Northern Star Resources Limited (ASX: NST) has provided an operational update ahead of releasing its March quarter results later this month.
Northern Star is the largest gold producer with a primary listing on the ASX. Its production centres are Kalgoorlie and Yandal in Western Australia and Pogo in Alaska, US.
Gold sold for the March quarter totalled 401,000oz, impacted by significant weather events across the northern Goldfields. With these disruptions behind us, the June quarter has started with strong operational momentum including at the Kalgoorlie Production Centre with increased access to high-grade Golden Pike North material, early access to first ore at Wonder underground in the Yandal Production Centre and grade improvements at Pogo Production Centre.
At 31 March, Northern Star remains in a strong financial position with net cash of A$174 million. Cash and bullion totalled A$1,076 million (vs December quarter: A$1,089 million) after the payment of the FY24 interim dividend of A$169 million.
Northern Star remains on track to deliver its FY24 group gold sold guidance of 1.60-1.75 million ounces (9 months to date: 1.18 million oz) based on positive momentum leading into an expected strong June quarter, driven predominantly by increased grade and mill utilisation rates.
The events during the quarter have led the company to revise its FY24 AISC guidance to A$1,810-1,860 per ounce, up from A$1,730-1,790 per ounce. Cost pressures remain prevalent across the sector as well as costs linked to the buoyant gold price. Northern Star maintains its FY24 growth capital guidance of A$1,150-1,250 million and exploration budget of A$150 million.
Major organic growth projects continued to advance during the quarter. The KCGM Mill Expansion remains on track and budget.
Commenting on the March quarter performance, Northern Star managing director Stuart Tonkin said:
“The resilience of our team and assets was demonstrated during the quarter with operations further challenged due to adverse weather.
“Our profitable growth strategy coupled with elevated gold prices are expected to deliver significant cashflow generation and, in turn, superior shareholder returns.”
