Northern Star reports lower Q1 output
PERTH (miningweekly.com) – Although gold miner Northern Star Resources has posted a slight decrease in first-quarter production, this was still in line with guidance.
During the three months to September, the miner produced 140 242 oz of gold, compared with the 153 360 oz produced in the previous quarter. The Jundee gold mine delivered 54 162 oz of gold, while the Kundana operation delivered 21 219 oz of gold during the quarter.
The Kanowna Bell mine contributed 27 074 oz of gold, the Paulsens mine 22 074 oz and the Plutonic mine 16 365 oz.
During the quarter under review, Northern Star sold 141 556 oz of gold at an average price of A$1 509/oz, generating revenues of A$213.6-million.
MD Bill Beament said on Monday that the foundations were being laid to grow both production and mine lives at the company’s existing assets, with Northern Star eyeing a 700 000 oz/y output.
“The results we are generating continue to demonstrate that this organic growth will continue to deliver far superior financial returns. We recently added 2.7-million ounces to our resource base at a cost of just A$10/oz. Now we are investing in targeted exploration and investing capital to continue advancing that inventory in our pipeline of organic growth.”
Beament said the strategy would result in higher production and longer mine lives, with low capital and operating costs, ensuring that Northern Star continued to generate substantial free cash flow, consistent with dividends and outstanding returns on equity.
The company was expected to spend A$74-million in the 2016 financial year on targeted exploration and investing capital, to underpin its strategy to grow production to 600 000 oz/y by the next financial year and to 700 000 oz/y by 2018.
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