Northern Star Resources Limited (ASX: NST) has released its activities report for the three months to 30 September 2024.
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.
Key points:
Operating performance
- SLTIFR at 0.6 injuries per million hours worked
- Gold sold totalled 394koz at an AISC of A$2,082/oz (US$1,395/oz)
- KCGM ramps up development metres and ore tonnes at Mt Charlotte and Fimiston Underground
- Two consecutive quarters of Thunderbox mill throughput at nameplate 6Mtpa rate
- Pogo gold sales of 60koz following planned major mill works during the quarter
- Generated underlying free cash flow of A$52 million (+86% YoY) after major planned shutdowns and ongoing project capex; underlying free cash flow forecast to increase throughout FY25 from higher gold sales
- KCGM Mill Expansion on track; major concrete pours completed, major equipment started to arrive on site
FY25 outlook remains unchanged
- FY25 guidance at 1,650-1,800koz gold sold and AISC of A$1,850-2,100/oz
- FY25 growth capital guidance at A$950-1,020 million plus KCGM Mill Expansion of A$500-530 million
- FY25 exploration guidance at A$180 million
Fully funded organic growth strategy; A$300 million on-market share buy-back open (A$128 million remaining)
- A$300 million on-market share buy-back 57% complete, A$172 million paid to date
- Investment-grade balance sheet with net cash of A$148 million at 30 September; cash and bullion of A$998 million after FY24 final dividend cash payment of A$280 million
Commenting on the September quarter, Northern Star managing director Stuart Tonkin said:
“We continue to deliver consistently strong operational results across all three production centres during the September quarter. As a result of the positive start into FY25, we are confident we will achieve our full-year production and cost guidance providing shareholders the continued benefits of current higher gold prices.
“For the quarter, we generated net mine cash flow of $122 million while continuing our returns-focused capital investment program. Our strategic actions underway focus on growing production, lowering unit costs and extending mine lives.
“At KCGM, the projects to deliver ore feed and infrastructure for the expanded Fimiston Mill progressed well. At Jundee, underground mine development commenced at Cook-Griffin while the ramp-up of mill feed sources continued at Thunderbox. At Pogo, major mill works were performed successfully to enable us to continue delivering high-margin ounces.”
