Mining gold and growing bold: how Northern Star shines under Stuart Tonkin's leadership

Stuart Tonkin, CEO of Northern Star Resources, recently shared his insights and vision at the WA Mining Club, emphasising a clear, purposeful strategy that has propelled the company to the forefront of the global gold mining industry. With a message rooted in optimism, Stuart underscored Northern Star's commitment to generating superior returns for shareholders while investing in its people and communities. "Optimists achieve everything, and pessimists achieve nothing," Stuart asserted, setting the tone for his presentation.

Under Stuart's leadership, Northern Star has become one of Australia’s largest listed gold producers, with a market capitalisation of $17 billion and a place in the ASX 50. The company is now recognised as a top 10 global gold producer, maintaining an enviable position in a volatile market. Stuart's talk centred on how Northern Star has managed to achieve this, detailing a journey of strategic acquisition, operational excellence, and a relentless focus on core values.

From exploration to production: a strategy for growth

Appointed CEO in 2016 and Managing Director in 2021, Stuart has led Northern Star through a period of aggressive growth, transforming it from a mid-tier miner to a global leader in gold production.

Drawing on his extensive background as a mining engineer with over 20 years of experience in underground hard-rock mining, Stuart has steered the company with a clear vision: to maximise value through a combination of “minerals, maths, and motivation.”

“Our purpose might sound like corporate speak,” Stuart acknowledged, “but it is simple and effective – to generate superior returns for our shareholders and deliver benefits to all stakeholders through operational excellence, exploration, and active portfolio management.” Under his guidance, Northern Star has remained steadfast in this purpose, focusing on three main levers to create value: reducing unit costs, increasing production, and extending mine life.

Stuart highlighted Northern Star's strategic expansion efforts, particularly its ability to acquire assets with short reserve lives, which were undervalued by other major companies. These acquisitions were paired with an aggressive approach to exploration, focusing on extending the life of these mines through targeted drilling campaigns. “We got really fussy and focused on what we termed the five G’s,” Stuart explained, referencing the company’s criteria of geology, grade, geometry, geography, and government stability when considering new acquisitions.

This disciplined approach has paid off handsomely. Since 2018, Northern Star has increased its resource base sixfold, reaching over 61 million ounces of gold, with 20 million ounces in reserves. The company now employs around 7,000 people across its operations in Australia and Alaska, reflecting a sixfold growth in market capitalisation to $17 billion.

Financial strength and strategic investments

Stuart also detailed Northern Star's strong financial performance in the fiscal year ending June 2024, highlighting the company’s revenue of A$4.92 billion, up 19% from the previous year. Underlying EBITDA rose by 43% to A$2.19 billion, and cash earnings surged 48% to A$1.8 billion. This robust financial health has enabled Northern Star to generate A$462 million in free cash flow, maintaining a net cash position of A$358 million and supporting a record dividend of 40.0 cents per share.

According to Stuart, this financial resilience is key to Northern Star’s ability to fund growth initiatives, return capital to shareholders, and maintain its strong market position. “Cash is king,” he remarked, explaining that without strong cash flow, the company could not reinvest in its business, pay dividends, or undertake share buybacks. “It’s a fundamental health signal of a really complete, mature business.”

The company’s ongoing investments include the significant expansion of its production centres. Stuart highlighted the progress at the Kalgoorlie Consolidated Gold Mines (KCGM) site and the Yandal production centre, alongside the record performance at the Pogo mine in Alaska. These expansions align with Northern Star's strategy of achieving a production target of up to 1.8 million ounces of gold in FY25 while continuing to reduce all-in sustaining costs.

A people-first approach

Central to Northern Star's success is its commitment to a positive and inclusive workplace culture. Stuart described a workforce that is not just diverse but also empowered and motivated to deliver results. “Our core values – safety, accountability, respect, and results – are more than just words on a page,” Stuart said. “They are the foundation of our culture and our success.”

Stuart emphasised that a key factor in maintaining this culture is ensuring employees feel valued and heard. “It’s about creating an environment where everyone feels they can contribute and grow,” he explained. Northern Star’s inclusive approach is reflected in its commitment to training, career development, and fostering a sense of belonging among its 7,000-strong workforce.

Drawing on his own experiences, Stuart spoke passionately about his upbringing in the hills of Lesmurdie and the transformative impact of a high school chemistry teacher who encouraged him to explore mining. His personal journey from a young student at Lesmurdie Senior High School to leading one of Australia's top mining companies underscores his belief in the importance of early exposure to the industry and the opportunities it offers.

Sustaining optimism in a dynamic market

Throughout his presentation, Stuart returned to a theme of optimism, resilience, and opportunity. He urged the audience to maintain a positive outlook, even in the face of challenges. "We are positioned to capitalise on future opportunities," he stated, while also acknowledging the importance of managing risks. “Our strategy will continue to focus on gold while remaining open to other commodities on our existing properties.”

Stuart’s optimism was reflected in his vision for the future of Northern Star. He spoke of ongoing growth initiatives, such as the A$1.5 billion KCGM Mill Expansion and the continued exploration of greenfields and brownfields opportunities. The company's growth strategy remains centred on expanding production, enhancing operational efficiency, and maintaining its strong financial position.

Facing challenges head-on: a call for industry unity

While confident about the future, Stuart also addressed potential threats to the Australian mining sector. He highlighted the importance of maintaining a stable regulatory environment and ensuring that Australia remains an attractive destination for investment. "Sudden changes in the rules or regulatory framework can drive capital away," Stuart warned, calling for careful management of Australia’s global competitiveness.

He also pointed out that the mining sector is a world leader in protecting heritage and communities. "We are world-class in what we do," Stuart said, "and we need to continue to promote the positive impacts of our industry to ensure ongoing support from the community and government."

A visionary leader with a passion for mining

Stuart’s personal story is as compelling as Northern Star’s rise to prominence. From a young student inspired by a high school chemistry teacher to a leader in the gold mining industry, his journey reflects his deep passion for mining and commitment to innovation. He brings a unique perspective to his role, balancing technical expertise with a genuine focus on people and culture.

Under Stuart’s leadership, Northern Star Resources is well-positioned to navigate the challenges and opportunities of the global mining industry. With a clear purpose, disciplined strategy, and commitment to growth, Northern Star continues to set the standard for excellence in gold mining.

As Stuart concluded, “The possibilities are endless when you think positively, stay focused, and keep moving forward.”