PERTH (miningweekly.com) – ASX-listed gold miner Northern Star Resources has reported a quarter-on-quarter production increase, driven by higher outputs from three of its West Australian mines.
Production for the December quarter reached 145 251 oz, at an all-in sustaining cost (AISC) of A$1 040/oz. This compared with the 140 242 oz delivered in the previous quarter, at an AISC of A$1 083/oz.
The Paulsens gold mine delivered 20 152 oz of gold during the quarter, while the Plutonic and Kanowna Bell mines delivered 17 248 oz and 22 572 oz respectively The Kundana gold mine added a further 27 034 oz to Northern Star’s production, while the Jundee operation delivered 58 246 oz.
“Northern Star enjoyed an outstanding quarter in every respect. The A$30-million increase in cash, bullion and investment to A$226-million, which came despite paying the full-year dividend and investing in our growth programme, reflects the fact that our operational success translates to financial success,” said Northern Star MD Bill Beament.
Beament reported that Northern Star sold 142 017 oz of gold in the quarter, at an average realised price of A$1 484/oz, which highlighted the robust margins and strong cash flow that the company’s assets were generating.
“And we are selling gold for A$100/oz more in the current March quarter,” he added.
Beament said that Northern Star was fully committed to the detailed planning which underpinned the company’s strategy to grow production to 700 000 oz/y by the 2018 financial year.
“This growth will come from organic sources, further increasing our free cash flow and, importantly, enabling us to maintain our reputation for having one of the highest rates of return on capital on the ASX.”
Northern Star maintained its full-year production guidance of between 535 000 oz and 570 000 oz for 2016, with AISC expected to reach between A$1 060/oz and A$1 100/oz.