Northern Star looks beyond 600,000oz target

Gold miner Northern Star Resources has posted a comfortable quarterly result, with funds committed to expand production beyond its 2018 output target of 600,000 ounces per annum.

Perth-based Northern Star sold just less than 138,500oz of gold in the three months to September, in line with its FY18 guidance range of between 525,000 and 575,000oz.

All-in sustaining costs were also within its target range, coming in at $1,021/oz.

The company also maintained $26 million of free cash flow after investing $32 million to reach its production target of 600,000ozpa by the end of next year.

It also plans to spend a further $65 million over the course of the 2018 financial year to position its two largest operations – Jundee and Kalgoorlie – to produce 300,000ozpa each within two years.

Production from its Paulsens mine would put Northern Star beyond 600,000ozpa.

“Our investment in exploration delivered the long mine life asked of us by the market,” executive chairman Bill Beament said.

“We now have mine life visibility of 10 years, including reserves of 3.5 million ounces.

“We have also made an outstanding start to meeting our production and cost guidance for this financial year and we are investing in the capacity expansions which will increase production to our target rate of 600,000ozpa next calendar year.

“This strategy is underpinned by our world-class Jundee and Kalgoorlie operations, both of which are set to produce 300,000ozpa.”

Northern Star shares were 1.1 per cent lower to $5.12 each at the close.