Northern Star Resources has completed the tie in of its expanded KCGM processing plant in Western Australia, with commissioning under way as the company targets a production ramp up through the second half of the 2027 financial year. The first stage replaces about 85 percent of the existing 13 million tonnes a year of processing capacity and lifts total capacity to 27 million tonnes a year. A second stage, consolidating processing at the Fimiston plant and integrating work previously done at Gidji, is scheduled to begin commissioning in early 2027 and is expected to lift gold recovery by 1 to 2 percent and eliminate concentrate haulage between the sites.
The quarter itself was softer, as commissioning reduced milled tonnes, grade and recovery at Kalgoorlie. Northern Star sold 363,891 ounces of gold at an all in sustaining cost of 3,217 Australian dollars an ounce, generated 210 million dollars in net mine cash flow with all three production centres positive, and held cash and bullion of 1.2 billion dollars at the end of September. Group underlying free cash flow was negative 31 million dollars, including 113 million dollars of tax payments, and the company drew 500 million dollars of bank facilities after quarter end ahead of a dividend payment.
Guidance is unchanged at 1.5 million to 1.65 million ounces of gold sold for fiscal 2027 at all in sustaining costs of 3,050 to 3,450 dollars an ounce. Analysts at Argonaut said September quarter sales were 8 percent above their expectations and costs 17 percent below, and shares rose 2.8 percent on Wednesday to 25.36 dollars, valuing the company at about 36 billion dollars.
The result also has a takeover backdrop. Reporting noted an improved offer from Gold Fields remains a live possibility, and a stronger share price makes that task harder. Managing director Suresh Vadnagra, new in the role, said consistent delivery, cost discipline and completing the KCGM expansion safely were his immediate priorities, with the Hemi project studies progressing toward a final investment decision late in fiscal 2027.