Join our daily newsletter At The Bell to receive exclusive market insights
- Gold mining company Northern Star Resources (NST) says the most recent June quarter delivered its FY22 production and cost guidance
- NST sold over 402,000 ounces of gold from its Kalgoorlie, Yandal and Pogo operations at an average price of $2484 per ounce, leaving it to pocket $985 million in quarterly revenue
- This takes the total gold sold in FY22 to 1.56 million ounces,aligning with its guidance of between 1.55 and 1.65 million ounces
- NST spent $674 million on growth capital and $121 million on exploration in FY22, less than its guidance, and has $528 million in cash which leaves it well-funded for its FY23 growth program
- Furthermore, the three production centres operated at a combined production rate of 1.6 million ounces per annum which the company hopes to expand to two million ounces by FY26
- NST shares are up 0.67 per cent to trade at $6.81 each at 12:46 pm AEST
Gold miner Northern Star Resources (NST) said the recent June quarter has positioned it to meet its production and cost guidance for the 2022 financial year.
The big-cap company sold just over 402,000 ounces of gold in the quarter from its Kalgoorlie, Yandal and Pogo operations at an average price of $2484 per ounce. This saw the company pocket roughly $985 million in revenue for the three-month period.
The sales result took the total amount of gold sold in FY22 to 1.56 million ounces which aligns with NST’s group guidance of between 1.55 and 1.65 million ounces.
All-in sustaining costs (AISC) were also in line with its full-year guidance of between $1600 and $1640 per ounce, coming in at $1633 per ounce of gold sold.
Northern Star Resources said all three of its production centres achieved their production guidance and operated at a combined production rate of 1.6 million ounces per annum. By FY26, the company hopes to expand this to two million ounces per annum.
In terms of expenditure, the ASX 200-lister spent $201 million on growth capital and $37 million on exploration in the June quarter.
These outgoings contributed to $674 million spent on growth capital and $121 million on exploration for the full year β both of which were below NST’s guidance of $682 million and $140 million, respectively.
At the end of the quarter, Northern Star had $528 million cash on hand, leaving it well-funded for its FY23 growth program.
Managing Director Stuart Tonkin said he is extremely proud of the company for delivering its FY22 guidance in a period that faced “extraordinary challenges.”
βThe first full year of operating as the enlarged Northern Star has provided us a true understanding of the opportunities and requirements of our assets, particularly in this inflationary environment, and resulted in us increasing our FY23 capital budget,” Mr Tonkin said.
“Our responsible approach to growth means we will be disciplined in how and when we spend the budget, at all times focused on maximising returns.”
As for Northern Star’s FY23 outlook, it expects to sell between 1560 and 1680 ounces of gold which is slightly higher than the FY22 sales guidance.
The company expects gold sold to be weighted towards the second half of FY23 as a result of the scheduled ramp up of the Thunderbox mill expansion at Yandal later this year.
AISC for FY23 is expected to be between $1630 and $1690 per ounce. Growth capital expenditure is estimated to be $650 million which will fund ramp-up and development activities across its Kalgoorlie, Yandal and Pogo operations.
NST shares were up 0.67 per cent to trade at $6.81 each at 12:46 pm AEST.
