Northern Star Resources Limited (ASX: NST) has released its December Quarter activities report, reporting gold sold of 412koz at AISC of A$1824/oz and reaffirming its full-year production and cost guidance.
Northern Star is the largest gold producer listed on the ASX. Its production centres are Kalgoorlie and Yandal in Western Australia and Pogo in Alaska, US.
Key points:
Operating performance
- LTIFR at 0.6 injuries per million hours worked (12 month moving average)
- Gold sold totalled 412koz at an AISC of A$1,824/oz (US$1,186/oz)
- KCGM successfully commenced mining in Golden Pike North ahead of schedule
- Jundee delivers exceptional mining performance, Thunderbox optimisation continues with commencement of Wonder UG
- Pogo achieves record mine and mill performance at 1.4Mtpa rate, 5% lower AISC (US$/oz) vs Sept quarter
- AIC of A$2,558/oz as enabling works continue for KCGM Mill Expansion
- Generated underlying free cash flow of A$102 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 ore volumes and grade to increase in 2H
- Yandal: Delivery of improved milling availability at Thunderbox and Jundee
- Pogo: Superior mill performance advances feed optimisation initiatives
- Maintain FY24 growth capital budget of A$1,150-1,250 million; exploration budget of A$150 million
Fully funded organic growth strategy; net cash of A$238 million; buy-back in progress
- 1H24e Cash Earnings of A$685-715 million (1H23a: A$467 million)
- Ended the December quarter with A$1,089 million of cash and bullion; A$2,589 million of liquidity
- A$300 million on-market share buy-back program to be used opportunistically, with A$131 million remaining
Commenting on the December Quarter, Northern Star managing director Stuart Tonkin said:
“The value of our diversified production centres was apparent during the December quarter, with an exceptional performance at Kalgoorlie and continuous improvement at Pogo offsetting some operational challenges at Yandal.
“At KCGM, our hard work is paying off with early access into the high-grade Golden Pike North mining area while Pogo achieved a record mining and milling performance. Improved mill availability across Yandal should normalise costs in the second half. The KCGM Mill Expansion is progressing well with enabling works advancing.
“The quarter demonstrated our ability to safely operate at 1.7Mozpa, in line with our five-year growth strategy. Cost pressures remain prevalent across our industry and are a key focus for our teams as we work towards delivering our FY24 guidance, which remains 2H weighted. At the same time, we are making sure our profitable organic growth strategy is executed to plan.”
