Northern Star executive chairperson Bill Beament
Photo by: Bloomberg
PERTH (miningweekly.com) – Gold miner Northern Star Resources is on target to meet its full-year production guidance of between 525 000 oz and 575 000 oz, despite reporting a 10% decline in production during the three months to September.
Northern Star on Thursday reported gold production of 138 422 oz during the September quarter, compared with the 154 116 oz delivered in the June quarter.
The Jundee gold operations saw gold production decline from the 84 854 oz in the June quarter, to 72 471 oz, while the Kalgoorlie gold operation remained fairly stagnant at 51 708 oz. The Paulsens gold mine contributed a further 11 628 oz of gold to Northern Star during the September quarter.
“We have made an outstanding start to meeting our production and cost guidance for this financial year, and we are investing in the capacity expansions which will increase production to our target rate of 600 000 oz/y next calendar year,” said executive chairperson Bill Beament on Thursday.
The company was expected to spend A$65-million in 2018 on expansionary capital to increase its production capacity.
“The strategy is underpinned by our world-class Jundee and Kalgoorlie operations, both of which are set to produce 300 000 oz/y.”
Northern Star sold 138 459 oz of gold during the quarter under review, generating revenues of A$226.1-million, with the company reporting an all-in sustaining cost of A$1 021/oz, compared with the A$938/oz reported in the previous quarter.
Meanwhile, Beament on Thursday announced that the company would spend some A$35-million on exploration in 2018 to replace or grow its reserve and resources.