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- Northern Star Resources (NST) says the September quarter has left it on track to meet its targets for the full 2023 financial year
- The big-cap gold miner sold almost 369,000 ounces of gold at an all-in sustaining cost of $1788 per ounce, leaving it to pocket $921 million in revenue for the quarter
- Northern Star’s Thunderbox mill expansion is on track to reach nameplate capacity in the second half and optimisation activities are progressing at its Pogo operation in Alaska
- Following the solid start, the gold producer maintains its FY23 sales guidance, with majority of sales expected in the second half
- NST shares end the day 0.49 per cent in the red to close at $8.05
Northern Star Resources (NST) has started the new financial year off with a solid start following the first quarter of FY23.
The Australian gold company produced 366,641 ounces of gold and sold 368,956 ounces at an all-in sustaining cost (AISC) of $1788 per ounce. This resulted in the company pocketing $921 million in revenue.
Sales and revenue for the September quarter were slightly lower than the June quarter when around 402,000 ounces of gold was sold, giving the company $985 million in revenue.
The big-cap miner’s Australian operations, which include the Kalgoorlie and Yandal production centres, accounted for 86 per cent of production and was in line wiith expectations.
The company said the planned Thunderbox mill expansion at Yandal is on track to reach nameplate capacity in 2H23.
The Pogo operation in Alaska continues to perform at a 1.3 million tonnes per annum nameplate capacity, in line with the previous quarter. Northern Star is now progressing optimisation initiatives following the completion of mill and ramp-up activities.
At the end of the three-month period, the company had a strong balance sheet with $173 million in cash, and total cash and bullion of $473 million.
“The September quarter has delivered a solid platform to leave us on track to achieve our FY23 targets,” Managing Director Stuart Tonkin said.
Northern Star maintains its FY23 guidance and said it’s on track to deliver between 1560 and 1680 ounces of gold at an AISC of $1630 to $1690 per ounce. It noted that sales will be weighted towards the second half due to the scheduled ramp-up of the Thunderbox mill expansion and grade improvements at Pogo.
Over the course of FY23, the company will focus on closely managing costs in this “inflationary environment”, while adopting an agile approach to capital growth expenditure and optimising its portfolio.
NST shares were ended the day 0.49 per cent in the red to close at $8.05.
