlighting potential Resource extensions. Tanami Regional (Northern Star 100%) Northern Star holds a substantial strategic land position in the Tanami region to complement existing activities at the Central Tanami Joint Venture. Regional airborne and ground geophysical programs together with regional aircore geochemical programs were completed across the tenure package during (cid:41)(cid:60)(cid:20)(cid:28) as part of the greenfield assessment of a 9,000km2 footprint within prospective terrains that are largely unexplored. Western Tanami (Northern Star 100%) Regional airborne and ground geophysical programs were completed across the (cid:58)estern (cid:55)anami (cid:51)ro(cid:77)ect tenure to refine e(cid:91)ploration targets(cid:17) 3 Kalgoorlie Operations +19MOZ GOLD CAMP Kalgoorlie Operations The Kanowna Belle and Kundana Operations continued in-mine exploration programs that maintained the existing Mineral Resources. At Kanowna Belle Operations, exploration outlined resource growth in the upper levels of the mine and the expansion of the Velvet discovery continued. In-mine exploration within the East Kundana Joint Venture (EKJV) area (NST: 51%) in the Kundana region was successful with growth in the total Resource inventory for Pegasus-Rubicon-Hornet complex and the emergence of the new Falcon discovery. Exploration within the Northern Star’s 100% owned Kundana tenements was successful and outlined the extensions to the Moonbeam, Xmas and Strzelecki areas. Extensional drilling at the new Pope John mine commenced late in FY19. Kanowna Belle Regional exploration in the area surrounding the Kanowna Belle mine continued during FY19 with drilling programs at Red Eye, Red Hill and Ariel completed. Exploration continued within the Acra Joint Venture (NST: 75%) with Pioneer Resources Limited. Kundana EKJV (Northern Star 51%) (cid:56)nderground e(cid:91)ploration drilling defined a maiden (cid:53)esource for the new Falcon discovery situated between the existing Pegasus and Raleigh mining areas. Carbine Surface drilling below the existing Carbine and Phantom open pits continued to achieved success in parallel structures that will require further extensional drilling. Regional exploration of the Carbine and Carnage exploration tenure expanded with a range of new targets generated along the Carbine trend. Initial success (cid:90)as achieved (cid:90)ith a large ne(cid:90) target identified in the Fremlin area. Surface drilling programs at Fremlin and Bald Hill have commenced and were in progress at 30 June 2019. 22 2019 ANNUAL REPORT | RESOUR CES AND RESERVES 23 Resources and Reserves As at 30 June 2019, Northern Star’s Consolidated Group Mineral Resource Estimate (inclusive of Ore Reserves) was 156 million tonnes at 4.1 grams per tonne gold for 20.8 million ounces (refer Table 4) and the Consolidated Group Ore Reserve Estimate is 38.2 million tonnes at 4.4 grams per tonne gold for 5.4 million ounces (refer Table 5). The substantial inventory growth stems from Northern Star’s exploration success at its Jundee and Kalgoorlie Operations and the acquisition of the Pogo Project and mining depletion of 915koz. Group Mineral Resources increased significantly by 4.9 million ounces gold from 15.9 million ounces gold as at 30 June 2018 to the current 20.8 million ounces gold Measured, Indicated and Inferred Mineral Resource. Group Proved and Probable Ore Reserve increased by 1.4 million ounces gold from 4 million ounces gold as at 30 June 2018 to the current 5.4 million ounces gold Proven and Probable Reserve at 30 June 2019. Mineral Resource and Ore Reserve governance and internal controls Northern Star ensures that the Mineral Resource and Ore Reserve estimates quoted are subject to governance arrangements and internal controls activated at a site level and at the corporate level. Internal and external reviews of Mineral Resource and Ore Reserve estimation procedures and results are carried out through a technical review team that is comprised of highly competent and qualified professionals. These reviews have not identified any material issues. The Company has finalised its governance framework in relation to the Mineral Resource and Ore Reserve estimates in line with the expansion of its business. Northern Star reports its Mineral Resources and Ore Reserves on an annual basis in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) 2012 Edition. Mineral Resources are quoted inclusive of Ore Reserves. Competent Persons named by Northern Star are Members or Fellows of the Australasian Institute of Mining and Metallurgy and/or the Australian Institute of Geoscientists and qualify as Competent Persons as defined in the JORC Code. Competent persons statements The information in this announcement that relates to Mineral Resource estimations, exploration results, data quality and geological interpretations for the Company’s Project areas is based on information compiled by Michael Mulroney, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Northern Star Resources Limited. Mr Mulroney has sufficient experience that is relevant to the styles of mineralisation and type of deposits under consideration and to the activity being undertaken 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 Company’s Project areas. Mr Mulroney consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears. The information in this announcement that relates to Ore Reserve estimations for the Company’s Project areas is based on information compiled by Jeff Brown (Australia) and Bradley Valiukas (Pogo), Competent Persons who are a Member of the Australasian Institute of Mining and Metallurgy and are full-time employees of Northern Star Resources Limited. Mr Brown and Mr Valiukas have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Persons as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Brown and Mr Valiukas consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears. The information in this announcement that relates to the Central and Western Tanami Gold Projects is extracted from the Tanami Gold NL ASX announcement entitled “Quarterly Report for the Period Ending 31 March 2014” released on 1 May 2014 and is available to view on www.tanami. com.au. The information in this announcement that relates to Mineral Resource estimations, data quality, geological interpretations and potential for eventual economic extraction for the Groundrush deposit at the Central Tanami Gold Project is based on information compiled by Brook Ekers a Competent Person who is a Member of the Australian Institute of Geoscientists and 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”. Mr. Ekers consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears. The Company confirms that it is not aware of any further new information or data that materially affects the information included in the original market announcement entitled “Quarterly Report for the Period Ending 31 March 2014” released on 1 May 2014 and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. To the extent disclosed above, the Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. 24 2019 ANNUAL REPORT | RESOU RCES AND RESERVES 25 TABLE 4 MINERAL RESOURCES MINERAL RESOURCES As at 30 June 2019 TABLE 5 ORE RESERVES ORE RESERVES As at 30 June 2019 NST ATTRIBUTABLE INCLUSIVE OF RESERVE JUNDEE GOLD PROJECT Surface Underground Stockpiles Gold in Circuit Sub-Total Jundee KANOWNA GOLD PROJECT Surface Underground Stockpiles Gold in Circuit Sub-Total Kanowna KUNDANA GOLD PROJECT Surface Underground Stockpiles Gold in Circuit Sub-Total Kundana EAST KUNDANA JOINT VENTURE Surface Underground Stockpiles RHP Stockpiles Raleigh Stockpiles GEM (100%) Gold in Circuit Sub-Total East Kundana JV SKO GOLD PROJECT Surface Underground Surface Underground Surface Underground Surface Underground Stockpiles Jubilee ROM stocks Gold in Circuit Sub-Total SKO POGO PROJECT Stockpiles Gold in Circuit Sub-Total Pogo CARBINE PROJECT Sub-Total Carbine PAULSENS PROJECT Stockpiles Gold in Circuit Sub-Total Paulsens ASHBURTON PROJECT Surface Stockpiles Sub-Total Ashburton CENTRAL TANAMI PROJECT JV Underground Stockpiles Sub-Total Central Tanami JV WESTERN TANAMI PROJECT Underground Stockpiles Sub-Total Western Tanami MEASURED TONNES GRADE OUNCES (000's) (gpt) (000's) INDICATED TONNES GRADE OUNCES (000's) (gpt) (000'S) INFERRED TONNES GRADE OUNCES (000's) (gpt) (000's) TOTAL RESOURCES TONNES GRADE OUNCES (000's) (gpt) (000's) 303 85 557 - 945 65 2,637 145 - 2,847 - 350 94 - 444 - 1,034 61 21 1 - 1,116 - 1,577 100 81 - 1,758 - - - - - - - - - 260 11 - 272 - - - 2,502 560 3,062 107 375 482 1.1 2.8 0.9 - 1.3 2.3 3.5 2.3 - 3.5 - 4.9 3.1 - 4.6 - 7.5 3.8 4.2 5.0 - 7.3 - 3.3 1.7 1.8 - 3.2 - - - - - - - - - 5.7 1.6 - 5.6 - - - 2.9 0.7 2.5 7.8 1.4 2.8 11 8 16 4 38 5 294 11 9 318 - 55 9 1 66 - 251 7 3 0 - 261 - 168 6 5 5 183 - - - 3 3 - - - - 48 1 0 49 - - - 232 13 245 27 17 44 4,420 25,207 - - 9,626 882 7,531 - - 8,413 - 4,248 - - 4,248 119 2,666 - - - - 2,785 475 8,047 - - - 8,522 - 7,200 - - 7,200 1,008 503 1,511 129 116 - - 245 7,104 - 7,104 4,430 - 4,430 1,079 - 1,079 1.5 3.9 - - 217 3,166 - - 3.6 3,383 1,360 9,946 - - 11,307 1.4 3.4 - - 3.1 1.3 3.7 - - 3.3 - 4.3 - - 4.3 2.4 5.1 - - - - 4.9 1.6 3.0 - - - 2.9 59 1,074 - - 1,133 49 635 - - 684 - 578 - - 578 8 269 - - - - 277 52 1,024 - - - 1,076 12.0 9.5 - - 9.5 136 3,584 - - 3,720 1.8 4.7 4.6 2.0 5.1 - - 2.3 3 116 118 54 16 - - 70 6,083 35,238 557 - 41,878 2,104 15,522 145 - 17,771 - 8,831 94 - 8,925 227 5,354 61 21 1 - 5,663 1,489 20,328 100 81 - 21,999 354 18,973 - - 19,328 1,055 1,260 2,315 989 477 11 - 1,477 1.5 3.7 0.9 - 3.4 2.1 3.6 2.3 - 3.4 - 4.9 3.1 - 4.8 4.1 6.2 3.8 4.2 5.0 - 6.1 1.7 3.0 1.7 1.8 - 2.9 287 4,248 16 4 4,555 140 1,784 11 9 1,943 - 1,378 9 1 1,389 30 1,064 7 3 0 - 1,103 80 1,977 6 5 5 2,072 12.0 9.5 - - 9.6 136 5,810 - 3 5,949 2.9 5.2 4.1 2.1 5.5 1.6 - 3.2 99 209 308 67 84 1 0 152 1,157 5,354 - - 6,511 - 4,232 - - 4,232 108 1,654 - - - - 1,761 1,015 10,704 - - - 11,719 354 11,774 - - 12,128 47 757 804 860 100 - - 960 14,227 - 14,227 2.5 - 2.5 1,122 - 1,122 21,331 - 21,331 2.4 - 2.4 1,668 - 1,668 4,842 - 4,842 1,449 - 1,449 2.9 - 2.9 5.8 - 5.8 453 - 453 271 - 271 11,774 560 12,334 2.9 0.7 2.8 1,085 13 1,097 2,636 375 3,011 6.0 1.4 5.4 506 17 523 3.0 3.5 - - 3.5 - 5.5 - - 5.5 5.6 6.4 - - - - 6.3 1.8 3.0 - - - 3.0 86 855 - - 941 - 745 - - 745 21 544 - - - - 566 28 785 - - - 813 - 9.6 - - - 2,226 - - 9.6 2,226 3.0 5.8 3.9 3.1 5.3 - - 4.2 2.4 - 2.4 2.8 - 2.8 6.0 - 6.0 96 94 190 13 20 - - 33 546 - 546 400 - 400 208 - 208 NST ATTRIBUTABLE RESERVE JUNDEE GOLD PROJECT Surface Underground Stockpiles Gold in Circuit Sub-Total Jundee KANOWNA GOLD PROJECT Surface Underground Stockpiles Gold in Circuit Sub-Total Kanowna KUNDANA GOLD PROJECT Surface Underground Stockpiles Gold in Circuit Sub-Total Kundana EAST KUNDANA JOINT VENTURE Surface Underground Stockpiles RHP Stockpiles Raleigh Stockpiles GEM (100%) Gold in Circuit Sub-Total East Kundana JV SKO GOLD PROJECT Surface Underground Surface Underground Surface Underground Surface Underground Stockpiles Jubilee ROM stocks Gold in Circuit Sub-Total SKO POGO PROJECT Stockpiles Gold in Circuit Sub-Total Pogo CARBINE PROJECT Stockpiles Sub-Total Carbine PAULSENS PROJECT Stockpiles Gold in Circuit Sub-Total Paulsens ASHBURTON PROJECT Surface Stockpiles Sub-Total Ashburton CENTRAL TANAMI PROJECT JV Underground Stockpiles Sub-Total Central Tanami JV WESTERN TANAMI PROJECT Underground Stockpiles Sub-Total Western Tanami TONNES (000's) PROVED GRADE (gpt) OUNCES (000's) TONNES (000's) PROBABLE GRADE (gpt) OUNCES (000's) TOTAL RESERVE GRADE (gpt) TONNES (000's) OUNCES (000's) 303 85 557 - 945 - 1,626 145 - 1,771 - 198 94 - 293 - 784 61 21 1 - 866 - 418 100 81 - 600 - - - - - - - - - - - 11 - 11 - - - - - - - - - 1.1 2.8 0.9 - 1.3 - 3.2 2.3 - 3.3 - 4.0 3.1 - 3.8 - 6.6 3.8 4.2 5.0 - 6.3 - 3.6 1.7 1.8 - 3.3 - - - - - - - - - - - 1.6 - 1.6 - - - - - - - - - 11 8 16 4 38 - 169 11 9 188 - 26 9 1 36 - 166 7 3 0 1 177 - 48 6 5 5 63 - - - 3 3 - - - - - - 1 - 1 - - - - - - - - - 2,212 10,155 - - 12,367 852 3,789 - - 4,641 - 4,195 - - 4,195 68 2,099 - - - - 2,168 - 2,701 - - - 2,701 - 6,103 - - 6,103 1,099 - - 1,099 - 396 - - 396 - - - - - - - - - 1.6 4.6 - - 4.0 2.6 3.4 - - 3.2 - 4.1 - - 4.1 5.8 5.3 - - - - 5.3 - 2.9 - - - 2.9 - 7.5 - - 7.5 2.5 - - 2.5 - 4.3 - - 4.3 - - - - - - - - - 112 1,488 - - 1,600 2,515 10,240 557 - 13,312 70 410 - - 480 - 552 - - 552 13 358 - - - - 371 - 254 - - - 254 - 1,470 - - 1,470 89 - - 89 - 54 - - 54 - - - - - - - - - 852 5,415 145 - 6,412 - 4,393 94 - 4,487 68 2,883 61 21 1 - 3,034 - 3,119 100 81 - 3,300 - 6,103 - - 6,103 1,099 - - 1,099 - 396 11 - 407 - - - - - - - - - 1.5 4.5 0.9 - 3.8 2.6 3.3 2.3 - 3.2 - 4.1 3.1 - 4.1 5.8 5.6 3.8 4.2 5.0 - 5.6 - 3.0 1.7 1.8 - 3.0 - 7.5 - - 7.5 2.5 - - 2.5 - 4.3 1.6 - 4.2 - - - - - - - - - 123 1,495 16 4 1,638 70 578 11 9 668 - 578 9 1 588 13 523 7 3 0 1 547 - 301 6 5 0 317 - 1,470 - 3 1,472 89 - - 89 - 54 1 - 55 - - - - - - - - - NORTHERN STAR TOTAL 10,926 3.4 1,206 75,163 4.2 10,050 69,941 4.2 9,503 156,026 4.1 20,760 Note: 1. Mineral Resources are inclusive of Ore Reserves 2. Mineral Resources are reported at various gold price guidelines: Competent Person: 1. Michael Mulroney a. A$1,750/oz Au - All Australian assets except Ashburton; b. A$1,850 /oz Au -Ashburton; US$1,300/oz Au - USA assets 3. Rounding may result in apparent summation differences between tonnes, grade and contained metal content 4. Numbers are 100% NST attributable NORTHERN STAR TOTAL 4,486 3.5 505 33,668 4.5 4,870 38,155 4.4 5,375 Note: 1.  Ore Reserves are reported at the gold price of A$1,500/oz Au (Australia) or US$1,150/oz Au (USA) 2.  Rounding may result in apparent summation differences between tonnes, grade and contained metal content 3.  Ounces are estimates of metal contained in the Ore Reserve and do not include allowances for processing losses 4.  Numbers are 100% NST attributable Competent Persons: 1. Jeff Brown - Australian Operations 2. Bradley Valiukas - Pogo Operation 26 27 RISK MANAGEMENT 28 2019 ANNUAL REPORT | RISK MANAGEMENT 29 Risk Management Our vision is to continue to build a safe, quality mining and exploration company, focused on creating value for Shareholders. To achieve this, Northern Star maintains an ongoing commitment to enhancing how we identify, assess and mitigate our risks. The continuous review of our risks means that our Board receives the most up to date information about the business, enabling them to make strategic decisions regarding risks which affect the Company now, but also those which have potential to impact our success in the future. The following table is a summary of: • the Company’s safety risk, assessed as being the highest inherent risk on the corporate risk register as well as the Company’s number one STARR Core Value; and • the environmental risks1 and social risks2 to which the Company has a material exposure3, disclosed in accordance with Recommendation 7.4 in the ASX Corporate Governance Council Principles & Recommendations (4TH edition) (ASX Recommendations). TABLE 6 SUMMARY OF COMPANY’S EXPOSURE TO MATERIAL RISKS AND MITIGATING PRACTICES RISK A DESCRIPTION CONTRIBUTING FACTORS IMPACT MITIGATING PRACTICES B Operational safety risk as a direct result of failing to manage recognised safety hazards • Work in underground environment, at height, in confined spaces • Work in extreme temperatures (hot and cold work environments) • Exposure to hazardous energy • Near miss • First aid injury • Restricted work injury • Lost time injury • Disabling injury • Fatality SAFETY Climate change resulting in material change in water balance that negatively impacts operations ENVIRONMENTAL sources • Exposure to and use of chemicals, dangerous goods and explosives • Ground seismicity • Open pit flooding/damage to pit walls • Travel on public roads, in remote locations, by air • Natural disaster (eg. forest fire) • Wildlife encounter • Changing (warming) climatic conditions occurring within operational areas can alter water availability, by either reducing water available for ore processing through reduced rainfall or increasing water discharge needs beyond permitting allowances through ice melt and increasing rainfall. • Production loss • Inability to obtain abstraction and discharge permits • Locating alternative water sources • Significant increase in discharge rates, • Inability to dewater mines or expand processing capacity • Risk-based management plans and administration (eg. ventilation, work at height, adverse temperature) • Mining controls (eg. ground support, remote equipment, extraction sequencing, mine design) • Employee Competency and training • OHS Electronic management systems and databases • Contractor assessment and management • Audit and review processes • Emergency management systems • Compliance with regulator approved Ground Water Operating Strategies • Continuous quarterly ground water reviews and modelling interpretations • Increased alternative water usage through pit water harvesting and increased mine dewatering water - replacing fresh water extraction • Monitor seasonal rainfall patterns and review modelling data against accepted climate predictions • Implement and review Company Water Management Standard and Energy and Climate Change Standard 1 2 3 “environmental risks” is defined in the ASX Recommendations as the potential negative consequences (including systemic risks and the risk of consequential regulatory responses) to the Company if its activities adversely affect the natural environment or if its activities are adversely affected by changes in the natural environment. This includes the risks associated with the Company polluting or degrading the environment, adding to the carbon levels in the atmosphere, or threatening a region’s biodiversity or cultural heritage. It also includes the risks for the entity associated with climate change, reduced air quality and water scarcity. “social risks” is defined in the ASX Recommendations as the potential negative consequences (including systemic risks and the risk of consequential regulatory responses) to the Company if its activities adversely affect human society or if its activities are adversely affected by changes in human society. This includes the risks associated with the Company or its suppliers engaging in modern slavery, aiding human conflict, facilitating crime or corruption, mistreating employees, customers or suppliers, or harming the local community. It also includes the risks for the entity associated with large scale mass migration, pandemics or shortages of food, water or shelter. “material exposure” is defined in the ASX Recommendations as a real possibility that the risk in question could materially impact the Company’s ability to create or preserve value for Shareholders over the short, medium or longer term TABLE 6 CONTINUED SUMMARY OF COMPANY’S EXPOSURE TO MATERIAL RISKS AND MITIGATING PRACTICES RISK A DESCRIPTION CONTRIBUTING FACTORS IMPACT MITIGATING PRACTICES B Loss of social licence to operate (i.e. systematic and widespread loss of community confidence) • Breach of licence to operate • Significant safety event • Failure to meet conditions of land access / heritage agreement • Significant environmental event • Negative political coverage • Increased scrutiny entering foreign jurisdiction • Reputational damage • Regulated operating conditions • Significant reduction in share price • Increased difficulty in raising capital • Negative impact on operations • Limits BD opportunities with counterparties • Risk assessments systems and procedures in place • Dedicated ESR resource & execution of ESR Plan • Implementation of Social Responsibility Standards • Community consultation and consistent communications with regulators and government • Heritage management plans • Mature management of NST assets illustrating consistent social/operating performance • Standalone Sustainability Report aligned to SDGs • Board ESG & Safety committee established • Change management practices in new jurisdiction • Inclusion of local suppliers during tender processes • Commitment to living STARR Core Values • Lack of opportunities, adequate • Loss of corporate • Succession planning for key coaching/investment and development knowledge company positions • Dilution of capability • Dynamic company with high- Loss of key personnel as a result of failure to retain and develop key employees SOCIAL • Reduction in university graduates • Residential requirement for many employees • Underground specialisation having a narrow and therefore highly competitive market and capacity • Negative impact on Company culture, brand, performance performance culture • Diverse assets offering ongoing opportunities • Robust recruitment process • Employee incentive programs • Six-tier leadership development programs • Implementation of remuneration review • Coaching and mentoring framework • Culture survey conducted and culture plan launched • Talent ID program fast-track high potential employees • Appointment of full time Employee Experience role • Health & wellbeing program; Mental Health First Aiders • Antivirus and advanced external firewalls • Cloud-based services for critical systems • Improved backup and recovery systems • ICT security audits • ICT security awareness training for employees • Security Incident Monitoring System Loss of personal information due to cyber attack or failure of critical ICT infrastructure • Increasing cyber-risks • Employee security practices • Hardware failure • Communications link failure • Notifiable data breach • Loss of access to IT services and data • Loss of funds from fraudulent activity Column A indicates the assessed current inherent risk rating as High, Medium or Low Column B indicates the assessed residual risk rating after taking into account current mitigating practices, as High, Medium or Low 30 31 Safety Performance Safety Performance DIRECTORS’ REPORT 32 2019 ANNUAL REPORT | DIRECTOR S’ REPOR T 33 Directors’ Report BILL BEAMENT B.Eng-Mining (Hons), MAICD Executive Chairman JOHN FITZGERALD CA, Fellow FINSIA, GAICD Lead Independent Director CHRISTOPHER ROWE BA, MA Economics and Law Independent Non- Executive Director Experience and expertise Experience and expertise Mr Beament is a mining engineer with more than 20 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 also currently the Chairman of the Western Australian School of Mines Alumni Patrons Group, and a Trustee of the Channel 7 Telethon Trust. Mr Fitzgerald has over 25 years’ resource financing e(cid:91)perience and has provided project finance and corporate advisor(cid:92) services to a large number of companies in the resource sector. He has previously held senior positions at NM Rothschild & Sons, Investec Bank Australia, Commonwealth Bank, HSBC Precious Metals and Optimum Capital. 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. Experience and expertise Mr Rowe was the founding Chairperson of Northern Star (2003 to 2016). A Graduate of Cambridge University, Mr Rowe consulted to the oil, gas and hard rock sectors of the resource industry before becoming the Executive Chairman of Cultus Petroleum NL (1979 to 1990). Mr Rowe gained broad resources industry experience with TSX and US oil and gas entities in the 1990s. In addition to his resource related activities, Mr Rowe acted as a Counsel Assisting the Royal Commission into Commercial Activities of Government and Other Matters (“WA INC”), and served on the Environmental Protection Authority WA as a member and as Deputy Chairman. PETER O’CONNOR MA, Economics and Political Science; Barrister-at Law Independent Non- Executive Director Experience and expertise Mr O’Connor has extensive global experience in the funds management industry, both 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 to 2008. Following the sale of IMS to BNP Paribas in 2008, he was Deputy Chairman of FundQuest UK Ltd with $10 billion under management, and FundQuest globally had $35 billion of assets under management from 2008 to 2010. Mr O’Connor was the Lead Director and then Chairman of TSX-listed Neo Material Technologies from 1993 to 2012. Mr O’Connor is also a Director of unlisted Blue Ocean Monitoring Ltd. SHIRLEY IN’T VELD B.Com LLB (Hons) Independent Non- Executive Director MARY HACKETT B.Eng-Mech, FEIAUST Independent Non- Executive Director NICK CERNOTTA B.Eng-Mining Independent Non- Executive Director Experience and expertise Experience and expertise Ms In’t Veld was the CEO of Verve Energy, a WA utility, for five (cid:92)ears(cid:17) (cid:51)rior to this (cid:48)s In’t Veld held a number of senior commercial, legal and marketing positions with Alcoa, WMC Resources Ltd, Bond Corporation and BankWest, including Managing Director of Alcoa of Australia Rolled Products based in Geelong. Ms In’t Veld is also Deputy Chairperson of CSIRO, a Director of NBN Co Ltd and a member of the Takeovers Panel. Ms Hackett has an extensive career in the resource sector, spanning more than 30 years, with senior executive roles in Brown & Root, Woodside, and General Electric. Her most recent role being Vice President of General Electric Oil&Gas for Australasia. Ms Hackett is a founding Director of the LNG Marine Fuel Institute and the Chair Elect of the Future Energy Exports Cooperative Research Centre. A fellow of Engineers Australia, Ms Hackett holds a degree in Mechanical Engineering from University College Galway, Ireland. Experience and expertise Mr Cernotta is a mining engineer having held senior operational and executive roles in Australia and overseas over a 30 plus year period. He has considerable experience in the management and operation of large resource projects, with a track record for improving safety performance, managing costs and improving operational e(cid:605)ciencies, across multiple commodities and international jurisdictions. Most recently Mr Cernotta served as Director of Operations at Fortescue Metals Group, COO (Underground, International and Engineering) at MacMahon Holdings Limited and most relevant as Director of Operations for Barrick (cid:11)(cid:36)ustralia (cid:51)acific(cid:12) (cid:51)t(cid:92) (cid:47)td, a subsidiary of Barrick Gold Corp, with international assets in Africa, PNG and Saudi Arabia. Board skills matrix Board skills matrix Board skills matrix Board skills matrix Board skills matrix Board skills matrix Board skills matrix Executive leadership, technical skills, HSE, major projects and construction, capital markets, commodities exposure and strategy, gained and developed during his experience described above. Finance, commerce & accounting, capital markets, commodities exposure, previous board experience, risk management & compliance, strategy, and ethics & integrity, gained and developed during his experience described above. Previous board experience, HSE, and ethics & integrity, gained and developed during his experience described above. Executive leadership, capital markets, previous board experience, strategy, board dynamics, issues management, and ethics & integrity, gained and developed during his experience described above. Executive leadership, previous board experience and board dynamics, gained and developed during her experience described above. HSE, major projects & construction, risk management & compliance, and ethics & integrity, gained and developed during her experience described above. Executive leadership, HR & workplace relations, HSE, risk management & compliance and strategy, gained and developed during his experience described above. BOARD DIVERSITY – GENDER 29% 71% Male (5) Female (2) BOARD DIVERSITY – TENURE 43% 29% 14% 14% YEARS 0–2 (3) 7–10 (1) 3–4 (0) 10+ (2) 5–6 (1) 34 2019 ANNUAL REPORT | DIRECTOR S’ REPOR T 35 Directors’ Report Your Directors present their report on the consolidated entity consisting of Northern Star and the entities it controlled at the end of, or during, FY19. Throughout the report, the consolidated entity is referred to as the Group. Directors The Directors of Northern Star during the whole of FY19 were: • Bill Beament – Executive Chairman • John Fitzgerald – Lead Independent Director • Christopher Rowe – Non-Executive Director • Peter O’Connor – Non-Executive Director • Shirley In’t Veld – Non-Executive Director New Directors since 1 July 2019 The Company welcomed Mary Hackett and Nick Cernotta to the Board as Non-Executive Directors, effective 1 July 2019. Company Secretary Hilary Macdonald LLB (Hons), FGIA was the Company Secretary (in addition to her role as General Counsel) for the full financial year ended 30 June 2019 (appointed Company Secretary on 23 February 2018). Ms Macdonald is a corporate and resources lawyer with more than 25 years’ experience in the UK and Australia with particular focus on corporations compliance and governance. TABLE 7 DIRECTORSHIPS OF LISTED COMPANIES HELD BY MEMBERS OF THE BOARD FOR THE PERIOD 1 JULY 2016 TO 30 JUNE 2019 DIRECTOR John Fitzgerald Christopher Rowe Peter O’Connor Shirley In’t Veld LISTED ENTITY APPOINTMENT Exore Resources Ltd (Chairman) Current, appointed 24 December 2015 Danakali Ltd Current, appointed 19 February 2015 Carbine Resources Limited (Chairman) From 13 April 2016 to 23 March 2018 Target Energy Limited (Chairman) From 1 January 2010 to 22 September 2017 Neurotech International Limited (Chairman) From 15 January 2016 to 16 April 2019 APA Group Current, appointed 19 March 2018 Duet Company Limited (delisted from ASX on 16 May 2017) From 2 April 2013 to 15 May 2017 Nick Cernotta Pilbara Minerals Limited Current, appointed 6 February 2017 Panoramic Resources Limited Current, appointed 2 May 2018 New Century Resources Ltd Current, appointed 28 March 2019 ServTech Global Holdings Ltd (Chairman) From 17 October 2016 to 22 November 2017 TABLE 8 COMMITTEE STRUCTURE DURING FY19 DIRECTOR STATUS REMUNERATION AUDIT & RISK NOMINATION ESG & SAFETY Bill Beament Executive Chairman John Fitzgerald Lead Independent Director Christopher Rowe Independent Peter O’Connor Independent Shirley In’t Veld Independent Chairperson Attendance at meetings of Directors during FY19 The Board has established standing committees to assist the Board to discharge its responsibilities. The Board had a Remuneration Committee, an Audit & Risk Committee, a Nomination Committee and an ESG & Safety Committee for the whole of FY19. Attendance of Directors at Committee meetings during FY19 is set out below. In addition, all the Non-Executive Directors attended four meetings of the Non-Executive Directors during FY19, held separately to the full Board meetings and without the Executive Chairman or the Chief Executive Officer in attendance. A standing item on the agenda for Non-Executive Director meetings is appraisal of the Executive Chairman and the Chief Executive Officer’s performance during each quarter, and the functionality of the Executive Chairman and the Chief Executive Officer roles. TABLE 9 MEETINGS OF BOARD & COMMITTEES HELD AND ATTENDED DURING FY19 Chairperson Chairperson DIRECTOR BOARD REMUNERATION AUDIT & RISK NOMINATION ESG & SAFETY Chairperson HELD ATTENDED HELD ATTENDED HELD ATTENDED HELD ATTENDED HELD ATTENDED Bill Beament John Fitzgerald Christopher Rowe Peter O’Connor Shirley In’t Veld 12 12 12 12 12 12 12 12 11 12 - 6 6 - 6 - 6 6 - 6 - 4 - 4 4 - 4 - 3 4 4 4 4 4 4 4 4 4 4 4 3 3 3 3 3 3 3 3 2 2 - indicates Director is not a member of the relevant committee 36 2019 ANNUAL REPORT | DIRECTOR S’ REPOR T 37 Directors’ Report Board Skills Matrix The Company’s Board is accountable to Shareholders for the operations, performance and growth of Northern Star. The composition of the Board is vital in discharging this duty. The Board’s composition is reviewed and assessed regularly by the Nomination Committee to ensure the Board is of a composition, size and with capacity to commit the time required to effectively discharge its responsibilities and duties. The Nomination Committee aims to ensure that an appropriate balance of skills, experience, expertise and diversity (of experience, thought, problem- solving approaches, age, gender, nationality, cultural background and perspective informed by life experience) is represented on the Board. This may result in a Non-Executive Director with a longer tenure remaining in office to bring that experience and depth of understanding to matters brought before the Board, or a Non-Executive Director having limited ASX Board experience but a significant executive career to draw from. The Board has devised a board skills matrix to measure hard skills that are considered relevant to the nature of the Company and industry in which it operates, and soft skills that are considered desirable for effective Directors. A skills gap analysis is undertaken in relation to the board skills matrix annually, to ensure that the skills included in the matrix, and the Board’s skills shown in the matrix results: • meet the current needs of the Company’s operations; • meet the evolving needs of the Company, as Company strategy is implemented and strategic emphasis or direction changes; and • are appropriate to meet the changing environment and corporate landscape in which the Company operates. To the extent a gap is identified in the Board’s skills, discussion follows on how and when to prioritise addressing the gap, and whether professional development initiatives can assist and or whether expanding the Board or Board renewal is the appropriate response. The review of the board skills matrix during the FY19 financial year: • concluded that no change to the selection of skills used in the matrix was warranted; and • revealed an opportunity to strengthen the Board’s technical skillset base, and with a wider scope of international experience where possible. The Company’s business as underground mining specialists expanded into the US during the financial year, with the acquisition of the Pogo mine in Alaska on 28 September 2018. The Company ran an international recruitment process during the financial year with the assistance of a specialist external recruitment consultant, culminating in the Company appointing two additional Directors on 1 July 2019 who have proven executive careers and subject matter expertise in engineering and project management (Australia and various other geographic locations). In addition, to enhance shareholder confidence in the Company’s corporate governance practices, the two new Directors appointed were both independent, bringing the number of independent Non-Executive Directors to six, balanced against the single non-independent Executive Director in the role of Executive Chairman. Shareholders will be asked to re-elect the new Directors at the 2019 Annual General Meeting. “The Nomination Committee aims to ensure that an appropriate balance of skills, experience, expertise and diversity (of experience, thought, problem-solving approaches, age, gender, nationality, cultural background and perspective informed by life experience) is represented on the Board.” – Hilary Macdonald General Counsel & Company Secretary Why Northern Star selected the skills in the Board Skills Matrix The following table explains what skills are considered by the Board to be important for the role of Director at Northern Star and why they therefore appear in the board skills matrix. Each of the Directors’ profiles on page 32 and 33 brings out the prominent skills held by each Director, in the context of the board skills matrix results. The Board has reviewed additional skills to add to the board skills matrix, such as tax risk management and compliance, and public policy and regulation, opting instead for the ability to bring in subject matter experts to advise the Board as needed. Each Director has self-assessed their skills and experience against the board skills matrix by giving a rating per skill of between 0 (for no applicable skills or experience) to 5 (expert skills and experience). 