PERTH (miningweekly.com) – Gold miner Northern Star Resources has continued the trend of record quarterly production, as production surged following the incorporation of its five projects.
During the three months to September, Northern Star recovered 147 884 oz of gold, compared with the 114 780 oz recovered in the previous quarter, with the miner selling 150 284 oz during the quarter at an average price of A$1 399/oz.
“We are generating substantial free cash flow on the back of our expanded production and low costs. At the same time, we have reduced risk that comes with five operations,” said MD Bill Beament.
“We also have a net cash position of about A$50-million, which is growing by the week.”
The September quarter was the first in which the company incorporated all five of its projects into the production portfolio, including the Jundee mine, the acquisition of which was settled in July this year.
The Jundee operation recovered 55 654 oz of gold during the quarter, while the Kundana project recovered 24 286 oz of gold. The Kanowna Bell operation delivered up some 24 561 oz of gold, while Plutonic and Paulsens delivered 23 047 oz and 20 336 oz respectively.
Beament said on Thursday that the company’s strategy, which was to grow the mine lives of each of its assets, was proceeding well owing to a A$50-million drilling and exploration budget that the company had set aside.
The development of the Pegasus orebody, at the Kundana project, was also under way and production was scheduled for the second half of the financial year. The Pegasus project was scheduled to ramp up to a production rate of some 50 000 oz/y.
Looking ahead, Northern Star was expected to produce between 550 000 oz and 600 000 oz for the full financial year, with all-in sustaining costs reaching between A$1 050/oz and A$1 100/oz.