Northern Star posts solid quarter

Gold miner Northern Star Resources has boasted a 5 per cent fall in costs while reporting an increase in sales for the March quarter.

Northern Star told the market this morning that it sold 143,469 ounces of gold in the three months to March, up by about 1,000oz on the previous corresponding period, as all-in sustaining costs fell 5 per cent to $985/oz.

“The reduced costs reflect in part lower contracting, labour and supply rates recently negotiated,” the company said in a statement.

“The strong operational performance underpinned outstanding financial results, with Northern Star delivering record operating cash flow of $103 million for the quarter.”

Northern Star generated $66 million in free cash flow to finish the quarter with cash and bullion of $286 million.

The company has sold 427,042oz of gold in the nine months to March, putting it on track to meet the top end of its full-year production guidance of between 535,000 and 570,000oz for the full-year.

All-in sustaining costs for the nine months were $1,036/oz, below the company’s guidance range of $1,050-$1,100/oz.

Managing director Bill Beament said it had been a strong quarter for Northern Star.

“These results demonstrate that we are achieving outstanding operational outcomes which are translating into strong financial results for shareholders,” he said.

“At the same time, we are setting up the company for tomorrow’s growth with an exploration and development strategy that is poised to deliver a significant production increase solely from organic sources.”

Northern Star shares were up 0.4 per cent to $3.49 each at 12:30pm.