Inflation winds whip up extra costs for Northern Star Resources
Higher royalty costs and tariff assumptions associated with its Pogo operations will contribute about $40/oz to the increase as Northern Star targets production of between 1.7 million ounces and 1.85moz for the financial year.
The 5 per cent jump is set to take the Stuart Tonkin-led company's all-in cost for FY26 to between $2300/oz and $2700/oz, with expectation of improving costs throughout the year.
Adding to the cost will be sustaining capital of about $750m across its production centres.
Reporting its latest quarterly results on Thursday, Northern Star said it delivered record annual group underlying free cash flow of $536 million for the 12 months to the end of June, with net mine cash flow of $1.19 billion.
The Yandal and Pogo operations both recorded quarterly and annual net mine cash flow.
Gold sold for the year came in within the group's revised guidance at 1.634moz at all-in costs of $2163/oz.
Average realised prices for the June quarter were $4483/oz, generating revenue of $1.99b
'The June quarter completes a constructive year of growth investments to position our largest asset, KCGM, for sustained future success,' Mr Tonkin said.
'We remain committed to unlocking the full potential of our production centres and are confident the investments made during FY25, including the acquisition of the Hemi deposit, will deliver significant value for shareholders.'
The $1.3b Hemi project in the Pilbara was picked up in Northern Star's massive $5b takeover of De Grey Mining at the end of 2024.
The price is believed to be a global record for a gold company without a mine in production, and comes during a period of consistent high prices for the metal.
Gold has climbed about a third this year, as uncertainty around US President Donald Trump's aggressive attempts to reshape global trade and conflicts in Ukraine and the Middle East sparked flight to havens.
The precious metal has consolidated within a tight range over the past few months, though this week's gains of about 2.5 per cent have pushed prices to trade about $US80 short of April's record high above $US3500/oz.
It is currently trading at around $US3422/oz.
Earlier this month Northern Star secured approval for Hemi from the Environmental Protection Authority, subject to conditions regarding its water usage, flora and fauna disturbances, cultural heritage impacts and rehabilitation progress.
Once up and running — and coupled with increased output from an $1.5b expanded mill at its famed Super Pit in Kalgoorlie — Northern Star is poised to become a global top 10 producer by the end of the decade.
It ended the year with cash and bullion of $1.9b.
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In recent years, goldminers have been supplanted at the top of the roster by the battery minerals crowd, buoyed by the burgeoning demand for ores like lithium and nickel essential to the manufacturing of electric vehicles. But a record run has sent the price of bullion soaring and investors flocking back to the precious metal. Amid an upswing in mergers and acquisitions activity among goldminers, the largest has been Northern Star's $5 billion takeover of De Grey Mining. Northern Star's Super Pit dominates the Kalgoorlie landscape. The ASX giant's largest asset is a popular tourist destination, with thousands of visitors drawn to the pit's public lookout each year to watch colossal mining trucks wind their way up the serpentine access track or see scheduled blasts shake the sheer rock walls below. But the De Grey deal handed Northern Star a project that could dwarf the 130-year-old deposit, which has been plagued by productivity and cost headwinds in the past year. The newly-acquired Hemi deposit, in the iron-ore dominated Pilbara region, contains an estimated 11 million ounces of gold. That would fetch more than $55 billion at current prices. The project, which is still seeking regulatory approval, has a slightly lower grade than the Super Pit at 1.3 grams per tonne. But given the ravenous appetite for gold, even much lower grade deposits will attract interest at the Diggers conference. Forum chair Jim Walker says the mood in the industry is upbeat. "Gold's still going very, very well, lithium is coming back up again," he told AAP. "So it's going to be a very positive conference from that point of view." Lithium miners have been buoyed after a recovery in spodumene prices, after a global rout carved more than 90 per cent off the price of the mineral. Prices have climbed 50 per cent since they bottomed out in June, with the stronger-than-expected uptake of electric vehicles now driving speculation lithium production will fall short of soaring demand. But share prices for former market darlings IGO, Pilbara Minerals and Liontown Resources still languish well below the heights of two years ago. While gold presenters now outweigh lithium at the conference, battery minerals producers will still make their presence felt. Now in its 34th year, the forum is just as important to the Kalgoorlie economy as it is for micro-cap explorers looking to get their first project up. More than 3000 people will flock to the town, swelling its population more than 10 per cent. At Wednesday's gala night more than 1300 attendees will be catered for and a plane-load of staff flown in to serve them, given the limited staff and facilities in Kalgoorlie. Marquees will be erected to house 154 exhibitors, while 65 presenters will hold court over three days. It's no challenge for forum director Suzanne Christie, who has been organising the tricky logistics of the event from day one, Mr Walker said. Goldminers have long hogged the limelight at the Diggers and Dealers mining forum. The annual conference in the remote mining town of Kalgoorlie, in the Western Australian Goldfields region, is the glittering highlight of the resources industry's events calendar. Up-and-coming miners prize their shot to flaunt their wares to investors, while the majors covet the chance to snag an award at the glitzy gala dinner. In recent years, goldminers have been supplanted at the top of the roster by the