Q4 2025 Northern Star Resources Ltd Activities Report Call Transcript

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

Question: Kate McCutcheon - Citi Infrastructure Investments LLC - Analyst : Good to see KCGM underground above 3 million tonnes. So I guess we've had sell-side expectations for CapEx for FY26 missed the mark, like $1 billion a year ago, close to $3 billion today, and the type of that is Hemi, which is new. So I guess, moving forward, can we expect some guide rails in terms of the CapEx band for a few years ex Hemi? Or what are the key things to think about in terms of dragging rate or not on CapEx for the medium term, both that [400] ounces sustaining and growth capital?

Question: Kate McCutcheon - Citi Infrastructure Investments LLC - Analyst : Okay. But there's no plan to sort of give the market some medium-term guide rates?

Question: Kate McCutcheon - Citi Infrastructure Investments LLC - Analyst : Okay. Got it. And we didn't get that new outlook to FY29 today, sorry, I'm sticking on the guidance phase. Is that pending Hemi or will that come with a Kalgoorlie site visit? I guess I'm looking to understand the business after next year.

Question: Kate McCutcheon - Citi Infrastructure Investments LLC - Analyst : Okay. That would be great. And then finally, just for [reval] of the hedging policy, that's great. Is it fair to assume that Hemi will be funded without any new hedging?

Question: Hugo Nicolaci - Goldman Sachs Group Inc - Analyst : Congrats on a record free cash flow for '25. I just want to pick up on Kate's question around the CapEx piece and sort of looking at what that ongoing spend is. If we try to break out what that ongoing cash cost versus all-in sustaining costs, you would you give us a bit more color in terms of that $750 million for FY26. What the rough breakdown is between the production centers?

Question: Hugo Nicolaci - Goldman Sachs Group Inc - Analyst : Great. Got it. And then sort of also picking up the other point, when do you expect to be in a position to give that medium-term outlook to market? I think historically, you've talked to later this year. Do you need to get certainty around the timing of Hemi before you can give that update and feel comfortable there? Or can you give a portfolio outlook on an ex-Hemi basis and maybe give the market something a bit earlier?

Question: Hugo Nicolaci - Goldman Sachs Group Inc - Analyst : Yes. No, understood. And then on Hemi just in the press this week around appeals on native title and water discharge concerns doubt that probably would have come up in your DDA. What got you comfort there in terms of water or alternative water treatment options? And work is that to go to either study those or recast? And just sort of any comments on how those discussions are progressing?

Question: Daniel Morgan - Barrenjoey Markets Pty Ltd - Analyst : Stu and Ryan, just on the suit, it's fair to say FY25 physicals were below plan. But just looking at the June numbers, looks like a big lift in underground ore mining, material movements. Can you just expand a bit more on ratifications to the plan and whether these early wins look like they're sustainable?

Question: Daniel Morgan - Barrenjoey Markets Pty Ltd - Analyst : And just a couple of clarifications on that. When you were saying Fimiston did 200,000 tonnes underground in the quarter, you're just defining the area that's not Mt Charlotte, I presume? And then just a clarification on the open pit material movements. I imagine in the quarter, you were more near the top of the pit, and so you got different -- you've got shorter shelf distances and whatnot wears later in the year, you're planning to be in Golden Pike where you're deep in the pit. Just wondering if you could talk about sustainability once you have to go down to the bottom of the pit? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 23, 2025 / 11:00PM, NST.AX - Q4 2025 Northern Star Resources Ltd Activities Report Call

Question: Daniel Morgan - Barrenjoey Markets Pty Ltd - Analyst : And the plant at the super pit. I know it's denoted often is a 13 million tonne plant per annum, did 11.8 million tonnes, I think, in the year. So there's some -- what's the confidence of the throughput before you turn on the big mill expansion?

