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Digging deeper into Bill Beament’s reckless production

It is slowly emerging that Bill Beament’s Northern Star has seen expenditure trends rise from 2016 to 2018.

With the likelihood of over-budgeting and over-targeting, it’s not evident to all at how Bill Beament is actually meeting Northern Star’s targets.

The press and the general public see this milky bar kid who’s taken Northern Star from rags to riches, but is everyone aware of how he’s done so?

Experts in the industry believe that Beament’s strategy and approach lacks efficiency. His main goal, to please the shareholders – whatever it takes. And the figures show just that.

For the period of 2016 to 2018:

  • Decrease in Total Mined Grade
  • Decrease in Stope Ore Grade
  • Steady high budget stope grade

The major concern is the over expenditure compared to the budgeted mine plans.

Northern Star’s stoping performance has seen gold production decline (from 2016 to 2018) 14 per cent, 27 per cent and 5 per cent compared to its respective budget.

The poor stope production has consistently been offset by increased production out of ore drives in the same period – resulting in significantly less profitable gold production.

Adding to the above are changes in the increasing depth of orebody geometry – does Mr Beament review Northern Star’s strategy and approach?

2016 to 2018 has seen some very unsustainable trends in cost. At the rate in which Northern Star is rising, they do not appear to level themselves at the level where good industry practices should be practiced.

In other words, they are now playing in the Premier League but still appear to be making lower division mistakes.

Take Rand and Tribune for example, at EJKV experts believe that they do not have good visibility of any planning processes and planned outcomes which gives low confidence for budgeted outcomes – a case of the majority vs. minority?

Let’s put more figures on the table:

  • For the FY2018, Rand and Tribune were approx. $14 million cash poorer than the budgeted outcome for EKJV
  • Around 20% worse off as a result of the operating performance
  • Cost per Oz was at least $120 per Oz higher than the budgeted figures

It is about time that some light is shed on the operations at Northern Star and how Bill Beament is simply steamrolling his way to meet targets, leaving behind an ever-increasing pile of mess which is becoming ever so noticeable to industry experts and the general public alike.

It will only be a matter of time before their mess catches up with Beament and Northern Star.

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