Northern Star Resources Stock Earnings Reports

Key points for investors:

- Production & costs: Northern Star sold 385,000 oz of gold in the March quarter at a group AISC of AUD 2,246/oz. Regional production: Kalgoorlie (including KCGM/Carosue Dam) 197,000 oz; Yandal 120,000 oz; Pogo 68,000 oz. Net mine cash flow for the quarter was approximately $295 million.

- Guidance update: FY‑25 production guidance has been revised down to 1.63–1.66 million ounces due to operational delays at KCGM (timing/destocking issues). FY‑25 AISC guidance increased to AUD 2,100–2,200/oz largely reflecting delayed access at Golden Pike North, some unplanned maintenance (notably at Yandal) and higher royalties from the elevated gold price.

- KCGM status: The KCGM open‑pit destocking/low‑productivity area (Golden Pike North) caused a timing delay in ounces, but management states the ore remains and expects mining efficiency and volumes to materially improve from the June quarter (targeting 20–22.5 Mt/quarter). KCGM underground development is accelerating (record 7.4 km development in the quarter) and the mill expansion is 46% complete, on time and within the previously stated FY‑25 capex of $500–$530 million.

- Financial position & capital: Northern Star is net cash positive (net cash $181 million at 31 March). The group generated $846 million of operating cash flow in the quarter and $201 million of quarterly free cash after capex and exploration. FY‑25 growth capex (ex KCGM mill) has increased to $950 million–$1.1 billion. The company is 89% through a $300 million buy‑back program. The hedge book is being run down (135,000 oz delivered this quarter; no new commitments added).

- M&A / De Grey (Hemi): De Grey shareholders overwhelmingly approved the scheme; implementation expected around 5 May. De Grey/Hemi will be integrated into Northern Star; management expects tax deductibility on the consideration and potential to consolidate De Grey’s tax losses. Estimated landholder duty from the transaction is $200–$300 million payable within 12–18 months. Capital and permitting decisions for Hemi will follow regulatory approvals; further timing/details to be provided through the year.

- Investment & exploration: Exploration budget raised from ~$180 million to ~$230 million to fund additional underground drill platforms at KCGM, Pogo and Jundee to support FY‑26/FY‑27 drilling programs. Management emphasized continued focus on high‑margin ounces and active portfolio management.

- Near‑term operational notes: KCGM processing was impacted by a planned major shutdown and lower utilization; Q4 head grade expects to lift ~0.3–0.5 g/t as open‑pit and underground ore contributions increase. Pogo continues to outperform and guidance has been lifted for that asset.