38 2019 ANNUAL REPORT | DIRECTOR S’ REPOR T 39 IMPORTANCE OF BOARD SKILL BOARD SKILL AND DESCRIPTION IMPORTANCE OF BOARD SKILL BOARD Directors’ Report TABLE 10 BOARD SKILLS MATRIX SKILL AND DESCRIPTION Executive leadership Evaluating the performance of senior management, overseeing strategic human capital planning, industrial relations, organisational change management programmes and sustainable success in business at a senior level. A director’s ability to draw on executive experience in attracting, leading and retaining a high performing team to deliver on the Company’s strategic o(cid:69)(cid:77)ectives, and understanding(cid:18)in(cid:565)uencing organisational culture, is integral to (cid:49)orthern (cid:54)tar sustaining its financial and operational results and people management. (cid:41)(cid:76)n(cid:68)n(cid:70)e(cid:15) (cid:70)(cid:82)(cid:80)(cid:80)er(cid:70)e (cid:68)n(cid:71) (cid:68)(cid:70)(cid:70)(cid:82)(cid:88)nt(cid:76)n(cid:74) Financial accounting and reporting, internal financial and risk controls, corporate finance and, restructuring corporate transactions (eg: JVs, listings etc). (cid:40)n(cid:89)(cid:76)r(cid:82)n(cid:80)ent(cid:68)(cid:79)(cid:15) (cid:54)(cid:82)(cid:70)(cid:76)(cid:68)(cid:79) (cid:9) (cid:42)(cid:82)(cid:89)ern(cid:68)n(cid:70)e (cid:11)(cid:40)(cid:54)(cid:42)(cid:12) Experience in integrating environmental, social and governance (ESG) principles into Company decision-making, working in a legal and/or regulatory environment and/or dealing with ESG / legal / regulatory matters in an executive role in an organisation, and identifying key issues and developing appropriate policy parameters. HR and workplace relations Board Remuneration Committee membership or, succession planning, remuneration and talent management (including incentive programs, superannuation etc), the legislative and contractual framework governing remuneration and, the legislative framework for workplace relations. (cid:43)e(cid:68)(cid:79)th(cid:15) (cid:54)(cid:68)(cid:73)et(cid:92) (cid:9) (cid:40)n(cid:89)(cid:76)r(cid:82)n(cid:80)ent (cid:11)(cid:43)(cid:54)(cid:40)(cid:12) Workplace health, safety and environmental experience, implementing health, safety and (cid:90)ell(cid:69)eing strategies, proactive identification and prevention of health, safety and environmental risks. IT and innovation Executive knowledge and experience in the management of information technology including but not limited to IT strategies and networks, data storage, data security, cyber security and experience in applying new technologies and innovation to deliver business improvement. Major projects and construction Contract negotiations, project management, projects involving large-scale outlays and projects with long-term investment horizons. (cid:38)(cid:68)(cid:83)(cid:76)t(cid:68)(cid:79) (cid:80)(cid:68)r(cid:78)ets Expertise and commitment to sustainability initiatives, social responsibility, and investor engagement. (cid:41)inancial acumen, demonstrated (cid:69)(cid:92) a director(cid:519)s e(cid:91)perience in financial accounting and reporting, corporate finance and internal financial controls, provides the director (cid:90)ith the tools to interpret financial performance, discipline in costs control, and rigour in risk identification and mitigation, evidenced in (cid:49)orthern (cid:54)tar(cid:519)s financial results and gold price hedging practices. Experience of a director related to workplace environmental compliance, and communit(cid:92) relations and government a(cid:909)airs, is integral to the critical evaluation of frameworks and processes designed to ensure that all regulatory obligations are met and Northern Star’s social licence to operate in the communities in which it operates, is earned and further developed. Finance, Commerce & Accounting ESG, Legal & Regula- tory, Policy A director’s previous executive experience in industrial relations and employee relations, including remuneration benchmarking and incentive structures, informs the Board in relation to strategies to counter the tightening labour market facing Northern Star, and provides a deeper level of understanding at Board level on the integration risks and successes following the acquisition of new projects. HR & Workplace Relations Experience of a director related to workplace health and safety reporting and measurement, the importance of tracking near misses, and awareness of environment measurement and risk within Northern Star’s operations, provides a more informed platform for the Board to critically appraise safety statistics, and health and environmental risks faced by Northern Star. HSE A director’s awareness of the importance of digital technology to support Northern Star’s growth and drive competitive advantage in its underground and processing operations particularly, and knowledge and experience in use and governance of critical information technology, supports Northern Star’s drive for continuous improvement in exploration and production methods, safety performance and business systems. A director’s sound understanding of potential cyber risk exposure assists in prioritising risk mitigation steps and expenditure. Experience in the delivery of large-scale capital projects and expertise in project governance and risk management informs the Board when Northern Star is contemplating long term investment projects or large- scale capital investment. Given Northern Star’s share register composition, a director’s experience with equity and debt funding strategies, an understanding of local and overseas capital and debt markets, and experience in capital and debt raising and management and investor relations is key to the Board developing Northern Star’s strategy, and investor communications. Technical skills Advanced technical understanding of geology, mining engineering or processing. (cid:38)(cid:82)(cid:80)(cid:80)(cid:82)(cid:71)(cid:76)t(cid:76)es e(cid:91)(cid:83)(cid:82)s(cid:88)re Executive expertise in commodities, mining or resources sectors. Previous board experience Serving on Boards of varying size and composition, in varying industries and for a range of organisations. An awareness of global practices and benchmarking and, some international experience. (cid:53)(cid:76)s(cid:78) (cid:80)(cid:68)n(cid:68)(cid:74)e(cid:80)ent (cid:68)n(cid:71) (cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:76)(cid:68)n(cid:70)e Northern Star is a global underground mining specialist; a director’s understanding and appreciation of mining engineering, design, method and risk is an essential component behind Northern Star’s operational and financial success(cid:30) so too is other su(cid:69)(cid:77)ect matter e(cid:91)pertise such as financial acumen and legal knowledge supporting tenure acquisition and risks raised during due diligence. A director’s experience in gold price hedging, and foreign exchange risk management assists the (cid:49)orthern (cid:54)tar (cid:37)oard in financial management and risk mitigation strategies, particularly given Pogo gold sales are in USD. Preparedness for a well-informed discussion, awareness of the pitfalls of groupthink and agility in risk assessment and decision making, are key skills required of all directors on the Northern Star Board. Applying broad based risk management frameworks in various regulatory or business environment, identifying key risks to an organisation related to key areas of operations, monitoring risk and compliance. (cid:48)aintaining e(cid:909)ective risk identification, management and internal control, and the understanding of specialist risks such as corporate tax requirements and tax risk management, are a cornerstone of Northern Star’s Audit and Risk Committee directors, particularly in the dual jurisdictions of Australia and Alaska in which operations are presently. Strategy Identifying and critically assessing strategic opportunities and threats to the organisation and, developing and implementing successful strategies in the context of an organisation’s policies and business objectives. (cid:37)(cid:82)(cid:68)r(cid:71) (cid:71)(cid:92)n(cid:68)(cid:80)(cid:76)(cid:70)s A director’s experience in developing and implementing successful strategy, and the ability to provide oversight of management for the delivery of strategic objectives, is a fundamental requirement of every Northern Star director, to add value to the Board. Constructively challenge and contribute to (cid:37)oard discussions and communicate e(cid:909)ectivel(cid:92) with management and other directors. Build consensus, negotiate and obtain stakeholder support for Board decisions. A Northern Star director is regularly called on to demonstrate skills in understanding and in(cid:565)uencing other directors(cid:30) the a(cid:69)ilit(cid:92) to disagree agreeably, and the capacity to assimilate large volumes of information in a short period of time for e(cid:909)ective discussion, in the evaluation of potential transactions or other business decisions. (cid:918)ss(cid:88)es (cid:80)(cid:68)n(cid:68)(cid:74)e(cid:80)ent Constructively manage major issues, provide leadership around solutions and contribute to a communications strategy with stakeholders. Ethics and integrity Model correct behaviours as a director and, continue to self-educate on legal responsibility, maintain (cid:37)oard confidentialit(cid:92), declare con(cid:565)icts etc. (cid:40)(cid:91)perience (cid:90)ith communit(cid:92) relations and government a(cid:909)airs, investor relations and oversight and management of compliance frameworks provide a Northern Star director with preparedness for a corporate or other crisis outside the normal path of operations. A director with experience in governance in ASX listed and other complex organisations, (cid:90)ith commitment to ensuring e(cid:909)ective governance structures and maintaining e(cid:909)ective risk management and internal controls, assists in setting the framework for and regulating Northern Star’s decision- making practices. LEGEND (cid:40)(cid:91)pert (cid:40)(cid:91)tensive (cid:54)u(cid:605)cient (cid:54)ome(cid:90)hat (cid:37)asic (cid:49)one 40 2019 ANNUAL REPORT | DIRECTOR S’ REPOR T 41 Directors’ Report Principal activities During FY19 the principal activities of the Group were: • exploration, development, mining and processing of gold deposits and sale of refined gold derived from the Jundee and Kalgoorlie operations in Western Australia and from the Pogo Operations in Alaska; and • exploration in relation to gold deposits in Western Australia, the Northern Territory and Alaska. There were no significant changes to the Group’s activities during FY19 other than acquiring the Company’s first operations outside Western Australia – the Pogo Operations in Alaska. Dividends paid TABLE 11 DIVIDENDS PAID TO MEMBERS DURING FY19 Final ordinary dividend for FY18 of 5 cents (2017: 6 cents) per fully paid Share paid on 28 September 2018 Interim ordinary dividend for FY19 of 6 cents (2018: 4.5 cents) per fully paid Share paid on 4 April 2019 FY19 A$’000 FY18 A$’000 31,973 36,190 38,367 27,143 Total 70,340 63,333 Dividends recommended but not yet paid Since the end of FY19 the Directors have recommended the payment of a final fully franked ordinary dividend of $48 million (7.5 cents per fully paid Share) to be paid on 20 November 2019 out of retained earnings at 30 June 2019. Review of operations Information on the operations and financial position of the Group and its business strategies and prospects is set out in the Operations Review section of this Annual Report. Significant changes in the state of affairs Significant changes in the state of affairs of the Group during FY19 were the acquisition of the Pogo Operations in Alaska, United States from Sumitomo Metal Mining Co., Ltd (85% interest and the mine operator) and Sumitomo Corporation (15% interest) for total consideration of US$260 million on 28 September 2018, through the purchase of all the shares on issue in each of Sumitomo Metal Mining Pogo LLC (now named Northern Star (Pogo) LLC) and SC Pogo LLC (now named Northern Star (Pogo Two) LLC). Northern Star received the full financial benefit of the Pogo operations from 1 July 2018. For further details of this acquisition refer to note 13 of the financial statements. Events since the end of FY19 No matter or circumstance has arisen since 30 June 2019 that has significantly affected the Group’s operations, results or state of affairs, or may do so in future years. Likely developments and expected results of operations There are no likely developments to disclose in the Group’s operations in future financial years. Performance in relation to environmental regulation The Group’s exploration, mining and processing operations are subject to Commonwealth of Australia, Western Australian, Northern Territory, State of Alaska and Federal US legislation which regulates the environmental aspects of the Group’s activities, including discharges to the air, surface water and groundwater, and the storage and use of hazardous materials. The Group is not aware of any material breach of environmental legislation and regulations applicable to the Company’s operations during FY19. The Group continues to comply with environmental regulations. Insurance of officers and indemnities During FY19 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, to the extent permitted by the Corporations Act. In addition similar liabilities are insured for Officers holding the position of nominee Director for the Company in other entities. Proceedings on behalf of the Company No person has applied to the Court under Section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. Non-audit services The Company may decide to employ the Auditor on assignments additional to their statutory audit duties where the Auditor’s expertise and experience with the Company and/or Group are important. Details of the amounts paid or payable to the Auditor (Deloitte Touche Tohmatsu) for the audit and non-audit services provided during FY19 are disclosed in Note 21 to the financial statements. The Directors are satisfied that the provision of non-audit services is compatible with the general standard of independence for Auditors imposed by the Corporations Act 2001. The Directors are satisfied that the provision of non-audit services by the Auditor did not compromise the Auditor independence requirements of the Corporations Act 2001 because none of the services undermine the general principles relating to Auditor independence as set out in APES 110 Code of Ethics for Professional Accountants. Auditor independence declaration A copy of the Auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 73. Rounding The Company is of a kind referred to ASIC Legislative Instrument 2016/191, relating to the “rounding off” of amounts in the financial statements. Amounts in the financial statements have been rounded off in accordance with the instrument to the nearest thousand dollars, or in certain cases, the nearest dollar. Corporate governance statement Northern Star and the Board are committed to achieving and demonstrating the highest standards of corporate governance. In addition to this Annual Report, a description of the Company’s current corporate governance practices is set out in the Corporate Governance Statement (http://www.nsrltd.com/about/corporate- governance/). Northern Star has elected to publish the 2019 Tax Corporate Governance Statement on a voluntary basis as a part of our commitment to tax transparency. The report includes information recommended to be disclosed under the Australian voluntary Tax Transparency Code (TTC). The report can be found on the Company website under Corporate Governance - Rules and Special Reports. A final fully franked This report is made in accordance with a resolution of Directors dated 26 August 2019. ordinary dividend of A$48 million (7.5¢ per fully paid Share) has been declared for payment on 20 November 2019. BILL BEAMENT Executive Chairman 26 August 2019 42 43 TABLE OF CONTENTS Introduction from the Chairperson of the Remuneration Committee Details of the Key Management Personnel Executive KMP Remuneration Policy and Relationship with Performance Executive KMP Remuneration for FY19 Executive KMP Realised Remuneration for FY19 Short Term Incentives – performance against STI Targets for FY19 Short Term Incentives paid in FY19 Pogo Completion Bonus paid in FY19 Long Term Incentives – LTI Performance Rights FY20 Remuneration Framework – Key Changes from FY19 FY20 Executive KMP Fixed and Variable KMP Remuneration Changes Non-Executive Directors’ Remuneration Other Statutory Disclosures Statutory Remuneration Disclosures Contractual Arrangements with Executive KMP 44 48 48 50 52 54 56 56 57 58 62 63 65 66 70 Other Transactions with KMP and comment on previous disclosures of “Related Party” Transactions with Bill Beament 71 Auditor’s Independence Declaration 73 REMUNERATION REPORT 44 2019 ANNUAL REPORT | REMUNER ATI ON R EPOR T 45 Remuneration Report Dear Shareholder On behalf of the Board, I am pleased to present the Northern Star Resources Limited Remuneration Report for FY19. Since the acquisition of the Paulsens mine in 2010, Northern Star has delivered sector leading results by acquiring and investing in Tier-1 assets. To date this strategy has seen Northern Star deliver a total shareholder return (TSR) of 26,877% for its Shareholders. CHART 3 NST SHARE PRICE VS ASX ACCUMULATION (ASX ACC) INDEX NST TSR of 26,877% since the Paulsens acquisition 30,000 25,000 20,000 15,000 10,000 5,000 0 APR 10 APR 11 APR 12 APR 13 APR 14 APR 15 APR 16 APR 17 APR 18 APR 19 NST AU Equity ASX ACC Index In 2014, Northern Star acquired the Kalgoorlie and Jundee operations and since that time Northern Star has led the global gold industry by delivering the highest rates of financial returns as measured (cid:69)(cid:92) (cid:53)eturn on Equity of (30%) and a Return on Invested Capital of (27%). CHART 4 5YR AVERAGE RETURN ON EQUITY VS GDX GOLD INDEX NST 30% Sector Average -1.7% 40% 30% 20% 10% 0% -10% -20% CHART 5 5YR AVERAGE RETURN ON INVESTED CAPITAL VS GDX GOLD INDEX NST 27% Sector Average -1.3% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% $8,000 $7,000 $6,000 $5,000 $4,000 M $ A $3,000 $2,000 $1,000 $0 In the first half of (cid:41)(cid:60)(cid:20)(cid:28) (cid:49)orthern (cid:54)tar ac(cid:84)uired the (cid:51)ogo (cid:42)old (cid:48)ine and our proven integration and operating business model is currently being implemented at the Pogo operations in Alaska. This acquisition now puts the business in the enviable position of having three Tier-1 assets in Tier-1 jurisdictions and has propelled Northern Star to become the second largest listed gold producer on the Australian Securities Exchange. Our primary focus is to deliver similar returns to our Shareholders over the coming years. Northern Star continues to operate (cid:69)(cid:92) the mantra of (cid:69)eing a (cid:69)usiness first and a mining compan(cid:92) second. (cid:55)his strateg(cid:92) again in (cid:41)(cid:60)(cid:20)(cid:28) has delivered a further significant increase in value for its Shareholders through accretive organic and inorganic growth. Our strategy of balancing organic growth with well executed M&A has generated over A$7.2B of value for Shareholders since the first ac(cid:84)uisition in (cid:21)(cid:19)(cid:20)(cid:19), (cid:90)ith less than (cid:26)(cid:8) of this value uplift (cid:69)eing derived from equity issues. Performance Outcomes in FY19 In 2019, Northern Star continued to deliver strong results. Our people are responsible for driving and achieving these impressive results. The strong leadership and proven expertise of the Executive (cid:38)hairman and the (cid:38)hief (cid:40)(cid:91)ecutive (cid:50)(cid:605)cer in particular have (cid:69)een integral to sustained performance. The Company’s evolution since 2010 via organic growth and disciplined, selective acquisitions has built a diverse range of teams with operational and specialist expertise. The Board recognises that to continue this extraordinarily successful growth trajectory and to achieve its strategic objectives, Northern Star must continue to attract, motivate, retain and reward exceptional people who have accountability for all decisions and the accompanying risk management challenges, and whose interests are aligned with our Shareholders. Maintained focus on our culture and our key areas of performance is re(cid:565)ected in our safet(cid:92) and financial results for (cid:41)(cid:60)(cid:20)(cid:28)(cid:17) (cid:60)our (cid:37)oard believes that the remuneration outcomes for FY19 recognise the performance for FY19. Notwithstanding outstanding performance in many areas of the business, the total STI awarded to the KMP was 40% out of a total possible 70% for Company KPIs. Maximum individual KPI satisfaction (30%) was fully achieved. The Board did not exercise its discretion to vary the level of the FY19 STI award (positive or negative) when considering overall Shareholder value generated over the performance period. See pages 54 and 55 of this Report for further details of the STI performance targets and performance outcome. PERFORMANCE SNAPSHOT LTIFR reduced by During FY19, the Company continued to deliver strong performance against many but not all of the stretch targets. The following FY19 STI targets were achieved: Cashflow from operations ASX Accumulation Index return of 99% over same time frame CHART 6 VALUE CREATION FOR SHAREHOLDERS SINCE 2010 $7,254 $7,451 Over A$7.2B of value has been created through executing organic and inorganic growth and 61% of all equity capital raised returned to Shareholders in dividends since 2010 Remuneration Outcomes FY19 Short Term Incentives $11 $474 $288 Starting Market Cap (30/6/10) Equity Issued Dividend Paid/Declared Value Add Market Cap at 30/06/19 This strategy has been achieved through operational excellence, investing heavily into exploration, growing production, optimising assets, developing an e(cid:91)ceptional management team and financial discipline. The Northern Star business is driven by its STARR Core Values. Safety, Teamwork, Accountability, Respect and Results. Safety is central to our culture, and commitment to continual safety improvement is at the core of Northern Star. This importance is not lost on us and in CY18 saw a 75% reduction in the total recordable injury frequency rate (cid:11)(cid:55)(cid:53)I(cid:41)(cid:53)(cid:12) to (cid:22)(cid:17)(cid:26), this figure sitting (cid:25)(cid:21)(cid:8) (cid:69)elo(cid:90) the sector average of 9.6, with further reduction to 3.3 during the 6-month period to 30 June 2019. The focus on Northern Star’s culture and the way we operate is essential to the successful organic growth and integration of new projects and people. All employees are made aware that our STARR Core Values must form the basis of all behaviours and actions. • Safety performance, which was excellent with a continued improvement year on year resulting in injury frequency rates at a third of industr(cid:92) (cid:69)enchmark(cid:17) (cid:55)he (cid:55)(cid:53)I(cid:41)(cid:53) of (cid:22)(cid:17)(cid:22) against the (cid:56)(cid:42) (cid:48)etalliferous Industr(cid:92) Inde(cid:91) of (cid:28)(cid:17)(cid:20) is a significant achievement(cid:30) • (cid:49)o significant environmental or communit(cid:92) incidents at an(cid:92) of our operations in (cid:36)ustralia or (cid:36)laska(cid:30) • Female employment participation for the workforce increased from 19.04% to 22.2%. (This excludes the underground workforce, which missed the FY19 target of 10% with NSMS female participation at 9.5% as a result of NSMS replacing the incumbent underground contractors at South Kalgoorlie and Pogo operations). This is above the industry average of 16%1. The FY19 STI target for Production was only partially achieved, as despite the Australian operations achieving the top end of production guidance, Pogo fell short due to delays in the delivery of new plant and e(cid:84)uipment (cid:11)part of our significant capital investment since acquiring control on 28 September 2018), and the implementation of new mining methods. The following FY19 STI targets were not achieved, and no portion of the STI attributable to those targets was paid: • (cid:49)(cid:51)(cid:36)(cid:55) did not e(cid:91)ceed the e(cid:91)ceptional (cid:41)(cid:60)(cid:20)(cid:27) (cid:49)(cid:51)(cid:36)(cid:55)(cid:30) and • Falling short of costs guidance. Reserves increased by 1 Industry average figures taken from McDonald Gold & General Mining Industries Remuneration Report (Australasia) April 2019. Excluding causal employees. 2 Cash at bullion (A$310M) and liquid investments (A$51M) as at 30 June 2019, plus an undrawn revolver facility (A$200M) 45%0.5 (sector 1.6/ FY18: 0.9) 7.4%A$379M (FY18: A$353M) A$561M at 30 June 2019 5%A$0.11 per Share (FY18: A$0.105) 31%to 20.8Moz 35%to 5.4Moz Liquidity2 Record dividends Record group sales 840,580oz (FY18: 570,110oz) Resources increased by 46 2019 ANNUAL REPORT | REMUNER ATI ON R EPOR T 47 Pogo Acquisition & Completion Bonus The acquisition of Pogo was announced on 30 August 2018 after a si(cid:91) month negotiation and due diligence period(cid:17) (cid:55)he significance of this acquisition and the purchase terms achieved by the (cid:38)ompan(cid:92) (cid:90)as re(cid:565)ected in the e(cid:91)ceptionall(cid:92) strong (cid:54)hareholder support for an accompan(cid:92)ing e(cid:84)uit(cid:92) raise and a significant and sustained re-rating of the Share price. The acquisition was completed within one month, on 28 September 2018. The due diligence process identified compelling operational advantages involving an immediate change to the mining method in order to increase gold production and reduce costs(cid:17) (cid:42)iven the significant amount of work involved in securing this opportunity and the highl(cid:92) successful completion of the transaction(cid:30) (cid:90)here(cid:69)(cid:92) the Northern Star share price increased 16.6% on announcement and generated over A$711M of value for existing Shareholders, the Board decided to award those responsible for driving this achievement (cid:90)ith a one(cid:16)o(cid:909) cash (cid:69)onus(cid:17) (cid:55)hese (cid:51)ogo (cid:36)c(cid:84)uisition (cid:9) (cid:38)ompletion (cid:37)onuses re(cid:565)ected the significant (cid:90)orkload, commitment and acumen involved in the assessment, negotiation and completion of the acquisition in addition to delivering on business as usual responsibilities in Australia. The implementation of the Company’s business model at Pogo is on track to achieve ke(cid:92) o(cid:69)(cid:77)ectives, (cid:90)ith results re(cid:565)ecting strong operational gains at all levels, in line with the 18-month transition plan announced at completion(cid:17) Immediate and significant improvement in productivities, production and costs are expected to further improve during FY20 and FY21. Long Term Incentives No LTI grant was made in FY19. FY20 Remuneration decisions The Northern Star Board recognises that the remuneration framework is key to promoting engagement and accountability, and encouraging and rewarding appropriate behaviours, in line with our STARR Core Values. To ensure that the framework continues to support the achievement of our strategy, the Board undertook a comprehensive Company-wide review of the framework during 2019, taking the following into account: • (cid:40)(cid:91)ecutive (cid:46)(cid:48)(cid:51) (cid:11)and other senior e(cid:91)ecutive(cid:12) fi(cid:91)ed and varia(cid:69)le remuneration has not changed since (cid:21)(cid:19)(cid:20)(cid:25)(cid:30) • (cid:55)here has (cid:69)een significant organic and inorganic gro(cid:90)th in the Company’s operations and a large increase in size and scale of the business, expanding the KMP and senior leadership team’s responsi(cid:69)ilities and risk management (cid:69)ase(cid:30) • Acquiring Pogo has also deepened the complexity of the Company’s business. It has added State of Alaska and US (cid:41)ederal corporate, financial, safet(cid:92) and environmental compliance and disclosure o(cid:69)ligations(cid:30) a significant increase in e(cid:91)ploration scale and potential(cid:30) people and culture integration, and operationally, fundamentally improving mining methods and other disciplines in the mine, in order to realise Pogo’s potential on a sustaina(cid:69)le (cid:69)asis(cid:30) and • The current LTI performance period ends on 16 October 2019 and as a result, a fresh LTI plan is warranted. The Remuneration Committee is appreciative of the feedback received from (cid:54)hareholders (cid:90)hich (cid:90)ill (cid:69)e re(cid:565)ected in a ne(cid:90) plan to be put to Shareholders for approval at the Annual (cid:42)eneral (cid:48)eeting in (cid:49)ovem(cid:69)er (cid:21)(cid:19)(cid:20)(cid:28)(cid:17) (cid:55)his report e(cid:91)plains the new remuneration framework and the rationale for the increase in fi(cid:91)ed and varia(cid:69)le remuneration for the (cid:40)(cid:91)ecutive KMP from 1 July 2019. The fact that KMP renumeration has not changed since 2016 and that during that time the size and complexity of the business has materially increased, has meant that significant changes are re(cid:84)uired to (cid:46)(cid:48)(cid:51) remuneration to ensure our remuneration policy objectives are met, as detailed in this Report. Benchmarking and structuring advice from external remuneration advisers indicated that the senior leadership team including the KMP remuneration at maximum performance for FY19 was well below the Company’s target of 75th percentile when performance meets stretch targets. When developing the changes to the Executive KMP remuneration framework, the Remuneration Committee has taken into account market (cid:69)enchmark data, significant e(cid:91)ternal labour demand pressure, the poaching risk and competition for our e(cid:91)ceptional people, and the (cid:38)ompan(cid:92)(cid:519)s financial strength and success delivered by employees to date. I would like to thank Shirley In’t Veld who chaired the Remuneration Committee during FY193 and was integral to the review process. Yours faithfully Nick Cernotta Chairperson – Remuneration Committee 3 Shirley In’t Veld resigned as Chairman of the Remuneration Committee with effect on 26 July 2019 as a result of the committee restructure process that was undertaken when the Board was expanded 48 2019 ANNUAL REPORT | REMUNER ATI ON REPOR T 49 Remuneration Report Details of the Key Management Personnel Financial Performance over the past 5 years The following Executives and Non-Executive Directors (NEDs) were considered Key Management Personnel (KMP) for FY19 or appointed since the end of FY19. Former Executives and NEDs who were KMP for FY18 are also covered by this Report, where required. TABLE 12 NST FY PERFORMANCE VS ASX FY ACCUMULATION INDEX PERFORMANCE DIRECTOR Bill Beament John Fitzgerald Chris Rowe Peter O’Connor Shirley In’t Veld Mary Hackett Nick Cernotta ROLE Executive Chairman Lead Independent Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director The following people held their Executive KMP positions during the last financial year. EXECUTIVE KMP Stuart Tonkin Luke Creagh Michael Mulroney Ryan Gurner Hilary Macdonald ROLE Chief Executive Officer Chief Operating Officer Chief Geological Officer Chief Financial Officer APPOINTMENT DATE 20 August 2007 30 November 2012 20 February 2003 21 May 2012 1 September 2016 1 July 2019 1 July 2019 APPOINTMENT DATE 29 October 2016 1 November 2018 1 June 2015 16 October 2018 General Counsel & Company Secretary 23 February 2018 FORMER EXECUTIVE KMP ROLE Shaun Day Chief Financial Officer PERIOD OF APPOINTMENT Appointed 13 October 2014 Ceased 16 October 2018 Executive KMP Remuneration Policy and relationship with performance Executive KMP Remuneration Policy Our Remuneration Policy is designed to support our Vision – to continue to build a safe quality mining and exploration company focused on creating value for Shareholders, and our Mission – to generate accretive earnings value for our Shareholders through operational effectiveness, growth opportunities and exploration with a prime focus on success and meeting Shareholder expectations. Our strategy is clear: to develop a responsible Company that is attractive to global investors. Our Executive KMP Remuneration Policy and practices underpin our business strategy, which includes: 1. Sustaining critical mass – maintaining gold production from three Tier-1 mining operations. 2. Maintaining a geographically diversified asset base through our portfolio of Tier-1 operating mines. 3. Ensuring our assets have significant mine lives. 4. Maintaining low cost operations – constantly driving efficiencies and productivity to achieve the lowest possible all-in sustaining costs. 5. Upholding strong financial disciplines – continuing to deliver superior results and maintaining our track record of paying fully- franked dividends to Shareholders. Implementing our strategy Imperative for the implementation of Northern Star’s business strategy is: • The quality of our workforce. • The delivery of sustainable operations – we are highly focused on safety and committed to strong environmental management and social responsibility. • Investing in exploration to maximise the value of our existing assets by examining known in-mine, near-mine and regional targets. • Using management experience to make well-informed decisions and implement our initiatives in a timely and prudent manner. “Our strategy is clear: to develop a responsible Company that is attractive to global investors.” – Stuart Tonkin Chief Executive Officer Total Shareholder return 4 125% NST FY Performance vs ASX FY Accumulation Index Performance 1% ASX Accumulation Index return 5 13% 14% 55% 11% 62% (7%) FY19 FY18 FY17 FY16 FY15 72% 6% Northern Star Outperformance 6 51% 41% (20%) 124% 66% CHART 7 NST FY PERFORMANCE VS ASX FY ACCUMULATION INDEX PERFORMANCE NST FY19 62% NST AU Equity ASA30 Index NST FY18 55% NST FY16 125% NST FY17 (7%) NST FY15 72% ASA Index FY19 11% ASA Index FY15 6% ASA Index FY16 1% ASA Index FY17 13% ASA Index FY18 13% JUN 14 JUN 15 JUN 16 JUN 17 JUN 18 JUN 19 CHART 8 FINANCIAL PERFORMANCE OVER 5 YEARS 9 1 1 0 1 . 5 0 1 3 8 3 9 7 3 5 4 . 6 9 5 3 9 5 3 3 5 3 FY15 FY16 FY177 FY18 FY19 FY15 FY16 FY177 FY18 FY19 Dividends per Share (¢)8 Cashflow from operations ($M) 5 6 1 1 . 6 2 7 . % 5 2 1 % 2 7 1 2 2 . 4 9 4 . 5 7 4 . % 2 6 % 5 5 % 7 FY15 FY16 FY177 FY18 FY19 FY15 FY16 FY177 FY18 FY19 Share price (30 June) ($) Total Shareholder Return4 4 Total Shareholder Return (TSR) is calculated as the change in share price plus dividends paid during the year, divided by the share price at the beginning of the year 5 The Australian Accumulation ll Ordinaries Index is a total return index based on the Australian All Ordinaries Index with dividends reinvested 6 Northern Star Outperformance is defined as the Share price performance above this index and does not include dividends that Northern Star has paid to Shareholders 7 Includes divestment of Plutonic operations 8 Dividends per Share are those paid per Share in FY19 9 Dividends of $0.05 per Share paid in September 2018 and $0.06 per Share paid in April 2019 50 2019 ANNUAL REPORT | REMUNER ATI ON REPOR T 51 Remuneration Report Executive KMP Remuneration Policy and relationship with performance cont’d TABLE 14 REMUNERATION MIX FOR EXECUTIVE KMP IN FY19 TABLE 13 EXECUTIVE REMUNERATION POLICY OBJECTIVES & PRACTICES ALIGNED TO THEM REMUNERATION POLICY OBJECTIVE PRACTICES ALIGNED WITH REMUNERATION POLICY OBJECTIVE Retain an experienced, cohesive, proven high performance multi-disciplinary team to deliver the Company’s strategic objectives • Provide remuneration that is internally fair. • Ensure remuneration is competitive with the external gold industry market. • Provide total remuneration opportunities sufficient to attract and retain proven and experienced Executive KMP who are at risk of becoming global company poaching targets. Align Executive KMP interests with Shareholders • A significant proportion of remuneration is performance-based and delivered in shares, aligning Executive KMP reward with increased value for Shareholders. • The LTI plan uses performance metrics measured against stretch targets that reward for longer term value, consistent with our business strategy. Focus on safety • Safety performance metrics, covering employee and contractors, in order to measure performance over different time horizons for sound risk management and to ensure outcomes cannot be gamed for a short- term result that may not have regard for the longer term. Focus on sustained costs and production performance • STI including: – Challenging annual production targets; – Deliver on competitive production costs. Focus on our people and create a desirable Company culture • Provide incentives that promote a healthy culture to attract and retain a diverse and inclusive workforce in line with the STARR Core Values. • Encourage engagement with and the development and retention of its people to ensure a sustainable supply of diverse talent. Focus on social licence • STI includes reward for zero harm to the environment, community relations and improving gender diversity throughout the organisation. FIXED REMUNERATION (TFR) SHORT TERM INCENTIVES (STI) LONG TERM INCENTIVES (LTI) To provide a base level of remuneration which is both appropriate for the responsibility of the position and competitive in the market for the individual’s experience and value to the Company. To provide an annual, market competitive cash incentive to reward high performing, engaged Executive KMP incorporating performance metrics aligned with the creation of Shareholder wealth. This is to ensure executives have their eye on the ball for the Company’s near-term deliverables. To focus Executive KMP on drivers of Shareholder value over a three- year period from the single grant of performance rights in FY17, to retain executive KMP and motivate with market competitive incentives to pursue the long- term growth and success in line with the Company’s strategy, vision and mission. Fixed remuneration is set at a level that takes into account the role responsibilities and individual capabilities, benchmarked against market data for comparable roles in a similar industry sector and with a similar market capitalisation. STI opportunity is based on a % of TREM10 having regard to market practice for roles and service period at the time of award, with a range of percentages. The Remuneration Committee is responsible for assessing performance against KPIs and determining the STI to be awarded. LTIs promote alignment with long term Company performance over three years using performance metrics aligned with Shareholder returns. The Remuneration Committee is responsible for assessing performance against these metrics and determining the LTI to be awarded. Purpose Northern Star approach Annual performance review conducted by the CEO and/or Remuneration Committee and periodic remuneration reviews are conducted as appropriate, benchmarked against market data for comparable roles in a similar industry sector and with similar market capitalisation. Executive KMP remuneration for FY19 Assessment The mix and level of fixed and variable performance-based remuneration for the Executive KMP is set with the objective of: • attracting and retaining high performing employees; and • driving superior performance and achievement of the Company’s strategic objectives. The remuneration mix is weighted towards variable remuneration awarded in equity, to motivate, focus and reward for achievement of strategic objectives and to ensure alignment with Shareholders. An additional cash bonus was paid during the year to recognise the significant additional work undertaken and the successful completion of the Pogo acquisition. Further details about the Pogo Acquisition and Completion Bonus are provided on page 56. Pages 58 - 63 of this Report gives details of the review of Executive KMP remuneration in FY20 conducted by the Remuneration Committee to date, to ensure the remuneration framework continues to meet its objectives. Fixed remuneration comprises cash salary and direct costs of providing employee benefits, including superannuation, office car parking, private health insurance11, salary continuance insurance12, deemed premiums paid for D&O Insurance and FBT. Delivery Balanced scorecard using a combination of Company (financial and non-financial) and individual performance measures: • Safety – TRIFR (15%) • Financial – NPAT (10%) • Financial – production Koz (25%) • Financial – production costs AISC/oz (10%) • Social licence – environment and social outcomes; gender diversity (10%) • Personal objectives (30%) Threshold, target and in some cases, maximum (stretch) targets are set for each performance measure to drive desired business and individual outcomes. The annual budget generally forms the basis for target performance. Individual performance measures for the Executive KMP are personal stretch targets applicable to their role, and are set to reflect business priorities. The relative weightings of each performance measure also depend on the Company’s strategic goals. Performance period – one year. 100% of STI outcomes paid in cash after the end of the financial year. Board retains discretion over award and forfeiture of STIs for Executive KMP and other employees, including upon termination of employment. Discretion is only exercised by the Board in exceptional circumstances, in which case the use of discretion and the impact is clearly disclosed in the Company’s relevant remuneration report. Vesting is subject to meeting Total Shareholder Return measures (against an industry specific peer group) and long- term safety performance: • Financial – Absolute TSR (60%) • Financial – Relative TSR (20%) • Safety – LTIFR (20%) The performance measures have been set to align with the long-term goals and performance of Northern Star. The majority of the LTI is aimed at generating strong Shareholder returns. Safety is the other performance measure for LTI, as this is the Company’s number one STARR Core Value. A Safety performance measure is included for both the LTI and STI to ensure that the Executive Chairman’s variable remuneration included a Safety-related performance component (as the Executive Chairman was not eligible to receive an STI). Performance period – three years. Awards of performance rights. Each performance right when vested is convertible into one fully paid Share. Shares resulting from vested performance rights which are exercised are: • 50% unrestricted; • 25% subject to 1-year holding lock; • 25% subject to 2-year holding lock. Performance rights do not entitle the holder to receive dividends. Board retains discretion to waive forfeiture upon termination of employment, in appropriate circumstances. Discretion is only exercised by the Board in exceptional circumstances, in which case the use of discretion and the impact is clearly disclosed in the Company’s relevant remuneration report. 10 TREM means total remuneration comprising base salary and superannuation (only) 11 All permanent Northern Star employees (other than those on probation) receive private health insurance benefits 12 All permanent Northern Star employees receive salary continuance insurance 52 2019 ANNUAL REPORT | REMUNER ATI ON REPOR T 53 Remuneration Report Executive KMP realised remuneration for FY19 (voluntary, face value disclosure) Table 15 below discloses cash remuneration paid and equity vested (on a face value basis) to Executive KMP in FY19 (compared to FY18). The purpose of this table is to clearly illustrate: • the alignment between Shareholders and Executive KMP in terms of share price growth. • full year take home pay (in cash and vested performance shares) by the current Executive KMP, including their previous roles with the Company in FY18 and/or FY19 (as applicable). This table has not been prepared in accordance with statutory obligations and Australian Accounting Standards. It differs from the Table 21 on pages 66 and 67 of this Report, which presents the remuneration outcomes prepared in accordance with statutory obligations and Australian Accounting Standards. Table 15 is a voluntary disclosure provided to improve transparency and to ensure that Shareholders are able to clearly understand the actual remuneration outcomes for Executive KMP in FY19 (benchmarked against those in FY18). TABLE 15 TOTAL REMUNERATION PAID OR REALISABLE FOR PERFORMANCE ASSESSED IN FY19 AND FY18 EXECUTIVE CHAIRMAN REMUNERATION OUTCOMES FY19 $’000 FY18 $’000 FY19 VS FY18 CHIEF GEOLOGICAL OFFICER14 REMUNERATION OUTCOMES TFR – salary, super & other benefits 772 742 4.1% TFR – salary, super & other benefits STI – cash - - - STI – cash LTI – performance shares 1,305 1,622 (19.5%) LTI – performance shares 160 0 100% Pogo Bonus FY19 $’000 386 93 657 50 FY18 $’000 389 137 0 0 FY19 VS FY18 (0.9%) (32.0%) 100% 100% Pogo Bonus Total Performance shares price growth 2,913 5,078 (42.6%) Performance shares price growth 1,466 0 100% Total including share price growth 5,151 7,443 (30.8%) Total including share price growth 2,652 526 403.9% CHIEF EXECUTIVE OFFICER REMUNERATION OUTCOMES TFR – salary, super & other benefits STI – cash LTI – performance shares Pogo Bonus Total FY19 $’000 630 152 873 125 FY18 $’000 627 224 0.4% TFR – salary, super & other benefits (32.0%) STI – cash 1,082 (19.3%) LTI – performance shares 0 100% Pogo Bonus 1,780 1,932 (7.9%) Total Performance shares price growth 1,948 3,385 (42.5%) Performance shares price growth Total including share price growth 3,728 5,318 (29.9%) Total including share price growth 1,124 1,364 (17.6%) CHIEF OPERATING OFFICER13 REMUNERATION OUTCOMES FY19 $’000 FY18 $’000 FY19 VS FY18 GENERAL COUNSEL & CO. SEC.16 REMUNERATION OUTCOMES FY19 $’000 TFR – salary, super & other benefits STI – cash LTI – performance shares Pogo Bonus Total Performance shares price growth 378 64 282 80 804 628 345 85 349 0 779 3.4% (29.6%) (19.4%) 100% (0.2%) TFR – salary, super & other benefits 367 STI – cash LTI – performance shares Pogo Bonus Total 1,094 (42.5%) Performance shares price growth 0 0 0% Total including share price growth 1,432 1,873 (24.9%) Total including share price growth 494 417 18.5% 13 Appointed COO on 1 November 2018. This Table includes actual remuneration earned in previous role, General Manager Business Development, from 1 July 2018 to 31 October 2018 14 Mr Mulroney was not an employee on 9 October 2014, therefore did not receive a grant of FY15 long term incentives 15 Appointed CFO on 16 October 2018. This Table includes actual remuneration earned in previous role, General Manager Finance, from 1 July 2018 to 15 October 2018 16 Appointed GC on 12 December 2016; Co Sec on 23 February 2018. Ms Macdonald was an external consultant and not an employee on 9 July 2015, therefore did not receive a grant of FY15 or FY16 long term incentives 321 54 224 25 624 500 254 57 255 0 565 798 26.4% (4.9%) (12.1%) 100% 10.3% (37.3%) FY18 $’000 326 90 0 0 FY19 VS FY18 12.3% (31.1%) 0% 100% 62 0 65 494 417 18.5% Northern Star has materially outperformed the ASX accumulation index and delivered best in class returns for its shareholders. In terms of LTIs paid in FY19 and FY18 two tranches of LTI’s were awarded due to timing and vesting dates for the FY16 and FY15 LTI tranches. The returns and levels of outperformance are illustrated in and Chart 9 for the FY16 tranche and in Chart 10 for the FY15 tranche. CHART 9 FY16 PERFORMANCE SHARES NST NST FY Performance vs ASX FY Accumulation Index Performance OUTPERFORMANCE VS ASX ACCUMULATION INDEX CHART 10 FY15 PERFORMANCE SHARES NST OUTPERFORMANCE VS ASX ACCUMULATION INDEX 223% increase in Share price over performance period Face Value at Vesting Date $7.05 315% increase in Share price over performance period Face Value at Vesting Date $4.94 2,238 2,364 (5.3%) Total 1,186 526 125.3% Face Value at Grant Date $2.18 Face Value at Grant Date $1.19 NST Outperformance vs Accumulation Index NST Outperformance vs Accumulation Index FY19 VS FY18 CHIEF FINANCIAL OFFICER15 REMUNERATION OUTCOMES FY19 $’000 FY18 $’000 FY19 VS FY18 NST AU Equity ASA30 Index NST AU Equity ASA30 Index Jul 15 Oct 15 Jan 16 Apr 16 Jul 16 Oct 16 Jan 17 Apr 17 Jul 17 Oct 17 Jan 18 Apr 18 Jul 18 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 Jan 16 Apr 16 Jul 16 Oct 16 Jan 17 Apr 17 Jul 17 TFR is Total Fixed Remuneration earned during the relevant financial year. TFR comprises gross base salary, superannuation capped at $30,000, and includes non-monetary benefits provided by the Company, such as office car parking bay, the deemed premiums for Directors and Officers Indemnity insurance, private health insurance, salary continuance insurance, and the applicable fringe benefits tax paid on these non-monetary benefits. STI is Short Term Incentive awards paid in cash during the relevant financial year. The STI paid in FY19 was the FY18 STI award (paid in August 2018). The STI paid in FY18 was the FY17 STI award (paid in August 2017). The Executive Chairman is ineligible for STI awards. LTI is the face value at grant date of the Long Term Incentive awards that vested during the relevant financial year. The LTI performance shares that vested in FY19 were the FY16 LTI performance shares issued on 9 July 2015, measured on 30 June 2018 (which vested on 20 July 2018). The LTI performance shares that vested in FY18 were the FY15 LTI performance shares issued on 9 October 2014, measured on 30 June 2017 (which vested on 23 August 2017). Pogo Bonus is the Pogo Acquisition & Completion Bonus, being a one-off discretionary cash bonus awarded to employees that were critical to the Company securing the Pogo operations, which included the Executive KMP, to reflect the significant workload, commitment and acumen involved in the assessment, negotiation and completion of the acquisition. Performance shares price growth is the increase in value over the three year performance period for the FY16 LTI performance shares (which vested during FY19) and for the FY15 performance shares (which vested during FY18), calculated as the difference between the face value at the grant date and the face value at the vesting date, using a 5-day VWAP – to demonstrate the alignment of the LTIs with the growth in Shareholder wealth. 