Q3 2025 Northern Star Resources Ltd Activities Report Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Daniel Morgan - Barrenjoey - Analyst : Hi, Stu and Tim. First question is just about the, I guess, the operations at the Super Pit and the delayed access in Golden Park. Can you just describe how far -- like is this just delay on the business plan that was articulated a couple of years ago, and we should just be moving that business plan to the right? Or does some of these productivity issues been what you thought two years ago and how much you could get out of Golden Park, you can say, FY26 and beyond? Like you have to slow down and be more selective mining? I'm just trying to get a feel for how far into the future these issues translate?

Question: Daniel Morgan - Barrenjoey - Analyst : I know plans are always theoretical and they come up against hard one experience. Just wondering if given the time you've had in this with the physical experience of Golden Park and mining the Super Pit, do you have the right enough number of equipment and the right resourcing to achieve your outcomes? Or do you have to revisit how many trucks you need, et cetera?

Question: Daniel Morgan - Barrenjoey - Analyst : And just last question. I apologize, I mean everyone on this call has got a lot of results today, and I may have missed this, but I think you alluded to your lifting your exploration spending today and you're lifting some of your capital budgeting today in relation to, I think, some success you've had on the exploration piece. Can you just expand on that piece? Thank you.

Question: Daniel Morgan - Barrenjoey - Analyst : Yeah, thank you very much.

Question: Kate McCutcheon - Citi - Analyst : Hi, morning. So just the guidance revisions, it is material, $400 to $450 an ounce cost increase. How much of that are you putting down to royalties? How much is Yandal and high end maintenance? And how do we think about that KCGM head grade hitting the mill into Q4?

Question: Kate McCutcheon - Citi - Analyst : Okay, got it. And the KCGM head grade for Q4?

Question: Kate McCutcheon - Citi - Analyst : Yes, because I think we -- you have previously said the underground will be running at 3 million tonnes to 3.5 million tonnes by the end of the FY.

Question: Kate McCutcheon - Citi - Analyst : Okay, thank you. And then a question for Ryan. So you noted the tax benefits from incorporating De Grey, but no D&A uplift for the group until Hemi delivers first gold. The latter part makes sense but not so much the former. Can you just talk me through the delta or how we think about the tax impact for the next five years that you've called out in the results?

Question: Kate McCutcheon - Citi - Analyst : Okay. And is there anything you can say on the magnitude?

Question: Levi Spry - UBS - Analyst : Yes. Good morning, team. Thanks for your time. Just following on from Dan and Kate there. Great question. I'm going to explore that going to sort of next year. And understanding that this is categorically just a quarter delay to what we were thinking about before, but all of the destocking has finished. The underground ramp-up is on track and that overall head grade still from 1 of July. So can you just expand, Simon, on that grade piece into start of this quarter, I guess? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 11:00PM, NST.AX - Q3 2025 Northern Star Resources Ltd Activities Report Call

Question: Levi Spry - UBS - Analyst : Yeah, got it. Okay. Thanks. And so just expanding on the degrade piece then. Can you just talk us through the time lines there in terms of your plans for integration and optimization of that into the portfolio, what that could look like after May 5?

Question: Levi Spry - UBS - Analyst : Nice one. Okay. Thank you.

Question: Andrew Bowler - Macquarie - Analyst : Good day, Stu, Ryan and Simon. Maybe one for you, Simon, just expanding on Kate's question about the KCGM and underground. I think Kate sort of mentioned that previous commentary was rough exit rate of 3 million tonnes per annum this year and then sort of grinding its way up by 0.5 million tonnes per annum per year over the next couple of years. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 11:00PM, NST.AX - Q3 2025 Northern Star Resources Ltd Activities Report Call Just wondering if you could just give us a fresh update on that sort of expected growth rate of 0.5 million tonne annum that you've commented on previously. Is that still valid? Or is it likely to be a little bit shy of that over the next couple of years?

Question: Andrew Bowler - Macquarie - Analyst : No worries. Thanks for that. And maybe just one for Ryan. I mean, obviously, you talked about the De Grey assets coming on the balance sheet and being able to reduce your taxable income with those day one. Just so I can understand a little bit better as a non-accountant. So it sounds like you're saying on a dollar per ounce basis, you will see a lift next year in depreciation, not just a $1 million lift as well. It will be actually over the ounces you're producing from the other assets, you'll see an increase in D&A next year. Is that correct?

Question: Andrew Bowler - Macquarie - Analyst : Oh, okay. Copy that. So it's more the built-up losses that have happened within De Grey already more so than obviously depreciating asset? (multiple speakers)

Question: Ai Harvey - JPMorgan - Analyst : Yeah, morning team. I suppose you have mentioned that you are coming up to at the end of your five-year time line for the FY26 target. I suppose I just wanted to get a sense on when we might get an update on the next five-year outlook and how things might have changed given high gold price environment, how that's changing, how you're thinking about potential further growth? Maybe just an overview on that would be helpful.