battery minerals crowd, buoyed by the burgeoning demand for ores like lithium and nickel essential to the manufacturing of electric vehicles. But a record run has sent the price of bullion soaring and investors flocking back to the precious metal. Amid an upswing in mergers and acquisitions activity among goldminers, the largest has been Northern Star's $5 billion takeover of De Grey Mining. Northern Star's Super Pit dominates the Kalgoorlie landscape. The ASX giant's largest asset is a popular tourist destination, with thousands of visitors drawn to the pit's public lookout each year to watch colossal mining trucks wind their way up the serpentine access track or see scheduled blasts shake the sheer rock walls below. But the De Grey deal handed Northern Star a project that could dwarf the 130-year-old deposit, which has been plagued by productivity and cost headwinds in the past year. The newly-acquired Hemi deposit, in the iron-ore dominated Pilbara region, contains an estimated 11 million ounces of gold. That would fetch more than $55 billion at current prices. The project, which is still seeking regulatory approval, has a slightly lower grade than the Super Pit at 1.3 grams per tonne. But given the ravenous appetite for gold, even much lower grade deposits will attract interest at the Diggers conference. Forum chair Jim Walker says the mood in the industry is upbeat. "Gold's still going very, very well, lithium is coming back up again," he told AAP. "So it's going to be a very positive conference from that point of view." Lithium miners have been buoyed after a recovery in spodumene prices, after a global rout carved more than 90 per cent off the price of the mineral. Prices have climbed 50 per cent since they bottomed out in June, with the stronger-than-expected uptake of electric vehicles now driving speculation lithium production will fall short of soaring demand. But share prices for former market darlings IGO, Pilbara Minerals and Liontown Resources still languish well below the heights of two years ago. While gold presenters now outweigh lithium at the conference, battery minerals producers will still make their presence felt. Now in its 34th year, the forum is just as important to the Kalgoorlie economy as it is for micro-cap explorers looking to get their first project up. More than 3000 people will flock to the town, swelling its population more than 10 per cent. At Wednesday's gala night more than 1300 attendees will be catered for and a plane-load of staff flown in to serve them, given the limited staff and facilities in Kalgoorlie. Marquees will be erected to house 154 exhibitors, while 65 presenters will hold court over three days. It's no challenge for forum director Suzanne Christie, who has been organising the tricky logistics of the event from day one, Mr Walker said. Goldminers have long hogged the limelight at the Diggers and Dealers mining forum. The annual conference in the remote mining town of Kalgoorlie, in the Western Australian Goldfields region, is the glittering highlight of the resources industry's events calendar. Up-and-coming miners prize their shot to flaunt their wares to investors, while the majors covet the chance to snag an award at the glitzy gala dinner. In recent years, goldminers have been supplanted at the top of the roster by the battery minerals crowd, buoyed by the burgeoning demand for ores like lithium and nickel essential to the manufacturing of electric vehicles. But a record run has sent the price of bullion soaring and investors flocking back to the precious metal. Amid an upswing in mergers and acquisitions activity among goldminers, the largest has been Northern Star's $5 billion takeover of De Grey Mining. Northern Star's Super Pit dominates the Kalgoorlie landscape. The ASX giant's largest asset is a popular tourist destination, with thousands of visitors drawn to the pit's public lookout each year to watch colossal mining trucks wind their way up the serpentine access track or see scheduled blasts shake the sheer rock walls below. But the De Grey deal handed Northern Star a project that could dwarf the 130-year-old deposit, which has been plagued by productivity and cost headwinds in the past year. The newly-acquired Hemi deposit, in the iron-ore dominated Pilbara region, contains an estimated 11 million ounces of gold. That would fetch more than $55 billion at current prices. The project, which is still seeking regulatory approval, has a slightly lower grade than the Super Pit at 1.3 grams per tonne. But given the ravenous appetite for gold, even much lower grade deposits will attract interest at the Diggers conference. Forum chair Jim Walker says the mood in the industry is upbeat. "Gold's still going very, very well, lithium is coming back up again," he told AAP. "So it's going to be a very positive conference from that point of view." Lithium miners have been buoyed after a recovery in spodumene prices, after a global rout carved more than 90 per cent off the price of the mineral. Prices have climbed 50 per cent since they bottomed out in June, with the stronger-than-expected uptake of electric vehicles now driving speculation lithium production will fall short of soaring demand. But share prices for former market darlings IGO, Pilbara Minerals and Liontown Resources still languish well below the heights of two years ago. While gold presenters now outweigh lithium at the conference, battery minerals producers will still make their presence felt. Now in its 34th year, the forum is just as important to the Kalgoorlie economy as it is for micro-cap explorers looking to get their first project up. More than 3000 people will flock to the town, swelling its population more than 10 per cent. At Wednesday's gala night more than 1300 attendees will be catered for and a plane-load of staff flown in to serve them, given the limited staff and facilities in Kalgoorlie. Marquees will be erected to house 154 exhibitors, while 65 presenters will hold court over three days. It's no challenge for forum director Suzanne Christie, who has been organising the tricky logistics of the event from day one, Mr Walker said.
