Northern Star Resources (NESR.F) 2025 Conference Transcript

Summary of Northern Star Resources Conference Call Company Overview - Company: Northern Star Resources - Industry: Mining (Gold Production) - Key Executive: Simon Jessup, Chief Operating Officer Core Points and Arguments 1. Milestone Achievement: Kanowna Bell mine celebrated 30 years of continuous mining, producing 42 million tonnes of ore and 6 million ounces of gold, with a total of 7.2 million ounces from both underground and open pit operations since 1995 [3][4] 2. Production and Costs: In FY '25, Northern Star faced challenges in production and costs primarily due to KCGM, producing 1.63 million ounces of gold at an all-in sustaining cost of $2,163 per ounce [5] 3. Resource and Reserve Base: Northern Star has grown its resources to 70 million ounces and reserves to 22 million ounces, with Australian assets valued at only 44% of the current gold price [6] 4. Capital Projects: Significant capital projects are underway to reduce costs, including the Thunderbox process plant expansion from 3 million to 6 million tonnes per annum [7][30] 5. Net Mine Cash Flow: Over the past four years, Northern Star generated a net mine cash flow of $3.2 billion, with a year-on-year increase of $500 million [8] 6. Shareholder Returns: The company returned $1.4 billion in dividends to shareholders over the last four years, totaling $2.4 billion since 2012 [9] 7. KCGM Operations: KCGM has seen a significant increase in resources from 19 million ounces to 38 million ounces (104% increase) and reserves from 9 million ounces to 14 million ounces (48% increase) over six years [13] 8. Future Guidance: For FY '26, Northern Star is guiding for gold production of 550,000 to 600,000 ounces from KCGM, with expectations of mill expansion increasing capacity to 850,000 to 900,000 ounces per year [14][15] 9. Pogo Mine Performance: Pogo mine achieved a net mine cash flow of $297 million in the last twelve months, significantly exceeding its purchase price of $260 million in 2018 [22][23] 10. Hemi Project: Hemi is positioned as a new growth engine with over 11 million ounces of resources, awaiting project approvals while optimizing mine designs and processing plants [26][27] Additional Important Information 1. Operational Efficiency: The company is focused on improving ore quality and operational efficiency at KCGM, with plans to develop 36 to 40 kilometers of underground infrastructure in the coming year [16][17] 2. Investment in Infrastructure: Northern Star is investing in a mill expansion project to increase processing capacity from 12 million to 27 million tonnes per annum, which is on track and within budget [18][30] 3. Stakeholder Engagement: Ongoing engagement with stakeholders is emphasized for the Hemi project to ensure positive outcomes [27] 4. Future Cash Flow Generation: The transition from large capital projects to cash flow generation is a key focus, with expectations of significant improvements as projects complete [30]