54 2019 ANNUAL REPORT | REMUNER ATI ON REPOR T 55 Remuneration Report Short Term Incentives – performance against STI Targets for FY19 COMPANY TARGETS WEIGHT TOTAL BY OPERATION DESCRIPTION OF THRESHOLD AND MAXIMUM Achieve TRIFR of 7.5 or less (50%) Achieve TRIFR of 5 or less (100% at 5, pro rata) OUTCOME DESCRIPTION OF PERFORMANCE OUTCOME THRESHOLD MAXIMUM TRIFR of 3.3 was achieved. This is an outstanding result, being <1/3 of the industry benchmark (UG Metalliferous Industry Index of 9.1). There were no fatalities. Group Group Maintain or exceed FY18 NPAT NPAT did not exceed prior year’s NPAT, despite Australian operations exceeding budget. Top end of guidance production was achieved at the Australian operations with 639,243oz (rounded up to 640koz) Production met. 17.5% 17.5% Australia 600koz (0%) pro rata to 640koz (100%), pro rata up to 650koz (125%) 7.5% Pogo 250koz (0%) pro rata to 260koz (100%), pro rata up to 270koz (125%) 7% Australia AISC within stated guidance >A$1,125/oz (0%), ≤A$1,125/oz (100%) 3% Pogo AISC within stated guidance >US$880/oz (0%), ≤US$880/oz (100%) Pogo produced of 201,337oz in Au. Due to lower production. Due to lower production. Safety – TRIFR Financial – NPAT 15% 10% Gold production – koz 25% Costs – AISC/oz 10% Social Licence 10% 2.5% 2.5% 2.5% 2.5% No significant environmental incidents No adverse environmental incidents No significant community incidents No adverse community incidents. NSR female employment >20% NSMS female employment >10% Female employment metrics were exceeded by NSR at 22.2%, Female employment metrics were not achieved for NSMS at 9.5%, due to NSMS replacing incumbent underground contractors at SKO & Pogo Total Company Target 70% Total Company Outcome INDIVIDUAL TARGETS WEIGHT SUMMARY OF INDIVIDUAL TARGETS (ABOVE ORDINARY DUTIES) OUTCOME DESCRIPTION OF PERFORMANCE OUTCOME % Y / N Stuart Tonkin (CEO) 30% People succession and development; actions to implement 5-year strategy; underground mining improvements; post completion integration of Pogo Luke Creagh (COO) 30% Underground mining improvements; actions to implement 5-year strategy; post completion Pogo integration Michael Mulroney (CGO) 30% Exploration budget management; innovation in discovery; geological team skills development; post completion Pogo integration Ryan Gurner (CFO) 30% Improvements in financial reporting, costs management, transaction ready Hilary Macdonald (GC/CS) 30% Elevate company secretary support to the Board, and disclosures; drive multiple external legal workflows; post M&A regulatory compliance Delivered on strategy actions with post completion Pogo integration and whole of business improvements made; significant additional responsibilities with an additional 350 personnel at Pogo and contractors, overseeing change in mining methods, geological, financial, safety and legal familiarisation and improvements in Pogo post completion. Increased the level of assessment in the business in relation to culture and capability with the hire of an executive manager to drive gap analysis and improvements in people performance, attraction and retention with commensurate benefits in safety, personnel retention and results. Monthly site visits to Pogo did not compromise outstanding achievements in oversight for the Kalgoorlie and Jundee operations in terms of productivity and capability, and safety achievements across the business. Successful post completion integration of Pogo; business improvements made simultaneously at Pogo post completion; managing the skillset analysis and training needs of incumbent Pogo personnel and sourcing experienced trainers to boost Pogo capability for increased productivity, automation training, and replacing the incumbent underground mining services contractor at Pogo, changes to technical business model at Pogo, involving monthly site visits to Pogo which did not impact on level of support and site presence at the Kalgoorlie and Jundee operations. Focused efforts on post completion Pogo integration with a rapid conversion of Pogo Resources and Reserves to JORC 2012 standard within a short timeframe in order to enhance the understanding of the Pogo potential and growth opportunities. Established growth drilling programmes at Pogo; implementation of geological control standards at Pogo and significantly improving geological practices and disciplines at Pogo, whilst overseeing Kalgoorlie and Jundee growth. Assumed CFO role seamlessly, with post completion work at Pogo not derogating from the quality of the Finance team’s support of the Group’s Kalgoorlie and Jundee operations. Post completion Pogo achievements beyond business as usual duties included replacement of existing business systems at Pogo with a superior product; establishing new banking relationships and significant equipment lease arrangements in the US. Improving standards of oversight and governance over employee pension plan savings of US$52M; achieving significant savings following a strategic review of material procurement contracts and negotiations with key Pogo suppliers. Improving costs control as a result of recruiting to increase the subject matter expert capabilities within the Finance team particularly in relation to internal tax advisory capability. Performance over and above ordinary duties included delivery of the dual role, with improved Board governance support and proxy adviser engagement, and post completion Pogo transaction integration. This involved upskilling in US State and Federal safety, corporations and employment legislation, tenure management in Alaska; working with the Pogo safety, HR, geological, procurement, environmental departments and suppliers in transitioning Pogo to Northern Star’s policies and procedures to reflect US State and Federal law and customary practices. Settlement of Pogo vendors’ legacy litigation matters on appropriate terms within 6 months of acquiring Pogo, involving site visits to Pogo and numerous meetings in the US with the Pogo vendors’ multiple law firms for a seamless handover of all legal matters. This enhanced the business’ understanding of its legal responsibilities in the US without compromising the quality and timing of business as usual legal advisory work to the Jundee and Kalgoorlie operations. Individual Target 30% TOTAL STI TARGET 100% OVERALL PERFORMANCE Individual Outcome TOTAL STI OUTCOME 30% 30% 30% 30% 30% 30% 70% ACHIEVED % Y / N 15% 0% 0% 0% 0% 2.5% 2.5% 2.5% 0% 40% 56 2019 ANNUAL REPORT | REMUNER ATI ON REPOR T 57 Remuneration Report Short Term Incentives paid in FY19 Following the acquisition of Pogo, during FY19, the Remuneration Committee adjusted the FY19 STI framework to reflect the expanded operations and ensure that the revised targets were no less challenging than those which were originally set. CHART 11 FINAL STI OUTCOMES FOR FY19 (PAID IN AUGUST 2019)17 The preceding table details the extraordinary tasks and achievements of the Executive KMP in the period following completion of the Pogo acquisition, from 28 September 2018 to 30 June 2019, which were over and above the ordinary duties of the Executive KMP in relation to the business. $151,900 Stuart Tonkin Chief Executive Officer $63,551 Luke Creagh Chief Operating Officer $93,100 Michael Mulroney Chief Geological Officer $53,871 Ryan Gurner Chief Financial Officer $62,125 Hilary Macdonald General Counsel & Company Secretary 17 Executive Chairman is not eligible to receive an STI Pogo Completion Bonus Paid In FY19 STI Amount ($) On 30 August 2018 Northern Star announced its intention to acquire the high-grade 4.1Moz Pogo underground gold mine in Alaska for US$260.3M (A$360.4M). It was further announced that completion of the transaction was to occur within a month of the acquisition announcement. This would allow the mine operations to be substantially overhauled, mine plans developed, exploration to increase as soon as possible, and conversion of non-JORC Code resources and reserves to JORC 2012 Mineral Resources and Ore Reserves, to allow improvements in production and gold sales, and transparency in reporting on progress at Pogo, for the benefit of Shareholders, as quickly as possible. Our people who faced significant challenges including operational, legal, compliance, cultural and people flexibility challenges, managed to have the transaction completed within the timeframe foreshadowed to the market, on 28 September 2018. This was a phenomenal achievement, as it was a highly ambitious target by any company’s standards. Our track record in having a short timeline between execution of sale agreement and completion of the deal, was a point of advantage in the vendor’s selection of Northern Star as the successful buyer over a large field of competition bidding for the Pogo mine. The expedited process allowed Northern Star to secure the purchase of the asset for its Shareholders. In recognition of the significant value delivered to Shareholders in the accelerated execution of the transaction, the Board decided to award those involved a cash bonus. It is also worth noting that the transaction generated A$711M in value on the day of announcement for Shareholders. The total Pogo Acquisition & Completion Bonus paid to employees heavily involved in the assessment, negotiation and completion of the Pogo acquisition was A$656,408 or 0.1% of the uplift on the first day of trading post-announcement. Bonuses paid to KMP and the total of bonuses paid to other employees is indicated in the table below. CHART 12 POGO ACQUISITION & COMPLETION BONUS PAID TO KMP AND OTHER EMPLOYEES $126,408 Total paid to other employees $160,000 Bill Beament Executive Chairman $125,000 Stuart Tonkin Chief Executive Officer $80,000 Luke Creagh Chief Operating Officer 18 $50,000 Michael Mulroney Chief Geological Officer $25,000 Ryan Gurner Chief Financial Officer 19 $65,000 Hilary Macdonald General Counsel & Company Secretary $25,000 Shaun Day Former Chief Financial Officer 20 18 Paid in respect of previous role, General Manager Business Development. Appointed Chief Operating Officer on 1 November 2018 19 Paid in respect of previous role, General Manager Finance. Appointed Chief Financial Officer on 16 October 2018 20 Paid in respect of then current role as Chief Financial Officer. Mr Day ceased as Chief Financial Officer on 16 October 2018 Long Term Incentives – LTI performance rights LTI – FY19 No long term incentives were granted in FY19. The most recent grant was in FY17. LTI granted in FY17 A single tranche of performance rights21 was granted to each of the Executive KMP (and other senior management) under the Company’s FY17 Long Term Incentive Plan during FY17, which remain subject to vesting upon satisfaction of performance hurdles over a three- year performance period. The performance period for the safety performance hurdle ended on 30 June 2019 and has been satisfied. The performance hurdles for Absolute and Relative TSR will be assessed on 16 October 2019. An ASX release will communicate the outcome to Shareholders, in a transparent manner, for their information. Vesting of the LTIs will occur subject to achievement of the performance hurdles set out in the following table. Upon vesting the employee may give the Company an exercise notice and the corresponding number of Shares will be issued to the employee. No additional service condition applies after vesting. After vesting and following delivery of an exercise notice by the employee to the Company no later than 21 December 2022: • 50% of the resulting Shares will have no disposal restrictions; • 25% of the resulting Shares will be restricted from disposal for 12 months; and • 25% of the resulting Shares will be restricted from disposal for 24 months. TABLE 16 FY17 LTI PERFORMANCE RIGHTS - PERFORMANCE HURDLES ELEMENT WEIGHT TARGET VESTING – PRO RATA ACHIEVED Financial – Absolute TSR 60% Absolute TSR of 15% compound annual growth rate (CAGR) <10% = 0% vest =10% = 50% vest >10% to <15% = pro-rata vest ≥15% = 100% vest Financial – Relative TSR 20% Relative TSR of ≥50% of peer group22 <50th percentile = 0% =50th percentile = 50% >50th to <75th percentile = pro-rata ≥75th percentile = 100% to be measured at 16 October 2019 to be measured at 16 October 2019 PROGRESS SO FAR ON TRACK ON TRACK Safety – Reduction in LTIFR 20% 20% year on year reduction in LTIFR from current levels (at 30 June 2019) >2.5 = 0% =2.5 = 50% <2.5 to ≥2.1 = pro-rata ≤2.0 = 100% 20% ACHIEVED TOTAL 100% TBA ON TRACK 21 A performance right is a right which, upon the satisfaction or waiver of the relevant vesting conditions entitles its holder to receive fully paid ordinary Share for nil consideration. Shareholders approved the 2017 Long Term Incentive Plan, and in relation to the Executive Chairman, the performance hurdles and disposal restrictions at the 2016 Annual General Meeting. The same performance hurdles and disposal restrictions are applicable to the other members of the Executive KMP (and other senior management employees). On vesting, each performance right will automatically convert into one fully paid ordinary Share. The performance rights do not carry any voting rights or rights to receive a dividend prior to being exercised. If an executive KMP ceases employment before the performance rights vest, the rights will be forfeited, except in limited circumstances that are approved by the Board on a case-by-case basis having regard to the employee’s role, the length of the remaining performance period and other factors leading to the exit of the employee from the Company. 22 Peer group comprises the following ASX, LSE and TSX companies: Acacia Mining PLC, Alacer Gold Corp, Alamos Gold Inc, B2Gold Corp, Centamin PLC, Centerra Gold Inc, Detour Gold Corp, Dundee Precious Metals Inc, Endeavour Mining Corp, Eldorado Gold Corp, Evolution Mining Ltd, Gold Fields Limited, IAMGOLD Corp, New Gold Inc, OceanaGold Corp, Regis Resources Limited, Resolute Mining Limited, Saracen Mineral Holdings Ltd, SEMAFO Inc, selected on the basis of the Company’s operations and market capitalisation. 58 2019 ANNUAL REPORT | REMUNER ATI ON REPOR T 59 Remuneration Report FY20 remuneration framework – key changes from FY19 Your Board acknowledges that the remuneration framework is key to promoting engagement, retention, accountability, encouraging and rewarding appropriate behaviours, and discouraging inappropriate behaviours, in line with our STARR Core Values. To ensure that Northern Star’s remuneration framework continues to support the achievement of Northern Star’s strategy, the Board undertook a comprehensive review in 2019, taking into account: • Executive KMP (and other senior management) fixed and variable remuneration has not changed since 2016; • The Company’s financial and non-financial performance and growth in the scale of its operations to include Pogo in Alaska. • The added complexity of now operating in multiple jurisdictions, and the associated challenges, for example in travel time, significant time commitments on site for all of the KMP and senior leadership team during the post completion integration phase which is ongoing; corporate and tax compliance, safety and employment statutory regimes and practices, and the regulatory framework in which we now operate; • Our high performing employees are operating in an increasingly tight and competitive labour market for their proven skills; and • The upcoming expiry of the 2016 AGM approval under the ASX Listing Rules for the existing LTI plan, and the need for an appropriate replacement incentive plan to incentivise, motivate and retain Executive KMP (and other senior management employees). The FY20 Incentive Plan will be put to Shareholders for approval together with the proposed grants of incentives to the Executive Chairman at the Annual General Meeting to be held in November 2019. No incentives will be granted under the FY20 Incentive Plan until after the Annual General Meeting. “Northern Star’s remuneration framework continues to support the achievement of Northern Star’s strategy....” – Nick Cernotta Non-Executive Director and Chairperson Remuneration Committee The structure of the FY20 Incentive Plan and framework was designed to reflect the Company’s long-term strategy and the human capital needs of the business to deliver strategy. This is imperative to retain and incentivise the Company’s high-performance team and to drive the link between the Executive KMP remuneration, the Company’s performance and delivery of long term Shareholder value. This section of the Report explains the FY20 remuneration framework and the rationale for the changes made to the FY19 remuneration framework. The Board have received guidance and relevant industry benchmarking and structuring advice from external remuneration advisers (detailed on page 65 of this Report), to ensure that Executive KMP and other senior executives are appropriately motivated and aligned to Shareholders’ interests. TABLE 17 KEY CHANGES TO THE FY19 REMUNERATION FRAMEWORK AND RATIONALE FOR CHANGES FY19 REMUNERATION FRAMEWORK Remuneration positioning Market Position Originally set at the 75TH percentile of comparator companies for maximum performance in 2016 FY20 REMUNERATION FRAMEWORK23 RATIONALE FOR CHANGE To be at least at the 75TH percentile of comparator companies for maximum performance To offer remuneration packages that are effective in retaining an experienced, cohesive, proven high performance multi-disciplinary team to deliver the Company’s strategic objectives as well as delivering value for Shareholders. Short Term Incentive Delivery 100% cash 50% cash (may elect to receive as Performance Rights) 50% Performance Rights (half vest after one year with the remaining rights vesting after a further year) Improved alignment with Shareholder interests. Allocation methodology Varying percentages of TREM24 according to role Varying percentages of TREM according to role performed No change. Performance Measures and targets Refer to table on page 54 Performance period 1 year Escrow N/A Company performance - 70% Individual performance - 30% Company measurable objectives are risk management, production performance and financial management. A minimum of three individual measurable objectives are applied at CEO discretion to employees most in a position to influence behaviours and outcomes, including female participation, culture and growth in Reserves and Resources. The objectives are measurable and targets designed to motivate and influence behaviours, with weighting towards financial metrics. 1 year No change. The 50% of the STI that is delivered in performance rights is subject to a one year escrow. Requires STI performance rights to be held for longer. Change of Control Board discretion to award • Automatic vesting on a takeover bid to acquire 50% or more of the issued capital and the takeover bid becomes unconditional • Scheme of Arrangement to be treated similarly, if Company is the entity the subject of the Scheme The Board retains discretion as to when to apply Clawback and Malus, such as in instances of: • Material financial misstatements;25 • Major negligence • Significant legal, regulatory and/or policy non-compliance • Significant harmful act by an individual in which case all employee’s Performance Rights must be forfeited (Malus). If Performance Rights have been exercised into Shares and sold, clawback of the sale proceeds net of tax may occur at the Board’s discretion Following the issue of Shares resulting from the vesting and exercise of performance rights, dividends are payable to the employee in respect of those Shares Board discretion to award or forfeit on a case by case basis – forfeit pro rata according to balance of performance period; longevity in role and reasons for leaving are taken in to account. Flexibility provided in the Board having discretion on who participates, allocation methodology, quantum, performance hurdles, vesting, application of service condition and treatment on exit of employee from the Company Aligns Executive KMP with Shareholders. Aligned with Shareholders expectations that financial rewards should not be retained where for example significant corporate misconduct or catastrophic incident occurs. Aligns Executive KMP with Shareholders. Added equity component (and escrow inherent in that) leads to a slightly different approach. No change as considered sound practice. Clawback/ Malus None Dividends Treatment of unvested awards upon employee exit Board Discretion Following the issue of Shares resulting from the vesting and exercise of performance rights, dividends are payable to the employee in respect of those Shares Board discretion to award or forfeit on a case by case basis – typically forfeit all Flexibility provided in the Board having discretion on who participates, allocation methodology, quantum, performance hurdles, vesting, application of service condition and treatment on exit of employee from the Company 23 Proposed grant of equity to Executive Chairman under FY20 Incentive Plan will be put to Shareholder approval at AGM in November 2019 24 TREM means total remuneration comprising base salary and superannuation (only) 25 Otherwise than as a result of a change in the Accounting Standards 60 2019 ANNUAL REPORT | REMUNER ATI ON REPOR T 61 Minimum shareholding condition All employees are encouraged to become Shareholders in the Company, on the basis that movement in share price over time directly aligns with returns to Shareholders. The Company has implemented a minimum holding policy, requiring the Executive KMP and other senior leaders to establish within 3 years from a date to be set by the Remuneration Committee, and thereafter maintain, a minimum level of security ownership as follows: • Executive Chairman and CEO – equal to 100% of Fixed Remuneration; and • COO, CFO, CGO, GC & Co Sec and CDO – equal to 50% of Fixed Remuneration, which condition may be extended to other permanent employees of the Company by decision of the Remuneration Committee. Shares (whether acquired on or off market or through incentive plans from time to time) and vested incentives all count towards establishing the minimum holding. Increases in base salary will result in an increase in the minimum holding, and fluctuations in the Northern Star share price are taken into account with six monthly monitoring and adjustment of the minimum holding (in both cases re-setting the three year period for the adjusted component). The Chairman of the Remuneration Committee has discretion to temporarily exempt an employee from compliance with the minimum holding condition in exceptional hardship circumstances such as where a court order must be complied with, and, the Securities Trading Policy and the insider trading regime of the Corporations Act prevail over the minimum holding condition. The minimum holding condition will apply following the grant of incentives under the FY20 Incentive Plan to be put to Shareholders at the 2019 Annual General Meeting. Remuneration Report TABLE 17 KEY CHANGES TO THE FY19 REMUNERATION FRAMEWORK AND RATIONALE FOR CHANGES CONT’D FY19 REMUNERATION FRAMEWORK Long Term Incentive FY20 REMUNERATION FRAMEWORK23 RATIONALE FOR CHANGE Performance Rights Performance Rights No change Type of equity instrument Allocation methodology No LTI grants were made in FY19 Opportunity (value) Performance measures N/A N/A Performance period 3 years Escrow Shares resulting from vested performance rights which are exercised are: • 50% unrestricted; • 25% subject to 1-year holding lock; and • 25% subject to 2-year holding lock. Varying percentages of TREM according to role performed, divided by face value of equity instrument on the grant date (20 trading day VWAP prior to grant date) Annual grant, based on percentages of TREM shown on page 62 • ROIC - 25% weighting • Relative TSR - 50% weighting, measured against the GDX (Van Eck Gold Miners ETF). If TSR is negative after the 3 year performance period, reduce calculated performance rights by 50% • Strategic hurdles - 25% weighting, comprising organic Reserves growth and production growth 3 years with annual grants 50% of the Shares resulting from vested performance rights which are exercised are subject to a 1-year holding lock Considered a more transparent approach and simple to understand Ensures variable remuneration is allocated transparently year on year The objectives are measurable and targets designed to motivate and influence behaviours, with weighting towards financial metrics. Ensures variable remuneration is allocated transparently year on year. The Board considers it advantageous to ensure that Shares issued upon the vesting and exercise of LTI performance rights are required to be held by Executive KMP for 1 year following issue. This achieves a higher level of alignment with Shareholders. Change of Control Upon a takeover bid being announced the Executive KMP LTIs will automatically vest with no restrictions on selling and no service condition applies When takeover bid for 50% or more becomes unconditional and bidder has a relevant interest in over 50% of the issued capital of the Company, vesting is automatic on a pro-rata basis according to the balance of the performance period remaining, with Board retaining absolute discretion to increase to 100% vesting Discretion is only exercised by the Board in exceptional circumstances, in which case the use of discretion and the impact is clearly disclosed in the Company’s relevant remuneration report. Clawback/ Malus None Hedging Policy Individuals cannot hedge equity that is unvested Minimum Holding Requirement None The Board retains discretion as to when to apply Clawback and Malus, such as in instances of: • Material financial misstatements;32 • Major negligence • Significant legal, regulatory and/or policy non-compliance • Significant harmful act by an individual in which case all the employee’s Performance Rights must be forfeited (Malus) If Performance Rights have been exercised into Shares and sold, clawback of the sale proceeds net of tax may occur at the Board’s discretion Individuals cannot hedge equity that is unvested KMP have 3 years to satisfy condition, to hold Shares or performance rights equating to a specified percentage of fixed remuneration. KMP excluding EC and CEO is 50% of fixed remuneration. EC and CEO is 100% of fixed remuneration. Six monthly adjustment for Share price movements. Aligned with Shareholders expectations that financial rewards should not be retained where for example significant corporate misconduct or catastrophic incident occurs. No change - considered sound practice This achieves a higher level of alignment with Shareholders 23 Proposed grant of equity to Executive Chairman under FY20 Incentive Plan will be put to Shareholder approval at AGM in November 2019 62 2019 ANNUAL REPORT | REMUNER ATI ON REPOR T 63 Remuneration Report FY20 Executive KMP fixed and variable KMP remuneration changes Review and changes to Executive KMP fixed and variable remuneration The Board has conducted a thorough salary review across the business and recommends adjusting select salaries to remain market competitive and protect retention of key leaders whilst delivering on business objectives and the added complexity. The increase in the proportion of performance-based variable remuneration from FY20 means the majority of Executive KMP remuneration will be at risk, with the greater proportion based on LTI, with a view to better incentivising the achievement of the Company’s long term objectives. The table below is voluntary and has been included in this Report to improve clarity and transparency around how Northern Star rewards Executive KMP to the extent that a final position has been reached. This table has not been prepared in accordance with statutory obligations or Australian Accounting Standards. The rationale for change is centred on remaining market competitive, and critically, retaining the high-performance management team to deliver the Company strategic objectives for the benefit of Shareholders. Northern Star benchmarks its remuneration against ASX listed resource companies, the ASX50-100 companies and internationally listed companies in the gold sector. The raise in remuneration levels closer to at least the 75th percentile of market has followed considerable consultation with regard being given to relevant industry benchmarking and remuneration structural advice from external remuneration advisers, taking into account the increased scale and complexity in the Company’s operations now including Pogo. The Board believes these changes in FY20 will appropriately motivate the Executive KMP, assist to mitigate the risk of key personnel being poached by competitors and additionally improves their alignment to Shareholders’ interests. TABLE 18 FY20 CHANGES TO EXECUTIVE KMP FIXED AND VARIABLE REMUNERATION Executive KMP26 FY19 base salary FY17-19 maximum STI as a % of TREM FY17-19 maximum LTI as a % of TREM FY17-19 max performance- based pay as a % of TREM27 FY20 base salary FY20 maximum STI as a % of TREM FY20 maximum LTI as a % of TREM FY20 max performance- based pay as a % of TREM28 Bill Beament Executive Chairman Stuart Tonkin Chief Executive Officer Luke Creagh Chief Operating Officer Ryan Gurner Chief Financial Officer Hilary Macdonald General Counsel & Company Secretary $725,000 nil 281% 281% TBC* TBC* TBC* $590,000 35% 125% 160% TBC* TBC* TBC* TBC* TBC* $350,000 25% $300,000 25% $325,000 25% 75% 55% 55% 100% $540,000 100% 100% 200% 80% $400,000 75% 100% 175% 80% $400,000 50% 75% 125% 26 For FY20, Michael Mulroney, Chief Geological Officer, will not be included in the Company’s Executive KMP, since he no longer falls within the definition of key management personnel under AASB 124 Related Party Disclosures (being “those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity”) 27 Equity component of performance-based remuneration allocated using a fair value allocation method 28 Equity component of performance-based remuneration allocated using a face value allocation method * The EC and CEO fixed and variable remuneration for FY20 is under discussion and will be disclosed subsequent to the release of this Annual Report in accordance with the ASX Listing Rules and best practice Non-Executive Directors’ 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. All NEDs enter into a service agreement with the Company in the form of a letter of appointment which summarises the Board policies and terms, including remuneration, relevant to the office of Director. NEDs receive a Board fee and fees for chairing or participating on Board Committees detailed in the table below. They do not receive performance- based pay or retirement allowances. The fees are inclusive of superannuation. The Executive Chairman does not receive Board or Committee fees. Non-Executive Directors’ fees are paid within an aggregate remuneration limit of $1,250,000 (inclusive of superannuation) per annum (approved at the Annual General Meeting on 12 November 2014). A review of Non-Executive Director remuneration was undertaken in July 2019, in light of there being no increases to Company NED fees since April 2017, the substantial increase in the Company’s size and complexity and taking into account comparable companies with similar market capitalisation as at 30 June 2019. There is no change to the base cash fee of $125,000 per annum. A further $50,000 per annum per Director will be paid in equity, subject to Shareholder approval in November 2019. The Minimum Holding Condition Policy will apply to the Non-Executive Directors requiring them each to retain a minimum holding equating to one year of base fees, and allowing three years to satisfy the Policy. The Remuneration Committee considered that Non-Executive Directors should be remunerated in line with the Company’s remuneration framework which targets payment to employees in the 50-75th percentile of relevant peers based on third party-provided comparative market data for the ASX50-100. TABLE 19 BOARD AND BOARD COMMITTEE NON-EXECUTIVE DIRECTOR FEES Board fee Non-Executive Director base fee Equity Additional fees FROM 1 JULY 2019 FY19 $125,00029 $50,000 $125,000 Nil Lead Independent Director $40,00030 Audit & Risk Committee Chair Remuneration Committee Chair Member ESS Committee (formerly ESG & Safety Committee)31 Member Chair Member Nomination Committee Chair Member $35,000 $20,000 $30,000 $15,000 $15,000 $7,500 Nil Nil $35,000 $25,000 $15,000 $25,000 $10,000 $25,000 $10,000 Nil Nil 29 The increases in the Committee and Lead Independent Director fees will be satisfied in equity under a Non-Executive Directors Share Plan, and subject to the Minimum Holding Condition Policy 30 The increase in the Lead Independent Director fee was to recognise the additional requirements around governance matters as well as the need to attend meetings of the Company’s Alaskan subsidiaries 31 The ESG and Safety Committee has been reconstituted as an ESS committee dealing with environment, social and safety matters only, with governance matters to be dealt with by the full Board at Board meetings. Fee reduced to reflect the time involved in this role 64 2019 ANNUAL REPORT | REMUNER ATI ON REPOR T 65 Remuneration Report Non-Executive Directors’ Remuneration Cont’d TABLE 20 FY19 NON-EXECUTIVE DIRECTORS’ REMUNERATION Name Year Base fee Remuneration Committee Audit Committee ESG & Safety Committee Nomination Committee Superannuation Total Christopher Rowe 2019 114,155 2018 114,155 Peter O’Connor 2019 125,000 2018 125,000 John Fitzgerald32 2019 146,119 2018 146,119 9,132 9,132 - - 9,132 9,132 Shirley In't Veld 2019 114,155 22,831 2018 114,212 3,753 David Flanagan33 2019 - 2018 95,146 TOTAL 2019 499,429 2018 594,632 - 19,015 41,096 41,033 32 Base fee in this table includes Lead Independent Director fee 33 Resigned on 20 April 2018 - - 15,000 15,000 22,831 22,831 13,699 13,699 - - 51,530 51,530 21,267 - 9,315 - 8,507 - 8,507 - - - 47,596 - - - - - - - - - - - - - 13,733 11,712 - - 17,726 16,918 15,123 12,503 - 10,839 46,582 51,972 158,288 135,000 149,315 140,000 204,315 195,000 174,315 144,167 - 125,000 686,233 739,167 The Board makes its decisions after it considers the issues and the advice from the Remuneration Committee and consultants. During FY19, PwC were engaged to review the Company’s executive remuneration framework and to assist with the implementation of the changes to the Executive KMP remuneration framework outlined in this report. The advice from PwC included: • benchmarking data for Executive Chairman, Chief Executive Officer and other Executive remuneration; • information and insights with respect to market practices and trends in remuneration within ASX listed and global gold companies, and • benchmarking data for NED remuneration. Their analysis was considered by the Remuneration Committee in forming their views on benchmarking matters In addition, PwC delivered a remuneration recommendation in accordance with Division 1, Part 1.2, 9B (1) of the Corporations Act 2001 (Cth). The fee for the remuneration recommendation delivered by PwC was $25,000 (excluding GST). The fee for the additional work conducted by PwC was $145,913 (excluding GST). The engagement of PwC was initiated by the Remuneration Committee, based on the protocols governing the engagement and processes. The Board was satisfied that remuneration recommendations received were free from any undue influence by Key Management Personnel to whom the advice may relate, because strict protocols were observed and complied with regarding any interaction between PwC and management, and because all remuneration advice was provided to the Remuneration Committee Chair. Other Statutory Disclosures The Remuneration Committee comprises three independent Non- Executive Directors, namely Nick Cernotta (Chairman), John Fitzgerald (Lead Independent Director) and Chris Rowe. The CEO and others are invited to attend all or part of the Committee meetings as required but have no vote on matters before the Committee. The Committee meets several times a year to review and makes recommendations to the Board in accordance with the Remuneration Committee Charter to ensure that KMP remuneration remains aligned to business needs and performance. A copy of the Charter is available under the Corporate Governance section of the Company’s website available at www.nsrltd.com. The Committee is responsible for robust governance of the interconnection between performance and remuneration, with particular focus on: • 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 management); • Non-Executive Director individual remuneration, and the aggregate pool for approval by Shareholders (as required); • superannuation arrangements; and • overseeing remuneration by gender. The Board and the Remuneration Committee use remuneration consultants’ advice and recommendations from time to time. The Remuneration Committee observes the following protocols: • remuneration consultants are engaged by and report directly to the Remuneration Committee; • the Committee must, in deciding whether to approve the engagement, have regard to any potential conflicts of interest including factors that may influence independence such as previous and future work performed by the adviser. and any relationships that exist between any executive KMP and the consultant; • communication between the remuneration consultants and Executive KMP is restricted to minimise the risk of undue influence on the remuneration consultant; 66 2019 ANNUAL REPORT | REMUNER ATI ON REPOR T 67 Remuneration Report Statutory remuneration disclosures The following table details the statutory remuneration disclosures calculated with reference to the Corporations Act and Australian Accounting Standards, in Australian dollars. The figures provided in relation to share-based payments represent the amortised fair value of equity instruments granted to Executive KMP. TABLE 21 STATUTORY EXECUTIVE REMUNERATION EXPENSES34 FIXED REMUNERATION VARIABLE REMUNERATION TOTAL REMUNERATION Name Year Cash salary Other benefits35 Long service leave36 Post-employment benefits37 Pogo Completion bonus STI cash payment Performance shares38 Performance rights39 $ $ $ $ Executive Directors Bill Beament Executive Chairman Other Executive KMP Stuart Tonkin Chief Executive Officer Luke Creagh41 Chief Operating Officer Michael Mulroney Chief Geological Officer Ryan Gurner43 Chief Financial Officer Hilary Macdonald General Counsel & Company Secretary Shaun Day46 Former Chief Financial Officer Liza Carpene47 Former Company Secretary TOTAL 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 725,000 699,99140 590,000 590,000 231,096 - 350,000 350,000 211,233 - 325,000 113,082 109,932 375,000 - 194,795 2,542,261 2,322,868 17,350 11,931 9,774 7,136 9,775 - 5,688 9,247 8,723 - 11,639 3,331 57,367 13,432 - 189,229 120,316 234,306 12,916 49,240 66,610 - - - - - - - - - - - - - 79,526 49,240 30,000 30,000 30,000 30,000 19,808 - 30,000 30,000 21,123 - 30,000 10,438 8,795 30,000 - 19,479 169,726 149,917 $ 160,000 - 125,000 - - - 50,000 - - - 65,000 - 25,000 - - - 425,000 - $ - - 151,900 223,510 42,13542 - 93,100 136,990 37,93144 - 62,125 31,35945 - 133,599 - - 387,191 525,458 $ - 182,699 - 122,202 - - - 91,954 - - - - - 98,004 - 20,437 - 515,296 $ 2,230,704 1,208,904 639,533 313,823 134,358 - 360,464 176,882 77,779 - 136,628 23,328 41,399 188,294 - 64,836 3,620,865 1,976,067 Total $ 3,175,970 2,182,765 1,612,817 1,286,671 437,172 - 889,252 795,073 356,789 - 630,392 181,537 242,493 838,330 - 488,776 7,344,885 5,773,152 Performance related % of total 75% 64% 57% 51% 40% - 57% 51% 32% - 42% 30% 27% 50% - 17% 60% 52% 34 This table represents remuneration for FY19 or part thereof during which a person was a KMP 38 Issued in FY16 which became eligible for measurement as at 30 June 2018, and vested on 20 July 2018. See details on page 70 regarding the limited recourse loan related to these Shares 35 Other Benefits include telephone allowance, salary continuance insurance, private health insurance, D+O Insurance and parking – as well as any termination payments paid during FY19 39 Approved on 29 November 2016 (Bill Beament) and 21 December 2016 (other executive KMP) during FY17 which will be tested for vesting on 16 October 2019 36 Recognised in accordance with the Company’s long service leave policy. Refer to Note 9(g) to the Financial Statements for further details. 