The following is a summary of the Northern Star Resources Limited (NESRF) Q3 2024 Earnings Call Transcript:
Financial Performance:
Northern Star sold 401,000 ounces of gold at an all-in sustaining cost of AUD 1,844 an ounce, generating an underlying free cash flow of AUD 143 million, up 40% from the December quarter.
The company remains financially resilient with a net cash position of AUD 174 million and strong liquidity of $2.5 billion.
The KCGM operation provided significant financial returns and generated the group's highest free cash flow per ounce.
Pogo performed well with a net mine cash flow of $21 million, bringing its full-year contribution to date to $90 million.
The company plans to continue hedging as part of their capital management strategy, expecting significant cash flows with 80% of gold delivered into the spot market.
Business Progress:
Northern Star saw operational and financial improvements in KCGM due to increased access to high-grade Golden Pike North Material, expected to be mined for the next 5 years.
The KCGM mill expansion works were completed as planned, which will double the plant's throughput to 27 million tonnes per annum and lift production to 900,000 ounces per annum by FY '29.
The company expects to produce 1.6 million to 1.75 million ounces of gold at an all-in sustaining cost of AUD 1,810 to AUD 1,860 an ounce for FY '24.
Progress was reported in the Jundee renewable project, with the commissioning of a solar farm and battery planned for early next quarter.
The company started allocating mining costs associated with stockpiles at KCGM, processing of which is scheduled to commence after mill expansion in FY '26.
Northern Star plans expansions at the Mount Charlotte mining site and potential production areas at KCGM and Pogo, signaling a focus on organic growth.
Changes at the Thunderbox mill are being planned, with guidance on this to be provided in FY '25.
The company expects significant returns from the current Fimiston mill expansion, with a projected IRR of 30%.
More details: NORTHERN STAR RESOURCES LTD IR
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