20/01/2022 - 11:38

Northern Star, Sandfire up on December output

20/01/2022 - 11:38

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The miners were both trading in the green after reporting mostly steady production through the December quarter had kept full year guidance on track.

Northern Star, Sandfire up on December output
Northern Star's Pogo operations in Alaska. Photo: Northern Star Resources

The miners were both trading in the green after reporting mostly steady production through the December quarter had kept full year guidance on track.

Shares in Northern Star Resources were up nearly 11 per cent after reporting Kalgoorlie and Yandal gold operations were producing as expected, buoying sales of 392,655 ounces gold for the quarter.

Sales from Northern Star’s Alaskan operation Pogo fell below expectations but the company says it expects these numbers to pick up towards the second half of the year.

Barrenjoey research echoed these sentiments, indicating that the 2018-acquired asset had delivered a soft result against expectations but that productivity of development had improved in December. 

Northern Star it has maintained guidance of 1.55 million ounces to 1.65 million ounces for financial year 2022.

Managing director Stuart Tonkin said the company planned to lean on experiences from Pogo in managing COVID-19 at WA sites.

“Our experience at Pogo in Alaska has provided examples of the disruption we may face in WA and the mitigating actions required to reduce operational impact,” Mr Tonkin said in a statement.

“We remain on track to meet our FY22 guidance, which incorporates the current WA border closure and associated labour and cost impacts.”

Gold and copper producer Sandfire Resources also maintained guidances, expecting 64,000 tonnes to 68,000 tonnes copper and 30,000 to 34,000 ounces gold for FY22.

Cost estimates were increased however on account of higher power and diesel prices.

Flagship operation Degrussa near Meekatharra delivered 34,621 tonnes of copper and 16,254 ounces gold for the period.

Northern Star shares are up 10.74 per cent to trade at $9.69.

Sandfire shares are trading at $7.35, up 2.23 per cent.

 

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