Question: Ai Harvey - JPMorgan - Analyst : Sure, thanks.

Question: Matthew Frydman - MST Financial - Analyst : Sure. Thanks. Morning, Stu and team. Can I ask on Hemi and you've obviously highlighted that the next key step is more around state and federal permitting. Can you give us a bit of a, I guess, a more in-depth update on how that's tracking from your perspective? I'm particularly interested in how that process goes, particularly through the state and federal election periods, potentially some movements in the various bureaucracies there? So wondering how that is kind of playing out and how you expect that to potentially play out particularly through the federal election period? And then secondly, I guess, in terms of your internal permitting team presumably taking over some of that work that the De Grey team has been conducted. Obviously, you've got an external driver, which is the state and federal ministries, but there's also an internal driver there in terms of you guys getting up to speed with all of that work. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 11:00PM, NST.AX - Q3 2025 Northern Star Resources Ltd Activities Report Call And as I said, potentially taking over some of that responsibility in liaising with those departments. So it does seem like the time lines continue to push out a little bit on this process over time. So is there a time line that you're currently hopeful to working towards in terms of final approvals? When do you expect to get a decision around that? Thanks.

Question: Matthew Frydman - MST Financial - Analyst : Yeah, got it. Thanks, you. Is there any sort of -- I don't want to say a drop dead date, but any sort of timing that you're conscious of in terms of making long lead item decisions or design decisions around the project whereby you'd really need to have some kind of firmness around approvals come in before you go down that path? Or are you pretty flexible with the timing in terms of some of those design decisions?

Question: Matthew Frydman - MST Financial - Analyst : Yes, I understand. Thanks, Stu. And maybe just finally, again, coming back to the kind of integration piece. Can you remind us, I guess, what the vision or the plan is in terms of how much of that work you internalize back on to Northern Star teams? Or how many kind of teams or members REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 11:00PM, NST.AX - Q3 2025 Northern Star Resources Ltd Activities Report Call of the De Grey team will continue to sort of conduct the work that they were doing previously? I guess how do you see the division of responsibilities in terms of progressing the project forward?

Question: Matthew Frydman - MST Financial - Analyst : Yeah, I understand. Thanks, and, yeah, looking forward to more updates later in the year. Thanks.

Question: Hugo Nicolaci - Goldman Sachs - Analyst : Oh, morning, Stu, Ryan. Simon, Apologies for technical issues earlier, and if some of these points have been subsequently covered. But just picking up on some of the earlier questions. You've obviously highlighted some of the near-term challenges at KCGM and the accelerated growth spend ahead of plan in some other areas. I guess looking forward, if we take your revised guidance midpoint into the fourth quarter, it's implying a gold production run rate of about 1.8 million ounces. But based on some of the comments today and operational improvements, it sounds like that should probably be trending upwards. I guess marrying that up with some of the comments you've previously made, Stu, around having levers across the portfolio to deliver that 2 million-ounce target. How should we interpret those 4Q rates into FY26 and then relative to that 2 million-ounce target going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 11:00PM, NST.AX - Q3 2025 Northern Star Resources Ltd Activities Report Call

Question: Hugo Nicolaci - Goldman Sachs - Analyst : All right, Fair enough. Thanks, Stu. And then just picking up on the comment you made a little bit earlier around active portfolio management and the current gold price environment. Are there any assets in the current portfolio that you think maybe don't have the same medium term opportunities as others in the portfolio or maybe aren't being appropriately valued in the broader portfolio context?

Question: Hugo Nicolaci - Goldman Sachs - Analyst : Thanks. Then just lastly, if I can, just on the reserve and resource update. Should we still expect that in the coming weeks, consistent with sort of the timing over the last few years?

Question: Hugo Nicolaci - Goldman Sachs - Analyst : Alright, thanks for that. I'll pass it on.

Question: Daniel Morgan - Barrenjoey - Analyst : Hi, Stu, Ryan, and Tim. Just a question on the hedge strategy. I mean I don't want to be Harry hindsight and go back and rerun the tape on gold prices and what we could have, or should have done. But I just note that you've had two quarters now where you've allowed the hedge book to run off. Is that some recognition that the hedge strategy is perhaps not working, or dated now that you're a larger, more diversified company? I'm just wondering whether you might continue to let these hedges roll off over time and reduce your hedge book in time?

Question: Hugo Nicolaci - Goldman Sachs - Analyst : Yeah, thank you. And maybe just a follow-up. Separately, I mean the gold price is up quite simply bananas versus anything that we would have thought several weeks, months, or a year ago. Just wondering how that feeds into how you manage your business, if at all, do you let this gold price fall to the bottom line? Or do you look at the fringes of your ore bodies and things that go well, let's expand mine lives and change grade decisions over time? Just wondering how you think the gold price feeds into running your business?

Question: Hugo Nicolaci - Goldman Sachs - Analyst : Okay, thank you, Stuart.