PERTH (miningweekly.com) – Gold miner Northern Star Resources has reported a slight decline in gold sales for the three months to September, compared with the June quarter, with the miner remaining on track to meet its full-year production guidance.

Gold sales during the September quarter reached 386 160 oz, at an all-in sustaining cost (AISC) of A$1 594/oz, with 232 324 oz of gold sold from the Kalgoorlie operations, 109 844 oz from the Yandal operations, and 43 992 oz from the Pogo project, in Alaska.

The September quarter sales compared with the 444 012 oz sold in the June quarter, with 272 882 sold from the Kalgoorlie operations, 112 301 oz from the Yandal operations, and 58 829 oz from Pogo.

Northern Star MD Stuart Tonkin said the quarter’s results and progress on its production growth strategy were in line with its expectations.

“This is a solid start to the new financial year and puts us on track to meet our 2022 guidance. At the same time, we made strong progress on our development projects in line with our strategy to be a two-million-ounces-a-year producer by 2026.”

“With solid production, and costs running slightly above guidance, cash earnings were strong. This resulted in cash and bullion of more than A$750-million at the end of September, after returning A$110-million in dividends to shareholders in the quarter. With production, costs and earnings planned to improve as 2022 progresses, we are very well positioned to continue to invest capital into those projects which generate the strongest returns.”

Tonkin said Pogo’s performance during the quarter was impacted by the tie-in and commissioning of the processing plant upgrade, which will increase throughput capacity from 1-million tonnes a year to 1.3-million tonnes a year.

“We seized the chance to complete other major works, including replacing the primary conveyor belt that transports ore from underground to the processing plant,” Tonkin said.

“This resulted in 24 days total downtime, which reduced throughput and gold production, in turn increasing costs per ounce. This work is now finished and we expect to see a significant benefit for both production and costs from the December quarter onwards. The mill bottlenecks have been removed and throughput is increasing in line with expectations for 2022 guidance.”

For the full 2022 financial year, Northern Star is expected to produce between 1.55-million and 1.65-million ounces, at an AISC of between A$1 475/oz and A$1 575/oz.