Northern Star Resources has achieved record gold output for the June quarter, with production from its Australian operations up 6.5 per cent on the same time last year.
Northern Star Resources has achieved record gold output for the June quarter, with production from its Australian operations up 6.5 per cent on the same time last year.
The goldminer said it had produced 218,482 ounces from its Australian operations in the three months to June 30, helped by 32,564oz from Northern Star’s 50 per cent stake in the Kalgoorlie Super Pit, which the company acquired at the beginning of the year.
By comparison, Northern Star’s Australian operations produced 205,115oz of gold in the fourth quarter of FY19.
The company said its other Kalgoorlie operations contributed 83,720oz towards total gold output over the recent June quarter, while the Jundee mine in the Northern Goldfields produced 102,198oz.
The Pogo goldmine in Alaska produced 54,925oz in Q4 FY20, bringing total June quarter output across the company's portfolio to 273,407oz.
Subiaco-based Northern Star also said it had sold a record 262,717oz of gold over the quarter at an all-in sustaining cost (AISC) of $1,475/oz.
Underlying free cashflow was also at a quarterly record of $218 million, despite a $44 million investment in growth capital and exploration, Northern Star said.
Chairman Bill Beament said the coronavirus pandemic had brought on a challenging quarter for the company; however, the results provided an “enviable outlook”.
“All together, this demonstrates the significant potential to grow our free cashflow as the impacts of COVID-19 on production and costs are alleviated and, importantly, as our exposure to the spot gold price increases,” he said.
Mr Beament said Northern Star would continue to reduce its hedge book in the current half, providing scope for further growth in margins and free cashflow.
The chairman also said the results demonstrated the potential of the Pogo goldmine, post COVID-19.
“We now have very strong insight into the impact of the virus on Pogo and it is clear that this asset will continue to produce at about 75 per cent of its potential while the virus remains in Alaska,” Mr Beament said.
He said the company’s 18-month transition to long-hole stoping had finished at Pogo, with the benefits reflected in the results.
Northern Star’s cash, bullion and investments stood at $770 million at June 30, and corporate debt at $700 million, following a $200 million repayment at the quarter’s end.
Shares in the company closed down 0.2 per cent to trade at $15.90 each.
