A leading figure in the Australian gold mining sector has expressed concerns about recent capital gains tax (CGT) changes and their potential impact on investment, particularly within the junior exploration segment. Speaking at the Melbourne Mining Club, Mr. Finlayson criticized the new tax measures as shortsighted, arguing that they do not adequately consider the broader implications for industry development and funding pipelines.

Mr. Finlayson advocated for the repeal of the CGT changes or, at minimum, for carve-outs to be extended to junior explorers. He emphasized that the value generated through taxes and royalties from ongoing investments in gold mining is critical to the sector’s growth and sustainability.

In addition to tax issues, Mr. Finlayson addressed the future of Northern Star Resources, Australia's largest remaining publicly listed gold miner, amid a takeover bid from South African gold producer Gold Fields. Last week, Northern Star officially rejected Gold Fields’ cash-and-scrip offer, labeling it opportunistic. Mr. Finlayson, who retains shares in Northern Star, suggested that Gold Fields would likely need to increase the cash portion of its offer to gain shareholder approval. This view aligns with the stance of Northern Star’s board, which includes his sister, former Rio Tinto executive Marnie Finlayson, who have indicated Australian investors might be reluctant to accept shares in the South African-listed company.

Despite the resistance to the current bid, Mr. Finlayson acknowledged that a successful acquisition by Gold Fields could benefit the broader Australian gold industry, particularly mid-tier and junior mining companies. Gold Fields has reportedly indicated plans to divest certain non-core assets if its takeover attempt succeeds, potentially releasing a substantial portfolio of mining assets back into the Australian market.

Northern Star itself was formed largely from assets divested by Barrick Gold following its withdrawal from Australia in the early 2010s. Mr. Finlayson highlighted that since Barrick’s exit, there has been limited large-scale divestment activity in the Australian gold mining sector. He noted that Northern Star has maintained its production capacity and asset base without significant sell-offs over an extended period. Whether through a successful takeover or internal restructuring, he expects asset disposals to create new opportunities for smaller and emerging miners further down the industry chain.