Latest news with #US3500
West Australian
24-07-2025
- Business
- West Australian
Inflation winds whip up extra costs for Northern Star Resources
Inflationary pressures across Northern Star Resources' assets in WA and Alaska will add about $100 an ounce to the precious metal miner's cost of production. Higher royalty costs and tariff assumptions associated with its Pogo operations will contribute about $40/oz to the increase as Northern Star targets production of between 1.7 million ounces and 1.85moz for the financial year. The 5 per cent jump is set to take the Stuart Tonkin-led company's all-in cost for FY26 to between $2300/oz and $2700/oz, with expectation of improving costs throughout the year. Adding to the cost will be sustaining capital of about $750m across its production centres. Reporting its latest quarterly results on Thursday, Northern Star said it delivered record annual group underlying free cash flow of $536 million for the 12 months to the end of June, with net mine cash flow of $1.19 billion. The Yandal and Pogo operations both recorded quarterly and annual net mine cash flow. Gold sold for the year came in within the group's revised guidance at 1.634moz at all-in costs of $2163/oz. Average realised prices for the June quarter were $4483/oz, generating revenue of $1.99b 'The June quarter completes a constructive year of growth investments to position our largest asset, KCGM, for sustained future success,' Mr Tonkin said. 'We remain committed to unlocking the full potential of our production centres and are confident the investments made during FY25, including the acquisition of the Hemi deposit, will deliver significant value for shareholders.' The $1.3b Hemi project in the Pilbara was picked up in Northern Star's massive $5b takeover of De Grey Mining at the end of 2024. The price is believed to be a global record for a gold company without a mine in production, and comes during a period of consistent high prices for the metal. Gold has climbed about a third this year, as uncertainty around US President Donald Trump's aggressive attempts to reshape global trade and conflicts in Ukraine and the Middle East sparked flight to havens. The precious metal has consolidated within a tight range over the past few months, though this week's gains of about 2.5 per cent have pushed prices to trade about $US80 short of April's record high above $US3500/oz. It is currently trading at around $US3422/oz. Earlier this month Northern Star secured approval for Hemi from the Environmental Protection Authority, subject to conditions regarding its water usage, flora and fauna disturbances, cultural heritage impacts and rehabilitation progress. Once up and running — and coupled with increased output from an $1.5b expanded mill at its famed Super Pit in Kalgoorlie — Northern Star is poised to become a global top 10 producer by the end of the decade. It ended the year with cash and bullion of $1.9b.
West Australian
23-06-2025
- Business
- West Australian
Dale Henderson keeps the faith amid deteriorating lithium market with $1m splurge on PLS shares
The chief of PLS keeps buying millions of dollars worth of his company's stock amid a share price slide showing no signs of abating. Dale Henderson last week bought 755,000 shares in PLS, formerly known as Pilbara Minerals, for a total of $1.01 million — according to filings released to the ASX on Monday. This on-market outlay equates to $1.34 per share and comes seven months after a $1.1m spend on PLS shares. Mr Henderson bought 500,000 shares at $2.23 apiece during this December cash splash. But the spending sprees are unlikely to make a big dent in his bank balance. Mr Henderson's package of salary, shares and performance rights totalled $4.5m for the 2024 financial year. He now owns almost 2.1 million PLS shares, worth approximately $2.5m at current prices, and 2.1m of performance rights. PLS shares have sunk 61 per cent over the past year and 78 per cent since a November 2022 peak of $5.37. Its shares were in the red on Monday despite Mr Henderson's top up, trading down 2 per cent to $1.20 by 11.30am. Mr Henderson has been a vocal lithium bull, even in comparison to his other lithium CEO counterparts. While most miners of the battery mineral were battening down the hatches during the latter half of last year, PLS inked a deal to buy Brazilian-focused lithium developer Latin Resources for $560m. Mr Henderson described the major acquisition as 'counter-cyclical'. At the time of the Latin deal, the benchmark price of the spodumene concentrate lithium product PLS produces was over $US900 per tonne. And a year prior to the date of the deal it was about $US3500/t. It is now currently languishing at just over $US600/t, as slower-than-expected uptake of electric vehicles plus booming supply out of South America, Africa and China drags prices down.
