As Northern Star Resources and Ramelius Resources work to finalise their acquisitions of De Grey Mining and Spartan Resources respectively, both companies have delivered solid production results for the March 2025 quarter.
Northern Star Resources
Northern Star sold 385,441 ounces (oz) at an all-in sustaining cost (AISC) of $2246/oz during the March quarter, with its Kalgoorlie production centre in Western Australia performing the strongest with 196,623oz sold.
Yandal in WA followed with 120,764oz, while Pogo in Alaska, US, delivered 68,054oz at $US1439/oz ($2239/oz).
Northern Star’s all-in costs of $3358/oz have increased by $738 compared to this time last year due to the company’s capital growth projects, led by the Kalgoorlie Consolidated Gold Mines (KCGM) mill expansion project in WA.
Northern Star’s proposed $5 billion acquisition of De Grey has received approval from the Federal Court of Australia as per the Corporations Act 2001.
It will also be supported by Gold Road Resources, which is currently De Grey’s largest shareholder, holding approximately 17.26 per cent of the company’s issued capital.
“We are pleased that De Grey shareholders voted overwhelmingly in favour of the scheme of arrangement and, upon implementation of the scheme on May 5, look forward to welcoming their team – and their shareholders – into Northern Star,” Northern Star managing director Stuart Tonkin said.
“During the March quarter, we delivered strong net mine cash flow of $295 million across all production centres despite operational challenges at our biggest asset, KCGM.
“Mining of higher-grade ore in the KCGM open pit was delayed because of low productivity in the Golden Pike North area. Mining efficiency is on track to lift significantly in the June quarter.”
As a result of the recent challenges at KCGM, Northern Star has revised its 2024–25 financial year (FY25) production and cost guidance from 1.65–1.8 million ounces (Moz) of gold sold to 1.63–1.6Moz.
Northern Star closed the quarter with $185 million in net cash and $1.1 billion in cash and bullion.
“Our balance sheet remains in a net cash position and free cash generation is expected to significantly increase as we lift production going forward, which enables us to reward shareholders in this period of historically high gold prices,” Tonkin said.
Ramelius Resources
Ramelius produced $80,455oz at AISC of $1492/oz during the March quarter, bringing the gold miner’s total year-to-date production to 228,210oz at an AISC of $1622/oz.
The Mt Magent hub led the charge, producing 67,464oz at an AISC of $1226/oz, while the Edna May hub produced 12,991oz at an AISC of $2802/oz.
In recognising Mt Magnet’s potential to increase gold production for Ramelius, the company unveiled an updated 17-year mine plan that would see 2.1Moz produced, averaging 140,000oz per annum for the first 10 years.
“The March 2025 quarter has delivered our second consecutive quarter of record underlying free cash flow, with $223 million generated in the period and $487 million year-to-date,” Ramelius managing director Mark Zeptner said.
“Cue was the star performer in the quarter generating $120 million in free cash flow alone with Penny continuing to impress generating $35 million.
“Our geological and operational teams have reconciled actual performance against our initial geological model of Cue including both tonnes and grade mined and milled in the March 2025 quarter, resulting in 31 per cent or 13,710 more ounces produced than initially modelled.
“As a result of excellent year-to-date performance, full year guidance has been refined, resulting in full year guidance at the higher end of the production range, while AISC has been tightened within the original range.”
Ramelius’ FY25 production guidance is now 290,000–300,000oz at an expected AISC of $1550–1650/oz.
“Our efforts to ramp up exploration are already starting to pay off, with positive extensional drilling results at Penny North, Cue, Hesperus and Saturn East (Galaxy), further demonstrating that our most important, high-grade deposits within the Mt Magnet portfolio still have significant exploration upside,” Zeptner said.
In March, Ramelius announced its intention to acquire Spartan Resources for approximately $2.4 billion. The transaction is progressing to plan, with the implementation expected to take place in late July or early August.
“Ramelius looks forward to integrating Spartan into our business with activities associated with the transaction proceeding to plan,” Zeptner said.
“Feedback on the proposed combination from shareholders continues to be overwhelmingly positive.”
Ramelius closed the quarter with $657.1 million in cash and gold.
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