Leading Australian gold producer Northern Star Resources Limited (ASX: NST) has reported operational and financial results for the March quarter 2022, with gold sold of 380,075oz at an all-in sustaining cost (AISC) of A$1,656/oz.
Environment, Social and Safety (ESS)
- LTIFR at 0.5 per million man hours
- COVID-19 Management Plan for workforce and neighbouring communities performing well
- Decarbonisation Asset Pathway announced, setting out 35% emission reduction by 2030
Production
- Gold sold totalled 380,075oz at an AISC of A$1,656/oz (US$1,199/oz) and all-in cost (AIC) of A$2,171/oz
- By production centre:
- Kalgoorlie: 212,820oz gold sold at an AISC of A$1,659/oz
- Yandal: 109,766oz gold sold at an AISC of A$1,444/oz
- Pogo: 57,489oz gold sold at an AISC of US$1,483/oz
- Australian Operations, which account for 85% of Group production, on track to meet FY22 production and cost guidance
- Pogo expected to operate at 2H annual run rate of ~240koz, FY22 now forecast lower production and higher cost
- Group FY22 production guidance remains unchanged at 1.55-1.65Moz; Group FY22 AISC guidance now A$1,600-1,640/oz, up from A$1,475-1,575/oz
Discovery and Growth
- A$166 million spent on net growth capital and A$26 million onexploration
- First year of five-year profitable growth pathway delivered significant, on track progress:
- Kalgoorlie: KCGM material movement annualising 66Mtpa, up from 30Mtpa at acquisition
- Yandal: Final stages of completing Thunderbox mill expansion to 6Mtpa
- Pogo: Mill expansion to 1.3Mtpa completed, mine ramp-up progressing
Financial
- March quarter average realised price of A$2,468/oz for sales revenue of A$937 million
- Cash and bullion of A$533 million at March 31; Net Cash1 of A$433 million
Corporate
- Negotiations concluded with Osisko Mining Inc. (TSX: OSK) for potential JV participation; Northern Star retains a C$154 million (A$169 million) convertible funding agreement with Osisko, maturing December 1, 2025
- Subsequent to quarter end, binding agreements signed to sell Paulsens and Western Tanami non-core assets for up to A$44.5 million
Commenting on the March Quarter, managing director Stuart Tonkin said:
“We have sustained our strong safety performance across our three production centres while working hard to protect our workforce from the pandemic and keep our sites operating as the world continues to live with COVID-19.
“During the quarter, Kalgoorlie was impacted due to unplanned mill downtime events while Yandal performed in line with expectations. As foreshadowed, higher mining inventory at Pogo is delivering a better milling outcome but we have more work to do to deliver on Pogo’s potential.
“Group-wide and against a challenging operating backdrop, we continue to safely advance the foundation of our five-year profitable growth plan. One year in, we have significantly lifted material movement volumes at KCGM, working through the OBH cutback, almost completed the Thunderbox mill expansion and successfully commissioned Pogo’s expanded mill.”
