NESRF - Northern Star Resources OKs $1B KCGM mill expansion
2023-06-22 08:54:31 ET
Northern Star Resources ( OTCPK:NESRF ) said Thursday it approved a A$1.5B (~US$1.02B) expansion of the KCGM gold mining operation in Western Australia, boosting production from one of the world's largest gold mines.
Northern Star ( OTCPK:NESRF ) said the expansion will increase and modernize KCGM's processing capacity to 27M metric tons/year from 13M tons/year currently.
Construction will last three years until FY 2026, and milling capacity is expected to reach 27M tons/year by FY 2029, the miner said.
The project will deliver a sustained lower cost base and a significant increase in free cash flow, the company said, adding it expects a rise in revenues and net profit as the project goes live.
"Expanding the processing capacity of KCGM will strengthen Northern Star's portfolio, materially increase our free cash flow generation and progress our long-term strategy to be within the second quartile of the global cost curve," the company said.
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Northern Star Resources OKs $1B KCGM mill expansion