Northern Star Resources Limited (ASX: NST) has released its activities report for the June Quarter period to 30 June 2025.
Northern Star is the largest gold producer with a primary listing on the ASX. Its production centres are Kalgoorlie and Yandal in Western Australia and Pogo in Alaska, US. The company also owns the Hemi development project in the Pilbara, Western Australia.
Key points
Operating performance
- SLTIFR at 0.5 injuries per million hours worked
- Record annual Group underlying free cash flow of A$536 million and net mine cash flow of A$1,189 million
- FY25 gold sold of 1,634koz at AISC of A$2,163/oz, within revised Group guidance range
- Yandal and Pogo delivered record quarterly and annual net mine cash flow
- June quarter gold sold totalled 444koz at an AISC of A$2,197/oz (US$1,408/oz)
- KCGM delivered increased ore tonnes from open pit and underground
- Jundee and Thunderbox achieved record quarterly milled tonnes to deliver consistent and reliable ounces
- Pogo gold sales of 85koz as mill delivers record annualised run-rate of 1.6Mtpa
FY26 outlook
- FY26 production guidance of 1,700-1,850koz gold sold and AISC of A$2,300-2,700/oz
- FY26 growth capital guidance of A$2,125-2,270 million (including KCGM Mill Expansion and Operational Readiness, and Hemi Development Project); FY26 exploration guidance of A$225 million
- KCGM Mill Expansion in final build phase year and tracking to plan
Strong investment-grade balance sheet; no hedge commitments added over past three quarters
- Updated hedging policy removes mandatory hedge commitments, allowing unwind of hedge book
- FY25e Cash Earnings of A$2,800-2,950 million (vs FY24: A$1,805 million)
- Net cash of A$1,013 million after De Grey acquisition; cash and bullion of A$1,914 million
- A$300 million on-market share buy-back program 100% complete (average price: A$11.04 per share).
Commenting on the June quarter performance, Northern Star managing director Stuart Tonkin said:
“The June quarter completes a constructive year of growth investments to position our largest asset, KCGM, for sustained future success. We remain committed to unlocking the full potential of our production centres and are confident the investments made during FY25, including the acquisition of the Hemi deposit, will deliver significant value for shareholders.
“For FY25, our team safely delivered our revised guidance, which included new milestones of 1.63Moz gold sold and net mine cash flow of A$1,189 million. With the KCGM Mill Expansion Project well advanced and tracking to plan, we will wind down our gold price hedging, reflecting the confidence in our outlook and balance sheet.
“Our team continues to work diligently to balance short-term delivery with setting the business up to achieve long-term goals. With an increased focus on productivity and cost control, we are well-positioned to responsibly and profitably grow our production footprint and cash flow margins.”
