LLM-ASSISTED SUMMARY Northern Star Resources Ltd (NST) June 2024...

LLM-ASSISTED SUMMARY

Northern Star Resources Ltd (NST) June 2024 Quarterly Report Analysis

Key Highlights:

1. Operational Performance:

- Total Gold Sold: 438,926 ounces at an all-in sustaining cost (AISC) of A$1,815/oz.

- By Production Centre:

- Kalgoorlie: 220,949 oz at AISC of A$1,712/oz.

- Yandal: 127,158 oz at AISC of A$2,109/oz.

- Pogo: 90,819 oz at AISC of US$1,091/oz.

- All-in Costs (AIC): A$2,750/oz due to ongoing major growth projects, including the KCGM Mill Expansion.

- FY24 Performance: 1,621 koz of gold sold at AISC of A$1,853/oz, with an underlying free cash flow of A$462 million.

2. Safety and Environmental Metrics:

- Lost Time Injury Frequency Rate (LTIFR): 0.5 injuries per million hours worked.

3. Financial Highlights:

- FY24 Underlying Free Cash Flow: A$462 million, up from A$359 million in FY23.

- June Quarter Free Cash Flow: A$189 million.

- Cash and Bullion: A$1,248 million with net cash of A$359 million.

- Share Buy-Back Program: A$300 million program 57% complete with A$172 million spent to date.

4. Growth Strategy and Future Outlook:

- FY25 Guidance: 1,650-1,800 koz gold sold at AISC of A$1,850-2,100/oz.

- FY25 Growth Capital: A$950-1,020 million plus A$500-530 million for KCGM Mill Expansion.

- FY25 Production Goals: Higher grades expected from KCGM and increased mill availability at Thunderbox and Pogo.

- Five-Year Strategy: On track to deliver 2Moz by FY26 with significant capital allocation to high-return projects.

5. Project Updates:

- KCGM Mill Expansion Project:

- Second year of build phase with FY25 capex of A$500-530 million.

- Expected to increase capacity to 27Mtpa and replace most of the 13Mtpa plant.

- FY26 production target of 650koz, ramping up to ~900koz by FY29.

- Major works include installation of grinding, crushing, and flotation equipment, along with infrastructure commissioning.

6. Operational Highlights by Production Centre:

- Kalgoorlie:

- Strong performance with 220,949 oz sold and major capital expenditure on the Mill Expansion Project.

- Future growth from Golden Pike North and ramp-up of Mt Charlotte and Fimiston underground mines.

- Yandal:

- Thunderbox achieved nameplate capacity of 6Mtpa.

- Challenges in FY24 due to lower plant availability and weather impacts.

- Focus on increasing satellite feed sources and developing new open pits.

- Pogo:

- Record 91koz in the June quarter, with an annualized rate of 363koz.

- Major infrastructure works planned to maintain high throughput rates.

Financial and Production Summary:

- Gold Sold (FY24): 1,621 koz (Guidance: 1,600-1,750 koz).

- AISC (FY24): A$1,853/oz (Guidance: A$1,810-1,860/oz).

- Growth Capital Expenditure (FY24): A$1,211 million.

- Exploration Expenditure (FY24): A$140 million.

FY25 Outlook:

- Gold Sold: 1,650-1,800 koz.

- AISC: A$1,850-2,100/oz.

- Growth Capital Expenditure: A$950-1,020 million plus A$500-530 million for KCGM Mill Expansion.

Conclusion:

Northern Star Resources Ltd reported strong performance in the June 2024 quarter, achieving its FY24 guidance and setting positive momentum for FY25. The company demonstrated significant operational achievements across its production centers, maintained strong financial health, and continued to advance its strategic growth projects, particularly the KCGM Mill Expansion. The outlook for FY25 remains robust, with a focus on increasing production efficiency and managing costs effectively.