Northern Star Resources outlines growth strategy, targets 20% ROCE

Northern Star Resources Limited has reported its financial strategy and operational outlook for FY25-FY29, emphasizing capital efficiency and growth. The company aims for a 20% Return on Capital Employed (ROCE) target in the medium term, driven by the KCGM Mill Expansion, Pogo Optimisation, and other organic growth projects. Underlying earnings per share are projected to rise from A$26c in FY23 to A$119c in FY25, with underlying free cash flow per share increasing from A$31c to A$45c over the same period.

The company maintains a strong balance sheet with A$1.0bn net cash and A$3.4bn liquidity as of June 2025, supporting a disciplined approach to capital allocation. Major projects include the KCGM Mill Expansion, Hemi Development Project, and ongoing operational readiness. Northern Star projects FY26 gold sold guidance between 1,700-1,850 koz, with an All-In Sustaining Cost (AISC) range of A$2,300-2,700/oz.

Northern Star is increasing its spot price exposure, with 100% spot gold price exposure targeted for FY29, complementing its organic production growth. Total mineral resources stand at 70.7Moz, with ore reserves at 22.3Moz, backing a +10-year production profile. The Hemi Development Project is pending approvals, with a projected throughput of 5Mtpa in Year 3, increasing to 10Mtpa by Year 4-6.