37 Superannuation, which is capped at $30,000 for each member of the executive KMP 40 Cash salary received is lower than base salary due to a period of unpaid leave taken during FY18 41 Appointed as Chief Operating Officer on 1 November 2018. Remuneration disclosed in table is pro rata for the period since appointment as Chief Operating Officer. 43 Appointed as Chief Financial Officer on 16 October 2018. Remuneration disclosed in table is pro rata for the period since appointment as Chief Financial Officer. 46 Shaun Day resigned as Chief Financial Officer on 16 October 2018. Remuneration disclosed in this table is pro rata for the period up to his cessation as Chief Financial Officer. Other Benefits includes a $54,811 termination payment. The Board excercised discretion to forfeit 165,000 performance shares held by Mr Day so that Mr Day only received performance shares reflective of his pro rata service period up to the date that his employment with the Company ceased, on 15 January 2019. 47 Liza Carpene ceased as Company Secretary on 23 February 2018. Other Benefits includes a $150,000 termination payment (in addition to a payment of $48,587 made for accrued annual leave, which is not reflected as remuneration in this table) and a $25,000 payment in respect of a nominee Directorship. No Performance Shares or Performance Rights were forfeited upon resignation. 42 Full year STI earnt was $63,551 44 Full year STI earnt was $53,871 45 Full year STI earnt was $90,125 68 2019 ANNUAL REPORT | REMUNER ATI ON REPOR T 69 Remuneration Report Statutory remuneration disclosures cont’d Allocation methodology for grant of LTI performance rights in FY17 The quantum of LTI Performance Rights which were granted to the Executive KMP in FY17 was determined according to the fair value of Shares on the grant date divided by a portion of their respective TREM48. The maximum possible total value of the performance rights is the assessed fair value at the respective grant dates of the performance rights (Executive Chairman: $1.548, other Executive KMP: $1.151) multiplied by the number of performance rights granted, under guidance from external remuneration advisors. The fair value of performance shares at grant date was independently determined using a Monte Carlo simulation model (market based vesting conditions) and a Black Scholes Model (non-market vesting conditions) that takes into account the exercise price, the term of the performance share, the impact of dilution (where material), the Share price at grant date and expected price volatility of the underlying Share, the expected dividend yield, the risk free rate for the term of the performance share and the correlations and volatilities of the peer group companies. The model inputs for the FY17 performance rights included: TABLE 22 MODEL INPUTS FOR FAIR VALUE ASSESSMENT Exercise price Approval/Grant Date Expiry date Share price at grant date Expected volatility of the Shares49 Expected dividend yield Risk-free interest rate Executive Chairman – Bill Beament Nil 29 November 2016 21 December 2022 $3.60 25% 1.94% 1.91% Other Executive KMP Nil 21 December 2016 21 December 2022 $3.15 25% 2.22% 2.03% TABLE 23 LTI PERFORMANCE RIGHTS AND SHARES YET TO VEST Name LTI Plan Grant Date Performance Period Fair value per Right Fair value of Rights % Performance Achieved50 No. Vested No. Forfeited / Lapsed No. Rights held at 30 June 2019 Bill Beament Stuart Tonkin Luke Creagh Michael Mulroney Ryan Gurner Hilary Macdonald Shaun Day FY17 LTI Performance Rights Plan 21 December 2016 FY17 LTI Performance Rights Plan 21 December 2016 FY17 LTI Performance Rights Plan 21 December 2016 FY17 LTI Performance Rights Plan 21 December 2016 FY17 LTI Performance Rights Plan 21 December 2016 FY17 LTI Performance Rights Plan 21 December 2016 FY17 LTI Performance Rights Plan 21 December 2016 3 years 3,000,000 $1.5484 $4,645,200 Nil Nil Nil 3 years 1,100,000 $1.1512 $1,266,320 Nil Nil Nil 3 years 350,000 $1.1512 $402,920 Nil Nil Nil 3 years 620,000 $1.1512 $713,744 Nil Nil Nil 3 years 190,000 $1.1512 $218,728 Nil Nil Nil 3 years 235,000 $1.1512 $270,532 Nil Nil Nil 3 years 495,000 $1.1512 $569,844 Nil Nil 165,00051 48 TREM means total remuneration comprising base salary and superannuation (only) 49 Expected volatility of the Company’s Shares is based on the historic volatility (based on the remaining life of the performance rights) 50 Performance period does not end until 16 October 2019. Refer to Table 16 on page 57 for details of performance achieved to date. 51 Ceased as Chief Financial Officer on 16 October 2018. The Board excercised discretion to forfeit 165,000 performance shares held by Mr Day so that Mr Day only received performance shares reflective of his pro rata service period up to the date that his employment with the Company ceased, on 15 January 2019. TABLE 24 FULLY PAID ORDINARY SHARES HELD BY THE KMP52 ON 1 JULY 2018 AND ON 30 JUNE 2019 Name Directors Bill Beament John Fitzgerald Christopher Rowe Peter O'Connor Shirley In’t Veld Executive KMP Stuart Tonkin Luke Creagh Michael Mulroney Ryan Gurner Hilary Macdonald Shaun Day TOTAL Balance on 1 July 2018 Other changes during FY19 Balance on 30 June 2019 9,743,588 60,000 1,750,000 500,000 50,000 (6,601,795) nil (150,000) (100,000) nil 3,141,793 60,000 1,600,000 400,000 50,000 1,302,655 (1,152,655) 150,000 128,978 300,898 102,713 nil 320,694 14,259,526 (128,978) (300,898) (102,713) n/a (320,694) (8,857,733) nil nil nil nil nil53 5,401,793 None of the Shares above are held nominally by any of the KMP. TABLE 25 LTIs HELD BY THE EXECUTIVE KMP ON 1 JULY 2018 AND ON 30 JUNE 2019 Name Bill Beament Stuart Tonkin Luke Creagh Michael Mulroney Ryan Gurner Hilary Macdonald Shaun Day TOTAL Balance 1 July 2018 597,836 399,877 128,978 300,898 102,713 nil 320,694 1,850,996 FY16 Performance Shares (vested 20 July 2018)54 Balance 30 June 2019 nil nil nil nil nil nil nil Nil FY17 Performance Rights (unvested) Balance on 30 June 2019 3,000,000 1,100,000 350,000 620,000 190,000 235,000 495,00055 5,990,000 Balance on 1 July 2018 3,000,000 1,100,000 350,000 620,000 190,000 235,000 660,000 6,155,000 There were no options or performance shares held by any KMP from the beginning to the end of FY19 other than the FY16 performance shares which vested on 20 July 2018. 52 Including their close family members and entities controlled by them 53 Balance at 16 October 2018 when Shaun Day ceased as Chief Financial Officer (and ceased to be a KMP) 54 FY16 Long term incentive performance shares issued on 9 July 2015, measured on 30 June 2018, vested on 20 July 2018, as disclosed in the 2018 Remuneration Report. No escrow applied to the performance shares. (Ms Macdonald was an external consultant and not an employee on 9 July 2015, therefore received no grant of FY16 long term incentives.) 55 Balance at 16 October 2018 when Shaun Day ceased as Chief Financial Officer (and ceased to be a KMP). The Board excercised discretion to forfeit 165,000 performance shares held by Mr Day so that Mr Day only recieved performance shares reflective of his pro rata service period up to the date that his employment with the Company ceased, on 15 January 2019. 70 2019 ANNUAL REPORT | REMUNER ATI ON REPOR T 71 Remuneration Report Statutory remuneration disclosures cont’d Loans to Executive KMP under the FY15 and FY16 LTI Performance Share grants The details of interest free non-recourse loans provided to Executives under previous LTI Performance Share grants are as follows: TABLE 26 OUTSTANDING LOANS TO EXECUTIVE KMP Name Opening balance on 1 July 2018 Repayments during FY19 Bill Beament 2,509,832 (1,380,541) Closing balance on 30 June 2019 1,129,291 Contractual arrangements with Executive KMP The table below provides a summary of the key provisions of contractual arrangements between the Company and the Executive KMP applicable in FY19. TABLE 27 SUMMARY OF CURRENT CONTRACTUAL ARRANGEMENTS WITH EXECUTIVE KMP (APPLICABLE IN FY19) ELEMENT EXECUTIVE CHAIRMAN OTHER EXECUTIVE KMP Contract duration No fixed term, subject to termination with or without cause No fixed term, subject to termination with or without cause Termination notice period by the Company Termination notice period by individual Fixed remuneration 12 months 3 months 6 months 3 months Refer to the statutory remuneration table on pages 66-67 Refer to the statutory remuneration table on pages 66-67 STI opportunity Not eligible to receive STI payments LTI opportunity Eligible to participate in LTI plan. Maximum LTI opportunity is 281% of TREM. The Board retains discretion in the award and allocation of LTIs based on the Company’s performance. Eligible to receive STI payments. Maximum STI opportunity is: • 35% of TREM56 for CEO and CGO; and • 25% of TREM for COO, CFO and GC/Co Sec. The Board retains discretion in the award and allocation of STIs based on the individual’s and the Company’s performance. Eligible to participate in LTI plan. Maximum LTI opportunity is: • 125% of TREM for CEO; • 115% of TREM for CGO; • 75% of TREM for COO; • 55% of TREM for CFO and GC/Co Sec. The Board retains discretion in the award and allocation of LTIs based on the Company’s performance. Impact on performance-based remuneration upon termination (without cause) Impact on performance-based remuneration upon termination (with cause) or by individual Other LTI forfeiture is at the discretion of the Board. STI entitlement and LTI forfeiture is at the discretion of the Board. All unvested LTIs will lapse, at the discretion of the Board. Vested LTIs remain with the individual. STI is not awarded, and all unvested LTIs will lapse, at the discretion of the Board. Vested LTIs remain with the individual. Contract also contains provisions regarding leave entitlements, duties, confidentiality, intellectual property, moral rights, restrictions during and after employment and other ancillary clauses. Contract also contains provisions regarding leave entitlements, duties, confidentiality, intellectual property, moral rights, restrictions during and after employment and other ancillary clauses. 56 TREM means total remuneration comprising base salary and superannuation Other transactions with KMP and comment on previous disclosures of “Related Party” transactions with Bill Beament The Company has in place policies and procedures which govern transactions involving KMPs and their related parties, and these policies and procedures restrict the involvement of the KMP or related party in the negotiation, awarding or direct management of the resultant contract. In the Company’s 2017 Annual Report, specifically Note 18 to the Consolidated Financial Statements, the Company reported that the beneficial minority interest of 23% held by Mr Beament in AUD Pty Ltd, the sole Shareholder of Australian Underground Drilling Pty Ltd (AUD), being a supplier of goods and services to the Company, did not require reporting under the Accounting Standards. For the purposes of the 2019 Annual Report, the Company is of the same view, having applied the necessary criteria under the Australian Accounting Standards for FY19. The Company’s policies and procedures continue to apply to ensure that Mr Beament is not involved in the negotiation, awarding of contracts or direct management of the contract with AUD. Mr Beament’s continued Shareholding in AUD also remains the subject of regular review by the independent Directors. They recognise that, notwithstanding the position under the Australian Accounting Standards, good corporate governance would normally be exhibited by the absence of a key executive holding a 23% interest in a drilling contract with a material supplier to the Company. AUD is a material supplier due to the aggregate total of fees paid, the nature of the services provided to the Company by the supplier, and the place the supplier has in the Company’s risk mitigation strategy, in seeking to maintain diversity amongst its suppliers where it is commercially feasible to do so, to ensure that there is no reliance by the Company on one supplier for a particular service across all the Company’s operations. The Independent Directors’ unanimous view remains that the continuing contractual relationship between the Company and AUD is more beneficial to the Company than terminating the contract would be. The results of the multiple party tender process conducted in FY18 demonstrated that there was no comparable supplier with the capacity at the time of tender to provide the services to the Company’s Kalgoorlie Operations for the same quality, productivity rates and price offered by AUD. Further, the selection of AUD was and remains consistent with the Company-wide risk mitigation strategy in striving for diversity in its supply chain, having regard to the other suppliers providing underground diamond drilling services to the Company’s other operations (in which Mr Beament has no shareholding or other basis for inferring a significant influence). The addition of Pogo has increased the diversity and improved the risk mitigation strategy further. 72 2019 ANNUAL REPORT | AUDITOR’S I NDEPENDENCE DECLARATION 73 Remuneration Report Auditor’s Independence Declaration “Northern Star Resources has an excellent track record of adding value through exploration at its existing Australian assets and last year made its first international acquisition acquiring the Pogo Mine in Alaska from Sumitomo. We remain optimistic that Northern Star Resources can extract significant value from this asset as it looks to implement its world class operating practices to improve costs and productivity at the operation, as well as invigorate exploration around the asset” – Evy Hambro and Olivia Markham Blackrock Investment Management (UK) Limited Investment Manager’s Report 20 August 2019 Deloitte Touche Tohmatsu ABN 74 490 121 060 Tower 2, Brookfield Place 123 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia Tel: +61 8 9365 7000 Fax: +61 8 9365 7001 www.deloitte.com.au The Directors Northern Star Resources Limited Level 1, 388 Hay Street Subiaco WA 6008 26 August 2019 Dear Directors Auditor’s Independence Declaration to Northern Star Resources Limited In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Northern Star Resources Limited and its controlled entities. As lead audit partner for the audit of the financial report of Northern Star Resources Limited and its controlled entities for the financial year ended 30 June 2019, I declare that to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit. Yours faithfully DELOITTE TOUCHE TOHMATSU David Newman Partner Chartered Accountants Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Asia Pacific Limited and the Deloitte Network. 74 75 TABLE OF CONTENTS (cid:38)onsolidated statement of profit or loss and other comprehensive income 76 (cid:38)onsolidated statement of financial position 77 Consolidated statement of changes in equity 78 (cid:38)onsolidated statement of cash (cid:565)o(cid:90)s Notes to the consolidated financial statements Directors’ declaration Independent auditor’s report to the members 80 82 128 129 FINANCIAL REPORT 76 77 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 30 June 2019 CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at June 2019 Revenue Cost of sales Other income and expense Corporate and technical services Impairment of assets Finance costs Profit before income tax Income tax expense Profit for the year Other comprehensive income (OCI) Items that may be reclassified to profit or loss Share of other comprehensive income of associates and joint ventures accounted for using the equity method Exchange differences on translation of foreign operations Items that may not be reclassified to profit or loss Changes in the fair value of financial assets at fair value through OCI Income tax relating to these items Other comprehensive income for the year, net of tax Total comprehensive income for the year Total comprehensive income for the year is attributable to: Owners of the Company Notes 3 6(a) 5 6(b) 6(c) 6(d) 7 30 June 2019 $’000 30 June 2018 $’000 1,401,165 (1,101,484) 964,025 (623,803) 299,681 340,222 1,911 (65,277) (9,929) (11,602) 8,784 (56,004) (11,753) (3,477) 214,784 277,772 (60,073) 154,711 (83,659) 194,113 232 10,091 (12,134) 116 (1,695) (218) - (100) 30 (288) 153,016 193,825 153,016 193,825 Cents Cents Earnings per share for profit attributable to the ordinary equity holders of the Company: Basic earnings per share Diluted earnings per share 22(a) 22(b) 24.4 24.0 32.1 31.5 The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. ASSETS Current assets Cash and cash equivalents Trade and other receivables Inventories Current tax asset Total current assets Non-current assets Trade and other receivables Derivative financial instruments Financial assets at fair value through other comprehensive income Investments accounted for using the equity method Property, plant and equipment Exploration and evaluation assets Mine properties Intangible assets Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables Borrowings Current tax liabilities Provisions Total current liabilities Non-current liabilities Borrowings Provisions Deferred tax liabilities Total non-current liabilities Total liabilities Net assets EQUITY Share capital Reserves Retained earnings Total equity Notes 30 June 2019 $’000 30 June 2018 $’000 8(c) 8(a) 9(f) 9(e) 8(a) 8(b) 15(c) 9(a) 9(b) 9(c) 9(d) 8(d) 8(e) 9(e) 9(g) 8(e) 9(g) 9(e) 10(a) 266,179 67,731 113,631 6,285 442,997 31,136 83,941 - 453,826 558,074 1,438 1,333 23,027 27,861 501,084 266,038 356,361 12,867 1,190,009 1,688 5,712 42,132 15,399 139,044 225,735 212,788 16,298 658,796 1,643,835 1,216,870 149,710 23,899 - 44,872 218,481 24,505 220,345 65,569 310,419 140,073 7,610 14,959 37,459 200,101 9,513 128,686 57,134 195,333 528,900 395,434 1,114,935 821,436 473,708 42,099 599,128 1,114,935 291,290 15,388 514,758 821,436 The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. 2019 ANNUAL REPORT | FINANCIAL REPORT 78 79 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2019 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2019 NATURE AND PURPOSES OF RESERVES: Financial assets at FVOCI The Group has elected to recognise changes in the fair value of certain investments in equity securities in OCI, as explained in note 8(b). These changes are accumulated within the FVOCI reserve within equity. Share based payments The share based payments reserve relates to shares, performance shares, performance rights and share options granted by the Company to its employees. Further information about share based payments to employees is set out in note 20. Foreign currency translation Exchange differences arising on translation of the foreign controlled entities are recognised in other comprehensive income and accumulated in a separate reserve within equity. The cumulative amount is reclassified to profit or loss when the net investment is disposed of. The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. Financial assets at fair value through OCI $’000 Share based payments reserve $’000 Foreign currency translation reserve $’000 Share capital $’000 Notes Retained earnings $’000 Total equity $’000 Balance at 1 July 2017 217,811 5,487 7,779 45 383,978 615,100 Profit for the year Other comprehensive income Total comprehensive income for the year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs and tax Dividends provided for or paid Employee share and option plans - value of employee services Exercise of employee share awards Share plan loan repayment 10(a) 12(b) - - - 59,810 - 6,765 6,904 - 73,479 - (70) (70) - - - - - - - - - - - 4,661 (6,802) 4,506 2,365 - 194,113 194,113 (218) - (288) (218) 194,113 193,825 - - - - - - - (63,333) 59,810 (63,333) - - - (63,333) 11,426 102 4,506 12,511 Balance at 30 June 2018 291,290 5,417 10,144 (173) 514,758 821,436 Balance at 1 July 2018 291,290 5,417 10,144 (173) 514,758 821,436 Profit for the year Other comprehensive income Total comprehensive income for the year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs and tax Dividends provided for or paid Employee share and option plans - value of employee services Exercise of employee share awards Share plan loan repayment Tax - - - - (12,018) (12,018) 10(a) 171,009 12(b) 9(e) - 1,306 10,103 - - 182,418 - - - - - - - - - - - - 7,090 (9,994) 6,365 24,944 28,405 - 154,711 154,711 10,324 - (1,695) 10,324 154,711 153,016 - - - - - - - - 171,009 (70,340) - - - - (70,340) 8,396 109 6,365 24,944 (70,340) 140,483 Balance at 30 June 2019 473,708 (6,601) 38,549 10,151 599,128 1,114,935 The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. 2019 ANNUAL REPORT | FINANCIAL REPORT 80 81 CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 30 June 2019 CONTENTS OF THE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Interest received Interest paid Income taxes paid Notes 30 June 2019 $’000 30 June 2018 $’000 1,359,249 (892,979) 4,937 (1,660) 966,770 (520,486) 7,415 (527) (90,350) (100,111) Net cash inflow from operating activities 8(c) 379,197 353,061 Cash flows from investing activities Payments for property, plant and equipment Payments for exploration and evaluation Payments for mine properties Payments for investments Payments for acquisition of business, net of cash acquired Payments for acquisition of assets, net of cash acquired Proceeds from disposal of business Proceeds from sale of property, plant and equipment Net cash outflow from investing activities Cash flows from financing activities Proceeds from issues of shares and other equity securities Principal elements of finance lease payments Dividends paid to Company’s shareholders Net cash inflow/(outflow) from financing activities Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial period Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at end of year 9(a) 9(b) 13 14 12(b) 8(c) (67,906) (87,168) (131,768) (10,056) (350,550) (1,726) - 1,038 (35,579) (45,373) (115,215) (30,613) (17,461) (4,000) 533 414 (648,136) (247,294) 177,395 (17,458) (70,340) 89,597 (179,342) 442,997 2,524 266,179 4,626 (7,123) (63,333) (65,830) 39,937 403,060 - 442,997 The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. 1 Critical estimates and judgements HOW NUMBERS ARE CALCULATED 2 Segment information 3 Revenue 4 Significant changes in the current reporting period 5 Other income and expense items 6 7 8 Expenses Income tax expense Financial assets and financial liabilities 9 Non-financial assets and liabilities 10 Equity RISK 11 Financial risk management 12 Capital management GROUP STRUCTURE 13 Business combination 14 Asset acquisition 15 Interests in other entities UNRECOGNISED ITEMS 16 Contingent liabilities 17 Commitments 18 Events occurring after the reporting period OTHER INFORMATION 19 Related party transactions 20 Share-based payments 21 Remuneration of auditors 22 Earnings per share 23 Deed of cross guarantee 24 Parent entity financial information 25 Summary of significant accounting policies PAGE 82 82 82 85 86 86 87 88 90 95 105 106 106 109 109 110 111 112 113 113 114 114 115 115 116 117 118 119 122 123 2019 ANNUAL REPORT | FINANCIAL REPORT 82 83 1 Critical estimates and judgements (a) Critical accounting estimates and assumptions (I) DETERMINATION OF MINERAL RESOURCES AND ORE RESERVES 2 Segment information cont’d (b) Segment results The segment information for the year ended 30 June 2019 is as follows: 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 development costs and provisions for restoration. Other critical accounting judgements, estimates and assumptions are discussed in the following notes: Unit of production method of depreciation/amortisation Exploration and evaluation expenditure Business combination Mine rehabilitation provision Impairment of assets note 6(a) note 9(b) note 13 note 9(g) note 25(d); 9(c) 2019 Segment net operating profit (loss) before income tax Depreciation and amortisation Impairment Finance costs Segment EBITDA Pogo $’000 Kalgoorlie Operations $’000 Jundee $’000 Exploration $’000 Total $’000 (31,938) 47,449 - 2,491 104,920 141,939 - 2,290 217,834 55,696 - 910 (16,568) 120 9,929 504 274,248 245,204 9,929 6,195 18,002 249,149 274,440 (6,015) 535,576 Total segment assets 521,819 349,540 157,927 267,046 1,296,332 Total segment liabilities (136,732) (191,643) (92,905) (22,475) (443,755) Pogo’s revenue is generated from production activities located in the United States of America (USA). Its non-current assets are also held in the USA. Total non-current assets for Pogo as at 30 June 2019 was $482.1 million (2018: nil). All other segments are Australian. HO W NU MBERS ARE CALC ULATED The segment information for the year ended 30 June 2018 is as follows: This section provides additional information about those individual line items in the financial statements that the Directors consider most relevant in the context of the operations of the entity, including: (a) accounting policies that are relevant for an understanding of the items recognised in the financial statements. These cover situations where the accounting standards either allow a choice or do not deal with a particular type of transaction (b) analysis and sub-totals, including segment information (c) information about estimates and judgements made in relation to particular items. 2 Segment information 2018 Segment net operating profit (loss) before income tax Depreciation and amortisation Impairment Finance costs Segment EBITDA Paulsens $’000 Kalgoorlie Operations $’000 Jundee $’000 Tanami $’000 Exploration $’000 Total $’000 (31,802) 129,848 40,930 69,738 - 98 - 1,502 239,511 44,518 - 864 (3,754) (11,753) 976 - 142 - 11,753 - - 322,050 156,162 11,753 2,606 492,571 9,226 201,088 284,893 (2,636) The Group’s Executive Committee consisting of the Executive Chairman, Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and Chief Geological Officer examine the Group’s performance and have identified four reportable operating segments relating to the operations of the business: Total segment assets 2,193 334,701 135,833 233 225,735 698,695 Total segment liabilities (6,014) (177,006) (82,662) (37,851) - (303,533) (a) Description of segments and principal activities The Group’s reportable operating segments are: 1. Pogo, Alaska USA - Mining and processing of gold 2. Kalgoorlie Operations, WA Australia - Mining and processing of gold 3. 4. Exploration - Exploration and evaluation of gold mineralisation Jundee, WA Australia - Mining and processing of gold An operating segment is a component of the Group that engages in business activities from which it may earn revenues or incur expenses. During the current period, the Group completed the acquisition of the Pogo gold mine, refer to note 13 for further details. Following the completion of the Pogo transaction and review by the Executive Committee the Group now has seven operating segments (East Kundana JV, Kanowna Belle, Millennium, Jundee, South Kalgoorlie, Pogo, and Exploration). As in the prior year, Kanowna Belle, East Kundana JV, Millennium and South Kalgoorlie is considered as and has been presented as one reporting segment (Kalgoorlie Operations). Following review by the Executive Committee, Paulsens and Tanami have been included in the Exploration segment for the year ended 30 June 2019. Exploration compromises all projects in the exploration and evaluation phase of the Group. These include the Mt Olympus, Fortescue JV and Electric Dingo projects as well as ongoing exploration programmes at the Group’s respective sites. An analysis of segment revenues is presented in note 3. 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 84 85 2 Segment information cont’d (c) Segment EBITDA Segment EBITDA is a non-IFRS measure, being earnings before interest, tax, depreciation and amortisation and is calculated as follows: profit before income tax plus depreciation, amortisation, impairment and finance costs, less interest income. Interest income, finance charges, interest expense and acquisition costs are not allocated to the operating segments as this type of activity is driven by the corporate treasury function which manages the cash position of the Group. Segment EBITDA reconciles to profit before income tax for the year ended 30 June 2019 as follows: Segment EBITDA Other income and expense Finance costs Depreciation Amortisation Corporate and technical services Share based payments Impairment of assets Profit before income tax (d) Segment assets 30 June 2019 $’000 30 June 2018 $’000 535,576 1,911 (11,602) (77,432) (170,051) (45,293) (8,396) (9,929) 492,571 8,785 (3,477) (43,149) (114,640) (39,139) (11,426) (11,753) 214,784 277,772 Segment assets are measured in the same way as in the financial statements. These assets are allocated based on the operations of the segment and the physical location of the asset. Reportable segments’ assets are reconciled to total assets as follows: Segment assets Unallocated: Financial assets at fair value through OCI Investment in equity accounted associates Cash and cash equivalents Derivative financial instruments Trade and other receivables Current tax asset Property, plant and equipment 30 June 2019 $’000 30 June 2018 $’000 1,296,332 698,695 23,027 27,861 227,252 1,333 53,945 6,285 7,800 42,132 15,399 435,181 5,712 17,641 - 2,110 Total assets as per the Consolidated Statement of Financial Position 1,643,835 1,216,870 Investments in equity securities (classified as financial assets at fair value through OCI) and in associates held by the Group are not considered to be segment assets as they are managed by the corporate treasury function. 2 Segment information cont’d (e) Segment liabilities Reportable segments’ liabilities are reconciled to total liabilities as follows: Segment liabilities Unallocated: Trade and other payables Provisions Current tax liabilities Deferred tax (net) 30 June 2019 $’000 30 June 2018 $’000 (443,755) 303,533 (5,751) (13,825) - (65,569) 5,444 14,364 14,959 57,134 Total liabilities as per the Consolidated Statement of Financial Position (528,900) 395,434 3 Revenue ACCOUNTING POLICY (I) SALE OF GOODS The Group primarily generates revenue from the sale of gold and silver bullion. The Group delivers dore bars to refiners, who convert the product into investment grade bullion for a fee, which is subsequently sold either to the refinery or third parties (financial institutions). Revenue from the sale of these goods is recognised when control over the inventory has transferred to the customer. Control is generally considered to have passed when: • physical possession and inventory risk is transferred (including via a third-party transport provider arranged by the refinery): • payment terms for the sale of goods can be clearly identified through the sale of metal credits received or receivable for the transfer of control of the asset; • • the Group can determine with sufficient accuracy the metal content of the goods delivered; and the refiner has no practical ability to reject the product where it is within contractually specified limits. Where the economic inflows arise from other by-products, for example from the presence of other valuable metals, these amounts are credited to the costs of producing the primary products to the extent the amounts generated are not considered significant. (II) SALE OF SERVICES Tolling revenue is recognised as the tolling services are performed. The number of units processed is considered to be the most direct measurement of value delivered to the customer under the contractual arrangements and therefore tolling revenue is earned per tonne of ore processed. The Group adopted AASB 15 from 1 July 2018. The adoption of this standard had no material impact for the year ended 30 June 2019. The Group derives the following types of revenue: Sale of gold Sale of silver Toll treatment Total revenue 30 June 2019 $’000 30 June 2018 $’000 1,378,004 2,401 20,760 1,401,165 941,296 1,873 20,856 964,025 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 86 87 3 Revenue cont’d (a) Segment revenue The total of revenue, broken down by operating segment, is shown in the following table. All revenue is from external customers. No revenue is generated by the Exploration operating segment. 2019 2018 Paulsens $’000 Pogo $’000 Kalgoorlie Operations $’000 - 253,057 39,997 - 620,245 438,261 Jundee $’000 Total $’000 527,863 1,401,165 485,767 964,025 4 Significant changes in the current reporting period The financial position and performance of the Group was particularly affected by the following events and transactions during the reporting period: • the acquisition of the Pogo underground gold mine in Alaska. The acquisition was carried out through NST’s wholly owned subsidiary Northern Star (Alaska) LLC. This entity acquired all of the shares of Sumitomo Metal Mining Pogo LLC and SC Pogo LLC (subsequently renamed to Northern Star (Pogo) LLC and Northern Star (Pogo Two) LLC). For details of the acquisition refer to note 13 of the financial statements. For a detailed discussion about the Group’s performance and financial position please refer to our operating and financial review on pages 16 to 19 of this Report. 5 Other income and expense items Net gain/(loss) on disposal of property, plant and equipment Interest income Other INTEREST Interest income is recognised as it accrues using the effective interest method. OTHER 30 June 2019 $’000 30 June 2018 $’000 (276) 4,064 (1,877) 1,911 (24) 7,523 1,285 8,784 6 Expenses (a) Cost of sales Mining Processing Site services Employee benefit expenses Depreciation Amortisation Government royalty expense Change in inventories 30 June 2019 $’000 30 June 2018 $’000 363,715 179,069 47,518 223,692 76,310 168,773 25,052 17,355 199,902 105,282 19,643 130,459 41,823 113,363 23,285 (9,954) 1,101,484 623,803 DEPRECIATION/AMORTISATION METHOD Items of property, plant and equipment and mine properties are depreciated/amortised over their useful lives. The Group uses the unit-of- production basis when depreciating/amortising mine specific assets which results in a depreciation/amortisation charge proportional to the depletion of the anticipated remaining life of mine which is referenced to the estimated economic reserve and resources of the property to which the assets relate. Each item’s economic life, which is assessed annually has due regard to both its physical life limitations and to present assessments of economically recoverable reserves and resources of the mine property at which it is located. Depreciation of non-mine specific property, plant and equipment is calculated using the straight-line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives or, in the case of leasehold improvements and certain leased plant and equipment, the shorter lease term as follows: Land and buildings 5 - 20 years Plant and equipment 2 - 20 years Motor Vehicles Office equipment 4 - 10 years 2 - 10 years Depreciation methods, useful lives and residual values are reviewed at each reporting date. ROYALTIES Royalties under existing royalty regimes in Australia are payable on sales and therefore recognised as the sale occurs. Production Royalties in Alaska are based on taxable profit and are consequently treated as an income tax. Other includes the Group’s share of net profit or loss from equity accounted investments (2019: $3.5 million loss; 2018:$1.4 million loss) (b) Corporate and technical services Administration and technical services Depreciation Employee benefit expenses Share based payments Amortisation Acquisition and integration costs 30 June 2019 $’000 30 June 2018 $’000 28,912 1,122 18,883 8,396 1,278 6,686 65,277 20,716 1,326 16,102 11,426 1,278 5,156 56,004 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 88 89 6 Expenses cont’d ACCOUNTING POLICY Share-based compensation benefits are provided to employees via Option, Share and Performance Rights Plans as discussed in note 20. The fair value of shares and options granted under these Plans are recognised as a share based payments expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the shares or options granted, which includes any market performance conditions and the impact of any non-vesting conditions but excludes the impact of any service and non- market performance vesting conditions. Non-market vesting conditions are included in assumptions about the number of shares and options that are expected to vest. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of shares and options that are expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss with a corresponding adjustment to equity. (c) Impairment of assets Exploration and evaluation assets (note 9(b)) (d) Finance costs Interest expense Provisions: unwinding of discount (note 9(g)) Finance charges PROVISION - UNWINDING OF DISCOUNT 30 June 2019 $’000 30 June 2018 $’000 9,929 9,929 11,753 11,753 30 June 2019 $’000 30 June 2018 $’000 1,660 5,624 4,318 11,602 527 2,291 659 3,477 The Group records the present value of the estimated cost of legal and constructive obligations to rehabilitate operating locations and decommission assets in the period in which the obligation is incurred. The unwinding of the effect of discounting the provision is recorded as a finance charge in profit or loss. Total expenses 1,188,292 695,037 7 Income tax expense The income tax expense for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company’s subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. 