Northern Star Loses Bull on Slow Ramp Up of Kalgoorlie Operations -- Market Talk

Dow Jones
05/01

0100 GMT - Northern Star Resources' slow ramp up of operations in Kalgoorlie persuades Bell Potter to downgrade the stock to hold from buy. Analyst Bradley Watson trims a forecast for group FY 2026 production by 10% to 1.8 million oz of gold, with output lifting to 2.0 million oz in FY 2027. Bell Potter also expects cost inflation across all three of Northern Star's mining hubs, increasing all-in sustaining costs by 14% to A$2,040/oz in FY 2025. Bell Potter says its target price of A$20.85/share, down some 5.9% on before, reflects a long-term gold price forecast of A$3,800/oz. "Our recommendation would revert to buy applying a long-term gold price of A$4,300/oz," the bank says, noting the spot price is currently A$5,160/oz. Northern Star trades at A$19.11. (david.winning@wsj.com; @dwinningWSJ)

 

(END) Dow Jones Newswires

April 30, 2025 21:00 ET (01:00 GMT)

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