Northern Star Resources Limited (ASX: NST) has released its September Quarter activities report, for the three-month period to 30 September 2023.
The company’s management hosted an investor call at 6am AWST / 9am AEDT. A recording of the call can be accessed at https://loghic.eventsair.com/nst/register191023/Site/Register.
Highlights:
Operating performance
- LTIFR at 0.8 injuries per million hours worked (12-month moving average)
- Gold sold totalled 369koz at an AISC of A$1,939/oz (US$1,260/oz)
- AIC of A$2,748/oz as enabling works commenced for KCGM Mill Expansion
- Thunderbox achieves record 5.5Mtpa annualised rate; KCGM total annualised material movement of 87Mtpa, advancing towards re-establishing Golden Pike North mining area
- Pogo delivers at 1.3Mtpa nameplate capacity, 12% lower costs (AISC in US$M) vs June quarter
- Generated underlying free cash flow of A$28 million
FY24 Outlook
- Maintain FY24 guidance of 1,600-1,750koz gold sold at an AISC of A$1,730-1,790/oz (2H weighted)
- Kalgoorlie: KCGM on track to access high-grade Golden Pike North zone in 2H
- Yandal: Jundee grade improvement; Thunderbox mill to sustainably operate at 6Mtpa rate
- Pogo: Advancing optimisation initiatives
- Maintain FY24 growth capital budget of A$1,150-1,250 million (23% spent YTD); exploration budget of A$150 million (19% spent YTD)
Strong balance sheet with net cash of A$285 million
- Ended the September quarter with A$1,195 million of cash and bullion; A$2,200 million of liquidity
- A$300 million on-market share buy-back program to be used opportunistically, with A$131 million remaining
- Commenting on the Q1 FY24 results, managing director Stuart Tonkin said:
“During the quarter we safely and successfully completed major planned shutdowns at our three production centres. This provides a clear pathway for the company to achieve its full-year guidance, which as previously flagged is 2H weighted.
“The Thunderbox mill continued to ramp up towards its 6Mtpa nameplate capacity, achieving record production performance. Offsetting this during the quarter, Jundee experienced unplanned crushing circuit downtime resulting in lower mill throughput. For KCGM, it was a transitional quarter as mining activity prepares to access higher-grade material at Golden Pike North while the processing focus remains on throughput and blend of available ore sources.
“Northern Star generated solid quarterly underlying free cash flow from our operations as our recently expanded production centres – Yandal and Pogo – offset KCGM, where we have begun Mill Expansion capital works. Our focus remains steadfast on operational excellence to maximise free cash generation.”
