Record Cash Flow and Solid Performance Across All Sites
Northern Star Resources Ltd (ASX: NST) reported record underlying free cash flow of A$536 million for FY25. Net mine cash flow totalled A$1.189 billion across its Kalgoorlie, Yandal, and Pogo centres. Group gold sales reached 1.634 million ounces at an all-in sustaining cost (AISC) of A$2,163 per ounce, within revised guidance.
During the June quarter, gold sales stood at 444,034 ounces at an AISC of A$2,197 per ounce. Kalgoorlie contributed 222,236 ounces, Yandal 136,673 ounces, and Pogo 85,125 ounces. The Pogo mill delivered a record annualised run rate of 1.6Mtpa.
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.”
FY26 Outlook and Growth Plans
Northern Star expects to sell between 1.7 and 1.85 million ounces of gold in FY26 at an AISC of A$2,300 to A$2,700 per ounce. September quarter production is forecast at ~400,000 ounces due to scheduled shutdowns, while June is expected to be the strongest.
KCGM aims to produce 550,000–600,000 ounces with 3Mtpa underground volumes and improved open pit mining in 2H FY26. Growth capital guidance is A$2.125–2.27 billion, including KCGM Mill Expansion, operational readiness and the Hemi Development Project. Exploration spend is forecast at A$225 million.
KCGM Mill Expansion remains on track, with commissioning targeted for early FY27. Expenditure remains unchanged at A$530–550 million for FY26.
Strong Balance Sheet and Hedging Update
Cash earnings for FY25 are estimated between A$2.8 and A$2.95 billion, up from A$1.805 billion in FY24. The company ended the year with A$1.013 billion in net cash after the De Grey acquisition and A$1.914 billion in cash and bullion.
Northern Star (ASX:NST) completed its A$300 million on-market share buyback, repurchasing 27.2 million shares at an average of A$11.04. Updated hedging policy removed mandatory commitments, enabling continued wind-down. No new hedge commitments were added for the third consecutive quarter.
Total hedge book now stands at 1.433 million ounces at an average price of A$3,286 per ounce.
KCGM Mill Expansion Enters Final Build Year
The KCGM Mill Expansion will replace 85% of the Fimiston plant, increasing capacity to 27Mtpa. Completion is expected in FY27, ramping up to ~900kozpa by FY29. FY26 expenditure remains at A$530–550 million.
Construction milestones include 90% concrete completion in critical areas and major equipment installation, including SAG and ball mills. Electrical and piping work will commence over the next two quarters.
KCGM Operational Readiness expenditure includes A$180–220 million for tailings dam facilities and A$85 million for thermal power infrastructure. A permanent accommodation camp and commissioning facilities will also be built.
KCMG Mill Expansion Project Progress
Kalgoorlie Operations Show Steady Growth
Kalgoorlie sold 222,236 ounces in the quarter with an AISC of A$2,234 per ounce. KCGM contributed 118,097 ounces at A$2,237 per ounce. Carosue Dam and Kalgoorlie operations contributed 58,464 and 45,675 ounces respectively.
KCGM’s open pit mining at Oroya Brownhill and Golden Pike North advanced with 22.7Mt moved, up 48% quarter-on-quarter. Underground mined volumes rose 78% to 871kt.
Development at Drysdale portal commenced. Total FY25 gold sold from Kalgoorlie was 832,000 ounces at an AISC of A$2,100 per ounce.
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Yandal and Pogo Deliver Strong Results
Yandal achieved record quarterly milled tonnes. It sold 137,000 ounces at A$2,383 per ounce in the June quarter. Jundee delivered 75,490 ounces with a 3.4Mtpa run rate. Thunderbox processed 6.3Mtpa for the quarter and 6Mtpa for the year.
Pogo’s record mill performance led to 85,125 ounces sold at US$1,154 per ounce. It achieved an annualised throughput of 1.6Mtpa. Development rates increased, supported by an additional jumbo. Stope ore comprised 68% of ore mined.
FY26 shutdowns are planned in July, November, and March, with September quarter throughput targeted at 1.5Mtpa.
Continued Exploration and Development Activity
Northern Star (ASX:NST) spent A$72 million on exploration during the June quarter. FY26 exploration will total A$225 million. The company continues progressing permitting and development at Hemi.
Ongoing State and Federal approvals, along with Traditional Owner engagement, remain priorities. Accelerated tax depreciation of acquired De Grey assets will reduce taxable income over the next five years.
Corporate and Capital Management Updates
The Board appointed Mr Michael Ashforth as Deputy Chairman on 10 July. Northern Star entered an agreement to sell its Central Tanami JV interest and Tanami tenements to Mount Gibson Iron for A$50 million.
As of the report date, Northern Star had 1.428 billion fully paid ordinary shares on issue.