7 Income tax expense cont’d This note provides an analysis of the Group’s income tax expense, showing what amounts are recognised directly in equity and how the tax expense is affected by non-assessable and non-deductible items. It explains significant estimates made in relation to the Group’s tax position. (a) Income tax expense CURRENT TAX Current tax on profits for the year Adjustments for current tax of prior periods Total current tax DEFERRED INCOME TAX Decrease/(increase) in deferred tax assets (note 9(e)) Increase in deferred tax liabilities (note 9(e)) Total deferred tax expense/(benefit) 30 June 2019 $’000 30 June 2018 $’000 70,672 (569) 70,103 (10,578) 548 (10,030) 73,612 (173) 73,439 (13,642) 23,862 10,220 Income tax expense 60,073 83,659 (b) Numerical reconciliation of income tax expense to prima facie tax payable Profit from continuing operations before income tax expense Tax at the Australian tax rate of 30.0% (2018 - 30.0%) Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Share based payments Sundry items Adjustment for current tax of prior periods Non-deductible amounts Subtotal Difference in overseas tax rates Income tax expense 30 June 2019 $’000 30 June 2018 $’000 214,784 64,435 277,772 83,331 (2,681) (1,196) (569) 2,588 500 - (172) - 62,577 83,659 (2,504) 60,073 - 83,659 The tax rate for Australian Operations remains at 30%. The blended tax rate for Alaskan Operations are subject to the following taxes: Federal and State Income Taxes, Alaska Mining Licence Tax and Alaska Production Royalty Tax. (c) Amounts recognised directly in equity Aggregate current and deferred tax arising in the reporting year and not recognised in net profit or loss or other comprehensive income but directly debited or credited to equity: Deferred tax: financial assets at fair value through OCI Deferred tax: share based payments Notes 30 June 2019 $’000 30 June 2018 $’000 9(e) 9(e) (116) (24,944) (25,060) (30) - (30) 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 90 2019 ANNUAL REPORT | FINANCIAL R EPOR T 91 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 8 Financial assets and financial liabilities 8 Financial assets and financial liabilities cont’d (cid:55)his note provides information a(cid:69)out the (cid:42)roup(cid:519)s financial instruments, including(cid:29) • • • • an overvie(cid:90) of all financial instruments held (cid:69)(cid:92) the (cid:42)roup specific information a(cid:69)out each t(cid:92)pe of financial instrument accounting policies information a(cid:69)out determining the fair value of the instruments, including (cid:77)udgements and estimation uncertaint(cid:92) involved(cid:17) (cid:55)he (cid:42)roup holds the follo(cid:90)ing financial instruments(cid:29) Assets at FVOCI $’000 Assets at FVPL $’000 Notes Financial assets at (cid:68)(cid:80)(cid:82)rt(cid:76)se(cid:71) cost $’000 FINANCIAL ASSETS 2019 Cash and cash equivalents Trade and other receivables* (cid:39)erivative financial instruments Financial assets at fair value through other comprehensive income 2018 Cash and cash equivalents Trade and other receivables* (cid:39)erivative financial instruments Financial assets at fair value through other comprehensive income (cid:13) (cid:40)(cid:91)cluding prepa(cid:92)ments and goods and services ta(cid:91) recovera(cid:69)le(cid:17) 8(c) 8(a) (cid:27)(cid:11)(cid:69)(cid:12) 8(c) 8(a) (cid:27)(cid:11)(cid:69)(cid:12) - - - 23,027 23,027 - - (cid:16) (cid:23)(cid:21),(cid:20)(cid:22)(cid:21) 42,132 Total $’000 266,179 54,557 1,333 23,027 - - 1,333 - 266,179 54,557 - - 1,333 320,736 345,096 - - (cid:24),(cid:26)(cid:20)(cid:21) (cid:16) 442,997 23,461 (cid:16) (cid:16) 442,997 23,461 (cid:24),(cid:26)(cid:20)(cid:21) (cid:23)(cid:21),(cid:20)(cid:22)(cid:21) FINANCIAL LIABILITIES 2019 (cid:55)rade and other pa(cid:92)a(cid:69)les(cid:13)(cid:13) Borrowings 2018 (cid:55)rade and other pa(cid:92)a(cid:69)les(cid:13)(cid:13) Borrowings (cid:13)(cid:13) (cid:40)(cid:91)cluding non(cid:16)financial lia(cid:69)ilities Notes (cid:27)(cid:11)d(cid:12) 8(e) (cid:27)(cid:11)d(cid:12) 8(e) Liabilities at (cid:68)(cid:80)(cid:82)rt(cid:76)se(cid:71) cost $’000 147,319 48,404 195,723 (cid:20)(cid:22)(cid:27),(cid:20)(cid:25)(cid:21) 17,123 155,285 Total $’000 147,319 48,404 195,723 138,162 17,123 155,285 (cid:55)he (cid:42)roup(cid:519)s e(cid:91)posure to various risks associated (cid:90)ith the financial instruments is discussed in note (cid:20)(cid:20)(cid:17) (cid:55)he ma(cid:91)imum e(cid:91)posure to credit risk at the end of the reporting period is the carr(cid:92)ing amount of each class of financial assets mentioned a(cid:69)ove(cid:17) (a) Trade and other receivables ACCOUNTING POLICY (cid:55)rade receiva(cid:69)les are recognised initiall(cid:92) at fair value and su(cid:69)se(cid:84)uentl(cid:92) measured at amortised cost using the e(cid:909)ective interest method, less provision for impairment(cid:17) Trade receivables (cid:54)undr(cid:92) de(cid:69)tors Goods and services tax recoverable (cid:51)repa(cid:92)ments Other receivables 30 June 2019 30 June 2018 Current $’000 47,318 6,008 4,735 8,439 1,231 Non- current $’000 - - - 1,438 - Total $’000 Current $’000 47,318 15,156 6,008 4,735 9,877 1,231 6,207 5,904 1,771 2,098 Non- current $’000 - - - 1,688 - Total $’000 15,156 6,207 5,904 3,459 2,098 67,731 1,438 69,169 31,136 1,688 32,824 (I) CLASSIFICATION AS TRADE AND OTHER RECEIVABLES If collection of the amounts is e(cid:91)pected in one (cid:92)ear or less the(cid:92) are classified as current assets(cid:17) If not, the(cid:92) are presented as non(cid:16)current assets(cid:17) (cid:55)rade receiva(cid:69)les are generall(cid:92) due for settlement (cid:90)ithin (cid:22)(cid:19) da(cid:92)s and therefore are all classified as current(cid:17) (II) FAIR VALUE OF TRADE AND OTHER RECEIVABLES (cid:36)s the ma(cid:77)orit(cid:92) of receiva(cid:69)les are short term in nature, their carr(cid:92)ing amount is assumed to (cid:69)e the same as their fair value(cid:17) (cid:11)(cid:69)(cid:12) (cid:41)inancial assets at fair value through other comprehensive income (cid:41)inancial assets at fair value through other comprehensive income (cid:11)(cid:41)(cid:57)(cid:50)(cid:38)I(cid:12) comprises e(cid:84)uit(cid:92) securities (cid:90)hich are not held for trading, and (cid:90)hich the (cid:42)roup has irrevoca(cid:69)l(cid:92) elected at initial recognition to recognise is this categor(cid:92)(cid:17) (cid:55)hese are strategic investments and the (cid:42)roup considers this classification to (cid:69)e more relevant(cid:17) (cid:53)efer to note (cid:21)(cid:24) for further information on accounting policies for financial assets and note (cid:27)(cid:11)f(cid:12) in relation to fair value measurements(cid:17) (cid:55)he adoption of (cid:36)(cid:36)(cid:54)(cid:37) (cid:28) has had no material impact for the (cid:42)roup(cid:17) (cid:41)(cid:57)(cid:50)(cid:38)I assets include the follo(cid:90)ing classes of financial assets(cid:29) Non-current assets (cid:47)isted e(cid:84)uit(cid:92) securities (I) CLASSIFICATION OF FINANCIAL ASSETS AS FVOCI 30 June 2019 $’000 30 June 2018 $’000 23,027 42,132 (cid:55)he financial assets are presented as non(cid:16)current assets unless the(cid:92) mature or management intends to dispose of them (cid:90)ithin (cid:20)(cid:21) months of the end of the reporting period(cid:17) (II) AMOUNTS RECOGNISED IN PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (cid:39)uring the (cid:92)ear, the follo(cid:90)ing losses (cid:90)ere recognised in profit or loss and other comprehensive income(cid:17) (cid:42)ains(cid:18)(cid:11)losses(cid:12) recognised in other comprehensive income 30 June 2019 $’000 30 June 2018 $’000 (12,134) (100) 5,712 466,458 514,302 ACCOUNTING POLICY 92 2019 ANNUAL REPORT | FINANCIAL R EPOR T 93 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 8 Financial assets and financial liabilities cont’d 8 Financial assets and financial liabilities cont’d (c) Cash and cash equivalents ACCOUNTING POLICY (cid:11)d(cid:12) (cid:55)rade and other pa(cid:92)a(cid:69)les ACCOUNTING POLICY (cid:38)ash and cash e(cid:84)uivalents includes cash on hand, deposits held at call (cid:90)ith financial institutions, other short(cid:16)term, highl(cid:92) li(cid:84)uid investments (cid:90)ith original maturities of three months or less that are readil(cid:92) converti(cid:69)le to kno(cid:90)n amounts of cash and (cid:90)hich are su(cid:69)(cid:77)ect to an insignificant risk of changes in value(cid:17) (cid:55)hese amounts represent lia(cid:69)ilities for goods and services provided to the (cid:42)roup prior to the end of financial (cid:92)ear (cid:90)hich are unpaid(cid:17) (cid:55)he amounts are unsecured and are usuall(cid:92) paid (cid:90)ithin (cid:25)(cid:19) da(cid:92)s of recognition(cid:17) (cid:55)rade and other pa(cid:92)a(cid:69)les are presented as current lia(cid:69)ilities unless pa(cid:92)ment is not due (cid:90)ithin (cid:20)(cid:21) months from the reporting date(cid:17) (cid:38)ash at (cid:69)ank and in hand (cid:39)eposits at call Restricted cash (I) RECONCILIATION TO THE STATEMENT OF CASH FLOWS (cid:53)econciliation of profit after ta(cid:91) to net cash (cid:565)o(cid:90) from operating activities(cid:29) (cid:51)rofit for the (cid:92)ear (cid:36)d(cid:77)ustment for (cid:39)epreciation and amortisation (cid:49)on(cid:16)cash emplo(cid:92)ee (cid:69)enefits e(cid:91)pense (cid:16) share(cid:16)(cid:69)ased pa(cid:92)ments (cid:53)eha(cid:69)ilitation provision (cid:16) un(cid:90)inding of discount (cid:49)et (cid:11)gain(cid:12)(cid:18) loss on sale of non(cid:16)current assets (cid:55)ransaction costs (cid:90)ritten o(cid:909) Impairment of assets during the period (cid:41)air value ad(cid:77)ustment to derivatives (cid:54)hare of losses of associates and (cid:77)oint ventures (cid:38)hange in operating assets and lia(cid:69)ilities(cid:29) Increase in trade and other receivables (cid:11)Increase(cid:12)(cid:18)decrease in inventories (Increase) in deferred tax assets (cid:11)(cid:39)ecrease(cid:12)(cid:18)increase in trade and other pa(cid:92)a(cid:69)les (cid:11)(cid:39)ecrease(cid:12)(cid:18)increase in current ta(cid:91) lia(cid:69)ilit(cid:92)(cid:18)asset (cid:11)(cid:39)ecrease(cid:12)(cid:18)increase in deferred ta(cid:91) lia(cid:69)ilities Increase in provisions (cid:49)et cash in(cid:565)o(cid:90) from operating activities 30 June 2019 $’000 30 June 2018 $’000 263,134 - 3,045 240,982 202,015 - 266,179 442,997 30 June 2019 $’000 30 June 2018 $’000 154,711 194,113 247,484 8,396 5,624 276 - 9,929 4,379 3,530 (32,679) 11,463 (10,578) (5,050) (21,244) 1,614 1,342 157,790 11,426 2,291 24 571 11,753 (870) 1,371 (5,557) (12,378) (14,080) (3,474) (25,852) 23,480 12,453 (cid:55)he(cid:92) are recognised initiall(cid:92) at their fair value and su(cid:69)se(cid:84)uentl(cid:92) measured at amortised cost using the e(cid:909)ective interest method(cid:17) (cid:55)rade pa(cid:92)a(cid:69)les (cid:36)ccruals (cid:51)a(cid:92)roll ta(cid:91) and other statutor(cid:92) lia(cid:69)ilities (cid:50)ther pa(cid:92)a(cid:69)les 30 June 2019 $’000 30 June 2018 $’000 59,941 63,401 2,391 23,977 54,391 54,936 1,911 28,835 149,710 140,073 (cid:55)he carr(cid:92)ing amounts of trade and other pa(cid:92)a(cid:69)les are considered to (cid:69)e the same as their fair values, due to their short(cid:16)term nature(cid:17) (e) Borrowings ACCOUNTING POLICY (cid:37)orro(cid:90)ings are initiall(cid:92) recognised at fair value, net of transaction costs incurred(cid:17) (cid:37)orro(cid:90)ings are su(cid:69)se(cid:84)uentl(cid:92) measured at amortised cost(cid:17) (cid:47)eases of propert(cid:92), plant and e(cid:84)uipment (cid:90)here the (cid:42)roup, as lessee, has su(cid:69)stantiall(cid:92) all the risks and re(cid:90)ards of o(cid:90)nership are classified as finance leases(cid:17) (cid:41)inance leases are capitalised under plant and e(cid:84)uipment at the lease(cid:519)s inception at the fair value of the leased propert(cid:92) or, if lo(cid:90)er, the present value of the minimum lease pa(cid:92)ments(cid:17) (cid:55)he corresponding rental o(cid:69)ligations, net of finance charges, are included in borrowings. (cid:37)orro(cid:90)ings are classified as current lia(cid:69)ilities unless the (cid:42)roup has an unconditional right to defer settlement of the lia(cid:69)ilit(cid:92) for at least (cid:20)(cid:21) months after the reporting date(cid:17) (cid:47)ease lia(cid:69)ilities Total secured borrowings 30 June 2019 30 June 2018 Current $’000 23,899 23,899 Non- current $’000 24,505 24,505 Total $’000 48,404 48,404 Current $’000 7,610 7,610 Non- current $’000 9,513 9,513 Total $’000 17,123 17,123 379,197 353,061 (I) SECURED LIABILITIES AND ASSETS PLEDGED AS SECURITY (cid:47)ease lia(cid:69)ilities are e(cid:909)ectivel(cid:92) secured as the rights to the leased assets recognised in the financial statements revert to the lessor in the event of default. 94 95 8 Financial assets and financial liabilities cont’d 8 Financial assets and financial liabilities cont’d (e) Borrowings cont’d (II) FINANCE LEASES The Group has entered into various loan agreements for the purchase of mobile equipment. The interest rates are fixed and payable over a period of up to 36 months from the inception of the lease. Commitments in relation to finance leases are payable as follows: Within one year Later than one year but not later than five years Minimum lease payments Future finance charges Total lease liabilities (III) FAIR VALUE 30 June 2019 $’000 30 June 2018 $’000 26,436 24,220 50,656 (2,252) 48,404 8,223 10,062 18,285 (1,162) 17,123 For the majority of the borrowings, the fair values are not materially different to their carrying amounts, since the interest payable on those borrowings is either close to current market rates or the borrowings are of a short-term nature. Refer above for differences as at year end. (IV) FINANCING ARRANGEMENTS At the end of the report period, the Group had: • Undrawn A$200.0 million revolving credit facility (2018: A$90.0 million); (f) Recognised fair value measurements cont’d Recurring fair value measurements At 30 June 2018 Financial assets Derivatives Derivative financial asset - warrants Financial assets at fair value through OCI Australian listed equity securities Total financial assets Level 1 $’000 Level 2 $’000 Total $’000 - 5,712 5,712 42,132 42,132 - 5,712 42,132 47,844 There were no transfers between levels 1 and 2 for recurring fair value measurements during the year. Level 1: The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in level 1. Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Valuation inputs include underlying spot prices, implied volatility, discount curves and time until expiration, expressed as a percent of a year. 9 Non-financial assets and liabilities This note provides information about the Group’s non-financial assets and liabilities, including: • A$5.0 million bank guarantee facility drawn down by A$3.3 million (2018: A$5.0 million drawn down by A$3.3 million); • specific information about the following non-financial assets and non-financial liabilities • A$5.0 million bank guarantee facility drawn down by A$4.5 million (2018: A$5.0 million drawn down by A$4.5 million); • US$72.0 million bank guarantee and stand by letter of credit facility drawn down by US$71.9 million (2018: nil); and • US$3.0 million bank guarantee and stand by letter of facility drawn down by US$1.3 million (2018: nil). (f) Recognised fair value measurements (I) FAIR VALUE HIERARCHY This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at fair value in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Group has classified its financial instruments into the three levels prescribed under the accounting standards. An explanation of each level follows underneath the table. Recurring fair value measurements At 30 June 2019 Financial assets Derivatives Derivative financial asset - warrants Financial assets at fair value through OCI Australian listed equity securities Total financial assets Level 1 $’000 Level 2 $’000 Total $’000 - 1,333 1,333 23,027 23,027 - 1,333 23,027 24,360 - - property, plant and equipment exploration and evaluation assets - mine properties assets - - - tax balances inventories provisions accounting policies information about determining the fair value of the assets and liabilities, including judgements and estimation uncertainty involved. • • (a) Property, plant and equipment ACCOUNTING POLICY Property, plant and equipment is carried at historical cost less accumulated depreciation and impairment losses. Refer to note 25 for further information on accounting policies associated with impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 96 97 9 Non-financial assets and liabilities cont’d 9 Non-financial assets and liabilities cont’d (a) Property, plant and equipment cont’d ACCOUNTING POLICY CONT’D (a) Property, plant and equipment cont’d (I) LEASED ASSETS At 30 June 2018 Cost or fair value Accumulated depreciation Net book amount Year ended 30 June 2018 Opening net book amount Additions Acquired as part of asset acquisition Acquired as part of business combination (note 13) Disposals Transfer to mine properties Transfers Depreciation charge Closing net book amount At 30 June 2019 Cost or fair value Accumulated depreciation Net book amount Year ended 30 June 2019 Opening net book amount Additions Acquired as part of business combination (note 13) Exchange differences Disposals Transfers Depreciation charge Land & buildings $’000 Plant & equipment $’000 Motor vehicles $’000 Office equipment $’000 Capital work in progress $’000 Total $’000 13,541 238,841 (9,221) (126,966) 4,320 111,875 9,050 (5,421) 3,629 4,735 (3,203) 17,688 283,855 - (144,811) 1,532 17,688 139,044 3,729 73,206 2,505 1,270 - 664 1,364 - - - 243 25,991 (1,231) - 753 52,464 (2,190) (38,798) 4,320 111,875 - 10 296 (62) - 2,258 (1,378) 3,629 - 2 155 - - 888 (783) 24,141 50,649 57 3,376 - (4,172) (56,363) 104,851 50,649 976 31,182 (1,293) (4,172) - - (43,149) 1,532 17,688 139,044 Land & buildings $’000 Plant & equipment $’000 Motor vehicles $’000 Office equipment $’000 Capital work in progress $’000 Total $’000 53,214 609,437 (11,193) (189,510) 42,021 419,927 12,546 (6,933) 5,613 10,304 (4,089) 27,308 712,809 - (211,725) 6,215 27,308 501,084 Land & buildings $’000 Plant & equipment $’000 Motor vehicles $’000 Office equipment $’000 4,320 111,875 - - 29,626 279,015 878 - 9,163 (1,966) 8,100 (1,634) 94,962 (72,391) 3,629 - 786 27 (96) 3,398 (2,131) 5,613 1,532 - 3,961 118 (410) 1,958 (944) 6,215 Capital work in progress $’000 17,688 114,859 4,070 172 - (109,481) Total $’000 139,044 114,859 317,458 9,295 (2,140) - - (77,432) 27,308 501,084 Closing net book amount 42,021 419,927 Leases of property, plant and equipment where the Group, as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease’s inception at the fair value of the lease property, or, if lower, the present value of the minimum lease payments. The property, plant and equipment acquired under finance leases is depreciated over the asset’s useful life or over the shorter of the asset’s useful life and the lease term if there is no reasonable certainty that the Group will obtain ownership at the end of the lease term. Plant and equipment includes the following amounts where the Group is a lessee under a finance lease: Cost Accumulated depreciation Net book amount (b) Exploration and evaluation assets ACCOUNTING POLICY 30 June 2019 $’000 30 June 2018 $’000 63,113 (17,142) 45,971 22,861 (8,311) 14,550 Exploration and evaluation assets include the costs of acquiring licences, costs associated with exploration and evaluation activity, and the fair value (at acquisition date) of exploration and evaluation assets acquired in a business combination. Exploration and evaluation expenditure is capitalised on an area of interest basis. Costs incurred before the Group has obtained the legal rights to explore an area are recognised in the statement of profit or loss and other comprehensive income. Exploration and evaluation assets are only recognised if the rights of the area of interest are current and either, the expenditures are expected to be recouped through successful development and exploitation of the area of interest or activities in the area of interest have not at the reporting date; reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active and significant operations in, or in relation to, the area of interest are continuing. Once a development decision has been made all past exploration and evaluation expenditure in respect of an area of interest that has been capitalised is transferred to mine properties where it is amortised over the life of the area of interest to which it relates on a unit-of- production basis. No amortisation is charged during the exploration and evaluation phase. The application of the above accounting policy requires management to make certain estimates and assumptions as to future events and circumstances, in particular, the assessment of whether economic quantities of reserves will be found. Any such estimates and assumptions may change as new information becomes available, which may require adjustments to the carrying value of assets. Capitalised exploration and evaluation expenditure is assessed for impairment when an indicator of impairment exists, and capitalised assets are written off where required. Opening balance at 1 July Expenditure for the period Acquired as part of asset acquisition (i) Acquired as part of business combination (ii) Transfer to mine properties Impairment (iii) Exchange differences Closing balance (I) ASSET ACQUISITION 30 June 2019 $’000 30 June 2018 $’000 225,735 67,904 1,726 - (19,591) (9,929) 193 137,638 76,373 13,136 36,800 (26,459) (11,753) - 266,038 225,735 During the year, the Company completed the acquisition of the Stone Boy project through the purchase of 100% of the fully paid ordinary shares in Stone Boy Inc from Sumitomo Exploration Corporation for total consideration of US$1.2 million (A$1.7 million). For details of the acquisition refer to note 14 of the financial statements. 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 98 2019 ANNUAL REPORT | FINANCIAL R EPOR T 99 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 9 Non-financial assets and liabilities cont’d 9 Non-financial assets and liabilities cont’d (cid:11)(cid:69)(cid:12) (cid:40)(cid:91)ploration and evaluation assets cont(cid:519)d (II) BUSINESS COMBINATION (cid:11)c(cid:12) (cid:48)ine properties cont(cid:519)d (I) BUSINESS COMBINATION (cid:50)n (cid:21)(cid:28) (cid:48)arch (cid:21)(cid:19)(cid:20)(cid:27), the (cid:38)ompan(cid:92) also completed the ac(cid:84)uisition of the (cid:54)outh (cid:46)algoorlie (cid:50)perations from (cid:58)estgold (cid:53)esources (cid:47)td for (cid:7)(cid:26)(cid:27)(cid:17)(cid:22) million consideration through the purchase of (cid:20)(cid:19)(cid:19)(cid:8) of the full(cid:92) paid ordinar(cid:92) shares in (cid:39)ioro (cid:40)(cid:91)ploration (cid:51)t(cid:92) (cid:47)td(cid:17) (cid:41)or details of the ac(cid:84)uisition refer to note (cid:20)(cid:22) of the financial statements(cid:17) (cid:50)n (cid:21)(cid:27) (cid:54)eptem(cid:69)er (cid:21)(cid:19)(cid:20)(cid:27), (cid:49)orthern (cid:54)tar (cid:53)esources (cid:11)(cid:522)(cid:49)(cid:54)(cid:55)(cid:523)(cid:12) completed the ac(cid:84)uisition of the (cid:51)ogo underground mine in (cid:36)laska(cid:17) (cid:55)he ac(cid:84)uisition (cid:90)as carried out through (cid:49)(cid:54)(cid:55)(cid:519)s (cid:90)holl(cid:92) o(cid:90)ned (cid:56)(cid:54) su(cid:69)sidiar(cid:92) (cid:49)orthern (cid:54)tar (cid:11)(cid:36)laska(cid:12) (cid:47)(cid:47)(cid:38)(cid:17) (cid:55)his entit(cid:92) ac(cid:84)uired all of the shares of (cid:54)umitomo (cid:48)etal (cid:48)ining (cid:51)ogo (cid:47)(cid:47)(cid:38) and (cid:54)(cid:38) (cid:51)ogo (cid:47)(cid:47)(cid:38)(cid:17) (cid:53)efer to note (cid:20)(cid:22) of the (cid:41)inancial (cid:53)eport for further details(cid:17) (III) IMPAIRMENT (II) IMPAIRMENT (cid:36)t each reporting date the (cid:42)roup undertakes an assessment of the carr(cid:92)ing amount of its e(cid:91)ploration and evaluation assets(cid:17) (cid:39)uring the (cid:92)ear the (cid:42)roup identified indicators of impairment on certain e(cid:91)ploration and evaluation assets under (cid:36)(cid:36)(cid:54)(cid:37) (cid:25) (cid:40)(cid:91)ploration for and (cid:40)valuation of (cid:48)ineral (cid:53)esources(cid:17) (cid:36)s a result of this revie(cid:90), an impairment loss of (cid:7)(cid:28)(cid:17)(cid:28) million (cid:11)(cid:21)(cid:19)(cid:20)(cid:27)(cid:29) (cid:7)(cid:20)(cid:20)(cid:17)(cid:27) million(cid:12) has (cid:69)een recognised in the statement of profit or loss and other comprehensive income in relation to areas of interest (cid:90)here no future e(cid:91)ploration and evaluation activities are e(cid:91)pected(cid:17) (cid:11)c(cid:12) (cid:48)ine properties ACCOUNTING POLICY (cid:48)ine properties includes aggregate e(cid:91)penditure in relation to mine construction, mine development, e(cid:91)ploration and evaluation e(cid:91)penditure (cid:90)here a development decision has (cid:69)een made and ac(cid:84)uired mineral interests(cid:17) (cid:40)(cid:91)penditure incurred in constructing a mine (cid:69)(cid:92), or on (cid:69)ehalf of, the (cid:42)roup is accumulated separatel(cid:92) for each area of interest in (cid:90)hich economicall(cid:92) recovera(cid:69)le reserves and resources have (cid:69)een identified(cid:17) (cid:55)his e(cid:91)penditure includes direct costs of construction, drilling costs and removal of over(cid:69)urden to gain access to the ore, (cid:69)orro(cid:90)ing costs capitalised during construction and an appropriate allocation of attributable overheads. (cid:48)ine development represents e(cid:91)penditure in respect of e(cid:91)ploration and evaluation, over(cid:69)urden removal (cid:69)ased on underl(cid:92)ing mining activities and related mining data and construction costs and development incurred (cid:69)(cid:92) or on (cid:69)ehalf of the (cid:42)roup previousl(cid:92) accumulated and carried for(cid:90)ard in relation to properties in (cid:90)hich mining has no(cid:90) commenced(cid:17) (cid:54)uch e(cid:91)penditure comprises direct costs and an appropriate allocation of directl(cid:92) related overhead e(cid:91)penditure(cid:17) (cid:36)ll e(cid:91)penditure incurred prior to commencement of production from each development propert(cid:92) is carried for(cid:90)ard to the e(cid:91)tent to (cid:90)hich recoupment out of future revenue from the sale of production, or from the sale of the propert(cid:92), is reasona(cid:69)l(cid:92) assured(cid:17) (cid:58)hen further development e(cid:91)penditure is incurred in respect of a mine propert(cid:92) after commencement of commercial production, such e(cid:91)penditure is carried for(cid:90)ard as part of the cost of the mine propert(cid:92) onl(cid:92) (cid:90)hen future economic (cid:69)enefits are reasona(cid:69)l(cid:92) assured, other(cid:90)ise the e(cid:91)penditure is classified as part of the cost of production and e(cid:91)pensed as incurred(cid:17) (cid:54)uch capitalised development e(cid:91)penditure is added to the total carr(cid:92)ing value of mine development (cid:69)eing amortised(cid:17) (cid:48)ine development costs (cid:11)as transferred from e(cid:91)ploration and evaluation and(cid:18)or mines under construction(cid:12) are amortised on a units(cid:16)of(cid:16) production (cid:69)asis over the life of mine to (cid:90)hich the(cid:92) relate(cid:17) In appl(cid:92)ing the units of production method, amortisation is calculated using the e(cid:91)pected total contained ounces as determined (cid:69)(cid:92) the life of mine plan specific to that mine propert(cid:92)(cid:17) (cid:41)or development e(cid:91)penditure undertaken during production, the amortisation rate is (cid:69)ased on the ratio of total development e(cid:91)penditure (cid:11)incurred and anticipated(cid:12) over the e(cid:91)pected total contained ounces as estimated (cid:69)(cid:92) the relevant life of mine plan to achieve a consistent amortisation rate per ounce(cid:17) (cid:55)he rate per ounce is t(cid:92)picall(cid:92) updated annuall(cid:92) as the life of mine plans are revised(cid:17) (cid:48)ineral interests comprise identifia(cid:69)le e(cid:91)ploration and evaluation assets, mineral resources and ore reserves, (cid:90)hich are ac(cid:84)uired as part of a (cid:69)usiness com(cid:69)ination or (cid:77)oint venture ac(cid:84)uisition and are recognised at fair value at the date of ac(cid:84)uisition(cid:17) (cid:58)here possi(cid:69)le, mineral interests are attri(cid:69)uta(cid:69)le to specific areas of interest and are classified (cid:90)ithin mine properties(cid:17) (cid:50)pening (cid:69)alance at (cid:20) (cid:45)ul(cid:92) (cid:40)(cid:91)penditure for the period (cid:55)ransfer from e(cid:91)ploration and evaluation (cid:36)c(cid:84)uired as part of (cid:69)usiness com(cid:69)ination (cid:11)i(cid:12) (cid:49)et transfer from propert(cid:92), plant and e(cid:84)uipment (cid:36)mortisation (cid:40)(cid:91)change di(cid:909)erences Closing balance 30 June 2019 $’000 30 June 2018 $’000 212,788 144,604 19,591 140,531 - 157,477 123,240 26,459 13,945 4,172 (165,340) (112,505) 4,187 - 356,361 212,788 (cid:36)t each reporting date, the (cid:42)roup assesses (cid:90)hether there is an(cid:92) indication that an asset, or group of assets is impaired(cid:17) If an(cid:92) such indication e(cid:91)ists, the recovera(cid:69)le amount of the asset is estimated to determine the e(cid:91)tent of the impairment loss (cid:11)if an(cid:92)(cid:12) (cid:90)hich is the amount (cid:69)(cid:92) (cid:90)hich the assets carr(cid:92)ing value e(cid:91)ceeds its recovera(cid:69)le amount(cid:17) (cid:58)here the asset does not generate cash in(cid:16)(cid:565)o(cid:90)s that are independent from other assets, the (cid:42)roup estimates the recovera(cid:69)le amount of the cash(cid:16)generating unit (cid:11)(cid:38)(cid:42)(cid:56)(cid:12) to (cid:90)hich the asset (cid:69)elongs(cid:17) (cid:55)he recovera(cid:69)le amount is the higher of (cid:518)fair value less costs to sell(cid:519) (cid:11)(cid:41)(cid:57)(cid:47)(cid:38)(cid:54)(cid:12) and (cid:518)value in use(cid:519)(cid:17) (cid:58)here an impairment loss su(cid:69)se(cid:84)uentl(cid:92) reverses for assets other than good(cid:90)ill, the carr(cid:92)ing amount of the asset (cid:11)or (cid:38)(cid:42)(cid:56)(cid:12) is increased to the revised estimate of its recovera(cid:69)le amount, (cid:69)ut onl(cid:92) to the e(cid:91)tent that the increased carr(cid:92)ing amount does not e(cid:91)ceed the carr(cid:92)ing amount that (cid:90)ould have (cid:69)een determined had no impairment loss (cid:69)een recognised for the asset (cid:11)or (cid:38)(cid:42)(cid:56)(cid:12) in prior (cid:92)ears(cid:17) (cid:36) reversal of an impairment loss is recognised in profit or loss immediatel(cid:92)(cid:17) Impairment testing re(cid:84)uires assets to (cid:69)e grouped together into the smallest group that generates cash in(cid:565)o(cid:90)s from continuing use that are largel(cid:92) independent of the cash in(cid:565)o(cid:90)s of other assets or cash generating units(cid:17) (cid:55)he (cid:42)roup generall(cid:92) considers each of its operating mine sites to (cid:69)e a separate (cid:38)(cid:42)(cid:56)(cid:17) (cid:39)epending on the location of the mine, as (cid:90)ell as other e(cid:91)ternal factors, the (cid:38)(cid:42)(cid:56) ma(cid:92) include more than one operating mine and also include processing facilities(cid:17) (d) Intangible assets ACCOUNTING POLICY (cid:55)he (cid:42)roup(cid:519)s intangi(cid:69)le asset relates to the tolling s(cid:92)nergies its o(cid:69)tained from the (cid:54)outh (cid:46)algoorlie (cid:50)peration (cid:11)(cid:522)(cid:54)(cid:46)(cid:50)(cid:523)(cid:12) ac(cid:84)uisition completed on (cid:21)(cid:28) (cid:48)arch (cid:21)(cid:19)(cid:20)(cid:27)(cid:17) (cid:55)he (cid:69)enefit re(cid:565)ects the e(cid:91)pected cost savings to the (cid:38)ompan(cid:92) of processing ore through the (cid:45)u(cid:69)ilee mill rather under toll agreements (cid:90)ith third parties(cid:17) (cid:55)he tolling (cid:69)enefits ac(cid:84)uired as part of the (cid:54)(cid:46)(cid:50) ac(cid:84)uisition has (cid:69)een recognised at fair value at the ac(cid:84)uisition date(cid:17) (cid:55)his fair value re(cid:565)ects e(cid:91)pectations a(cid:69)out the pro(cid:69)a(cid:69)ilit(cid:92) that the e(cid:91)pected future economic (cid:69)enefits em(cid:69)odied in the tolling (cid:69)enefits (cid:90)ill (cid:565)o(cid:90) to the (cid:38)ompan(cid:92)(cid:17) (cid:55)he tolling service could also (cid:69)e sold to third parties given the active tolling market locall(cid:92)(cid:17) (cid:55)he useful life of the tolling (cid:69)enefits is considered to (cid:69)e (cid:24) (cid:92)ears(cid:17) (cid:55)he amortisation on this intangi(cid:69)le asset has (cid:69)een allocated on a s(cid:92)stematic (cid:69)asis over its useful life commencing from ac(cid:84)uisition date(cid:17) Intangible assets Year ended 30 June 2018 (cid:36)c(cid:84)uisition of (cid:69)usiness (cid:11)note (cid:20)(cid:22)(cid:12) (cid:36)mortisation charge (cid:38)losing net (cid:69)ook amount As 30 June 2018 Cost (cid:36)ccumulated amortisation and impairment Total Tolling synergies $’000 (cid:20)(cid:26),(cid:20)(cid:24)(cid:25) (cid:11)(cid:27)(cid:24)(cid:27)(cid:12) (cid:20)(cid:25),(cid:21)(cid:28)(cid:27) 17,156 (cid:11)(cid:27)(cid:24)(cid:27)(cid:12) 16,298 100 2019 ANNUAL REPORT | FINANCIAL R EPOR T 101 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 9 Non-financial assets and liabilities cont’d 9 Non-financial assets and liabilities cont’d (cid:11)d(cid:12) Intangi(cid:69)le assets cont(cid:519)d ACCOUNTING POLICY CONT’D Intangible assets Year ended 30 June 2019 (cid:50)pening net (cid:69)ook amount (cid:36)mortisation charge (cid:38)losing net (cid:69)ook amount At 30 June 2019 Cost (cid:36)ccumulated amortisation and impairment Total (cid:36)mortisation e(cid:91)pense in relation to tolling (cid:69)enefit is included in costs of sales (cid:11)(cid:21)(cid:19)(cid:20)(cid:28)(cid:29) (cid:7)(cid:22)(cid:17)(cid:23) million(cid:30) (cid:21)(cid:19)(cid:20)(cid:27)(cid:29) (cid:7)(cid:19)(cid:17)(cid:28) million(cid:12) (e) Tax balances (I) CURRENT TAX ASSET/(LIABILITY) (cid:50)pening (cid:69)alance at (cid:20) (cid:45)ul(cid:92) (cid:55)a(cid:91) paid Current tax (cid:36)d(cid:77)ustment for current ta(cid:91) on prior periods Closing balance (II) DEFERRED TAX ASSETS (cid:55)he b(cid:68)(cid:79)(cid:68)n(cid:70)e (cid:70)(cid:82)(cid:80)(cid:83)r(cid:76)ses te(cid:80)(cid:83)(cid:82)r(cid:68)r(cid:92) (cid:71)(cid:76)(cid:909)eren(cid:70)es (cid:68)ttr(cid:76)b(cid:88)t(cid:68)b(cid:79)e t(cid:82)(cid:29) (cid:40)mplo(cid:92)ee (cid:69)enefits Provisions (cid:36)ccruals Financial assets at fair value through OCI (cid:48)ine properties Other Other (cid:54)hare (cid:69)ased pa(cid:92)ments Sub-total other Total deferred tax assets (cid:54)et(cid:16)o(cid:909) of deferred ta(cid:91) lia(cid:69)ilities pursuant to set(cid:16)o(cid:909) provisions Net deferred tax assets Tolling synergies $’000 (cid:20)(cid:25),(cid:21)(cid:28)(cid:27) (cid:11)(cid:22),(cid:23)(cid:22)(cid:20)(cid:12) (cid:20)(cid:21),(cid:27)(cid:25)(cid:26) 17,156 (4,289) 12,867 (cid:11)e(cid:12) (cid:55)a(cid:91) (cid:69)alances cont(cid:519)d (II) DEFERRED TAX ASSETS CONT’D Movements At 1 July 2017 (cid:11)(cid:38)harged(cid:12)(cid:18)credited (cid:16) to profit or loss (cid:16) ad(cid:77)ustments to prior (cid:92)ear (cid:16) ac(cid:84)uisition of su(cid:69)sidiar(cid:92) At 30 June 2018 (cid:11)(cid:38)harged(cid:12)(cid:18)credited (cid:16) to profit or loss (cid:16) directl(cid:92) to e(cid:84)uit(cid:92) At 30 June 2019 (III) DEFERRED TAX LIABILITIES (cid:40)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)ee benefits $’000 (cid:51)r(cid:82)(cid:89)(cid:76)s(cid:76)(cid:82)ns $’000 (cid:918)n(cid:89)est(cid:16) (cid:80)ents $’000 Mine (cid:51)r(cid:82)(cid:83)ert(cid:76)es $’000 Other $’000 Total $’000 6,357 24,549 1,979 5,937 1,768 40,590 (cid:11)(cid:20),(cid:28)(cid:26)(cid:28)(cid:12) (cid:11)(cid:21),(cid:22)(cid:21)(cid:28)(cid:12) (cid:20),(cid:27)(cid:19)(cid:25) (cid:16) (cid:22)(cid:22)(cid:24) (cid:25),(cid:27)(cid:21)(cid:23) (cid:16) (cid:26),(cid:28)(cid:23)(cid:25) 8,498 39,319 (cid:11)(cid:22)(cid:21)(cid:27)(cid:12) (cid:16) (cid:26),(cid:26)(cid:27)(cid:19) (cid:16) 8,170 47,099 (cid:16) (cid:16) - (cid:20),(cid:19)(cid:27)(cid:23) (cid:16) 1,084 (cid:16) (cid:16) (cid:28),(cid:22)(cid:21)(cid:19) (cid:23)(cid:25)(cid:26) (cid:16) 3,608 11,555 (cid:11)(cid:27)(cid:22)(cid:28)(cid:12) (cid:16) 2,769 (cid:21),(cid:27)(cid:27)(cid:20) (cid:21)(cid:23),(cid:28)(cid:23)(cid:23) 39,380 (cid:20)(cid:22),(cid:25)(cid:23)(cid:21) (cid:23)(cid:25)(cid:26) (cid:27),(cid:21)(cid:27)(cid:20) 62,980 (cid:20)(cid:19),(cid:24)(cid:26)(cid:27) (cid:21)(cid:23),(cid:28)(cid:23)(cid:23) 98,502 30 June 2019 $’000 30 June 2018 $’000 (14,959) 90,350 (70,672) 1,566 6,285 (40,811) 100,111 (73,612) (647) (14,959) 30 June 2019 $’000 30 June 2018 $’000 8,170 47,099 3,004 1,084 2,769 62,126 7,619 28,757 36,376 8,498 39,319 7,073 - 3,608 58,498 4,482 - 4,482 98,502 62,980 (98,502) (62,980) - - (cid:55)he b(cid:68)(cid:79)(cid:68)n(cid:70)e (cid:70)(cid:82)(cid:80)(cid:83)r(cid:76)ses te(cid:80)(cid:83)(cid:82)r(cid:68)r(cid:92) (cid:71)(cid:76)(cid:909)eren(cid:70)es (cid:68)ttr(cid:76)b(cid:88)t(cid:68)b(cid:79)e t(cid:82)(cid:29) (cid:51)ropert(cid:92), plant and e(cid:84)uipment Inventories (cid:40)(cid:91)ploration and evaluation (cid:48)ine properties Other Financial assets at fair value through OCI Intangible assets Other (cid:39)eferred (cid:38)onsideration received from (cid:51)lutonic (cid:54)ale Sub-total other Total deferred tax liabilities (cid:54)et(cid:16)o(cid:909) of deferred ta(cid:91) lia(cid:69)ilities pursuant to set(cid:16)o(cid:909) provisions Net deferred tax liabilities OFFSETTING WITHIN TAX CONSOLIDATED GROUP 30 June 2019 $’000 30 June 2018 $’000 30,570 5,949 59,276 65,384 3,461 5,113 56,407 51,145 161,179 116,126 2,082 60 - 750 2,892 2,199 1,089 229 471 3,988 164,071 120,114 (98,502) (62,980) 65,569 57,134 (cid:49)orthern (cid:54)tar (cid:53)esources (cid:47)imited and its (cid:90)holl(cid:92)(cid:16)o(cid:90)ned (cid:36)ustralian su(cid:69)sidiaries have applied (cid:36)ustralia(cid:519)s ta(cid:91) consolidation legislation (cid:90)hich means that the (cid:36)ustralian entities are ta(cid:91)ed as a single entit(cid:92)(cid:17) (cid:36)lso, (cid:49)orthern (cid:54)tar (cid:53)esources (cid:47)imited(cid:519)s (cid:56)(cid:54) entities are regarded as a single ta(cid:91)pa(cid:92)er in the (cid:56)(cid:54) for income ta(cid:91) purposes(cid:17) (cid:41)or accounting purposes, deferred ta(cid:91) assets and deferred ta(cid:91) lia(cid:69)ilities, relating to the same ta(cid:91)ation authorities, have (cid:69)een o(cid:909)set in the consolidated financial statements(cid:17) 102 2019 ANNUAL REPORT | FINANCIAL R EPOR T 103 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 9 Non-financial assets and liabilities cont’d 9 Non-financial assets and liabilities cont’d (cid:11)e(cid:12) (cid:55)a(cid:91) (cid:69)alances cont(cid:519)d (III) DEFERRED TAX LIABILITIES CONT’D (cid:48)(cid:82)(cid:89)e(cid:80)ents (cid:36)t (cid:20) (cid:45)ul(cid:92) (cid:21)(cid:19)(cid:20)(cid:26) (cid:38)harged(cid:18)(cid:11)credited(cid:12) (cid:16) profit or loss (cid:16) ad(cid:77)ustment to prior (cid:92)ear (cid:16) to other comprehensive income (cid:16) ac(cid:84)uisition of su(cid:69)sidiar(cid:92) (cid:11)note (cid:20)(cid:22)(cid:12) (cid:40)(cid:91)(cid:83)(cid:79)(cid:82)r(cid:68)t(cid:76)(cid:82)n and e(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)t(cid:76)(cid:82)n $’000 Mine (cid:83)r(cid:82)(cid:83)ert(cid:76)es $’000 (cid:51)r(cid:82)(cid:83)ert(cid:92)(cid:15) (cid:83)(cid:79)(cid:68)nt (cid:68)n(cid:71) e(cid:84)(cid:88)(cid:76)(cid:83)(cid:80)ent $’000 (cid:918)n(cid:89)ent(cid:82)r(cid:76)es $’000 Other $’000 Total $’000 (cid:23)(cid:19),(cid:23)(cid:19)(cid:24) (cid:23)(cid:20),(cid:20)(cid:25)(cid:26) (cid:20),(cid:23)(cid:20)(cid:20) (cid:23),(cid:19)(cid:21)(cid:22) (cid:21),(cid:28)(cid:22)(cid:19) (cid:27)(cid:28),(cid:28)(cid:22)(cid:25) (cid:11)f(cid:12) Inventories cont(cid:519)d ACCOUNTING POLICY CONT’D Current assets (cid:38)onsuma(cid:69)le stores (cid:50)re stockpiles Gold in circuit Finished goods - dore (cid:20)(cid:23),(cid:28)(cid:22)(cid:27) (cid:16) (cid:16) (cid:20),(cid:19)(cid:25)(cid:23) (cid:28),(cid:23)(cid:27)(cid:20) (cid:11)(cid:22)(cid:24)(cid:22)(cid:12) (cid:16) (cid:27)(cid:24)(cid:19) At 30 June 2018 56,407 51,145 (cid:38)harged(cid:18)(cid:11)credited(cid:12) (cid:16) profit or loss (cid:16) ad(cid:77)ustment to prior (cid:92)ear (cid:16) directl(cid:92) to e(cid:84)uit(cid:92) (cid:16) ac(cid:84)uisition of su(cid:69)sidiar(cid:92) (cid:11)note (cid:20)(cid:22)(cid:12)(cid:13) At 30 June 2019 (cid:21),(cid:27)(cid:25)(cid:28) (cid:21),(cid:21)(cid:24)(cid:20) (cid:16) (cid:16) (cid:16) 59,276 (cid:16) (cid:16) (cid:20)(cid:20),(cid:28)(cid:27)(cid:27) 65,384 (cid:11)(cid:22)(cid:28)(cid:26)(cid:12) (cid:16) (cid:16) (cid:21),(cid:23)(cid:23)(cid:26) 3,461 (cid:11)(cid:23),(cid:23)(cid:21)(cid:27)(cid:12) (cid:20),(cid:19)(cid:25)(cid:25) (cid:16) (cid:22)(cid:19),(cid:23)(cid:26)(cid:20) 30,570 (cid:28)(cid:26) (cid:16) (cid:16) (cid:28)(cid:28)(cid:22) 5,113 (cid:27)(cid:22)(cid:25) (cid:16) (cid:16) (cid:16) (cid:11)(cid:21)(cid:24)(cid:27)(cid:12) (cid:16) (cid:11)(cid:22)(cid:19)(cid:12) (cid:20),(cid:22)(cid:23)(cid:25) 3,988 (cid:11)(cid:28)(cid:27)(cid:19)(cid:12) (cid:16) (cid:11)(cid:20)(cid:20)(cid:25)(cid:12) (cid:16) (cid:21)(cid:22),(cid:27)(cid:25)(cid:20) (cid:11)(cid:22)(cid:24)(cid:22)(cid:12) (cid:11)(cid:22)(cid:19)(cid:12) (cid:25),(cid:26)(cid:19)(cid:19) 120,114 (cid:24)(cid:23)(cid:27) (cid:20),(cid:19)(cid:25)(cid:25) (cid:11)(cid:20)(cid:20)(cid:25)(cid:12) (cid:23)(cid:21),(cid:23)(cid:24)(cid:28) 5,949 2,892 164,071 (cid:13) (cid:57)ariance from (cid:69)alance to note (cid:20)(cid:22) relates to movement in foreign currenc(cid:92) rates from ac(cid:84)uisition date (cid:11)(cid:21)(cid:27) (cid:54)eptem(cid:69)er (cid:21)(cid:19)(cid:20)(cid:27)(cid:12) to (cid:92)ear end(cid:17) RECOVERY OF DEFERRED TAXES (cid:39)eferred ta(cid:91) assets are recognised onl(cid:92) if it is pro(cid:69)a(cid:69)le that future ta(cid:91)a(cid:69)le amounts (cid:90)ill (cid:69)e availa(cid:69)le to utilise those temporar(cid:92) di(cid:909)erences and losses(cid:17) (cid:39)eferred ta(cid:91) assets, including those arising from unutilised ta(cid:91) losses (cid:11)(cid:90)here applica(cid:69)le(cid:12), re(cid:84)uire management to assess the likelihood that the (cid:42)roup (cid:90)ill compl(cid:92) (cid:90)ith the relevant ta(cid:91) legislation and (cid:90)ill generate su(cid:605)cient ta(cid:91)a(cid:69)le earnings in future (cid:92)ears in order to recognise and utilise those deferred ta(cid:91) assets(cid:17) (cid:40)stimates of future ta(cid:91)a(cid:69)le income are (cid:69)ased on forecast cash (cid:565)o(cid:90)s from operations and e(cid:91)isting ta(cid:91) la(cid:90)s in each (cid:77)urisdiction(cid:17) (cid:55)hese assessments re(cid:84)uire the use of estimates and assumptions such as e(cid:91)change rates, commodit(cid:92) prices and operating performance over the life of the assets(cid:17) (cid:55)o the e(cid:91)tent that cash (cid:565)o(cid:90)s and ta(cid:91)a(cid:69)le income di(cid:909)er significantl(cid:92) from estimates, the a(cid:69)ilit(cid:92) of the (cid:42)roup to realise the deferred ta(cid:91) assets reported at the reporting date could (cid:69)e impacted(cid:17) (cid:36)dditionall(cid:92), future changes in ta(cid:91) la(cid:90)s in the (cid:77)urisdictions in (cid:90)hich the (cid:42)roup operates could limit the a(cid:69)ilit(cid:92) of the (cid:42)roup to o(cid:69)tain ta(cid:91) deductions in future (cid:92)ears(cid:17) (f) Inventories ACCOUNTING POLICY (cid:42)old (cid:69)ullion, gold in circuit and ore stockpiles are ph(cid:92)sicall(cid:92) measured or estimated and valued at the lo(cid:90)er of cost and net realisa(cid:69)le value(cid:17) (cid:38)ost represents the (cid:90)eighted average cost and includes direct purchase costs and an appropriate portion of fi(cid:91)ed and varia(cid:69)le production overhead e(cid:91)penditure, including depreciation and amortisation, incurred in converting materials into finished goods(cid:17) (cid:48)aterials and supplies are valued at the lo(cid:90)er of cost and net realisa(cid:69)le value(cid:17) (cid:36)n(cid:92) allo(cid:90)ance for o(cid:69)solescence is determined (cid:69)(cid:92) reference to specific stock items identified(cid:17) (cid:36) regular and on(cid:16)going revie(cid:90) is undertaken to esta(cid:69)lish the e(cid:91)tent of surplus items and an allo(cid:90)ance is made for an(cid:92) potential loss on their disposal(cid:17) (cid:49)et realisa(cid:69)le value is the estimated selling price in the ordinar(cid:92) course of (cid:69)usiness less the estimated costs of completion and the estimated costs necessar(cid:92) to make the sale(cid:17) (cid:50)re stockpiles (cid:90)hich are not e(cid:91)pected to (cid:69)e processed in the (cid:20)(cid:21) months after the reporting date are classified as non(cid:16)current inventor(cid:92)(cid:17) (cid:55)here is a reasona(cid:69)le e(cid:91)pectation the processing of these stockpiles (cid:90)ill have a future economic (cid:69)enefit to the (cid:42)roup and accordingl(cid:92) values these stockpiles at the lo(cid:90)er of cost and net realisa(cid:69)le value(cid:17) 30 June 2019 $’000 30 June 2018 $’000 39,613 42,526 31,492 - 113,631 17,044 33,396 31,362 2,139 83,941 (I) AMOUNTS RECOGNISED IN PROFIT OR LOSS (cid:58)rite(cid:16)do(cid:90)ns of inventories consuma(cid:69)le to net realisa(cid:69)le value amounted to (cid:7)(cid:20)(cid:17)(cid:25) million (cid:11)(cid:21)(cid:19)(cid:20)(cid:27) (cid:16) (cid:7)(cid:20)(cid:17)(cid:19) million(cid:12)(cid:17) (cid:55)hese (cid:90)ere recognised as an e(cid:91)pense during the (cid:92)ear ended (cid:22)(cid:19) (cid:45)une (cid:21)(cid:19)(cid:20)(cid:28) and included in (cid:518)cost of sales(cid:519) in profit or loss(cid:17) (g) Provisions ACCOUNTING POLICY (cid:51)rovisions are recognised (cid:90)hen the (cid:42)roup has a present legal or constructive o(cid:69)ligation as a result of past events, it is pro(cid:69)a(cid:69)le that an out(cid:565)o(cid:90) of resources (cid:90)ill (cid:69)e re(cid:84)uired to settle the o(cid:69)ligation and the amount can (cid:69)e relia(cid:69)l(cid:92) estimated(cid:17) (cid:51)rovisions are not recognised for future operating losses(cid:17) (cid:51)rovisions are measured at the present value of managements (cid:69)est estimate of the e(cid:91)penditure re(cid:84)uired to settle the present o(cid:69)ligation at the end of the reporting period(cid:17) (cid:55)he discount rate used to determine the present value is a pre(cid:16)ta(cid:91) rate that re(cid:565)ects current market assessments of the time value of mone(cid:92) and the risks specific to the lia(cid:69)ilit(cid:92)(cid:17) (cid:53)eha(cid:69)ilitation costs include the dismantling and removal of mining plant, e(cid:84)uipment and (cid:69)uilding structures, (cid:90)aste removal and reha(cid:69)ilitation of the site in accordance (cid:90)ith the re(cid:84)uirements of the mining permits(cid:17) (cid:54)uch costs are determined using estimates of future costs, current legal re(cid:84)uirements and technolog(cid:92)(cid:17) (cid:53)eha(cid:69)ilitation costs are recognised in full at present value as a non(cid:16)current lia(cid:69)ilit(cid:92)(cid:17) (cid:36)n e(cid:84)uivalent amount is capitalised as part of the cost of the asset (cid:90)hen an o(cid:69)ligation arises to decommission or restore a site to a certain condition after a(cid:69)andonment as a result of (cid:69)ringing the assets to its present location(cid:17) (cid:55)he capitalised cost is amortised over the life of the pro(cid:77)ect and the provision is accreted periodicall(cid:92) as the discounting of the lia(cid:69)ilit(cid:92) un(cid:90)inds(cid:17) (cid:55)he un(cid:90)inding of the discount is recorded as a finance cost(cid:17) (cid:36)n(cid:92) changes in the estimates for the costs or other assumptions against the cost of relevant assets are accounted for on a prospective (cid:69)asis(cid:17) In determining the costs of site restoration there is uncertaint(cid:92) regarding the nature and e(cid:91)tent of the restoration due to communit(cid:92) e(cid:91)pectations and future legislation(cid:17) (cid:40)mplo(cid:92)ee entitlements Rehabilitation Other 30 June 2019 Non- current $’000 Current $’000 Total $’000 Current $’000 30 June 2018 Non- current $’000 39,069 794 - 219,551 5,803 - 39,863 219,551 5,803 31,615 757 - 127,929 5,844 - Total $’000 32,372 127,929 5,844 44,872 220,345 265,217 37,459 128,686 166,145 104 105 9 Non-financial assets and liabilities cont’d (g) Provisions cont’d (I) EMPLOYEE ENTITLEMENTS - LEAVE OBLIGATIONS The leave obligations cover the Group’s liability for long service leave and annual leave. 