PERTH (miningweekly.com) – Gold miner Northern Star Resources has posted a strong quarter of production in the three months to June, delivering 402 000 oz of gold, up from the 380 075 oz delivered in the March quarter, and meeting production targets.

All-in sustaining costs for the June quarter reached A$1 650/oz, down from the A$1 656/oz reported in the previous quarter, with all three of Northern Star’s production centers operating at a combined production rate of 1.6-million ounces a year.

The Kalgoorlie operations contributed 213 310 oz of gold during the quarter under review, while Yandal produced a further 121 601 oz. The Pogo operations, in Alaska, contributed 67 158 oz during the quarter.

“I am extremely proud of our team for delivering our 2022 guidance in a year that has seen extraordinary challenges. Further, we have maintained reliable operations over the past year and protected the health and wellbeing of our team,” said Northern Star MD Stuart Tonkin.

“The first full year of operating as the enlarged Northern Star has provided us a true understanding of the opportunities and requirements of our assets, particularly in this inflationary environment, and resulted in us increasing our 2023 capital budget. Our responsible approach to growth means we will be disciplined in how and when we spend the budget, at all times focused on maximising returns.”

Northern Star’s capital budget for 2023 has been placed at A$650-million, while an exploration budget of A$125-million has also been revealed.

The miner has set a production target of between 1.56-million and 1.68-million ounces of gold for the 2023 financial year, at an all-in sustaining cost of between A$1 630/oz and A$1 690/oz.

“I am very pleased with how Northern Star is performing and executing our profitable growth strategy to create value for shareholders. We continue our focus on producing profitable ounces from world-class gold assets in tier-1 locations. Combined with our differentiated operating capability that enables industry leading underground productivity rates, Northern Star is in a strong position to deliver a successful 2023,” said Tonkin.

Northern Star on Wednesday also said that the company was well placed to deliver on its two-million-ounce-a-year production target by 2026, however, given the recent uncertainty in the operating and inflationary environment, the miner has withdrawn its cost and capital expenditure guidance for 2024.