Northern Star Reports 1.63Moz Gold Sold, 900kozpa KCGM Output by FY29

• Acquisition of De Grey Mining adds significant Mineral Resources and Ore Reserves
• KCGM Mill Expansion progressing on schedule for FY27 commissioning
• FY25 gold production at 1.63 million ounces with strong cash generation
• Pogo Mine optimisation delivering consistent operational performance
• No material changes to underlying assumptions for production targets and costs

Northern Star’s Resource Base Strengthened by De Grey Acquisition

In its latest update, Northern Star Resources has confirmed an expanded portfolio of Ore Reserves and Mineral Resources as of 31 March 2025, reflecting both normal mining depletion and the strategic acquisition of De Grey Mining Limited. This acquisition notably brings the Hemi development project into Northern Star’s fold, adding substantial scale and geological upside to its asset base.

The company reassures investors that all material assumptions underpinning previous resource and reserve estimates remain valid, with no significant changes reported beyond the expected mining depletion and the integration of De Grey’s assets. This continuity provides confidence in Northern Star’s production guidance and cost outlook.

KCGM Mill Expansion – A Key Growth Catalyst

The Kalgoorlie Consolidated Gold Mines (KCGM) Mill Expansion project remains on track for commissioning in fiscal year 2027. This expansion is critical to unlocking over 900,000 ounces per annum at steady state by FY29, supporting a mine life extending beyond two decades. Northern Star highlights that operational capital and cost structures, mining performance, and production targets continue to align with prior disclosures, underscoring the project’s robustness.

Alongside the mill expansion, remediation efforts such as the East Wall slip have been successfully completed, overcoming complex mining challenges and setting the stage for sustained underground growth at KCGM.

Operational Highlights and Strategic Initiatives

Northern Star’s FY25 gold sold reached 1.63 million ounces at an all-in sustaining cost (AISC) of A$2,163 per ounce, reflecting solid operational execution across its portfolio. The Pogo Mine in Alaska continues its optimisation phase, achieving a 1.6 million tonnes per annum run rate and delivering consistent cash flow, while the Yandal Production Centre focuses on cost control to maintain competitiveness.

The company’s profitable growth strategy is evident in its strong cash generation, with cumulative net mine cash flow surpassing A$3 billion and dividends paid exceeding A$1.4 billion since FY12. This financial strength supports ongoing capital management initiatives, including share buy-backs and dividend distributions.

Looking Ahead – Approvals and Project Execution

While the Hemi Development Project awaits final approvals and a definitive investment decision, Northern Star is actively refining design inputs and leveraging expertise from the KCGM Mill Expansion and existing operations. The company’s commitment to value creation through major projects and geological exploration positions it well for the next decade of growth.

Investors should watch closely for updates on project approvals, production ramp-ups, and cost management as Northern Star integrates its expanded resource base and advances key growth engines.

Bottom Line?

Northern Star’s expanded resource base and disciplined project execution set the stage for sustained growth, but upcoming approvals and market conditions will be pivotal.

Questions in the middle?

• When will Northern Star finalize the investment decision and receive approvals for the Hemi Development Project?
• How will the KCGM Mill Expansion impact production costs and output beyond FY29?
• What are the potential risks to sustaining current cost structures amid fluctuating gold prices and operational challenges?