10 Equity ACCOUNTING POLICY Ordinary shares are classified as equity. They entitle the holder to participate in dividends and have no par value. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. The current portion of this liability includes all of the accrued annual leave, the unconditional entitlements to long service leave where employees have completed the required period of service and also those where employees are entitled to pro-rata payments in certain circumstances. The entire amount of the annual leave provision of $19.3 million (2018 - $17.7 million) is presented as current, as the Group does not have an unconditional right to defer settlement for any of these obligations. Based on past experience, the Group does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months. The following amounts reflect leave that is not to be expected to be taken or paid within the next 12 months. 30 June 2019 $’000 30 June 2018 $’000 (a) Share capital Ordinary shares Fully paid Total share capital Current leave obligations expected to be settled after 12 months 8,008 6,784 (II) INFORMATION ABOUT INDIVIDUAL PROVISIONS AND SIGNIFICANT ESTIMATES (I) MOVEMENTS IN ORDINARY SHARES: 30 June 2019 Shares 30 June 2018 Shares 30 June 2019 $’000 30 June 2018 $’000 639,592,634 612,823,852 639,592,634 612,823,852 473,708 473,708 291,290 291,290 Rehabilitation provision The Group assesses its mine rehabilitation provision annually. Significant judgement is required in determining the provision for mine rehabilitation and closure as there are many factors that will affect the ultimate liability payable to rehabilitate the mine sites, including future disturbances caused by further development, changes in technology, changes in regulations, price increases, changes in timing of cash flows which are based on life of mine plans and changes in discount rates. When these factors change or become known in the future, such differences will impact the mine rehabilitation provision in the period in which the change becomes known. Long service leave The liability for long service leave and other long-term benefits is measured at the present value of the estimated future cash outflows to be made by the Group for those employees with greater than 5 years’ service up to the reporting date. Long-term benefits not expected to be settled within 12 months are discounted using the rates attaching to high quality corporate bonds at the reporting date, which most closely match the terms of maturity of the related liability. In determining the liability for these long-term employee benefits, consideration has been given to expected future increases in wage and salary rates, the Group’s experience with staff departures and periods of service. Related on- costs are also included in the liability. (III) MOVEMENTS IN PROVISIONS Movements in each class of provision during the financial year, other than employee entitlements, are set out below: 2019 Carrying amount at start of year - additional provisions recognised Amounts used during the year - acquired through business combination (note 13) - unwinding of discount Exchange differences Carrying amount at end of year 2018 Carrying amount at start of year - additional provisions recognised Amounts used during the year - acquired through asset acquisition - acquired through business combination - unwinding of discount Carrying amount at end of year Rehabilitation $’000 127,929 8,511 - 75,216 5,624 2,271 Other $’000 5,844 3,423 (3,464) - - - 219,551 5,803 Rehabilitation $’000 78,630 11,255 (661) 9,930 26,484 2,291 Other $’000 2,546 5,972 (2,674) - - - 127,929 5,844 Details Opening balance 1 July 2017 Employee Share Plan issues Equity issue net of transaction costs Performance Share Plan issues Exercise of options Balance 30 June 2018 Employee Share Plan issues Equity issue net of transaction costs Performance Share Plan issues Exercise of options Balance 30 June 2019 Equity issue Number of shares 600,542,315 1,462,967 9,523,810 - 1,294,760 612,823,852 140,444 26,119,402 - 508,936 Total $’000 217,811 6,765 59,810 6,298 606 291,290 1,306 171,009 9,454 649 639,592,634 473,708 On 3 September 2018, the Company issued 26,119,402 fully paid ordinary shares at an issue price of $6.70 per share as part of the settlement with Sumitomo Metal Mining Co., Ltd (85%) and Sumitomo Corporation (15%) to acquire the Pogo underground mine. Refer to note 13 of the financial statements for further details. Option and Share Plan Information relating to the Employee Option Plan, Employee Share Plan and LTI Incentive Plan including details of options issued, exercised and lapsed during the financial year, options outstanding at the end of the financial year and shares issued during the year, is set out in note 20. 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 106 RI S K This section of the notes discusses the Group’s exposure to various risks and shows how these could affect the Group’s financial position and performance. 11 Financial risk management This note explains the Group’s exposure to financial risks and how these risks could affect the Group’s future financial performance. Current year profit and loss information has been included where relevant to add further context. 107 11 Financial risk management cont’d (a) Market risk (III) PRICE RISK EXPOSURE CONT’D The Group is also exposed to equity securities price risk arising from investments held by the Group and classified in the statement of financial position as financial assets at fair value through OCI and investments accounted for using the equity method. All of the Group’s equity investments are publicly traded on the Australian Securities Exchange or TSX Venture Exchange. Risk Exposure arising from Measurement of risk How the risk is managed (b) Credit risk Market risk - foreign exchange Market risk - interest rate Market risk - security prices Future commercial transactions Cash flow forecasting Borrowings at variable rates Sensitivity analysis Net-off foreign exchange exposures and natural hedge mechanisms Fixed interest rates over term of borrowings on plant and equipment Investments in equity securities Sensitivity analysis Management of equity investments Market risk - commodity price risk Fluctuations in the prevailing market prices of gold Sensitivity analysis Gold hedging instruments Credit risk Cash and cash equivalents and trade and other receivables Aging analysis and credit ratings Diversification of bank deposits and credit risk Liquidity risk Borrowings and other liabilities Rolling cash flow forecasts Management of availability of committed borrowing facilities and maturity The Board has the overall responsibility for the establishment and oversight of the risk management framework. The Audit and Risk Management Committee is responsible for developing and monitoring risk management policies. The Committee reports regularly to the Board on its activities. Risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training, management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The Group’s Audit and Risk Management Committee oversees how management monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. (a) Market risk (I) FOREIGN EXCHANGE RISK The Group operates internationally and its exposure to foreign exchange risk is primarily the US$. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the functional currency of the relevant entity. The carrying value of financial instruments that are held in a currency other than the entities functional currency are not material. The Group’s US operations give rise to a foreign currency exposure, however the impacts of translating these entities into the Australian Dollar presentational currency are recorded through the foreign currency translation reserve in equity. (II) CASH FLOW AND FAIR VALUE INTEREST RATE RISK At reporting date the Group has minimal exposure to interest rate risk. The majority of the Group’s borrowings relate to the purchases of plant and equipment under finance lease arrangements which have fixed interest rates over their term and therefore not subject to interest rate risk as defined in AASB 7. (III) PRICE RISK Exposure The Group is exposed to the risk of fluctuations in the prevailing market prices for the gold and silver currently produced from its operating mines. The Group manages this risk through the use of gold forward contracts. These contracts are accounted for as sale contracts with revenue recognised once gold has been physically delivered into the contract. The physical gold delivery contracts are considered a contract to sell a non-financial item and therefore do not fall within the scope of AASB 9 Financial Instruments. The Group’s contractual sales commitments are disclosed in note 17. Credit risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the Group. Credit risk arises from cash and cash equivalents and credit exposures to gold sales counterparties and financial counterparties. (I) RISK MANAGEMENT The Group has adopted the policy of dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. Cash is deposited only with institutions approved by the Board, typically with a current minimum credit rating of A (or equivalent) as determined by a reputable credit rating agency e.g. Standard & Poor’s. Permitted instruments by which the Group hedges gold price risk are entered into with financial counterparties with a minimum credit of A (or equivalent). The Group has established limits on aggregate funds on term deposit or invested in money markets to be placed with a single financial counterparty and monitors credit and counterparty risk using credit default swaps. The Group sells the majority of its unhedged gold and silver to a single counterparty with settlement terms of no more than 2 days. The counterparty currently has an AA+ long term rating and AAA short term rating. The Group does not have any other significant credit risk exposure to a single counterparty or any group of counterparties having similar characteristics. (II) CREDIT QUALITY 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. Trade receivables Counterparties with external credit rating (Moody’s) AA Counterparties without external credit rating * Other Total trade receivables Cash at bank and short-term bank deposits AAA AA A * Other - counterparties with no defaults in the past (III) IMPAIRED TRADE RECEIVABLES 30 June 2019 $’000 30 June 2018 $’000 44,431 11,563 2,887 47,318 - 234,739 31,440 266,179 3,593 15,156 10,000 432,997 - 442,997 In determining the recoverability of trade and other receivables, the Group performs a risk analysis considering the type and age of the outstanding receivable and the creditworthiness of the counterparty. If appropriate, an impairment loss will be recognised in profit or loss. The Group does not have any impaired Trade and other receivables as at 30 June 2019 (2018: nil). No allowance for expected credit losses has been recognised as the duration off associated exposure is short and/or the probability of default is negligible. 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 108 109 11 Financial risk management cont’d (c) Liquidity risk The Group manages liquidity risk by monitoring immediate and forecasted cash requirements and ensures adequate cash reserves are maintained to pay debts as and when due. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. At the end of the reporting period the Group held short term on-demand cash balance of $263.1 million (2018: deposits at call of $202.0 million and on-demand cash balance of $240.9 million) that available for managing liquidity risk. Due to the dynamic nature of the underlying businesses, the Group maintains flexibility in funding by maintaining availability under committed credit facilities. Management monitors rolling forecasts of the Group’s available cash reserve (comprising the undrawn borrowing facilities below and cash and cash equivalents) on the basis of expected cash flows. The Group’s liquidity management policy involves seeking to maintain a minimum available cash of at least 30 days costs of goods sold plus net interest costs. 12 Capital management (a) Risk management The Group’s objectives when managing capital are to • safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and • maintain an optimal capital structure to reduce the cost of capital and maximise returns to Shareholders and benefits for other stakeholders. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to Shareholders, return capital to Shareholders or issue new shares. Total capital is equity, as shown in the statement of financial position. The Group is not subject to any externally imposed capital requirements. (I) FINANCING ARRANGEMENTS The Group had access to the following undrawn borrowing facilities at the end of the reporting year: (b) Dividends (I) ORDINARY SHARES Floating rate - Expiring beyond one year (financing facility) The credit facilities may be drawn at any time. Refer to note 8(e) for full details of financing facilities available to the Group. (II) MATURITIES OF FINANCIAL LIABILITIES 30 June 2019 $’000 30 June 2018 $’000 200,000 90,000 Final dividend for the year ended 30 June 2018 of 5 cents (2017: 6 cents) per fully paid share paid on 28 September 2018 (2017: 13 September 2017) Interim dividend for the year ended 30 June 2019 of 6 cents (2018: 4.5 cents) per fully paid share paid on 4 April 2019 (2018: 13 April 2018) The tables below analyse the Group’s financial liabilities into relevant maturity groupings based on their contractual maturities. (II) DIVIDENDS NOT RECOGNISED AT THE END OF THE REPORTING PERIOD The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant. Contractual maturities of financial liabilities Less than 6 months $’000 6-12 months $’000 Between 1 and 2 years $’000 Between 2 and 5 years $’000 Over 5 years $’000 Total contractual cash flows $’000 Carrying amount liabilities $’000 At 30 June 2019 Trade and other payables Finance lease liabilities Total non-derivatives At 30 June 2018 Trade and other payables Finance lease liabilities Total non-derivatives 149,710 13,216 162,926 140,073 4,411 144,484 - 13,220 13,220 - 19,437 19,437 - 3,812 3,812 - 7,209 7,209 - 4,783 4,783 - 2,853 2,853 - - - - - - 149,710 50,656 149,710 48,404 200,366 198,114 140,073 18,285 140,073 17,123 158,358 157,196 The weighted average interest rate on finance lease liabilities was 4.46% (2018: 4.55%). In addition to the above dividends, since year end the Directors have recommended the payment of a final dividend of 7.5 cents per fully paid ordinary share (2018 - 5 cents), as at 30 June 2019, fully franked based on tax paid at 30%. The aggregate amount of the proposed dividend expected to be paid on 20 November 2019 out of retained earnings at 30 June 2019, but not recognised as a liability at year end, is (III) FRANKING CREDITS At balance date the value of franking credits available (at 30%) was $208.6 million (2018: $146.6 million) GR OU P ST RU CT UR E This section provides information which will help users understand how the Group structure affects the financial position and performance of the Group as a whole. In particular, there is information about: • • • changes to the structure that occurred during the year as a result of business combinations and the disposal of a discontinued operation interests in joint operations interests in associates. A list of significant subsidiaries is provided in note 15. 30 June 2019 $’000 30 June 2018 $’000 31,973 36,190 38,367 27,143 70,340 63,333 30 June 2019 $’000 30 June 2018 $’000 47,969 30,667 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 110 111 13 Business combination ACCOUNTING POLICY The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the: fair values of the assets transferred; liabilities incurred to the former owners of the acquired business; equity interests issued by the Group; fair value of any asset or liability resulting from a contingent consideration arrangement; and fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The application of acquisition accounting requires significant judgements and estimates to be made, which are discussed further below. The Group engages independent third parties to assist with the determination of the fair value of assets acquired, liabilities assumed, non-controlling interest, if any, and goodwill, based on recognised business valuation methodologies. The income valuation method represents the present value of future cash flows over the life of the asset using: • financial forecasts, which rely on management’s estimates of reserve quantities and exploration potential, costs to produce and develop reserves, revenues, and operating expenses; • long-term growth rates; • appropriate discount rates; and • expected future capital requirements. The market valuation method uses prices paid for a similar asset by other purchasers in the market, normalised for any differences between the assets. The cost valuation method is based on the replacement cost of a comparable asset at the time of the acquisition adjusted for depreciation and economic and functional obsolescence of the asset and estimates of residual values. The Group recognises any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets. Acquisition-related costs are expensed as incurred. The excess of the consideration transferred and the amount of any non-controlling interest in the acquiree over the acquisition date fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the subsidiary acquired and the measurement of all amounts has been reviewed, the difference is recognised directly in profit or loss as a bargain purchase. If the initial accounting for the business combination is not complete by the end of the reporting period in which the acquisition occurs, an estimate will be recorded. Subsequent to the acquisition date, but not later than one year from the acquisition date, the Group will record any material adjustments to the initial estimate based on new information obtained that would have existed as of the date of the acquisition. (a) Pogo gold operations (I) SUMMARY OF THE ACQUISITION On 28 September 2018, Northern Star completed the acquisition of the Pogo gold project in Alaska from Sumitomo Metal Mining Co., Ltd (85% interest and the mine operator) and Sumitomo Corporation (15% interest) for US$260.3 million (A$360.4 million). Details of the purchase consideration and the net identifiable assets acquired are as follows: Purchase consideration Cash Paid The assets and liabilities recognised as a result of the acquisition are as follows: Cash and cash equivalents Trade and other receivables Inventories Property, plant and equipment Mine properties Trade and other payables Deferred tax liability Provision for rehabilitation Borrowings Net identifiable assets acquired $’000 360,426 Fair value $’000 9,876 3,416 40,337 317,458 140,531 (33,051) (41,272) (75,216) (1,653) 360,426 13 Business combination cont’d (a) Pogo gold operations cont’d (II) ACQUIRED RECEIVABLES The fair value of acquired trade receivables is $3.4 million. The gross contractual amount for trade receivables due is $3.4 million, of which none is expected to be uncollectible. (III) REVENUE AND PROFIT CONTRIBUTION The acquired business contributed revenues of $253.1 million and a net loss of $31.9 million to the Group for the period from 1 October 2018 - 30 June 2019. If the acquisition had occurred on 1 July 2018, consolidated pro-forma revenue and net loss for the year ended 30 June 2019 would have been $351.1 million and $42.6 million respectively. These amounts have been calculated using the subsidiary’s results and adjusting for differences in the accounting policies between the Group and the subsidiary. (b) Purchase consideration - cash outflow Outflow of cash to acquire subsidiary, net of cash acquired Cash consideration Less: Balances acquired Cash and cash equivalents Net outflow of cash - investing activities ACQUISITION-RELATED COSTS 30 June 2019 $’000 30 June 2018 $’000 360,426 9,876 350,550 - - - Acquisition-related costs of $4.6 million are included in acquisition and integration in profit or loss. We note that fair values assigned to identifiable assets and liabilities above are presented on a provisional basis. The Group will recognise any adjustments to these provisional values as a result of completing fair value accounting within 12 months following the acquisition date. (c) South Kalgoorlie Operations On 29 March 2018, the Company completed the acquisition of the South Kalgoorlie Operations from Westgold Resources Ltd. The total cash consideration paid by Northern Star was $78.3 million. Details of this acquisition were disclosed in note 13 of the Group’s annual financial statements for the year ended 30 June 2018. No adjustments were made to the fair values assigned to identifiable assets and liabilities in note 13 of the Group’s annual financial statements for the year ended 30 June 2018. 14 Asset acquisition On 23 April 2019 the Company acquired from SC Minerals America Inc, SMM Exploration Corp and Stone Boy Inc. the Stone Boy project mining claims Fog, Shaw, Skippy and Ink including the Brink exploration camp, and acquired Stone Boy Inc., for consideration of US$1.2 million. Stone Boy Inc. (together with SC Minerals America Inc. and SMM Exploration Corp), remain the current owners of the Monte Cristo Project which is subject of an Option Agreement dated 29 August 2016 with Great American Minerals Exploration Inc (GAME). GAME hold an option to purchase the Monte Cristo Project and is currently sole funding exploration expenditure on the Monte Cristo ground pursuant to its rights to purchase the Monte Cristo Project. On 28 November 2017, the Company completed the acquisition of Tanami Exploration NL from Tanami Gold NL. The total cash consideration paid by the Company was $4.0 million. The Group determined that the transaction did not constitute a business combination in accordance with AASB 3. The acquisition of the net assets meets the definition of, and has been accounted for, as an asset acquisition. Details of this acquisition were disclosed in note 14 of the Group’s annual financial statements for the year ended 30 June 2018. 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 112 113 15 Interests in other entities (a) Material subsidiaries 15 Interests in other entities cont’d (c) Interests in associates and joint ventures The Group’s principal subsidiaries at 30 June 2019 are set out below. Unless otherwise stated, they have share capital consisting solely of ordinary shares that are held directly by the Group, and the proportion of ownership interests held equals the voting rights held by the Group. The country of incorporation or registration is also their principal place of business. Ownership interest held by the Group Set out below are the associates of the Group as at 30 June 2019 which, in the opinion of the Directors, are material to the Group. The entities listed below have share capital consisting solely of ordinary shares, which are held directly by the Group. The country of incorporation or registration is also their principal place of business, and the proportion of ownership interest is the same as the proportion of voting rights held. Name of entity Northern Star Mining Services Pty Ltd Northern Star (Kanowna) Pty Ltd Kundana Gold Pty Ltd Gilt-Edged Mining Pty Ltd EKJV Management Pty Ltd Kanowna Mines Pty Ltd GKL Properties Pty Ltd Northern Star (Tanami) Pty Ltd Northern Star (Western Tanami) Pty Ltd Northern Star (South Kalgoorlie) Pty Ltd Northern Star (HBJ) Pty Ltd Country of incorporation Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Northern Star (Hampton Gold Mining Areas) Limited England & Wales Northern Star (Holdings) Pty Ltd Northern Star (Alaska) Incorporated Northern Star (Alaska) LLC Northern Star (Pogo) LLC Northern Star (Pogo Two) LLC Stone Boy Inc. Australia United States of America United States of America United States of America United States of America United States of America 2019 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 2018 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 - - - All subsidiaries above that are incorporated in Australia are each a party to a Deed of Cross Guarantee dated 14 May 2014, as varied, for the purposes of relief from the requirements for preparation, audit and lodgement of financial reports under ASIC Corporations (Wholly-owned Companies) Instrument 2016/785. For further information refer to note 23. Place of business/ country of incorporation Name of entity % of ownership interest Nature of relationship Measurement method 2018 % 2019 % 18.9 21.8 Superior Gold Inc. Canada Echo Resources Ltd Australia Total equity accounted investments 19.2 Associate (1) Equity method 14,547 22,980 11,603 15,399 - Associate (2) Equity method 19,254 - 16,258 - 27,861 15,399 Quoted fair value Carrying amount 2019 $’000 2018 $’000 2019 $’000 2018 $’000 (1) Superior Gold Inc. is a gold producer that operates the Plutonic gold mine in Western Australia. Although the Group holds less than 20% of the equity shares of Superior Gold Inc. and has less than 20% of the voting power at shareholder meetings, the Group exercises significant influence through the appointment of a Director on the board of the company. The Group also holds 13.9 million call options with a strike price of US$1.5166. (2) Echo Resources Ltd is a gold exploration company that owns the Yandal gold project in Western Australia. The Yandal gold project is located in close proximity to the Group’s existing Jundee gold mine. U NREC OGNI SED I TEMS This section of the notes provides information about items that are not recognised in the financial statements as they do not (yet) satisfy the recognition criteria. 16 Contingent liabilities (a) Contingent liabilities The Group had contingent liabilities at 30 June 2019 in respect of: (b) Joint arrangements Name of entity FMG JV Mt Clement JV East Kundana Production JV Kanowna West JV Kalbara JV West Kundana JV Zebina JV Acra JV Robertson JV Cheroona JV Principal Activities Exploration Exploration Exploration & Production Exploration Exploration Exploration Exploration Exploration Exploration Exploration Ownership interest held by the group 2019 % 66.49 20.00 51.00 89.91 71.17 75.50 80.00 75.00 40.00 30.00 2018 % 65.90 20.00 51.00 87.70 67.34 75.50 80.00 20.00 40.00 49.00 On 31 July 2015, Northern Star Resources Ltd (“NSR”), completed settlement with Tanami Gold NL (“TAM”) to progressively acquire a 60% interest in the Central Tanami Project (“CTP”). As part of the acquisition, NSR has granted TAM two put options to sell the remaining 40% interest in the CTP following completion. The first put option grants TAM the right to sell 15% of CTP for $20 million in cash or NSR shares at TAM’s election, at any time from completion up until three years after the completion of the initial acquisition. If commercial production is achieved more than three years after completion, TAM may exercise this option at any time up to 30 calendar days following achievement of commercial production. The second put option grants TAM the right to sell 25% of CTP for $32 million in cash or NSR shares at TAMs election at any time from completion up to six calendar months after the achievement of commercial production. On 27 June 2018, TAM announced its intention to exercise the first put option on or immediately prior to 31 July 2018 in accordance with the terms of the joint venture agreement between TAM and the Company. As such, the Company had recognised a $20 million payable as at 30 June 2018. Refer to note 4 for further details. On 31 July 2018, TAM exercised the first put option under the joint venture agreement. The total undiscounted amount of payments that the Group could be required to make to TAM upon the exercise of the second put option is $32 million. The joint arrangements listed above are classified as joint operations and are not separate legal entities. They are contractual arrangements between participants for the sharing of costs and outputs and do not themselves generate revenue and profit. The joint operations 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 operations are accounted for in accordance with the Group’s accounting policy set out in note 25. 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 114 115 17 Commitments (a) Capital commitments Significant capital expenditure contracted for at the end of the reporting year but not recognised as liabilities is as follows: OT HER I NF ORMA TI ON This section of the notes includes other information that must be disclosed to comply with the accounting standards and other pronouncements, but that is not immediately related to individual line items in the financial statements. Property, plant and equipment (b) Non-cancellable operating leases 30 June 2019 $’000 30 June 2018 $’000 23,387 22,005 19 Related party transactions (a) Subsidiaries Interests in subsidiaries are set out in note 15(a). (b) Key management personnel compensation The Group leases various offices and equipment under non-cancellable operating leases expiring within two to ten years. The leases have varying terms, escalation clauses and renewal rights. On renewal, the terms of the leases are renegotiated. Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: Within one year Later than one year but not later than five years Later than five years (c) Gold delivery commitments Australian dollar gold delivery commitments as at 30 June 2019 were as follows: Within one year Later than one year but not later than five years US dollar gold delivery commitments as at 30 June 2019 were as follows: Within one year Later than one year but not later than five years 18 Events occurring after the reporting period Subsequent to the period ended 30 June 2019 the Company announced: 30 June 2019 $’000 30 June 2018 $’000 21,271 21,051 11,916 54,238 21,942 6,783 7,079 35,804 Gold for physical delivery (Ounces) 158,798 160,000 Gold for physical delivery (Ounces) 42,500 - Weighted average contracted sales price (A$) Value of committed sales (A$000s) 1,799 1,841 285,652 294,531 Weighted average contracted sales price (US$) Value of committed sales (US$000s) 1,284 - 54,551 - • a final fully franked dividend of 7.5 cents per share to Shareholders on the record date of 30 October 2019, payable on 20 November 2019; and • on 1 July 2019, the Company announced the appointment of two Non-Executive Directors, Mary Hackett and Nick Cernotta. Short-term employee benefits Employee entitlements Post-employment benefits Share-based payments 30 June 2019 $’000 30 June 2018 $’000 3,889,933 3,620,232 304,009 216,308 198,836 201,888 3,620,865 2,491,364 8,031,115 6,512,320 (c) Transactions with other related parties (I) PURCHASES FROM ENTITIES CONTROLLED BY KEY MANAGEMENT PERSONNEL The Company has in place policies and procedures which govern transactions involving KMPs and their related parties, and these policies and procedures restrict the involvement of the KMP or related party in the negotiation, awarding or direct management of the resultant contract. In the Company’s 2017 Annual Report, specifically Note 18 to the Consolidated Financial Statements, the Company reported that the beneficial minority interest held by Mr Beament in AUD Pty Ltd, the sole Shareholder of Australian Underground Drilling Pty Ltd (AUD), being a supplier of goods and services to the Company, did not require reporting under the Accounting Standards. For the purposes of the 2019 Annual Report, the Company is of the same view, having applied the necessary criteria under the Australian Accounting Standards for FY2019. The Company’s policies and procedures continue to apply to ensure that Mr Beament is not involved in the negotiation, awarding of contracts or direct management of the contract with AUD. Mr Beament’s continued Shareholding in AUD also remains the subject of regular review by the independent Directors. They recognise that, notwithstanding the position under the Australian Accounting Standards, good corporate governance would normally be exhibited by the absence of a key executive holding a 23% interest in a drilling contract with a material supplier to the Company. AUD is a material supplier due to the aggregate total of fees paid, the nature of the services provided to the Company by the supplier, and the place the supplier has in the Company’s risk mitigation strategy, in seeking to maintain diversity amongst its suppliers where it is commercially feasible to do so, to ensure that there is no reliance by the Company on one supplier for a particular service across all the Company’s operations. The independent Directors’ unanimous view remains that the continuing contractual relationship between the Company and AUD is more beneficial to the Company than terminating the contract would be. The results of the multiple party tender process conducted in FY18 demonstrated that there was no comparable supplier with the capacity at the time of tender to provide the services to the Company’s Kalgoorlie Operations for the same quality, productivity rates and price offered by AUD. Further, the selection of AUD was and remains consistent with the Company-wide risk mitigation strategy in striving for diversity in its supply chain, having regard to the other suppliers providing underground diamond drilling services to the Company’s other operations (in which Mr Beament has no shareholding or other basis for inferring a significant influence). The addition of Pogo has increased the diversity and improved the risk mitigation strategy further The following transaction occurred with relates parties: Shirley In’tVeld: • is a board member of CSIRO. During the year, a revenue amount of $177,678 was paid to this business for consulting services provided at normal commercial rates (2018: $75,000). 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 116 117 20 Share-based payments (a) Employee Option Plan 20 Share-based payments cont’d (d) Performance Rights cont’d Set out below are summaries of options granted under the Employee Option Plan: The model inputs for performance rights granted on 30 July 2018 included: As at 1 July Exercised during the year * Forfeited during the year Cancelled during the year As as 30 June 2019 2018 Average exercise price per Share option 2.18 2.18 2.18 - - Average exercise price per Share option 1.58 1.28 - 2.18 2.18 Number of options 758,688 (714,668) (44,020) - - Number of options 2,673,638 (1,791,241) - (123,709) 758,688 (a) Exercise price (b) Grant date (c) Expiry date (d) Share price at grant date (e) Expected volatility of the company’s shares (f) Expected dividend yield (g) Risk-free interest rate Tranche A Tranche B Nil 30-Jul-18 30-Jul-24 $7.13 20% 1.59% 2.09% Nil 30-Jul-18 30-Jul-24 $7.13 35% 1.59% 2.09% The weighted average share price at the date of exercise of options exercised during the year ended 30 June 2019 was $7.049 [2018 - $4.414). There were no share options outstanding at the end of the year (2018: 758,688 share options with an exercise price of $2.18 and an expiry date of 31 July 2018) The expected volatility is based on the historic volatility (based on the remaining life of the performance rights). Total performance rights on issue at 30 June 2019 is 10,198,000 (2018: 10,047,140). Total share based payments expense for the year ended 30 June 2019 was $8.4 million (2018: $11.4 million) (b) Employee Share Plan 21 Remuneration of auditors Under the Employee Share Plan, eligible employees may be granted up to $1,000 of fully paid ordinary shares in the Company annually for no cash consideration. The number of shares issued to participants in the scheme is the offer amount divided by the weighted average price at which the Company’s shares are traded on the ASX during the week up to and including the date of grant. The fair value of shares issued during the year was $9.38 (2018: $6.33) per share. During the year the following fees were paid or payable for services provided by the auditor of the parent entity, its related practices and non-related audit firms: (a) Deloitte Touche Tohmatsu 2019 2018 (I) AUDIT AND OTHER ASSURANCE SERVICES Number of shares issued under the plan to participating employees on 24 May 2019 (2018: 13 June) 137,786 144,754 (c) Performance Share Plan No performance shares were issued in FY2019. Total performance shares on issue at 30 June 2019 is 1,091,001 (2018: 5,031,535), with a corresponding total non-recourse loan value of $1,176,511 (2018: $7,542,509). (d) Performance Rights On 30 July 2018, 404,990 Category B performance rights were issued to the senior management of the Company. During the year, 26,330 of these Category B performance rights were cancelled. Balance on issue as at 30 June 2019 in relation to FY2019 issue is 378,660. The Company may issue performance rights to one or more eligible employee under the Long Term Incentive Plan. A performance right is a conditional right which, upon the satisfaction or waiver of the relevant vesting conditions, and, if required by the Company the exercise of that right, entitles its holder to received one share. The assessed fair value at grant date of the performance rights granted during the year ended 30 June 2019 was $3.361. The fair value at grant date is independently determined using a Monte Carlo simulation model (market based vesting conditions) and a Black Scholes Model (non market vesting conditions) that takes into account the term of the performance rights, the impact of dilution (where material), the share price at grant date and expected volatility of the underlying share, the expected dividend yield, the risk-free rate for the term of the performance right and the correlations and volatilities of the peer group companies. Audit and review of financial statements Other assurance services Other Total remuneration for audit and other assurance services (II) OTHER SERVICES Other assurance and advisory services Total remuneration for other services 30 June 2019 $ 30 June 2018 $ 371,864 306,200 31,500 403,364 - - 39,500 345,700 14,600 14,600 Total remuneration of Deloitte Touche Tohmatsu Australia 403,364 360,300 (b) Network firms of Deloitte Touche Tohmatsu (I) AUDIT AND OTHER ASSURANCE SERVICES Audit and review of financial statements Total remuneration of network firms of Deloitte Touche Tohmatsu Australia Total auditors’ remuneration 135,960 135,960 539,324 - - 360,300 It is the Group’s policy to employ Deloitte Touche Tohmatsu on assignments additional to their statutory audit duties where Deloitte Touche Tohmatsu expertise and experience with the Group are important. These assignments are principally tax advice and due diligence reporting on acquisitions, or where Deloitte Touche Tohmatsu is awarded assignments on a competitive basis. It is the Group’s policy to seek competitive tenders for all major consulting projects. 