Northern Star Resources has reported above-guidance gold production for the year to June, with plans to expand output beyond 600,000 ounces in 2019, while Blackham Resources posted improved results for the half year to June.
Northern Star Resources has reported above-guidance gold production for the year to June, with plans to expand output beyond 600,000 ounces in 2019, while Blackham Resources posted improved results for the half year to June.
Bill Beament-led Northern Star achieved production of 575,121oz for the year, above its guidance of between 540,000 and 560,000oz.
Northern Star is the state’s third largest gold miner, according to the BNiQ Search Engine.
The company said it had sold 570,110oz at an all-in sustaining cost of $1,029/oz in FY18.
For the June quarter, Northern Star sold a record amount of gold of 182,856oz at an AISC of $982/oz
The company said its underlying free cash flow had tripled to $93 million in the June quarter.
Northern Star also announced its FY19 production guidance at between 600,000 and 640,000oz at an AISC of $1,025-$1,125/oz.
Mr Beament said the results provided an insight into the company’s cash-generating capacity.
“The hugely successful exploration program is the cornerstone of our growth and ultimately our exceptional financial returns,” he said.
“The vast expansion in our gold inventory, which in FY2017 came at a cost of just A$24/oz, has underpinned mine life visibility of more than 10 years and the growth in annual production to our targeted rate of 600,000oz.
“The success of this strategy is demonstrated by the fact that we generated record underlying free cashflow of more than $93 million in the June quarter.
“Our focus is now on achieving further growth in our inventory and production, which will in turn drive our free cash flow and overall financial returns.
“Given the crucial role exploration has played in our success, we are delighted to increase our exploration budget for this financial year by one third to a record $60 million.”
Shares in Northern Star were flat at $.21 each at 2.15pm AEDT.
Meanwhile, Blackham reported gold production of 19,393oz for the June quarter, in line with the March quarter result (20,631oz).
The company said it had hit record production for the half year to June of 40,0240z at an AISC of $1,294/oz.
Blackham provided an FY19 production guidance of between 77,000 and 89,000oz at an AISC of $1,250-$1,450.
“The June half’s operational results demonstrate significantly stronger production and a step change in the operations economics that commenced in December 2017,” executive chairman Milan Jerkovic said.
“Record production and significantly reduced costs underpinned stronger operational cash flows for the half.
“The company looks forward to increasing production in FY2019 as the operation transitions to the Wiluna open pits.”
Blackham shares were off 14.7 per cent at 5.8 cents each at 2.15pm AEDT.
Perth-based Matsa Resources has announced it will start mining at the Red Dog gold deposit, after a study showed the mine will produce a cash surplus of $5.4 million over three months.
All mining and haulage of gold ore will be completed at AngloGold Ashanti’s Sunrise Dam treatment facilities.
Production at the mine will total 13,400oz, with a gold price of $1,700/oz and an AISC of $1,294/oz.
Shares in Matsa were up 12.9 per cent at 17.5 cents each at 2.15pm AEDT.
