PERTH (miningweekly.com) – Gold miner Northern Star has reported an increase in gold sales for the quarter ended June, allowing the miner to hit its full-year targets.
Northern Star on Thursday reported that gold sales for the quarter reached 444 012 oz, at an all-in sustaining cost (AISC) of A$1 459/oz, which was up from the 368 273 oz of gold sold in the March quarter, at an AISC of A$1 598/oz.
Gold production in Kalgoorlie increased from the 234 419 oz produced in the March quarter, to 272 882 oz, with the Kalgoorlie Consolidated Gold Mines operation contributing 139 264 oz, the Kalgoorlie operations contributing 69 508 oz, and the Carosue Dam operation contributing 64 110 oz.
At the Yandal production center, gold production increased from the 94 116 oz delivered in the March quarter, to 112 301 oz, with the Jundee mine contributing 80 540 oz and the Thunderbox mine contributing 31 761 oz.
At the Pogo mine, in Alaska, Northern Star produced 58 829 oz of gold during the quarter ended June, up from the 40 008 oz produced in the March quarter.
“It was a strong operational performance from our recently-merged team with production and costs comfortably in line with the undertakings we provided to the market,” newly appointed MD Stuart Tonkin said.
“This flowed through to our financial results, with cash flow rising significantly from the previous quarter, leaving us with cash and bullion of more than A$800-million at the end of the financial year.”
Tonkin said Northern Star was already seeing the synergies of its merger with Saracen Mineral Holdings.
“As we bed down the merger, the savings and the productivities are coming through at numerous levels. And the scale of our business, now underpinned by reserves of 21-million ounces exclusively in tier-one locations, is exceptional.”
For the full year ended June, Northern Star achieved gold sales of 1.6-million ounces, which was within its guidance of 1.5-million to 1.7-million ounces, with AISC of A$1 483/oz also falling within guidance of between A$1 390/oz and A$1 520/oz.
Cash and bullion at the end of the June quarter stood at A$803-million, after the miner invested A$215-million in growth capital and exploration spend.
The hedge book at the end of June also stood at 801 570 oz, at an average price of A$2 286/oz.
Meanwhile, Northern Star on Thursday announced the appointment of CEO Tonkin as MD, effective immediately.
The company noted that with the merger between Northern Star and Saracen now bedded down, Raleigh Finlayson would move from being MD to being an executive director for a transitionary period of around two months, after which he would retire from the board.
Finlayson will re-join the board as a nonexecutive director in April next year.