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Highlights

  • Mineral Resources up 9.4Moz to 70.7Moz; Ore Reserves up 1.4Moz to 22.3Moz

  • Major growth at flagship KCGM mine, with resources nearly doubling since acquisition

  • Hemi Project not yet included in new figures — future upside likely

  • Shares down 1.4% intraday despite long-term gain of 23% year-on-year

Northern Star Resources (ASXNST) shares fell 1.4% in Thursday morning trade to AU$18.07, underperforming the broader ASX 200, which slipped 0.3%. The dip came despite the gold miner reporting a substantial increase in its Mineral Resources and Ore Reserves for the 12 months ending 31 March.

Inventory Expansion Driven by Exploration Success

The company’s Mineral Resources rose by 9.4 million ounces (Moz) year-on-year to reach 70.7Moz, while Ore Reserves increased by 1.4Moz to 22.3Moz, even after accounting for depletion through mining.

A standout contributor was the KCGM gold mine in Western Australia — Northern Star’s largest asset. There, Mineral Resources surged by 7.2Moz to 38.9Moz, while Ore Reserves climbed 1.2Moz to 14.4Moz. Since Northern Star acquired KCGM five years ago, Mineral Resources have doubled, and Reserves have grown 50%.

Hemi Acquisition Yet to Be Included

Notably, these updates do not factor in the recently acquired Hemi gold project, which came through the takeover of De Grey Mining Ltd. Once included, Hemi is expected to further bolster Northern Star’s total inventory and establish a fourth production centre.

CEO Stuart Tonkin emphasized the strategic importance of exploration, stating:

“Exploration remains a highly attractive lever for us to create value by adding extra resource ounces at a cost of AU$20 per ounce, to help drive superior shareholder returns.”

Market Reaction and Outlook

Despite the dip today, Northern Star shares remain up 23% over the past 12 months.