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 118 119 22 Earnings per share Basic earnings per share is calculated by dividing: • the profit attributable to owners of the Company • by the weighted average numbers of ordinary shares outstanding during the financial year, excluding treasury shares. Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account: • • the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. (a) Basic earnings per share 23 Deed of cross guarantee The Australian incorporated subsidiaries detailed in note 1 are each a party to a Deed of Cross Guarantee dated 14 May 2014, as varied (Deed), and have the benefit of ASIC relief from the requirements to prepare and lodge with ASIC audited financial reports in accordance with Part 2M.3 of the Corporations Act, pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 dated 17 December 2016 (Instrument). Under the Deed, each entity in the Group guarantees to each creditor payment in full of any debt in the event of winding up of any of the entities under certain provisions of the Corporations Act. In the event of a winding up of an entity under other provisions of the Corporations Act, the other entities in the Group will only be liable to make up any shortfall of funds if after six months any creditor has not been paid in full. The effect of the covenants given by the entities under the Deed is to make the Company Group akin to a single legal entity from a financial perspective. The Deed was varied on 21 May 2019 to comply with updated ASIC Pro Forma 24 issued on 28 September 2016, and the following subsidiaries were joined to the Deed by way of Assumption Deed dated 21 May 2019: Total basic earnings per share attributable to the ordinary equity holders of the Company 24.4 32.1 30 June 2019 Cents 30 June 2018 Cents • Northern Star (Western Tanami) Pty Limited; • Northern Star (South Kalgoorlie) Pty Ltd; • Northern Star (HBJ) Pty Ltd; and • Northern Star (Holdings) Pty Ltd. (b) Diluted earnings per share Total diluted earnings per share attributable to the ordinary equity holders of the Company 24.0 31.5 (c) Reconciliation of earnings used in calculating earnings per share 30 June 2019 Cents 30 June 2018 Cents (a) Consolidated income statement, statement of comprehensive income and summary of movements in consolidated retained earnings Set out below is a consolidated statement of profit or loss, a Consolidated Statement of Profit or Loss and Other Comprehensive Income and a summary of movements in consolidated retained earnings for the year ended 30 June 2019, comprising the Company and its subsidiaries which are a party to the Deed, after eliminating all transactions between parties to the Deed. 30 June 2019 $’000 30 June 2018 $’000 CONSOLIDATED STATEMENT OF PROFIT OR LOSS Basic earnings per share Profit/(loss) attributable to the ordinary equity holders of the Company used in calculating basic earnings per share: From operations Diluted earnings per share Profit attributable to the ordinary equity holders of the Company Used in calculating basic earnings per share (d) Weighted average number of shares used as the denominator Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share Adjustments for calculation of diluted earnings per share: Options Performance rights Weighted average number of ordinary and potential ordinary shares used as the denominator in calculating diluted earnings per share 154,711 194,113 154,711 194,113 2019 Number 2018 Number 634,560,508 604,546,244 - 758,688 10,198,000 10,047,140 644,758,508 615,352,072 Revenue Other income Cost of sales Other expenses from ordinary activities Finance costs Share of net profits of associates and joint ventures accounted for using the equity method Profit before income tax Income tax expense Profit for the year CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Profit for the year Other comprehensive income Financial assets at fair value through OCI Share of other comprehensive income of associates and joint ventures Income tax relating to components of other comprehensive income Other comprehensive income for the year, net of tax Total comprehensive income for the year 30 June 2019 $’000 30 June 2018 $’000 1,148,108 2,916 964,025 8,749 (824,951) (620,723) (66,329) (8,698) (3,530) 247,516 (72,008) 175,508 (62,671) (2,846) (1,371) 285,163 (83,659) 201,504 30 June 2019 $’000 30 June 2018 $’000 175,508 201,504 (12,134) 232 116 (11,786) (100) (218) 30 (288) 163,722 201,216 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 120 121 23 Deed of cross guarantee cont’d 23 Deed of cross guarantee cont’d (a) Consolidated income statement, statement of comprehensive income and summary of movements (b) Consolidated Statement of Financial Position cont’d in consolidated retained earnings cont’d SUMMARY OF MOVEMENTS IN CONSOLIDATED RETAINED EARNINGS Retained earnings at the beginning of the financial year* Profit for the period Dividends provided for or paid Retained earnings at the end of the financial year 30 June 2019 $’000 30 June 2018 $’000 515,044 175,508 (70,340) 620,212 383,978 201,504 (63,333) 522,149 * Variance in opening retained earnings for the financial year ended 30 June 2019 is due to the addition to the deed of the four subsidiaries mentioned above. (b) Consolidated Statement of Financial Position Set out below is a Consolidated Statement of Financial Position as at 30 June 2019 of the closed group consisting of Northern Star Resources Limited the above mentioned entities. Current assets Cash and cash equivalents Trade and other receivables Inventories Current tax asset Total current assets Non-current assets Trade and other receivables Investments accounted for using the equity method Investment in subsidiaries Financial assets at fair value through OCI Exploration and evaluation assets Property, plant and equipment Mine properties Derivative financial instruments Intangible assets Total non-current assets Total assets 30 June 2019 $’000 30 June 2018 $’000 234,739 60,337 89,224 6,285 442,995 29,143 57,837 - 390,585 529,975 31,016 27,861 360,426 23,027 247,211 178,609 215,550 1,333 12,867 94,946 19,399 - 42,132 172,450 109,790 199,722 5,712 - 1,097,900 644,151 1,488,485 1,174,126 Current liabilities Trade and other payables Borrowings Current tax liabilities Provisions Total current liabilities Non-current liabilities Borrowings Deferred tax liabilities Provisions Total non-current liabilities Total liabilities Net assets Equity Contributed equity Reserves Retained earnings Total equity 30 June 2019 $’000 30 June 2018 $’000 115,901 19,043 - 36,507 171,451 17,439 35,079 138,876 191,394 125,868 7,610 14,959 37,459 185,896 9,513 58,716 91,174 159,403 362,845 345,299 1,125,640 828,827 473,708 31,720 620,212 1,125,640 291,290 15,388 522,149 828,827 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 122 123 24 Parent entity financial information (a) Summary financial information The individual financial statements for the parent entity show the following aggregate amounts: 24 Parent entity financial information cont’d (e) Determining the parent entity financial information cont’d (II) TAX CONSOLIDATION LEGISLATION CONT’D 30 June 2019 $’000 30 June 2018 $’000 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. BALANCE SHEET Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Shareholders’ equity Issued capital Reserves Financial assets at fair value through OCI Share-based payments Share of other comprehensive income of associates and joint ventures accounted for using the equity method Retained earnings Profit for the year Total comprehensive income 291,609 702,319 993,928 (61,060) (310,897) (371,957) 451,814 306,527 758,340 (69,608) (402,188) (471,796) 473,708 291,290 (6,601) 38,549 59 116,256 5,417 10,144 (173) (20,134) 621,971 286,544 325,081 68,132 312,830 67,844 (b) Guarantees entered into by the parent entity Refer to note 23 for details of guarantees entered into by the parent entity in relation to the debts of its subsidiaries. (c) Contingent liabilities of the parent entity Refer to note 16 for details of contingent liabilities relating to the parent entity as at 30 June 2019 or 30 June 2018. For information about guarantees given by the parent entity, please see above. (d) Contractual commitments for the acquisition of property, plant or equipment Refer to note 17 for commitments of the Group for the acquisition of property, plant and equipment as at 30 June 2019 or 30 June 2018. The entities have also entered into a tax funding agreement under which the wholly-owned entities fully compensate Northern Star Resources Limited for any current tax payable assumed and are compensated by Northern Star Resources Limited for any current tax receivable and deferred tax assets relating to unused tax losses or unused tax credits that are transferred to Northern Star Resources Limited under the tax consolidation legislation. The funding amounts are determined by reference to the amounts recognised in the wholly- owned entities’ financial statements. The amounts receivable/payable under the tax funding agreement are due upon receipt of the funding advice from the head entity, which is issued as soon as practicable after the end of each financial year. The head entity may also require payment of interim funding amounts to assist with its obligations to pay tax instalments. Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as current amounts receivable from or payable to other entities in the Group. Any difference between the amounts assumed and amounts receivable or payable under the tax funding agreement are recognised as a contribution to (or distribution from) wholly-owned tax consolidated entities. 25 Summary of significant accounting policies This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements to the extent they have not already been disclosed in the other notes above. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the Group consisting of Northern Star Resources Limited and its subsidiaries. (a) Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. Northern Star Resources Limited is a for-profit entity for the purpose of preparing the financial statements. (I) COMPLIANCE WITH IFRS Compliance with Australian Accounting Standards ensures that the financial statements and notes of the Company and the Group complies with international financial reporting standards (IFRS). (II) HISTORICAL COST CONVENTION The financial statements have been prepared on a historical cost basis, except for the following: • financial assets at fair value through other comprehensive income, financial assets and liabilities (including derivative instruments); and (e) Determining the parent entity financial information (III) NEW AND AMENDED STANDARDS ADOPTED BY THE GROUP The financial information for the parent entity, Northern Star Resources Limited, has been prepared on the same basis as the consolidated financial statements, except as set out below. The Group 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. (I) INVESTMENTS IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE ENTITIES Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the financial statements of Northern Star Resources Limited. (II) TAX CONSOLIDATION LEGISLATION Northern Star Resources Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation. The head entity, Northern Star Resources Limited, and the controlled entities in the tax consolidated Group account for their own current and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated Group continues to be a stand-alone taxpayer in its own right. Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Any significant impact of the accounting policies of the Group 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 Group. (IV) NEW STANDARDS AND INTERPRETATIONS NOT YET ADOPTED Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2019 reporting periods and have not been early adopted by the Group. The Group’s assessment of the impact of these new standards and interpretations is set out below. 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 124 125 25 Summary of significant accounting policies cont’d 25 Summary of significant accounting policies cont’d (a) Basis of preparation cont’d (b) Principles of consolidation cont’d (IV) NEW STANDARDS AND INTERPRETATIONS NOT YET ADOPTED CONT’D (II) JOINT ARRANGEMENTS (CONTINUED) JOINT OPERATIONS Title of standard AASB 16 Leases Nature of change AASB 16 was issued in February 2016. It will result in almost all leases being recognised on the Consolidated Statement of Financial Position by lessees, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. The only exceptions are short-term and low-value leases. Impact The Group has set up a project team which reviewed all of the Group’s leasing arrangements over the last year in light of the new lease accounting rules in AASB 16. The standard will affect primarily the accounting for the Group’s operating leases. As at the reporting date, the Group has non-cancellable operating lease commitments of $54.2 million, see note 16. Of these commitments, approximately $1.4 million relate to short-term and low value leases which will both be recognised on a straight-line basis as expense in profit or loss. For the remaining lease commitments the Group expects, on 1 July 2019, to recognise right-of-use assets of approximately $52.0 million, lease liabilities of $54.4 million (after adjustments for prepayments and accrued lease payments recognised as at 30 June 2019) and deferred tax assets of $0.7 million. Overall net assets will be approximately $1.6 million lower, and net current assets will be $22.3 million lower due to the presentation of a portion of the liability as a current liability. The Group expects that net profit after tax will decrease by approximately $1.2 million for 2020 as a result of adopting the new rules. Adjusted EBITDA used to measure segment results is expected to increase by approximately $25.2 million, as the operating lease payments were included in EBITDA, but the amortisation of the right-of-use assets and interest on the lease liability are excluded from this measure. Northern Star Resources Limited Limited recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the financial statements under the appropriate headings. Details of the joint operation are set out in note 16(b). (III) CHANGES IN OWNERSHIP INTERESTS The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in a separate reserve within equity attributable to owners of Northern Star Resources Limited. When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognised in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss. (c) Foreign currency translation (I) FUNCTIONAL AND PRESENTATION CURRENCY Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Australian dollar ($), which is Northern Star Resources Limited’s functional and presentation currency. Operating cash flows will increase and financing cash flows decrease by approximately $23.9 million as repayment of the principal portion of the lease liabilities will be classified as cash flows from financing activities. (d) Impairment of assets Mandatory application date/ Date of adoption by Group The Group will apply the standard from its mandatory adoption date of 1 July 2019. The Group intends to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption. Right-of-use assets for property leases will be measured on transition as if the new rules had always been applied. All other right-of-use assets will be measured at the amount of the lease liability on adoption (adjusted for any prepaid or accrued lease expenses). There are no other standards that are not yet effective and that would be expected to have a material impact on the entity in the current or future reporting years and on foreseeable future transactions. (b) Principles of consolidation (I) SUBSIDIARIES Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains and losses on transactions between Group companies are eliminated. The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Northern Star Resources Limited (‘Company’ or ‘parent entity’) as at 30 June 2019 and the results of all subsidiaries for the year then ended. Northern Star Resources Limited and its subsidiaries together are referred to in this financial report as the Group or the consolidated entity. (II) JOINT ARRANGEMENTS Under AASB 11 Joint Arrangements investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. Northern Star Resources Limited has only joint operations. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. At each reporting date, the Group reviews the carrying amounts of its tangible and other intangible assets to determine whether there is any indication that those assets might be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any) which is the amount by which the assets carrying value exceeds its recoverable amount. Where the asset does not generate cash in-flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit (CGU) to which the asset belongs. The recoverable amount is the higher of fair value less costs to sell (FVLCS) and value in use. 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 for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognised in profit or loss immediately. Where an impairment loss subsequently reverses for assets other than goodwill, the carrying amount of the asset (or CGU) is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or CGU) in prior years. A reversal of an impairment loss is recognised in profit or loss immediately. Estimates of quantities of recoverable minerals, production levels, operating costs and capital requirements are sourced from out planning process, including the LOM plans, five-year plans, one-year budgets and CGU-specific studies. The determination of FVLCS for each CGU are considered to be Level 3 fair value measurements in both years, as they are derived from valuation techniques that include inputs that are not based on observable market data. The Group considers the inputs and the valuation approach to be consistent with the approach taken by market participants. 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS126 127 25 Summary of significant accounting policies cont’d 25 Summary of significant accounting policies cont’d (g) Rounding of amounts The Company is of a kind referred to ASIC Legislative Instrument 2016/191, relating to the ‘rounding off’ of amounts in the financial statements. Amounts in the financial statements have been rounded off in accordance with the instrument to the nearest thousand dollars, or in certain cases, the nearest dollar. (h) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the Statement of Financial Position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows. (e) Investments and other financial assets (I) CLASSIFICATION From 1 July 2018, the Group classifies its financial assets in the following measurement categories: • • those to be measured subsequently at fair value (either through OCI or through profit or loss), and those to be measured at amortised cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI). The Group reclassifies debt investments when and only when its business model for managing those assets changes. (II) MEASUREMENT At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. DEBT INSTRUMENTS Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments: • Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains/(losses) together with foreign exchange gains and losses. Impairment losses are presented as separate line item in the consolidated statement of profit or loss. • • FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/(losses). Interest income from these financial assets is included in finance income using the effective interest rate method. Foreign exchange gains and losses are presented in other gains/(losses) and impairment expenses are presented as separate line item in the consolidated statement of profit or loss. FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. A gain or loss on a debt investment that is subsequently measured at FVPL is recognised in profit or loss and presented net within other gains/(losses) in the period in which it arises. EQUITY INSTRUMENTS The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognised in profit or loss as other income when the Group’s right to receive payments is established. Changes in the fair value of financial assets at FVPL are recognised in other gains/(losses) in the consolidated statement of profit or loss as applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value. (III) IMPAIRMENT From 1 July 2018, the Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortised cost and FVOCI. The Group applies the simplified approach permitted by AASB 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables. 2019 ANNUAL REPORT | FINANCIAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 128 2019 (cid:36)(cid:49)(cid:49)(cid:56)(cid:36)(cid:47) (cid:53)(cid:40)(cid:51)(cid:50)(cid:53)(cid:55) (cid:95) I(cid:49)(cid:39)(cid:40)(cid:51)(cid:40)(cid:49)(cid:39)(cid:40)(cid:49)(cid:55) (cid:36)(cid:56)(cid:39)I(cid:55) (cid:50)(cid:53)(cid:519)(cid:54) (cid:53)(cid:40)(cid:51)(cid:50)(cid:53)(cid:55) 129 DIRECTORS’ DECLARATION In the (cid:39)irectors(cid:519) opinion(cid:29) (cid:11)a(cid:12) (cid:55)he financial statements and notes set out on pages (cid:26)(cid:23) to (cid:20)(cid:22)(cid:22) are in according (cid:90)ith the Corporations Act 2001, including(cid:29) (cid:11)i(cid:12) (cid:38)ompl(cid:92)ing (cid:90)ith (cid:36)ccounting (cid:54)tandards, the (cid:38)orporations (cid:53)egulations (cid:21)(cid:19)(cid:19)(cid:20) and other mandator(cid:92) professional reporting re(cid:84)uirements, and (cid:11)ii(cid:12) (cid:42)iving a true and fair vie(cid:90) of the consolidated entit(cid:92)(cid:519)s financial position as at (cid:21)(cid:19) (cid:45)une (cid:21)(cid:19)(cid:20)(cid:28) and of its performance for the (cid:92)ear ended on that date, and (cid:11)(cid:69)(cid:12) (cid:55)here are reasona(cid:69)le grounds to (cid:69)elieve that the (cid:38)ompan(cid:92) (cid:90)ill (cid:69)e a(cid:69)le to pa(cid:92) its de(cid:69)ts as and (cid:90)hen the(cid:92) (cid:69)ecome due and pa(cid:92)a(cid:69)le, and (cid:11)c(cid:12) (cid:36)t the date of this declaration, there are reasona(cid:69)le grounds to (cid:69)elieve that the mem(cid:69)ers of the e(cid:91)tended closed group identified in note (cid:21)(cid:22) (cid:90)ill not (cid:69)e a(cid:69)le to meet an(cid:92) o(cid:69)ligations or lia(cid:69)ilities to (cid:90)hich the(cid:92) are, or ma(cid:92) (cid:69)ecome, su(cid:69)(cid:77)ect (cid:69)(cid:92) the virtue of the deed of cross guarantee described in note 23. (cid:49)ote (cid:21)(cid:24)(cid:11)a(cid:12) confirms that the financial statements also compl(cid:92) (cid:90)ith International (cid:41)inancial (cid:53)eporting (cid:54)tandards as issued (cid:69)(cid:92) the International (cid:36)ccounting (cid:54)tandards (cid:37)oard(cid:17) (cid:55)he (cid:39)irectors have (cid:69)een given the declarations (cid:69)(cid:92) the (cid:38)hief (cid:40)(cid:91)ecutive (cid:50)(cid:605)cer and (cid:38)hief (cid:41)inancial (cid:50)(cid:605)cer re(cid:84)uired (cid:69)(cid:92) section (cid:21)(cid:28)(cid:24)(cid:36) of the Corporations Act 2001. (cid:55)his declaration is made in accordance (cid:90)ith a resolution of (cid:39)irectors(cid:17) BILL BEAMENT (cid:40)(cid:91)ecutive (cid:38)hairman (cid:21)(cid:25) (cid:36)ugust (cid:21)(cid:19)(cid:20)(cid:28) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS 7 S r 2 t G W B W , B 6 x A 6 T 4 1 T 0 P s T A 7 7 : + : + 8 8 9 9 Independent Auditor’s Report to the members of Northern Star Resources Limited Report on the Audit of the Financial Report Opinion We have audited the financial report of Northern Star Resources Limited (the “Company”) and its subsidiaries (the “Group”) which comprises the consolidated statement of financial position as at 30 June 2019, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity, and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant information, and the directors’ declaration. accounting policies and other explanatory In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Group’s financial position as at 30 June 2019 and of its financial performance for the year then ended; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. y l b y a s a r o f D A P c L u a r P t D l S N s L L i a b i l i t i m i t e d c h e m e p p r o v e d n d e r o f e s s i o n a t a n d a r d e g i s l a t i o n . M e m b e e l o i t t e s i a a c i f i i m i t e d n d h e e l o i t t e e t w o r k . D e l o i t t e o u c h e o h m a t s u A B N 4 9 0 2 1 6 0 T o w e r o o k f i e l d l a c e 1 2 3 e o r g e e r r a c e P e r t h A 0 0 0 G P O o 4 6 P e r t h A 8 3 7 u s t r a l i a T e l 6 1 3 6 5 0 0 0 F a x 6 1 3 6 5 0 0 1 w w w . d e l o i t t e . c o m . a u 130 2019 (cid:36)(cid:49)(cid:49)(cid:56)(cid:36)(cid:47) (cid:53)(cid:40)(cid:51)(cid:50)(cid:53)(cid:55) (cid:95) I(cid:49)(cid:39)(cid:40)(cid:51)(cid:40)(cid:49)(cid:39)(cid:40)(cid:49)(cid:55) (cid:36)(cid:56)(cid:39)I(cid:55) (cid:50)(cid:53)(cid:519)(cid:54) (cid:53)(cid:40)(cid:51)(cid:50)(cid:53)(cid:55) 131 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS Accounting for mine properties Key Audit Matter How the scope of our audit responded to the Key Audit Matter Acquisition Operations Accounting – Pogo Effective 28 September 2018, the Group acquired the Pogo Operations for a total consideration of $360.426 million. Further details of the key assumptions applied by management as part of the acquisition accounting, by material asset class is disclosed in Note 13. Judgement is required by management in assessing the fair values of identifiable assets and liabilities including: assumptions relating to forecast cash flows, including ore volumes and grades, life of mine, operating costs and gold price; assumptions relating to the useful lives and residual values applicable to plant and equipment; timing and quantum of deferred taxes; scope and quantum of costs, and timing activities; and calculation of discount rates applied to each valuation. rehabilitation the of Our procedures, performed in conjunction with our valuation specialists, included but were not limited to: liabilities associated with reviewing the purchase contract to understand the nature of the entities being acquired and the consideration payable for the acquisition; obtaining a copy of the external valuation report to assess the determination of the fair values of the assets and the acquisition; assessing the independence, competence and objectivity of experts used by management; assessing the identification of assets and liabilities acquired, and the methodologies and assumptions utilised by management and their experts in relation to the following: the appropriateness of Property, plant and equipment: assessing key assumptions for reasonableness including residual values of the assets and life of mine; Mine properties: assessing assumptions for reasonableness, such as life of mine, gold price, processing costs, grades and ore volumes, as well as the method used in determining the fair values; Rehabilitation Provision: agreeing rehabilitation cost estimates to underlying support, which included reports from external experts; Taxation: assessing the calculation of tax and the recognition of deferred taxes. Assessing the weighted average return on assets (WARA) analysis for reasonableness that was performed by management’s external expert to check the allocation between property, plant and equipment and mine properties; Evaluating discount rates used by assessing the cost of capital applied in each valuation by comparing them to market data and industry research. We also assessed the appropriateness of the disclosures included in Note 13 to the financial statements. As at 30 June 2019 the carrying value of mine properties amounts to $356.361 million as disclosed in Note 9(c). During the year the Group incurred $144.604 million of to mine capital expenditure properties related amortisation expenses of $165.340 million. related recognised and The accounting for underground mining operations includes a number of estimates and judgements, including: the allocation of mining costs between operating and capital expenditure; and the units of determination of production used to amortise mine properties. A key driver of the allocation of costs between operating and capital expenditure is the physical mining data associated with the different underground mining activities including the development of declines, lateral and vertical development, as well as capital non-sustaining costs. Rehabilitation provision As at 30 June 2019 a rehabilitation provision of $219.551 million has been recognised as disclosed in Note 9(g). Judgement is required in the determination of the rehabilitation provision, including: assumptions relating to the manner rehabilitation will be in which undertaken, scope and quantum of costs, and timing activities. rehabilitation the of In respect of the allocation of mining costs our procedures included, but were not limited to: obtaining an understanding and testing of the key controls management has in place in relation to the capitalisation of underground mining expenditure and the production of physical underground mining data; and assessing the appropriateness of the allocation of costs between operating and capital expenditure based on the nature of the underlying activity, and recalculating the allocation based on the underlying physical data. In respect of the Group’s unit of production amortisation calculations our procedures included, but were not limited to: obtaining an understanding of the key controls management has in place in relation to the calculation of the unit of production amortisation rate; testing the mathematical accuracy of the rates applied; and agreeing the inputs to source documentation, including: - the allocation of contained ounces to the specific mine properties; the contained ounces to the applicable reserves and resources statement; and the anticipated development expenditure to life of mine models, which were assessed for reasonableness compared to historical development expenditure for the respective operations. - - We also assessed the appropriateness of the disclosures included in Note 9(c) to the financial statements. Our procedures included, but were not limited to: obtaining an understanding of the key controls management has in place to estimate the rehabilitation provision; agreeing rehabilitation cost estimates to underlying support, including where applicable reports from external experts; assessing the independence, competence and objectivity of experts used by management; confirming the closure and related rehabilitation dates are consistent with the latest estimates of life of mines; comparing the inflation and discount rates to available market information; and testing the mathematical accuracy of the rehabilitation provision. We also assessed the appropriateness of the disclosures included in Note 9(g) to the financial statements. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 132 2019 (cid:36)(cid:49)(cid:49)(cid:56)(cid:36)(cid:47) (cid:53)(cid:40)(cid:51)(cid:50)(cid:53)(cid:55) (cid:95) I(cid:49)(cid:39)(cid:40)(cid:51)(cid:40)(cid:49)(cid:39)(cid:40)(cid:49)(cid:55) (cid:36)(cid:56)(cid:39)I(cid:55) (cid:50)(cid:53)(cid:519)(cid:54) (cid:53)(cid:40)(cid:51)(cid:50)(cid:53)(cid:55) 133 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS Other Information The directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2019, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as intentional omissions, involve collusion, fraud may misrepresentations, or the override of internal control. forgery, Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. Conclude on the appropriateness of the director’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group’s audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 44 to 72 of the Director’s Report for the year ended 30 June 2019. In our opinion, the Remuneration Report of Northern Star Resources Limited, for the year ended 30 June 2019, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. DELOITTE TOUCHE TOHMATSU David Newman Partner Chartered Accountants Perth, 26 August 2019 • • • • • • 134 2019 ANNUAL REPOR T | SHAREHOLDER INF ORMATI ON 135 135 SHAREHOLDER INFORMATION SHAREHOLDER INFORMATION The shareholder information set out below was applicable as at 22 August 2019. Table 30 Restricted securities Table 28 Distribution of equity securities Ordinary shares Holding 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 and over Total Shares 2,834,630 12,150,292 9,815,266 36,951,943 577,840,503 639,592,634 % 0.44 1.90 1.53 5.78 90.35 100.00 There were no holders of less than a marketable parcel of ordinary shares. Table 29 20 largest quoted equity security holders No. holders 6,056 4,725 1,280 1,370 166 % 44.54 34.75 9.41 10.08 1.22 Class Shares 1 Shares 2 Shares 3 Shares 4 Number 86,310 116,494 134,196 1,091,001 Date escrow period ends 26 June 2020 13 June 2021 24 May 2022 Upon repayment in full of the limited recourse loan 1 2 3 4 Shares issued under the Employee Share Plan Rules No. 3 (approved in June 2017) on 26 June 2017. Shares issued under the Employee Share Plan Rules No. 3 (approved in June 2017) on 30 July 2018. Shares issued under the Employee Share Plan Rules No. 3 (approved in June 2017) on 24 May 2019. Shares issued under the Performance Share Plan Rules on 20 November 2013 (115,000) 9 October 2014 (677,083) and on 9 July 2015 (298,918). 13,597 100.00 Table 31 Unquoted equity securities Performance rights issued under the Northern Star Long Term Incentive Plan Number Holders 10,183,2575 60 Ordinary shares 5 Number of unissued ordinary shares under the performance rights. No person holds 20% or more of these securities. Rank Name A/C designation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 HSBC Custody Nominees (Australia) Limited J P Morgan Nominees Australia Pty Limited Citicorp Nominees Pty Limited National Nominees Limited BNP Paribas Nominees Pty Ltd BNP Paribas Noms Pty Ltd Citicorp Nominees Pty Limited Hsbc Custody Nominees (Australia) Limited-GSCO ECA HSBC Custody Nominees (Australia) Limited National Nominees Limited Mr William James Beament National Nominees Limited Mr Hendrius Petrus Indrisie Ms Karen Beament AMP Life Limited CS Third Nominees Pty Limited Mr Stephen Donald Goode William James Beament Pacific Custodians Pty Limited NST Employee Sub Register Rosiano Pty Ltd Total Balance of register Grand total 22 Aug 2019 300,739,631 112,189,672 58,712,031 22,092,908 6,625,512 5,701,075 4,634,382 4,456,922 4,177,345 3,884,362 2,115,792 2,063,048 2,011,628 2,000,000 1,780,247 1,560,567 1,002,128 976,001 968,276 937,950 % issued capital 47.02 17.54 9.18 3.45 1.04 0.89 0.72 0.70 0.65 0.61 0.33 0.32 0.31 0.31 0.28 0.24 0.16 0.15 0.15 0.15 538,629,477 100,963,157 84.21 15.79 639,592,634 100.00 Empty cells indicate that the holder was outside of the top 1000 at some point during the specified reporting period. Table 32 Substantial holders in the Company (as at 28 June 2019) BlackRock Group Van Eck Associates Corporation Voting rights Ordinary Shares Number 81,057,176 75,814,515 % 12.67% 11.85% The voting rights attaching to each class of equity securities are set out below: • Ordinary shares: On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. • Performance rights: No voting rights On-market buy-back There is no current on-market buy-back of the Company’s equity securities. 