West Australian
16-06-2025
- Business
- West Australian
Greatland Gold guns for $4.4 billion ASX arrival next week
Australia's next big gold debutant will make a $4.4 billion splash when it arrives on the ASX this month, surpassing many of its WA mid-tier peers all uplifted by the yellow metal's thunderous run. Greatland Gold has locked in commitments to raise $50 million with Australian investors after landing on an offer price of $6.60 a share — a 19.5 per cent premium on the company's share price the day before its prospectus was lodged. The agreed rate for a slice of the Pilbara gold miner had been at the top end of the range Greatland had been shooting for, the company told the London Stock Exchange on Monday. 'The exceptional demand received for the Australian offering is testament to the quality and opportunity of Greatland's Telfer mine and world-class Havieron brownfield development project,' chief executive Shaun Day said. 'The ASX is a natural listing venue for Greatland.' The London-listed company took control of the famed Telfer gold mine in the Pilbara from behemoth Newmont in December last year, and has since churned out more than 90,000 ounces of gold. Still retaining its spot as the company's biggest backer, Newmont will offload $440m worth of Greatland shares — or about half its stake — as part of aJU secondary offer tied in with the listing deal. It was not disclosed who would take on the new shares. With a $4.4 billion market capitalisation, Greatland will sit among the top end of WA's mid-tier gold set when it begins trading on the ASX on June 24. The miner will be level pegging with Capricorn Resources, and ahead of the likes of Regis Resources, Ramelius Resources and Westgold Resources. As well as gold production, Greatland is also eyeing copper output from the undeveloped Havieron deposit it discovered in WA's Paterson region. Greatland also has a farm-in and joint venture arrangement with Rio Tinto's exploration subsidiary for 1500sqkm of ground south of the two projects. Gold's bull run has been spurred by fresh conflict in the Middle East, taking an ounce of the precious metal to $US3415.46 ($5244.95) at 5pm local time on Monday, closing in on touching an all-time high of $US3500 achieved in April. Brokers Barrenjoey, Canaccord Genuity and Bank of America are acting as joint lead managers. on the listing and raising.
West Australian
16-06-2025
- Business
- West Australian
Black Cat Syndicate becomes a next-level gold bull after building stockpile in lieu of growing bank balance
A fledgling gold miner is so confident the precious metal's price will continue to rise it has decided to stockpile at least $20 million of bullion instead of cashing in. Perth-based Black Cat Syndicate is taking the unusual step of hording the gold bars churned out from ore processed through its Lakewood mill near Kalgoorlie and Paulsens mill in the East Pilbara. Black Cat bought Lakewood from Westgold Resources in February for $85m and poured its first bar of gold doré at the site in April. The company plans to build up and store a minimum of about $20m worth of gold, which at current prices equates to roughly 4000 ounces of bullion. By the end of May, about $24m had been retained. 'While Black Cat is not a bullion bank, we are not a cash bank either,' managing director Gareth Solly said. 'It is hard to justify producing a safe haven asset, in gold, and then converting that asset into an asset losing its purchasing power, in cash. 'After working capital and growth requirements, we are setting $20m of gold aside, comfortable in the knowledge that gold is a high-quality, liquid asset. 'At the end of the day, we are in the gold business and investors can choose Black Cat because they are seeking leverage to gold. And yes, the gold price could go down, and we will hold sufficient cash to cover such a contingency.' Black Cat had $65.4m cash on hand at the end of the March quarter. Shares in the miner were up 1.1 per cent in early Monday trade on a down day for gold stocks after big gains last week. UBS on Monday reaffirmed its long-term gold price prediction of $US3600/oz. Gold is currently around $US3430/oz, hovering near the $US3500/oz record it hit in April, as the threat of an all out war between Israel and Iran induces another burst of demand for the safe haven asset.
AU Financial Review
28-04-2025
- Business
- AU Financial Review
Fundies bet on ‘dividend surprise' from ASX gold miners
Fund managers are betting on more Australian gold producers rewarding shareholders with chunky dividends as the soaring price of the precious metal buoys company profits and cash levels. Gold topped $US3500 an ounce for the first time last week bolstered by its safe haven appeal amid US President Donald Trump's escalating trade war that has pushed the spot price up more than 30 per cent this year. Profit takers stepped in on Monday with gold trading about $US3300 an ounce.
