The Bull Case For Northern Star Resources (ASX:NST) Could Change Following 25-Year Renewable Power Deal

• Northern Star Resources has entered a 25-year renewable power purchase agreement with Zenith Energy to supply wind, solar and battery-backed electricity to its Kalgoorlie Consolidated Gold Mines operation, aiming to improve power security and cut carbon intensity from the late 2020s.
• This long-term deal ties one of Northern Star’s largest gold hubs to cleaner, potentially more stable-cost energy, which could influence its operating risk profile and how investors view its future cost base.
• We’ll now explore how locking in renewable power at Kalgoorlie may reshape Northern Star’s broader investment narrative and long-term risk profile.

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Northern Star Resources Investment Narrative Recap

To own Northern Star, you need to believe it can turn its enlarged Australian gold footprint into resilient, cash generative production while keeping big project and cost risks in check. The new 25‑year renewable power deal at Kalgoorlie supports that story around energy cost visibility and decarbonisation, but the more immediate catalysts and risks still sit with delivering the KCGM mill expansion, managing all in sustaining costs, and progressing Hemi on time and on budget.

The recent completion of the A$5,000,000,000 all share acquisition of De Grey Mining, and with it the Hemi project, is the announcement that most shapes how this power agreement might matter over time. Together, they reinforce that Northern Star’s investment case now hinges on whether it can integrate a much larger asset base, execute multi year capital programs and maintain cost discipline while industry wide inflation and permitting risk remain live issues for shareholders.

Yet investors should also be aware that …

Read the full narrative on Northern Star Resources (it's free!)

Northern Star Resources’ narrative projects A$9.1 billion revenue and A$2.0 billion earnings by 2028.

Uncover how Northern Star Resources' forecasts yield a A$27.39 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Thirteen members of the Simply Wall St Community now place Northern Star’s fair value anywhere between A$13.56 and A$58.16, with many clustering in the A$22 to A$36 range. Against that spread of views, the execution risk around KCGM’s expansion and the Hemi development could be what ultimately decides which of these valuations comes closer to how the market prices the company over time, so it is worth comparing several of these perspectives side by side.

Explore 13 other fair value estimates on Northern Star Resources - why the stock might be worth 48% less than the current price!

Build Your Own Northern Star Resources Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Northern Star Resources research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Northern Star Resources research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Northern Star Resources' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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