Fed tests gold upleg
Gold’s outlook and fundamentals remain really bullish.
Australia’s Northern Star Resources said on Thursday it has received board approval to expand the processing capacity of its Kalgoorlie Consolidated Gold Mines (KCGM) mill in Western Australia at a cost of A$1.5 billion ($1.02 billion).
The expansion will increase and modernise KCGM’s processing capacity to 27 million tonnes per annum (mtpa) from 13 mtpa, Northern Star said.
Construction will last for three years until fiscal 2026, and milling capacity is expected to reach 27 mtpa by fiscal 2029.
“This project is financially compelling, and a significant enabling step towards delivering our strategy to generate superior returns for our shareholders,” said Northern Star managing director Stuart Tonkin.
The project will deliver sustained lower cost base and a significant increase in free cash flow, the company said, adding that it forecasts a rise in revenues and net profit as the project goes live.
($1 = 1.4717 Australian dollars)
(By Harish Sridharan; Editing by Krishna Chandra Eluri and Maju Samuel)
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