Question: Matthew Frydman - MST Financial - Analyst : A couple of questions from me. Firstly, can I just continue the thread of the prior questions on the medium-term outlook and your CapEx guidance. And you talked about the thermal power station and tailings dam at KCGM. Obviously, reasonably material items, which were likely already in your capital work plan for the year and really arguably part of the total budget and the economics for the mill expansion, but obviously hadn't really been clearly spelled out to the market. So again, just picking up on some of those prior comments. Do you think differently maybe about how you approach some of the more forward-looking outlook on those sorts of items? And then particularly as you come to building Hemi or maybe other major projects, I mean, I know you said it's not going to be practical to give a 10-year outlook for the business as a whole. But certainly, I think from a market perspective, probably something we're considering if those sorts of capital works are already kind of in the budget?

Question: Matthew Frydman - MST Financial - Analyst : Yes, I understand. Thanks for the additional commentary there. I mean, we're all pretty simple based analyst or at least I am. So anything you can spell out for us obviously is quite helpful in terms of the medium-term outlook? So I appreciate that. Maybe secondly, on capital management and shareholder returns. I mean, I think probably sound like a bit of a broken record on these quarterly calls at the moment. But as you alluded to there, your share price performance has disappointed relative to the peer group and gold price. You've picked up arguably a bit of excess cash with the De Grey acquisition, now sitting at $1.9 billion cash and bullion. If I do the math on your dividend policy in the second half, you're probably only likely to return up to maybe $500 million of that with the final dividend. So can you comment on the attractiveness of potentially a new buyback program in FY26? And how do you think about weighing that up as in weighing up a new buyback against maybe closing out some of the out-of-the-money hedges given your revision to the hedging policy?

Question: Al Harvey - JPMorgan Chase & Co - Analyst : Apologies to look back at some of the guidance and outlook you put in some of your early presentations. But I guess just in the context of the sustaining CapEx discussion and go more broadly. Do you think -- I think the target in there was for the project to do about $1,425 an ounce all-in sustaining costs once you retest 900,000 ounces per annum steady state rate. So is that still achievable? And might we get a little bit of an update on that at the site that's coming up?

Question: Al Harvey - JPMorgan Chase & Co - Analyst : And maybe just one on the (inaudible) hub, I think five-year plan. You did know that it has stabilized there, but probably at a bit lower level, I think you've been targeting about that hub to do about 600,000 ounces per annum longer term. So I think you kind of alluded to it, maybe it's just a timing issue. But how do we think about the time frame that we might end up getting there to that 600,000 ounce per annum, right?

Question: Hugo Nicolaci - Goldman Sachs Group Inc - Analyst : I just wanted to round back on the power station obviously, it looks like an upfront CapEx near term, but we haven't really talked too much to the benefit you expect to extract out of that one. So maybe just with the reference, you mentioned Jundee and the power works there, what sort of operating cost savings you expect to get out of putting in new power infrastructure at Kalgoorlie?

Question: Hugo Nicolaci - Goldman Sachs Group Inc - Analyst : Fantastic. And then just another one around the divestments piece you've historically talked to the potential to rationalize the portfolio. Any updates there in terms of timing or sort of high level what you're thinking of where those could come from?

Question: Levi Spry - UBS AG - Analyst : Maybe just run back to some of these questions. So on the CapEx, thanks for the extra lead on the sustaining piece. Just on this operational growth CapEx line. What percentage of that is a go-forward number in my mind, a sustainable number repeatable, whatever the terminology will use? Particularly, it's FY29?

Question: Levi Spry - UBS AG - Analyst : Yes. I appreciate the extra detail. And maybe just a second one around the KCGM ramp-up. So it looks like you've reiterated 900,000 ounces in '29 and the processing sort of throughput. So it's really just a question around De Grey. Can you just remind me around the underground ramp-up? So the really good quarter you've just had 3 million tonnes now. I think previously, you've said 8 million tonnes at some point in time. Can we just help us sort of work out that profile of the grade that matches this throughput?

Question: Mitch Ryan - Jefferies LLC - Analyst : Just want to dig into case mill expansion CapEx a little bit. You sort of -- I know we're not talking about rations in quantum, but CapEx spend for the year was $544 million versus guidance of $500 million to $530 million. It's only gone up a little, but then you've maintained the profile into '26 and '27? Can you talk to how much of that was just timing of capital spend versus how much was inflation? And do you see any risk at all to be upsold capital number?