Northern Star Resources Limited (ASX: NST)
Northern Star Resources Ltd. has completed its acquisition of De Grey Mining Ltd. through a court-approved Scheme of Arrangement. The Federal Court of Australia has approved the deal, and all De Grey Mining Ltd. shares are now owned by Northern Star Resources Ltd. De Grey Mining Ltd. shareholders received 0.119 new Northern Star Resources Ltd. shares for each share held on the April 28 record date. Trading of De Grey Mining Ltd. shares on the ASX ceased on April 23.
Northern Star's March 2025 quarterly report indicates strong cash flow generation with some operational challenges. Gold sold totaled 385koz at an AISC of A$2,246/oz. The company faced delays in accessing higher-grade ore at the KCGM open pit due to low productivity in the Golden Pike North area. Mining efficiency is expected to improve in the June quarter.
Northern Star has revised its production guidance and brought it slightly down to 1,630-1,660koz and AISC guidance to $2,100-2,200/oz. This is reflecting the KCGM challenges and increased costs. However, growth capital and exploration expenditure have increased, signaling continued investment in the company's future. The KCGM Mill Expansion Project is progressing, with a transition to structural and mechanical installation during the March quarter.
The company is maintaining a strong balance sheet with a net cash of $181M after distribution. The company is focused on increasing its free cash flow and also rewarding its shareholders. The company is facing some short-term operational headwinds. Its strong financial position along with ongoing investments suggests a positive long-term outlook
Predictive Discovery Limited(ASX: PDI)
Predictive Discovery Limited is on advancing its Bankan Gold Project in Guinea, West Africa. The company has made significant strides in the project, particularly in permitting and exploration.
PDI reported a consolidated loss after income tax of $7,853,798 for the half-year ended 31 December 2024 and held cash and term deposits of $28,750,255 as of that date. A key development for PDI was the approval of the Environmental and Social Impact Assessment (ESIA) and the issuance of the Certificate of Environmental Compliance (ECC) by Guinea’s Ministry of Environment and Sustainable Development. The company also submitted an Exploitation Permit application to Guinea's Ministry of Mines and Geology.
PDI has been actively exploring the Argo permit area which is located north of the main Bankan project area. The company announced maiden Mineral Resource estimates for the Fouwagbe and Sounsoun deposits within the Argo area, totaling 3.1Mt @ 1.54 g/t for 153Koz of gold (Inferred). Drilling results from Sounsoun have shown significant upside potential, which could expand the resource base.
The Company raised $69.2 million through a placement to the Lundin family and Zijin Mining Group, which has fully funded the company through to a decision to commence development of the Bankan Project.
Overall, Predictive Discovery is making significant progress in developing the Bankan Gold Project, with positive exploration results and strong financial backing.
(Source: Company Announcements)
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