Fitch rates Northern Star, notes BBB-

Fitch Ratings said it assigned BBB- ratings to Northern Star Resources Ltd. (NST) and its planned dollar-denominated senior unsecured notes. The outlook is stable.

“NST's rating is driven by its large operational scale among gold miners, average cost position, healthy mine life of 12 years, favorable mining jurisdictions, and strong credit metrics for its rating. The company is well-placed to progress towards meeting its five-year production target of 2 million ounces (oz.), from 1.6 million oz. in the financial year ended June 30, 2022 (FY22). Growing operational scale will improve the company's cost position into the first half of the industry cost curve,” Fitch said in a press release.

Additionally, Fitch said it forecasts NST’s EBITDA leverage to remain below 1x over the next four years.

The notes will be guaranteed by subsidiaries that account for at least 85% of NST’s EBITDA and assets. The company plans to use the proceeds for general corporate purposes, which may include capital expenditures for the Kalgoorlie Consolidated Gold Mines expansion project.

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