Northern Star Targets 900koz Gold Production by FY29 with Strong FY26 Guidance

Steady Foundations Amid Growth Ambitions

Northern Star Resources has provided a comprehensive update on its Ore Reserves and Mineral Resources as at 31 March 2025, confirming no material changes since its previous May announcement aside from normal mining depletion. This stability underpins the company’s confidence in its current asset base and operational assumptions, including gold price, exchange rates, and cost structures.

The company’s strategy remains focused on organic growth, operational efficiency, and capital discipline, aiming to deliver superior returns to shareholders while managing risks inherent in gold mining.

KCGM Mill Expansion, The Growth Engine

The Kalgoorlie Consolidated Gold Mines (KCGM) Mill Expansion project stands out as Northern Star’s primary growth driver. Targeting an annual production of approximately 900,000 ounces by fiscal year 2029, the expansion involves significant capital investment estimated between A$530 million and A$550 million for growth capital, alongside operational readiness costs. This project is expected to shift the company’s cost curve structurally, enhancing profitability and extending mine life through underground development and stockpile processing.

Operational readiness investments include new tailings facilities, a thermal power station, and expanded accommodation, all designed to support a throughput capacity increase to 27 million tonnes per annum from FY27.

Hemi Development Project, Awaiting Approvals

Acquired through the De Grey transaction, the Hemi Development Project represents Northern Star’s newest growth opportunity in the Pilbara region. While the company has yet to finalize Mineral Resources and Ore Reserves estimates for Hemi, it plans to report these by May 2026. The project’s progress is currently contingent on pending state and federal environmental approvals, with a multi-step regulatory process expected to extend beyond calendar year 2025.

Hemi’s strategic location, established infrastructure, and geological potential position it as a significant future contributor to Northern Star’s portfolio, pending successful permitting and development.

Financial Strength and Capital Management

Northern Star maintains a strong balance sheet, reporting a net cash position of approximately A$1 billion as of June 2025. The company has completed a A$300 million share buy-back program at an average price of A$11.04 per share, reflecting confidence in its valuation and commitment to returning capital to shareholders.

FY26 guidance outlines gold sales between 1.7 and 1.85 million ounces, with all-in sustaining costs (AISC) expected in the range of A$2,200 to A$2,700 per ounce across its operations. Capital expenditure is forecasted between A$1.14 billion and A$1.2 billion, including growth capital and exploration, supporting ongoing operational improvements and project developments.

Outlook, Balancing Stability with Opportunity

With stable reserves and resources, disciplined capital allocation, and a clear pathway to production growth, Northern Star is well-positioned to capitalize on rising gold prices and operational efficiencies. The successful execution of the KCGM expansion and progress on the Hemi project will be critical to sustaining its medium-term growth trajectory and delivering on its return on capital employed targets.