0051 GMT - Northern Star Resources' acquisition of De Grey Mining could spur development of an underground mine at the Hemi gold project in Australia's Pilbara region, contends Macquarie. Northern Star is Macquarie's top pick of gold producers among the 50 biggest stocks on the ASX. Macquarie says its base case for Hemi is grounded in De Grey's definitive feasibility study, which pointed to an annual output of 530,000 oz of gold over a decade. Still, Macquarie also assumes an underground mine that could boost production by 8% to 570,000 oz annually. "We also assume pre-production capex of A$1.9 billion and an all-in sustaining cost of A$1,500/oz, which are 38% and 19% higher than the definitive feasibility study, respectively," albeit in line with consensus, Macquarie says. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
April 22, 2025 20:51 ET (00:51 GMT)
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