Northern Star forecasts higher output for the June quarter
PERTH (miningweekly.com) – Gold miner Northern Star Resources has reported another solid quarter during the three months to March 31, with the miner producing 123 913 oz of gold.
The March quarter production was slightly below the 128 836 oz of gold produced in the previous quarter, with gold sales in the same period falling from 128 819 oz to 119 976 oz, to generate revenues of A$190.3-million.
The Jundee gold operations delivered 67 505 oz of gold, while the Kalgoorlie gold operations delivered a further 66 916 oz of gold during the quarter under review.
The miner told shareholders on Monday that a production target of more than 150 000 oz has been set for the June quarter, as the benefits of investment into exploration and development flows through to the production and financial results.
“In the last quarter, we completed the expansionary capital expenditure programme stemming from our exploration success, paving the way for us to hit the 600 000 oz/y production target in the current quarter,” said Northern Star executive chairperson Bill Beament.
During the quarter, Northern Star invested some A$33-million in expansionary capital, including exploration to grow the group’s production and mineral inventory.
Beament said the combination of increased production, low operating costs and the completion of the capital investment programme will drive free cash flows significantly higher.
“This means our organic growth strategy will have met the ultimate objective of everything we do; maximising financial returns. In the process, it will help ensure we maintain the highest rate of return on equity in our industry and one of, if not the, highest rates of return on the ASX.”
All-in sustaining costs for the full year are expected to be between A$1 000/oz and A$1 050/oz.
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