PERTH (miningweekly.com) – Gold miner Northern Star has reported a solid quarter during the three months to December, with gold sales increasing while all-in sustaining costs (AISC) fell compared with the previous quarter.

Gold sales for the December quarter reached 404 000 oz, up from the 369 000 oz sold in the previous quarter, while AISC fell to A$1 746/oz, from the A$1 788/oz reported in the September quarter.

During the three months under review, the Kalgoorlie operations contributed 210 361 oz, while Yandal contributed 128 470 oz, and the Pogo project, in Alaska, contributed 65 456 oz.

“The December quarter has demonstrated our capability to operate at 1.6-million ounces a year, in line with our five-year growth strategy. All three production centres achieved positive net mine cash flow after funding their capital requirements. We remain on track to deliver our 2023 guidance,” said Northern Star MD Stuart Tonkin.

“We are making exceptional progress at key growth projects that will drive costs lower and, in turn, build cash to maintain a strong financial position. Our largest asset, Kalgoorlie Consolidated Gold Mines (KCGM), remains in very good shape while the expected lift in group production in the second half will be driven by the recently expanded mill at Thunderbox, part of the Yandal hub, and further improvement at Pogo. In parallel, we are building good momentum in the journey to cut our carbon emissions by 35% by 2030.

“We have entered the 2023 calendar year with a stable and united team and a strong safety culture. I’m proud of our people and their commitment to safely and sustainably execute our value-creation strategy. This strategy is built on world-class gold assets in Western Australia and Alaska that provide us with superior organic growth optionality. This is complemented by our ongoing exploration success, which enables the low-cost resource inventory build needed for long-term success.”

Looking at the 2023 financial year, Tonkin said that the company was on track to meet its production target of between 1.56-million and 1.68-million ounces of gold at an AISC of between A$1 630/oz and A$1 690/oz. Gold sales will be weighted towards the second half of the financial year, as a result of the scheduled ramp-up of the Thunderbox mill expansion and grade improvements at Pogo.

By the 2026 financial year, the company is hoping to grow production to two-million ounces a year from organic growth options across its portfolio.