Northern Star Resources says it is on track to meet its full-year production guidance after delivering a 43 per cent jump in gold production over the June quarter.
Northern Star today reaffirmed its full year guidance of between 75,000 and 85,000 ounces of gold, after mining 21,865 ounces in the June quarter.
The production uptick coincided with a 29 per cent drop in cash operating costs to $646/oz, Northern Star said.
The company said it expected to grow its production from 80,000 ounces per year to 100,000oz pa by the end of 2012.
Managing director Bill Beament said the company’s Paulsen’s mine was “on song” operationally, which reflected the significant investment made by Northern Star over the past 12 months.
“The newly installed mobile fleet is delivering major productivity improvements and savings and capital development is now two years ahead of the current production level,” Mr Beament said.
“Cash costs have fallen back to the levels seen during most of last year and margins are rising.”
Northern Star stocks finished trade today up 5.8 per cent, at 81.5 cents.