2019 ANNUAL REPORT | FINANCIAL REPORT 136 2019 ANNUAL R EPORT | TENEMENT SCHEDULE 137 137 TENEMENT SCHEDULE Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status E27/278 E27/438 E27/491 E27/520 E27/548 E27/579 E28/1746 E28/2483 E27/616 (A) E08/2499 E08/2659 E08/2755 (A) E08/2760 E47/3305 L08/103 L08/168 L08/169 P08/653 EL24177 EL25171 EL27590 EL29595 EL24174 EL24193 EL26270 EL26286 EL26498 EL26541 EL26635 EL29592 L16/57 L16/75 M16/548 P24/4602 P24/4629 P24/4630 P24/4688 P24/4760 P24/4761 P24/4762 P24/4763 P24/4807 P24/4814 P24/4815 P24/4889 P24/4890 P24/4891 P24/4894 P24/4895 P24/4898 P24/4899 P24/4907 P24/4964 P24/4965 P24/5022 P24/5121 P24/5122 P24/5123 P24/5124 P24/5241 P24/5242 P24/5243 P24/5248 P24/5343 (A) M24/972 (A) P24/4409 P24/4566 P24/4603 P24/4637 P24/4681 P24/4682 P24/4683 P24/4684 P24/4685 P24/4686 75% 75% 75% 75% 75% 75% 75% 75% 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% Acra - Kalgoorlie Acra - Kalgoorlie Acra - Kalgoorlie Acra - Kalgoorlie Acra - Kalgoorlie Acra - Kalgoorlie Acra - Kalgoorlie Acra - Kalgoorlie Acra - Kalgoorlie Ashburton - Ashburton Ashburton - Ashburton Ashburton - Ashburton Ashburton - Ashburton Ashburton - Ashburton Ashburton - Ashburton Ashburton - Ashburton Ashburton - Ashburton Ashburton - Ashburton Boulder Ridge - Tanami Boulder Ridge - Tanami Boulder Ridge - Tanami Boulder Ridge - Tanami Browns Range - Tanami Browns Range - Tanami Browns Range - Tanami Browns Range - Tanami Browns Range - Tanami Browns Range - Tanami Browns Range - Tanami Browns Range - Tanami Carbine Zuleika - 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 Carbine Zuleika - 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 Carbine Zuleika - 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 Carbine Zuleika - Kalgoorlie Carbine Zuleika - Kalgoorlie Carbine Zuleika - Kalgoorlie Carbine Zuleika - Kalgoorlie Carbine Zuleika - Kalgoorlie Carbine Zuleika - Kalgoorlie Carbine Zuleika - Kalgoorlie Carnage - Kalgoorlie Carnage - Kalgoorlie Carnage - Kalgoorlie Carnage - Kalgoorlie Carnage - Kalgoorlie Carnage - Kalgoorlie Carnage - Kalgoorlie Carnage - Kalgoorlie Carnage - Kalgoorlie Carnage - Kalgoorlie Carnage - Kalgoorlie Holder & Earning-In Holder & Earning-In Holder & Earning-In Holder & Earning-In Holder & Earning-In Holder & Earning-In Holder & Earning-In Holder & Earning-In Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder P24/4687 P24/5296 (A) P24/5297 (A) 100% 100% 100% EL10355 EL10411 EL22229 EL22378 EL23342 EL9763 EL26925 EL26926 EL28474 EL8797 MLS119 MLS120 MLS121 MLS122 MLS123 MLS124 MLS125 MLS126 MLS127 MLS128 MLS129 MLS130 MLS131 MLS132 MLS133 MLS153 MLS167 MLS168 MLS180 E51/1391 E51/1837 E51/1838 M15/1413 M15/993 M16/181 M16/182 M16/308 M16/309 M16/325 M16/326 M16/421 M16/428 M24/924 E08/1650 EL22061 EL9843 E08/2000 E08/2065 E08/2114 E47/1773 E47/2236 E52/2786 EL23932 EL25009 EL27367 EL29593 EL31799 ML22934 E53/1872 E53/1922 E53/1923 E53/1938 E53/1939 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 30% 30% 30% 51% 51% 51% 51% 51% 51% 51% 51% 51% 51% 51% 100% 40% 40% 66.49% 66.49% 66.49% 66.49% 66.49% 66.49% 100% 100% 100% 100% 100% 40% 100% 100% 100% 100% 100% Carnage - Kalgoorlie Carnage - Kalgoorlie Carnage - Kalgoorlie Cave Hill - Tanami JV Cave Hill - Tanami JV Cave Hill - Tanami JV Cave Hill - Tanami JV Cave Hill - Tanami JV Cave Hill - Tanami JV Cave Hill - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Central - Tanami JV Holder Holder Holder Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Holder & Earning-in Cheroona - East Murchison Holder & Farm-Out Cheroona - East Murchison Holder & Farm-Out Cheroona - East Murchison Holder & Farm-Out 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 Holder & Production Joint Venture Holder & Production Joint Venture Holder & Production Joint Venture Holder & Production Joint Venture Holder & Production Joint Venture Holder & Production Joint Venture Holder & Production Joint Venture Holder & Production Joint Venture Holder & Production Joint Venture Holder & Production Joint Venture Holder & Production Joint Venture Electric Dingo - Ashburton Holder Farrands Hill - Tanami JV Farrands Hill - Tanami JV Holder & Earning-in Holder & Earning-in FMG JV - Ashburton FMG JV - Ashburton FMG JV - Ashburton FMG JV - Ashburton FMG JV - Ashburton FMG JV - Ashburton Gardiner - Tanami Gardiner - Tanami Gardiner - Tanami Gardiner - Tanami Gardiner - Tanami Earning-In Earning-In Earning-In Earning-In Earning-In Earning-In Holder Holder Holder Holder Holder Groundrush - Tanami JV Holder & Earning-in Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Holder Holder Holder Holder Holder E53/1976 E53/1977 G53/20 L53/100 L53/102 L53/112 L53/113 L53/117 L53/136 L53/137 L53/138 L53/142 L53/143 L53/153 L53/169 L53/174 L53/52 L53/60 L53/68 L53/69 L53/70 L53/71 L53/72 L53/73 L53/75 L53/99 L53/209 (A) L53/210 (A) M53/155 M53/156 M53/182 M53/191 M53/192 M53/196 M53/197 M53/198 M53/199 M53/221 M53/226 M53/228 M53/229 M53/230 M53/235 M53/236 M53/237 M53/245 M53/246 M53/247 M53/248 M53/249 M53/250 M53/326 M53/347 M53/372 M53/412 M53/413 M53/414 M53/441 M53/446 M53/451 M53/452 M53/461 M53/477 M53/478 M53/479 M53/480 M53/492 M53/535 M53/536 M53/537 M53/538 M53/539 M53/540 M53/541 M53/552 100% 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% Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder M53/588 M53/589 M53/611 M53/707 M53/708 M53/711 M53/712 M53/836 M53/874 M53/895 M53/911 M53/929 M53/935 M53/940 M53/966 P53/1672 M27/181 E27/457 E27/542 E27/557 E27/587 E27/599 E27/589 E31/1159 L26/198 L27/49 L27/50 L27/51 L27/60 L27/61 L27/62 L27/83 L27/87 M24/640 M27/103 M27/122 M27/123 M27/127 M27/128 M27/133 M27/157 M27/159 M27/164 M27/175 M27/18 M27/182 M27/191 M27/197 M27/198 M27/202 M27/219 M27/22 M27/228 M27/23 M27/232 M27/245 M27/272 M27/287 M27/37 M27/378 M27/406 M27/420 M27/438 M27/49 M27/496 M27/53 M27/57 M27/63 M27/92 P26/4064 P26/4065 P26/4127 P26/4129 P26/4132 P26/4156 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Jundee - East Murchison Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder 71.17% Kalbara JV - Kalgoorlie Holder & Earning-In 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% 40% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder 2019 ANNUAL REPORT | FINANCIAL REPORTTENEMENT SCHEDULE138 2019 ANNUAL R EPORT | TENEMENT SCHEDULE 139 Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status P27/2099 P27/2100 P27/2101 P27/2102 P27/2222 P27/2223 P27/2302 P27/2303 P27/2258 P27/2375 P27/2379 P27/2380 P27/2381 P27/2382 M27/114 M27/196 M27/41 M27/414 M27/415 M27/47 M27/493 M27/494 M27/498 (A) M27/499 (A) M27/495 M27/59 M27/72 M27/73 P27/1826 P27/1827 P27/1828 P27/1829 E24/151 E27/343 M27/497 (A) P27/1743 E24/152 E24/153 E24/206 E26/140 E26/194 E26/198 E26/199 E26/200 E24/213 L16/104 L16/105 L16/106 L16/38 L16/39 L16/69 L16/123 (A) L24/205 L24/206 M15/1351 M15/669 M16/157 M16/260 M16/366 M16/367 M16/408 M16/436 M16/438 M16/440 M16/441 M16/72 M16/73 M16/74 M16/75 M16/87 M16/97 M24/142 M24/435 M24/606 M24/626 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 89.81% 89.81% 89.81% 89.81% 89.81% 89.81% 89.81% 89.81% 89.81% 89.81% 89.81% 89.81% 89.81% 89.81% 89.81% 89.81% 89.81% 89.81% 80% 80% 80% 80% 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% Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Kanowna - Kalgoorlie Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Kanowna West JV - Kalgoorlie Holder & Earning-In Kanowna West JV - Kalgoorlie Holder & Earning-In Kanowna West JV - Kalgoorlie Holder & Earning-In Kanowna West JV - Kalgoorlie Holder & Earning-In Kanowna West JV - Kalgoorlie Holder & Earning-In Kanowna West JV - Kalgoorlie Holder & Earning-In Kanowna West JV - Kalgoorlie Holder & Earning-In Kanowna West JV - Kalgoorlie Holder & Earning-In Kanowna West JV - Kalgoorlie Holder & Earning-In Kanowna West JV - Kalgoorlie Holder & Earning-In Kanowna West JV - Kalgoorlie Holder & Earning-In Kanowna West JV - Kalgoorlie Holder & Earning-In Kanowna West JV - Kalgoorlie Holder & Earning-In Kanowna West JV - Kalgoorlie Holder & Earning-In Kanowna West JV - Kalgoorlie Holder & Earning-in Kanowna West JV - Kalgoorlie Holder & Earning-in Kanowna West JV - Kalgoorlie Holder & Earning-in Kanowna West JV - Kalgoorlie Holder & Earning-in KRGP - Kalgoorlie KRGP - Kalgoorlie KRGP - Kalgoorlie KRGP - 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 Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder M26/680 M26/681 M26/687 M26/688 P16/3032 P24/4969 P24/4970 P24/4971 P24/4972 M08/191 M08/192 M08/193 E52/1941 E52/3024 E52/3025 M52/639 M52/640 M52/734 M52/735 E08/1649 E08/1744 E08/1745 E08/2555 E08/2556 E08/2558 E08/2559 E08/2560 E08/2655 E08/2791 E47/1553 E47/3396 L08/113 L08/12 L08/13 L08/14 L08/15 L08/81 L08/91 L08/92 M08/196 M08/222 M08/515 M08/99 P47/1637 E15/1211 E15/985 E25/543 E26/122 E26/139 E26/206 E26/213 L15/221 L15/356 L26/122 L26/123 L26/233 L26/260 L26/273 L26/276 M15/1204 M15/1272 M15/1361 M15/1833 M15/1834 (A) M15/1842 (A) M15/26 M15/456 M15/469 M15/518 M15/533 M15/637 M15/652 M15/663 M15/717 M15/724 100% 100% 100% 100% 100% 100% 100% 100% 100% 20% 20% 20% 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% Kundana - Kalgoorlie Kundana - Kalgoorlie Kundana - Kalgoorlie Kundana - Kalgoorlie Kundana - Kalgoorlie Kundana - Kalgoorlie Kundana - Kalgoorlie Kundana - Kalgoorlie Kundana - Kalgoorlie Mt Clement - Ashburton Mt Clement - Ashburton Mt Clement - Ashburton Mt Olympus - Ashburton Mt Olympus - Ashburton Mt Olympus - Ashburton Mt Olympus - Ashburton Mt Olympus - Ashburton Mt Olympus - Ashburton Mt Olympus - 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 South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie Holder Holder Holder Holder Holder Holder Holder Holder Holder Free-Carried Interest Free-Carried Interest Free-Carried Interest Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder M15/726 M15/740 M15/753 M15/937 M15/938 M26/118 M26/132 M26/143 M26/204 M26/224 M26/245 M26/328 M26/41 M26/433 M26/452 M26/458 M26/482 M26/534 M26/567 M26/782 P15/4848 P15/4849 P15/5049 P15/5050 P15/5910 P26/4019 P15/6403 (A) P15/6404 (A) EL28282 EL32163 (A) EL32164 (A) EL25157 (A) EL25158 (A) EL25159 (A) EL25160 (A) EL32149 (A) EL28868 (A) EL29619 (A) EL29621 (A) EL31796 (A) EL31797 (A) EL31798 (A) EL31799 EL30132 (A) M16/213 M16/214 M16/218 M16/310 E80/1481 E80/1483 E80/1737 E80/3388 E80/3389 E80/3665 E80/5039 L80/45 L80/46 L80/51 M80/559 M80/560 M80/561 M80/563 P80/1840 P80/1841 ADL416949 ADL518091 ADL560607 ADL560608 ADL560609 ADL560610 ADL560611 ADL560612 ADL560613 ADL560614 ADL560615 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% 40% 100% 100% 100% 100% 100% 100% 40% 100% 100% 100% 100% 100% 100% 100% 100% South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie South Kalgoorlie Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Suplejack - Tanami JV Holder & Earning-in Tanami Tanami Tanami Tanami Tanami Tanami Holder Holder Holder Holder Holder Holder Central - Tanami JV Holder & Earning-in Tanami Tanami Tanami Tanami Tanami Tanami Tanami Tanami Holder Holder Holder Holder Holder Holder Holder Holder 75.50% 75.50% 75.50% 75.50% West Kundana JV - Kalgoorlie Holder & Earning-In West Kundana JV - Kalgoorlie Holder & Earning-In West Kundana JV - Kalgoorlie Holder & Earning-In West Kundana JV - Kalgoorlie Holder & Earning-In 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% Western Tanami Western Tanami Western Tanami Western Tanami Western Tanami Western Tanami Western Tanami Western Tanami Western Tanami Western Tanami Western Tanami Western Tanami Western Tanami Western Tanami Western Tanami Western Tanami Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL560616 ADL560617 ADL560618 ADL560619 ADL560620 ADL560627 ADL560632 ADL560638 ADL560643 ADL561509 ADL561510 ADL562399 ADL562400 ADL562401 ADL562402 ADL562403 ADL562404 ADL562405 ADL562406 ADL562407 ADL562408 ADL562409 ADL562410 ADL562411 ADL562412 ADL562413 ADL562414 ADL562415 ADL562416 ADL562417 ADL562418 ADL562419 ADL562420 ADL562421 ADL562422 ADL562423 ADL562424 ADL562425 ADL562426 ADL562428 ADL562429 ADL562430 ADL562431 ADL562432 ADL562433 ADL562434 ADL562435 ADL562436 ADL562437 ADL562438 ADL562439 ADL562440 ADL562441 ADL562442 ADL562443 ADL562444 ADL562445 ADL562447 ADL562449 ADL562450 ADL562455 ADL562456 ADL562457 ADL562458 ADL562459 ADL562463 ADL562464 ADL562465 ADL562466 ADL562467 ADL562468 ADL562469 ADL562470 ADL562471 ADL562472 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% Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder TENEMENT SCHEDULETENEMENT SCHEDULE140 2019 ANNUAL R EPORT | TENEMENT SCHEDULE 141 Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status ADL562473 ADL562474 ADL562475 ADL563614 ADL563615 ADL563616 ADL563617 ADL563618 ADL563619 ADL563620 ADL563621 ADL563622 ADL563623 ADL563624 ADL563625 ADL563626 ADL563627 ADL563628 ADL563629 ADL563630 ADL563631 ADL563632 ADL563633 ADL563634 ADL563635 ADL563636 ADL563637 ADL563638 ADL563639 ADL563640 ADL563641 ADL563642 ADL563643 ADL563644 ADL563645 ADL563855 ADL563856 ADL563857 ADL563858 ADL563859 ADL563860 ADL563861 ADL563862 ADL563863 ADL563864 ADL563865 ADL563866 ADL563867 ADL563868 ADL563869 ADL563870 ADL563871 ADL563872 ADL563873 ADL563874 ADL563875 ADL563876 ADL563877 ADL563878 ADL563879 ADL565313 ADL565314 ADL565315 ADL565316 ADL565317 ADL565318 ADL565319 ADL565320 ADL565321 ADL565322 ADL565323 ADL565324 ADL565325 ADL565326 ADL565327 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% Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL565328 ADL565329 ADL565330 ADL565331 ADL565332 ADL565333 ADL565334 ADL565335 ADL565336 ADL565337 ADL565338 ADL565339 ADL565340 ADL565341 ADL565342 ADL565343 ADL565344 ADL565345 ADL565346 ADL565347 ADL565348 ADL565349 ADL565350 ADL565351 ADL565352 ADL565353 ADL565354 ADL565355 ADL565356 ADL565357 ADL565374 ADL565375 ADL565376 ADL565377 ADL565378 ADL565379 ADL565380 ADL565381 ADL565382 ADL565383 ADL565384 ADL565385 ADL565386 ADL565387 ADL565388 ADL565389 ADL565390 ADL565391 ADL565392 ADL565393 ADL565394 ADL565395 ADL565396 ADL565397 ADL565398 ADL565399 ADL565400 ADL565401 ADL565402 ADL565403 ADL565404 ADL565405 ADL565406 ADL565407 ADL565408 ADL565409 ADL565410 ADL565411 ADL565412 ADL565413 ADL565414 ADL565415 ADL565416 ADL565417 ADL565418 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% Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL565419 ADL565420 ADL565421 ADL565422 ADL565423 ADL565424 ADL565425 ADL565426 ADL565427 ADL565428 ADL565429 ADL565430 ADL565431 ADL565432 ADL565433 ADL565434 ADL565435 ADL565436 ADL565437 ADL565438 ADL565439 ADL565440 ADL565441 ADL565442 ADL565443 ADL565444 ADL565445 ADL565446 ADL565932 ADL565933 ADL565934 ADL565935 ADL565936 ADL565937 ADL565938 ADL565939 ADL565940 ADL565941 ADL568819 ADL568820 ADL568821 ADL568822 ADL568823 ADL568824 ADL568825 ADL568826 ADL568827 ADL568828 ADL568829 ADL568830 ADL568831 ADL568832 ADL568833 ADL568834 ADL568835 ADL568836 ADL568837 ADL568838 ADL568839 ADL568840 ADL568841 ADL568842 ADL568843 ADL568844 ADL568845 ADL568846 ADL568847 ADL568848 ADL568849 ADL568850 ADL568851 ADL568852 ADL568853 ADL568854 ADL568855 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% Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL568856 ADL568857 ADL568858 ADL568859 ADL568860 ADL568861 ADL568862 ADL568863 ADL568864 ADL568865 ADL568866 ADL568867 ADL568868 ADL568869 ADL568870 ADL568871 ADL568872 ADL568873 ADL568874 ADL568875 ADL568876 ADL568877 ADL568878 ADL568879 ADL568880 ADL568881 ADL568882 ADL568883 ADL568884 ADL568885 ADL568886 ADL568887 ADL568888 ADL568889 ADL568890 ADL568891 ADL568892 ADL568893 ADL568894 ADL568895 ADL568896 ADL568897 ADL568898 ADL568899 ADL568900 ADL568901 ADL568902 ADL568903 ADL568904 ADL568905 ADL568906 ADL568907 ADL568908 ADL568909 ADL568910 ADL568911 ADL568912 ADL568913 ADL568914 ADL568915 ADL568916 ADL568917 ADL568918 ADL568919 ADL568920 ADL568921 ADL568922 ADL568923 ADL568924 ADL568925 ADL568926 ADL568927 ADL568928 ADL568929 ADL568930 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% Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder TENEMENT SCHEDULETENEMENT SCHEDULE142 2019 ANNUAL R EPORT | TENEMENT SCHEDULE 143 Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status ADL568931 ADL568932 ADL568933 ADL568934 ADL568935 ADL568936 ADL568937 ADL568938 ADL568939 ADL568940 ADL568941 ADL568942 ADL568943 ADL568944 ADL568945 ADL568946 ADL568947 ADL568948 ADL568949 ADL568950 ADL568951 ADL568952 ADL568953 ADL568954 ADL568955 ADL568956 ADL568957 ADL568958 ADL568959 ADL568960 ADL568961 ADL568962 ADL568963 ADL568964 ADL568965 ADL568966 ADL568967 ADL568968 ADL568969 ADL568970 ADL568971 ADL568972 ADL568973 ADL568974 ADL568975 ADL568976 ADL568977 ADL568978 ADL568979 ADL568980 ADL568981 ADL568982 ADL568983 ADL568984 ADL571902 ADL571903 ADL571904 ADL571905 ADL571906 ADL571907 ADL571908 ADL571909 ADL571910 ADL571911 ADL571912 ADL571913 ADL571914 ADL571915 ADL571916 ADL571917 ADL571918 ADL571919 ADL571920 ADL571921 ADL571922 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% Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL571923 ADL571924 ADL571925 ADL571926 ADL571927 ADL571928 ADL571929 ADL571930 ADL571931 ADL571932 ADL571933 ADL571934 ADL571935 ADL571936 ADL571937 ADL571938 ADL571939 ADL571940 ADL571941 ADL571942 ADL571943 ADL571944 ADL571945 ADL571946 ADL571947 ADL571948 ADL571949 ADL571950 ADL571951 ADL571952 ADL571953 ADL571954 ADL571955 ADL571956 ADL571957 ADL571958 ADL571959 ADL571960 ADL571961 ADL571962 ADL571963 ADL571964 ADL571965 ADL571966 ADL571967 ADL571968 ADL571969 ADL571970 ADL571971 ADL571972 ADL571973 ADL571974 ADL571975 ADL571976 ADL571977 ADL571978 ADL571979 ADL571980 ADL571981 ADL571982 ADL571983 ADL571984 ADL571985 ADL571986 ADL571987 ADL571988 ADL571989 ADL571990 ADL571991 ADL571992 ADL571993 ADL571994 ADL571995 ADL571996 ADL571997 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% Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL571998 ADL571999 ADL572000 ADL572001 ADL572002 ADL572003 ADL572004 ADL572005 ADL572006 ADL572007 ADL572008 ADL572009 ADL572010 ADL572011 ADL572012 ADL572013 ADL572014 ADL572015 ADL572016 ADL572017 ADL572018 ADL572019 ADL572020 ADL572021 ADL572022 ADL572023 ADL572024 ADL572025 ADL572026 ADL572027 ADL572028 ADL572029 ADL572030 ADL572031 ADL572032 ADL572033 ADL572034 ADL572035 ADL572036 ADL572037 ADL572038 ADL572039 ADL572040 ADL572041 ADL572042 ADL572043 ADL572044 ADL572045 ADL572046 ADL572047 ADL572048 ADL572049 ADL572050 ADL572051 ADL572052 ADL572053 ADL572054 ADL572055 ADL572056 ADL572057 ADL572058 ADL572059 ADL572060 ADL572061 ADL572062 ADL572063 ADL572064 ADL572065 ADL572066 ADL572067 ADL572068 ADL572069 ADL572070 ADL572071 ADL572072 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% Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL572073 ADL572074 ADL572075 ADL572076 ADL572077 ADL572078 ADL572079 ADL572080 ADL572081 ADL572082 ADL572083 ADL572084 ADL572085 ADL572086 ADL572087 ADL572088 ADL572089 ADL572090 ADL572091 ADL572092 ADL572093 ADL572094 ADL572095 ADL572096 ADL572097 ADL572098 ADL572099 ADL572100 ADL572101 ADL572102 ADL572103 ADL572104 ADL572105 ADL572106 ADL572107 ADL572108 ADL572109 ADL572110 ADL572111 ADL572112 ADL572113 ADL572114 ADL572115 ADL572116 ADL572117 ADL572118 ADL572119 ADL572120 ADL572121 ADL572122 ADL572123 ADL572124 ADL572125 ADL572126 ADL572127 ADL572128 ADL572129 ADL572130 ADL572131 ADL572132 ADL572133 ADL572134 ADL572135 ADL572136 ADL572137 ADL572138 ADL572139 ADL572140 ADL572141 ADL572142 ADL572143 ADL572144 ADL572145 ADL572146 ADL572147 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% Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder TENEMENT SCHEDULETENEMENT SCHEDULE144 2019 ANNUAL R EPORT | TENEMENT SCHEDULE 145 Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status ADL572148 ADL572149 ADL572150 ADL572151 ADL572152 ADL572153 ADL572154 ADL572155 ADL572156 ADL572157 ADL572158 ADL572159 ADL572160 ADL572161 ADL572162 ADL572163 ADL572164 ADL574904 ADL574905 ADL574906 ADL574907 ADL574908 ADL574909 ADL574910 ADL574911 ADL574912 ADL574913 ADL574914 ADL574915 ADL574916 ADL574917 ADL574918 ADL574919 ADL574920 ADL574921 ADL574922 ADL574923 ADL574924 ADL574925 ADL574926 ADL574927 ADL574928 ADL574929 ADL574930 ADL574931 ADL574932 ADL574933 ADL574934 ADL574935 ADL574936 ADL574937 ADL574938 ADL574939 ADL574940 ADL574941 ADL574942 ADL574943 ADL574944 ADL574945 ADL574946 ADL574947 ADL574948 ADL574949 ADL574950 ADL574951 ADL574952 ADL574953 ADL574954 ADL574955 ADL574956 ADL574957 ADL574958 ADL574959 ADL574960 ADL574961 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% Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL574962 ADL574963 ADL574964 ADL574965 ADL574966 ADL574967 ADL574968 ADL574969 ADL574970 ADL574971 ADL574972 ADL574973 ADL574974 ADL574975 ADL575390 ADL575391 ADL575392 ADL575393 ADL575394 ADL575395 ADL575396 ADL575397 ADL575398 ADL575399 ADL575400 ADL575401 ADL575402 ADL575403 ADL575404 ADL575405 ADL575406 ADL575407 ADL575408 ADL575409 ADL575410 ADL575411 ADL575412 ADL575413 ADL575414 ADL575415 ADL575416 ADL575417 ADL575418 ADL575419 ADL575420 ADL575421 ADL575422 ADL575423 ADL575424 ADL575425 ADL575426 ADL575427 ADL575428 ADL575429 ADL575430 ADL575431 ADL575432 ADL575433 ADL575434 ADL575435 ADL575436 ADL575437 ADL575438 ADL575439 ADL575440 ADL575441 ADL575442 ADL575443 ADL575444 ADL575445 ADL575446 ADL575447 ADL575448 ADL575449 ADL575450 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% Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL575451 ADL575452 ADL575453 ADL575454 ADL575455 ADL575456 ADL575457 ADL575458 ADL575459 ADL575460 ADL575461 ADL575462 ADL575463 ADL575464 ADL575465 ADL575466 ADL575467 ADL575468 ADL575469 ADL575470 ADL575471 ADL575472 ADL575473 ADL575474 ADL575475 ADL575476 ADL575477 ADL575478 ADL575479 ADL575480 ADL575481 ADL575482 ADL575483 ADL575484 ADL575485 ADL575486 ADL575487 ADL592661 ADL592662 ADL592663 ADL592664 ADL592665 ADL592666 ADL592667 ADL592668 ADL592669 ADL592670 ADL592671 ADL592672 ADL592673 ADL592674 ADL592675 ADL592676 ADL592677 ADL592678 ADL592679 ADL592680 ADL592681 ADL592682 ADL592683 ADL592684 ADL592685 ADL592686 ADL592687 ADL592688 ADL592689 ADL592690 ADL592691 ADL592692 ADL592693 ADL592694 ADL592695 ADL592696 ADL592697 ADL592698 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% Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL592699 ADL592700 ADL592701 ADL592702 ADL592703 ADL592704 ADL592705 ADL592706 ADL592707 ADL592708 ADL592709 ADL592710 ADL592711 ADL592712 ADL592713 ADL592714 ADL592715 ADL592716 ADL592717 ADL592718 ADL592719 ADL592720 ADL592721 ADL592722 ADL592723 ADL592724 ADL592725 ADL592726 ADL592727 ADL592728 ADL592729 ADL592730 ADL592731 ADL592732 ADL592733 ADL592734 ADL592735 ADL592736 ADL592737 ADL592738 ADL592739 ADL592740 ADL592741 ADL592742 ADL592743 ADL592744 ADL592745 ADL592746 ADL592747 ADL592748 ADL592749 ADL592750 ADL592751 ADL592752 ADL592753 ADL592754 ADL592755 ADL592756 ADL592757 ADL592758 ADL592759 ADL592760 ADL592761 ADL592762 ADL592763 ADL592764 ADL592765 ADL592766 ADL592767 ADL592768 ADL592769 ADL592770 ADL592771 ADL592772 ADL592773 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% Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder TENEMENT SCHEDULETENEMENT SCHEDULE146 2019 ANNUAL R EPORT | TENEMENT SCHEDULE 147 Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status ADL592774 ADL592775 ADL592776 ADL592777 ADL592778 ADL592779 ADL592780 ADL592781 ADL592782 ADL592783 ADL592784 ADL592785 ADL592786 ADL592787 ADL592788 ADL592789 ADL592790 ADL592791 ADL592792 ADL592793 ADL592794 ADL592795 ADL592796 ADL592797 ADL592798 ADL592799 ADL592800 ADL592801 ADL592802 ADL592803 ADL592804 ADL592805 ADL592806 ADL592807 ADL592808 ADL592809 ADL592810 ADL592811 ADL592812 ADL592813 ADL592814 ADL592815 ADL592816 ADL592817 ADL592818 ADL592819 ADL592820 ADL592821 ADL592822 ADL592823 ADL592824 ADL592825 ADL592826 ADL592827 ADL592828 ADL592829 ADL592830 ADL592831 ADL592832 ADL593465 ADL593466 ADL593467 ADL593468 ADL593469 ADL593470 ADL593471 ADL593472 ADL593473 ADL593474 ADL593475 ADL593476 ADL593477 ADL593478 ADL593479 ADL593480 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% Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL593481 ADL593482 ADL593483 ADL593484 ADL593485 ADL593486 ADL593487 ADL593488 ADL593489 ADL593490 ADL593491 ADL593492 ADL593493 ADL593494 ADL593495 ADL593496 ADL593497 ADL593498 ADL597692 ADL597693 ADL597694 ADL597695 ADL597696 ADL597697 ADL597698 ADL597699 ADL597700 ADL597701 ADL597702 ADL597703 ADL597704 ADL597705 ADL597706 ADL597707 ADL597708 ADL597709 ADL597710 ADL597711 ADL597712 ADL597713 ADL597714 ADL597715 ADL597716 ADL597717 ADL597718 ADL597719 ADL597720 ADL597721 ADL597722 ADL597723 ADL597724 ADL597725 ADL597726 ADL597727 ADL597728 ADL597729 ADL597730 ADL597731 ADL597732 ADL597733 ADL597734 ADL597735 ADL597736 ADL597737 ADL601263 ADL601264 ADL601265 ADL601266 ADL601267 ADL601268 ADL601269 ADL601270 ADL601271 ADL601272 ADL601273 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% Pogo - 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Alaska Pogo - Alaska Pogo - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL601274 ADL601275 ADL601276 ADL601277 ADL601278 ADL601279 ADL601280 ADL601281 ADL601282 ADL601283 ADL601284 ADL601285 ADL601286 ADL601287 ADL601288 ADL601289 ADL601290 ADL601291 ADL601292 ADL601293 ADL601294 ADL601295 ADL601296 ADL601297 ADL601298 ADL601299 ADL601300 ADL601301 ADL601302 ADL601303 ADL601304 ADL601305 ADL601306 ADL601307 ADL601308 ADL601309 ADL601310 ADL601311 ADL601312 ADL601313 ADL601314 ADL601315 ADL601316 ADL601317 ADL601318 ADL601319 ADL601320 ADL601321 ADL601322 ADL601323 ADL601324 ADL601325 ADL601326 ADL601327 ADL601328 ADL601329 ADL601330 ADL601331 ADL601332 ADL601333 ADL601334 ADL601335 ADL601336 ADL601337 ADL601338 ADL601339 ADL601340 ADL601341 ADL601342 ADL601343 ADL601344 ADL601345 ADL601346 ADL601347 ADL601348 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% Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL601349 ADL601350 ADL601351 ADL601352 ADL601353 ADL601354 ADL601355 ADL601356 ADL601357 ADL601358 ADL601359 ADL601360 ADL601361 ADL601362 ADL601363 ADL601364 ADL601365 ADL601366 ADL601367 ADL601368 ADL614991 ADL614992 ADL614993 ADL614994 ADL614995 ADL614996 ADL614997 ADL614998 ADL614999 ADL615000 ADL615001 ADL615002 ADL615003 ADL615004 ADL615005 ADL615006 ADL615007 ADL615008 ADL615009 ADL615010 ADL615011 ADL615012 ADL615013 ADL615014 ADL615015 ADL615016 ADL615017 ADL615018 ADL615019 ADL674057 ADL561511 ADL561512 ADL561513 ADL561514 ADL561515 ADL561516 ADL561517 ADL561518 ADL561519 ADL561520 ADL561521 ADL561522 ADL561523 ADL561524 ADL561525 ADL561526 ADL561527 ADL561528 ADL561529 ADL561530 ADL561531 ADL561532 ADL561533 ADL561534 ADL561535 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% Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Pogo - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder TENEMENT SCHEDULETENEMENT SCHEDULE148 2019 ANNUAL R EPORT | TENEMENT SCHEDULE 149 Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status ADL561536 ADL561537 ADL561538 ADL561539 ADL561540 ADL561541 ADL561542 ADL561543 ADL561544 ADL561545 ADL561546 ADL561547 ADL561548 ADL561549 ADL561550 ADL561551 ADL561552 ADL561553 ADL561554 ADL561555 ADL561556 ADL561557 ADL561558 ADL561559 ADL561560 ADL565942 ADL565943 ADL565944 ADL565945 ADL565946 ADL565947 ADL565948 ADL565949 ADL565950 ADL565951 ADL565952 ADL565953 ADL565954 ADL565955 ADL565956 ADL565957 ADL565958 ADL565959 ADL565960 ADL565961 ADL565962 ADL565963 ADL565964 ADL565965 ADL565966 ADL565967 ADL565968 ADL565969 ADL565970 ADL565971 ADL565972 ADL565973 ADL565974 ADL565975 ADL565976 ADL565977 ADL565978 ADL565979 ADL565980 ADL565981 ADL565982 ADL569966 ADL569967 ADL569968 ADL569969 ADL569970 ADL569971 ADL569972 ADL569973 ADL569974 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% Brink - 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Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL575500 ADL575501 ADL575502 ADL575503 ADL575504 ADL575505 ADL575506 ADL575507 ADL575508 ADL575509 ADL575510 ADL575511 ADL575514 ADL575515 ADL575516 ADL575517 ADL575518 ADL575519 ADL590000 ADL590001 ADL590002 ADL590003 ADL590004 ADL590005 ADL590006 ADL590007 ADL590008 ADL590009 ADL590010 ADL590011 ADL590012 ADL590013 ADL590014 ADL590015 ADL590016 ADL590017 ADL590018 ADL590019 ADL590020 ADL590021 ADL590022 ADL590023 ADL590024 ADL590025 ADL590026 ADL590027 ADL590028 ADL590029 ADL590030 ADL590031 ADL590032 ADL590033 ADL590034 ADL590035 ADL590036 ADL590037 ADL590038 ADL590039 ADL590040 ADL590041 ADL590042 ADL590043 ADL590044 ADL590045 ADL590046 ADL590047 ADL590048 ADL590049 ADL590050 ADL590051 ADL590052 ADL590053 ADL590054 ADL590055 ADL590056 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% Brink - 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Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL590057 ADL590058 ADL590059 ADL590060 ADL590061 ADL590062 ADL590063 ADL590064 ADL590065 ADL590066 ADL590067 ADL590068 ADL590069 ADL590070 ADL590071 ADL590072 ADL590073 ADL590074 ADL590077 ADL590078 ADL593529 ADL593530 ADL593531 ADL593532 ADL593533 ADL593534 ADL593535 ADL593536 ADL593537 ADL593538 ADL593539 ADL593542 ADL593543 ADL593544 ADL593620 ADL593621 ADL593622 ADL593623 ADL593624 ADL593625 ADL593626 ADL593627 ADL593628 ADL593629 ADL593630 ADL593631 ADL593632 ADL593633 ADL593634 ADL593635 ADL593636 ADL593637 ADL593638 ADL593639 ADL593640 ADL593641 ADL593642 ADL593643 ADL593644 ADL593645 ADL593646 ADL593647 ADL593648 ADL593649 ADL593650 ADL593651 ADL593652 ADL593653 ADL593654 ADL593655 ADL593656 ADL593657 ADL593658 ADL593659 ADL593660 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% Brink - 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Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder TENEMENT SCHEDULETENEMENT SCHEDULE150 2019 ANNUAL R EPORT | TENEMENT SCHEDULE 151 Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status ADL593661 ADL593662 ADL593663 ADL593664 ADL593665 ADL593666 ADL593667 ADL593668 ADL593669 ADL593670 ADL593671 ADL593672 ADL593673 ADL593674 ADL593675 ADL593676 ADL593677 ADL593678 ADL593679 ADL593683 ADL593684 ADL593685 ADL593686 ADL593687 ADL593688 ADL593689 ADL593690 ADL593691 ADL593692 ADL593693 ADL593694 ADL593695 ADL593696 ADL593697 ADL593698 ADL593699 ADL593700 ADL593701 ADL593702 ADL593705 ADL593706 ADL593707 ADL593708 ADL593709 ADL593710 ADL593711 ADL593712 ADL593713 ADL593714 ADL593715 ADL593716 ADL593717 ADL593718 ADL593719 ADL593720 ADL593721 ADL593722 ADL593723 ADL593724 ADL593727 ADL593728 ADL593729 ADL593730 ADL593731 ADL593732 ADL593733 ADL593734 ADL593735 ADL593736 ADL593737 ADL593738 ADL593739 ADL593740 ADL593741 ADL593742 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% Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL593743 ADL593744 ADL593745 ADL593746 ADL593747 ADL593749 ADL593750 ADL593751 ADL593752 ADL593753 ADL593754 ADL593755 ADL593756 ADL593757 ADL593758 ADL593759 ADL593760 ADL593761 ADL593762 ADL593763 ADL593764 ADL593765 ADL593766 ADL593767 ADL593768 ADL593769 ADL593771 ADL593772 ADL593773 ADL593774 ADL593775 ADL593776 ADL593777 ADL593778 ADL593779 ADL593780 ADL593781 ADL593782 ADL593783 ADL593784 ADL593785 ADL593786 ADL593787 ADL593788 ADL593789 ADL593790 ADL593791 ADL593792 ADL593793 ADL593794 ADL593795 ADL593796 ADL593797 ADL593798 ADL593799 ADL593800 ADL593801 ADL593802 ADL593803 ADL593804 ADL593805 ADL593806 ADL631670 ADL631671 ADL631672 ADL631673 ADL631674 ADL631675 ADL631676 ADL631677 ADL631678 ADL631679 ADL631680 ADL631681 ADL631682 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% Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL631683 ADL631684 ADL631685 ADL631687 ADL631688 ADL631689 ADL631690 ADL631693 ADL631694 ADL631695 ADL631696 ADL631698 ADL631699 ADL631700 ADL631701 ADL631703 ADL631704 ADL631705 ADL631706 ADL631770 ADL631775 ADL631780 ADL722071 ADL722072 ADL722073 ADL722074 ADL722075 ADL722076 ADL722077 ADL722078 ADL722079 ADL722080 ADL722081 ADL722082 ADL722083 ADL722084 ADL722085 ADL722086 ADL722087 ADL722088 ADL722089 ADL722090 ADL722091 ADL722092 ADL722093 ADL722094 ADL722095 ADL722096 ADL722097 ADL722098 ADL722099 ADL722100 ADL722101 ADL722102 ADL722103 ADL722104 ADL561561 ADL561562 ADL561563 ADL561564 ADL561565 ADL561566 ADL561567 ADL561568 ADL561569 ADL561570 ADL561571 ADL561572 ADL561573 ADL561574 ADL561575 ADL561576 ADL593826 ADL593827 ADL593828 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% Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Brink - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Fog - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) ADL593829 ADL593830 ADL593831 ADL593832 ADL593833 ADL593834 ADL593835 ADL593836 ADL593837 ADL593838 ADL593839 ADL593840 ADL593841 ADL593842 ADL593843 ADL593844 ADL593845 ADL593846 ADL593847 ADL593848 ADL593849 ADL593850 ADL593851 ADL593852 ADL593853 ADL593854 ADL593855 ADL593856 ADL593857 ADL593858 ADL593859 ADL593860 ADL593861 ADL593862 ADL593863 ADL593864 ADL593865 ADL593866 ADL593867 ADL593868 ADL593869 ADL593870 ADL593871 ADL593872 ADL593873 ADL593874 ADL593875 ADL593876 ADL593877 ADL593878 ADL593879 ADL593880 ADL593881 ADL593882 ADL593883 ADL593884 ADL593885 ADL598592 ADL598593 ADL598594 ADL598595 ADL598596 ADL598597 ADL598598 ADL598599 ADL598600 ADL598601 ADL598602 ADL598603 ADL598604 ADL598605 ADL598606 ADL598607 ADL598608 ADL598609 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% Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Monte Cristo is subject to an option held by Great American Minerals Exploration Inc. Refer to Note 14 of the Consolidated Financial Statements on page 109 TENEMENT SCHEDULETENEMENT SCHEDULE152 2019 ANNUAL R EPORT | TENEMENT SCHEDULE 153 Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status ADL598610 ADL598611 ADL598612 ADL598613 ADL598614 ADL598615 ADL598616 ADL598617 ADL598618 ADL598619 ADL598620 ADL598641 ADL598642 ADL598643 ADL598644 ADL598645 ADL598646 ADL598647 ADL598648 ADL598649 ADL598650 ADL598651 ADL598652 ADL598653 ADL598654 ADL598655 ADL598656 ADL598657 ADL598658 ADL598659 ADL598660 ADL598661 ADL598662 ADL598663 ADL598664 ADL598665 ADL598666 ADL598667 ADL598668 ADL598669 ADL598670 ADL598671 ADL598672 ADL598673 ADL598674 ADL598675 ADL598676 ADL598677 ADL598678 ADL598679 ADL598680 ADL598681 ADL598682 ADL598683 ADL598684 ADL598685 ADL598686 ADL598687 ADL598688 ADL598689 ADL598690 ADL598691 ADL598692 ADL598693 ADL598694 ADL598695 ADL598696 ADL598697 ADL598698 ADL598699 ADL598700 ADL598701 ADL598702 ADL598703 ADL598704 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% Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) ADL598705 ADL598706 ADL598707 ADL598708 ADL598709 ADL598710 ADL598711 ADL598712 ADL598713 ADL598714 ADL598715 ADL598716 ADL598717 ADL598718 ADL598719 ADL598720 ADL598721 ADL598722 ADL598723 ADL598724 ADL598725 ADL598726 ADL598727 ADL598728 ADL598729 ADL634032 ADL634033 ADL634034 ADL634035 ADL634036 ADL634037 ADL634038 ADL634039 ADL634040 ADL634041 ADL634042 ADL634043 ADL634044 ADL634045 ADL634046 ADL634047 ADL634048 ADL634049 ADL634050 ADL634051 ADL634052 ADL634053 ADL634054 ADL634055 ADL634056 ADL634057 ADL634058 ADL634059 ADL634060 ADL634061 ADL634062 ADL634063 ADL634064 ADL634065 ADL634066 ADL634067 ADL634068 ADL634069 ADL634070 ADL634071 ADL634072 ADL634073 ADL634074 ADL634075 ADL634076 ADL634077 ADL634078 ADL634079 ADL634080 ADL634081 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% Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Monte Cristo is subject to an option held by Great American Minerals Exploration Inc. Refer to Note 14 of the Consolidated Financial Statements on page 109 ADL638345 ADL638346 ADL638347 ADL638348 ADL638349 ADL638350 ADL638351 ADL638352 ADL638353 ADL638354 ADL638355 ADL638356 ADL638358 ADL638360 ADL638361 ADL638362 ADL638363 ADL638364 ADL653268 ADL653269 ADL653270 ADL653271 ADL653272 ADL653273 ADL653274 ADL653275 ADL653276 ADL653277 ADL653278 ADL653279 ADL653280 ADL653281 ADL653282 ADL653283 ADL653284 ADL653285 ADL653286 ADL653287 ADL653288 ADL653289 ADL653290 ADL653291 ADL653292 ADL653293 ADL653294 ADL653295 ADL653296 ADL653297 ADL653298 ADL653299 ADL653300 ADL653301 ADL653302 ADL653303 ADL653304 ADL653305 ADL653306 ADL653307 ADL653308 ADL653309 ADL653310 ADL653311 ADL653312 ADL653313 ADL653314 ADL653315 ADL653316 ADL653317 ADL653318 ADL653319 ADL653320 ADL653321 ADL653322 ADL653323 ADL653324 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% Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) ADL653325 ADL653326 ADL653327 ADL653328 ADL653329 ADL653330 ADL653331 ADL653332 ADL653333 ADL653334 ADL653335 ADL653336 ADL653337 ADL653338 ADL653339 ADL653340 ADL653341 ADL653342 ADL653343 ADL653344 ADL653345 ADL653346 ADL653347 ADL653348 ADL653349 ADL653350 ADL653351 ADL653352 ADL653353 ADL653354 ADL653355 ADL653356 ADL653357 ADL653358 ADL653359 ADL653360 ADL653361 ADL653362 ADL653363 ADL653364 ADL653365 ADL661552 ADL661553 ADL661554 ADL661555 ADL661556 ADL661557 ADL661558 ADL661559 ADL661560 ADL661561 ADL661562 ADL661563 ADL661564 ADL661565 ADL661566 ADL661567 ADL661568 ADL661569 ADL661570 ADL662276 ADL662277 ADL662278 ADL662279 ADL705957 ADL705958 ADL705959 ADL705960 ADL705961 ADL705962 ADL705963 ADL705964 ADL705965 ADL705966 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% Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) TENEMENT SCHEDULETENEMENT SCHEDULE154 2019 ANNUAL R EPORT | TENEMENT SCHEDULE 155 Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status Tenement Interest Project & Location NST Status ADL705967 ADL705968 ADL705969 ADL705970 ADL705971 ADL705972 ADL705973 ADL705974 ADL705975 ADL705976 ADL705977 ADL705978 ADL705979 ADL705980 ADL705981 ADL705982 ADL705983 ADL705984 ADL705985 ADL705986 ADL705987 ADL705988 ADL705989 ADL705990 ADL705991 ADL705992 ADL705993 ADL705994 ADL705995 ADL705996 ADL705997 ADL705998 ADL705999 ADL706000 ADL706001 ADL706002 ADL706003 ADL562859 ADL562860 ADL562861 ADL562862 ADL562863 ADL562864 ADL562865 ADL562866 ADL574843 ADL574844 ADL574845 ADL574846 ADL574847 ADL574848 ADL574849 ADL574850 ADL574851 ADL574852 ADL574853 ADL574854 ADL574855 ADL574856 ADL574857 ADL574858 ADL574859 ADL574860 ADL574861 ADL574862 ADL574863 ADL574864 ADL574865 ADL574866 ADL562343 ADL562344 ADL562345 ADL562346 ADL562347 ADL562348 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% Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Monte Cristo - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Shaw - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Joint holder (option) Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL562349 ADL562350 ADL562351 ADL562352 ADL562353 ADL562354 ADL565358 ADL565359 ADL565360 ADL565361 ADL565362 ADL565363 ADL565364 ADL565365 ADL565366 ADL565367 ADL565368 ADL565369 ADL565370 ADL565371 ADL565372 ADL565373 ADL592605 ADL592606 ADL592607 ADL592608 ADL592609 ADL592610 ADL592611 ADL592612 ADL592613 ADL592614 ADL592615 ADL592616 ADL592617 ADL592618 ADL592619 ADL592620 ADL592621 ADL592622 ADL592623 ADL592624 ADL592625 ADL592626 ADL592627 ADL592628 ADL592629 ADL592630 ADL592631 ADL592632 ADL592633 ADL592634 ADL592635 ADL592636 ADL592637 ADL592638 ADL592639 ADL592640 ADL592641 ADL592642 ADL592643 ADL592644 ADL592645 ADL592646 ADL592647 ADL592648 ADL592649 ADL592650 ADL592651 ADL592652 ADL592653 ADL592654 ADL592655 ADL592656 ADL592657 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% Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Monte Cristo is subject to an option held by Great American Minerals Exploration Inc. Refer to Note 14 of the Consolidated Financial Statements on page 109 Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL592658 ADL592659 ADL592660 ADL596008 ADL596009 ADL596010 ADL596011 ADL596012 ADL596013 ADL596014 ADL596015 ADL596016 ADL596017 ADL596018 ADL596019 ADL596020 ADL596021 ADL596022 ADL596023 ADL596024 ADL596025 ADL596026 ADL596027 ADL596028 ADL596029 ADL596030 ADL596031 ADL596032 ADL596033 ADL596034 ADL596035 ADL596036 ADL596037 ADL596038 ADL596039 ADL596040 ADL596041 ADL596042 ADL596043 ADL596044 ADL596045 ADL596046 ADL596047 ADL596048 ADL596049 ADL596050 ADL596051 ADL596052 ADL596053 ADL596054 ADL596055 ADL596056 ADL596057 ADL596058 ADL596059 ADL596060 ADL596061 ADL596062 ADL596063 ADL596064 ADL596065 ADL596066 ADL596067 ADL596068 ADL596069 ADL596070 ADL596071 ADL596072 ADL596073 ADL596074 ADL596075 ADL596076 ADL596077 ADL596078 ADL596079 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% Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder ADL596080 ADL596081 ADL596082 ADL596083 ADL596084 ADL596085 ADL596086 ADL596087 ADL596088 ADL596089 ADL596090 ADL596091 ADL596092 ADL596093 ADL596094 ADL596095 ADL596096 ADL596097 ADL596098 ADL596099 ADL596100 ADL596101 ADL596102 ADL596103 ADL596104 ADL596105 ADL596106 ADL596107 ADL596108 ADL596109 ADL596110 ADL596111 ADL596112 ADL596113 ADL596114 ADL596115 ADL596116 ADL596117 ADL596118 ADL637530 ADL637531 ADL637532 ADL637533 ADL637534 ADL637535 ADL637536 ADL637537 ADL637538 ADL637539 ADL637540 ADL637541 ADL637542 ADL637543 ADL637544 ADL637545 ADL637546 ADL637547 ADL637548 ADL637549 ADL637550 ADL637551 ADL637552 ADL637553 ADL637554 ADL637555 ADL637556 ADL637557 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% Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Skippy - Alaska Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder Holder TENEMENT SCHEDULETENEMENT SCHEDULE156156 GL O SS ARY Au Auditor Board CEO Company Corporations Act Director EPS ESR FY18 FY19 FY20 gpt Group The chemical symbol for gold The auditor of the Company duly appointed under the Corporations Act 2001 Board of Directors (cid:38)hief (cid:40)(cid:91)ecutive (cid:50)(cid:605)cer Northern Star Resources Limited ABN 43 092 832 892 Corporations Act 2001 (Cth) A director of the Company duly appointed under the Corporations Act Earnings per Share Environment & Social Responsibility Financial year ended 30 June 2018 Financial year ended 30 June 2019 Financial year ending 30 June 2020 Grams per tonne Northern Star Resources Limited and all of its wholly owned subsidiaries Indicated Mineral Resource (cid:36)s defined in the (cid:45)(cid:50)(cid:53)(cid:38) (cid:38)ode Inferred Mineral Resource (cid:36)s defined in the (cid:45)(cid:50)(cid:53)(cid:38) (cid:38)ode JORC Code Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves 2012 Edition, prepared by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia K Thousand Key Management Personnel or KMP (cid:39)efined in the (cid:36)ustralian (cid:36)ccounting (cid:54)tandards koz LTI LTIFR M or m Thousand ounces Long term incentive Lost Time Injury Frequency Rate; calculated based on the number of lost time injuries occurring in a workplace per 1 million hours worked Million Measured Mineral Resource (cid:36)s defined in the (cid:45)(cid:50)(cid:53)(cid:38) (cid:38)ode Mineral Resource Northern Star (cid:36)s defined in the (cid:45)(cid:50)(cid:53)(cid:38) (cid:38)ode Northern Star Resources Limited ABN 43 092 832 892 NPAT NSMS NST (cid:50)(cid:605)cer (cid:49)et profit after ta(cid:91) Northern Star Mining Services Pty Ltd, a wholly owned subsidiary of the Company, dedicated to underground mining operations Northern Star Resources Limited ABN 43 092 832 892 (cid:36)n o(cid:605)cer of the (cid:38)ompan(cid:92) defined under the (cid:38)orporations (cid:36)ct Ore Reserve (cid:36)s defined in the (cid:45)(cid:50)(cid:53)(cid:38) (cid:38)ode Probable Ore Reserve (cid:36)s defined in the (cid:45)(cid:50)(cid:53)(cid:38) (cid:38)ode Proved Ore Reserve (cid:36)s defined in the (cid:45)(cid:50)(cid:53)(cid:38) (cid:38)ode Quarter or Q Share Shareholder STI TRF TSR TRIFR TREM $ Financial year quarter, commencing either 1 July, 1 October, I January or 1 April Fully paid ordinary share in Northern Star Resources Limited A shareholder of Northern Star Resources Limited Short term incentive (cid:55)otal fi(cid:91)ed remuneration comprising (cid:69)ase, salar(cid:92), superannuation and non(cid:16)monetar(cid:92) other (cid:69)enefits Total shareholder return Total recordable injury frequency rate Total remuneration comprising base salary and super annuation Means Australian dollars, unless the context says otherwise. All A$ to $US currency conversions used in this Annual Report are at $0.70 CORPORATE DIRECTORY DIRECTORS Bill Beament John Fitzgerald Christopher Rowe Peter O’Connor Shirley In’t Veld Mary Hackett Nick Cernotta COMPANY SECRETARY Hilary Macdonald Executive Chairman Lead Independent Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director REGISTERED OFFICE & PRINCIPAL PLACE OF BUSINESS Level 1, 388 Hay Street Subiaco WA 6008 Australia Telephone: +61 8 6188 2100 Facsimile: +61 8 6188 2111 Website: Email: www.nsrltd.com info@nsrltd.com SHARE REGISTRY Link Market Services Limited Level 12, QV1 Building 250 St Georges Terrace Perth WA 6000 Australia Telephone: +61 1300 554 474 Website: www.linkmarketservices.com.au SECURITIES EXCHANGE ASX Limited Level 40, Central Park 152-158 St Georges Terrace Perth WA 6000 Australia ASX CODE: NST AUDITORS Deloitte Touche Tohmastu (cid:37)rookfield (cid:51)lace, (cid:55)o(cid:90)er (cid:21) (cid:20)(cid:21)(cid:22) (cid:54)t (cid:42)eorges (cid:55)errace Perth WA 6000 Australia www.nsrltd.com 

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