Northern Star Resources Limited (ASX: NST) has released its activities report for the three months to 31 March 2024, declaring 400,825oz of gold sold at an all-in sustaining cost of A$1,844/oz.
The company achieved a realised average gold price of A$3,024/oz for quarterly sales revenue of A$1.2 billion.
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.
March Quarter highlights:
Operating performance
- LTIFR at 0.5 injuries per million hours worked (12-month moving average)
- Gold sold totalled 401koz at an AISC of A$1,844/oz (US$1,213/oz)
- KCGM delivers positive step-change, driven by increased access to high-grade Golden Pike North material
- Weather impacts across Yandal masked strong milled tonnes at Jundee; Thunderbox mill remediation ongoing to improve availability and consistently deliver to capacity in the long term
- Unplanned mill outages at Pogo offset modest grade uplift
- AIC of A$2,620/oz as major growth projects continue across the Group, including KCGM Mill Expansion
- Generated underlying free cash flow of A$143 million (vs December quarter: A$102 million)
FY24 Outlook
- FY24 guidance of 1,600-1,750koz gold sold (unchanged) at an AISC of A$1,810-1,860/oz (revised 11 April)
- June quarter (4Q FY24) focus:
- Kalgoorlie: At KCGM, higher milled tonnes and grade from increased access to Golden Pike North area
- Yandal: Jundee higher grades; Thunderbox annualised mill throughput rate of 5Mtpa
- Pogo: Improved mill throughput, reflecting improved capacity and continuity from completed projects
- Maintain FY24 growth capital guidance of A$1,150-1,250 million; exploration budget of A$150 million
Fully funded organic growth strategy; A$300 million on-market share buy-back open (A$131 million remaining)
- Ended the March quarter with A$1,076 million of cash and bullion; A$2,576 million of liquidity
- Net cash of A$174 million, after A$169 million interim dividend, highlights balance sheet strength
Commenting on the March quarter, Northern Star managing director Stuart Tonkin said:
“The March quarter was challenging but also demonstrated the resilience of our teams at our three production centres. Adverse weather had a significant impact and contributed to the company revising our cost guidance for the year, though I am pleased to confirm that we remain on track to deliver our FY24 production guidance into a strong gold price environment.
“At KCGM, our largest and lowest cost asset, the team achieved an exceptional operational and financial performance, with the Kalgoorlie Production Centre generating the group’s highest free cash flow per ounce. Strong milling performance was achieved at Jundee while Pogo remains positioned for a stronger June quarter with throughput expected to lift.
“We are focused on maintaining the strong operational momentum so far seen in the June quarter, which will enable us to safely generate significant free cash flow and, in turn, superior shareholder returns.”
