Strong gold production and record net mine cash flow were among the highlights from Northern Star Resources’ December 2024 quarter.
The gold miner sold 410,249 ounces (oz) of gold at an all-in sustaining cost (AISC) of $2128/oz during the period, with its Kalgoorlie production centre in Western Australia performing the strongest with 208,035oz sold.
Yandal in WA followed with 131,617oz, while Pogo in Alaska, US, delivered 70,597oz at $US1450/oz ($2311/oz).
Northern Star’s all-in costs of $3278/oz have increased by $720 compared to this time last year due to the company’s capital growth projects, led by the Kalgoorlie Consolidated Gold Mines (KCGM) mill expansion project.
A record net mine cash flow was achieved at Yandal, driven by the Jundee and Thunderbox mills delivering their nameplate capacity.
Northern Star managing director Stuart Tonkin reflected on the December quarter, describing it as a “busy period” for the company.
“At KCGM, we completed the East Wall remediation and advanced the mill expansion project,” Tonkin said.
“Three portals were developed to provide access to new underground production at KCGM and Carosue Dam. At Jundee, the renewable energy project was fully commissioned, providing a long-term strategic power solution.
“Our continued focus on operational performance, cost control and capital discipline position us well for significant growth in free cash flow generation, complemented by a high gold price environment. We remain on track to achieve our full year production and cost guidance.”
Northern Star also announced its intention to acquire De Grey Mining for approximately $5 billion.
De Grey is the sole owner of the Hemi gold project in WA, one of the world’s largest undeveloped gold projects.
Backed by a mineral resource estimate of 264 million tonnes at 1.3 grams per tonne of gold for 11.2 million ounces, Hemi is considered to be a Tier 1 gold project that, once gold production has commenced, will be a top five Australian gold mine. Its first gold is expected in mid-2026.
“Subject to De Grey shareholder and court approvals being obtained and the scheme’s implementation, De Grey’s flagship development project, Hemi in Western Australia, is expected to provide Northern Star with an additional Tier-1 future low-cost production centre, fully aligned with our strategy to deliver superior shareholder returns,” Tonkin said.
If the scheme secures all necessary approvals, it is expected to be implemented in early May.
Northern Star closed the quarter with $265 million in net cash and $1.2 billion in cash and bullion.
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