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- Northern Star Resources (NST) has delivered its first quarterly report since merging with Saracen Mineral Holdings in February
- The ASX200-lister sold 368,273 ounces of gold at an all-in sustaining cost (AISC) of A$1598 per ounce for the period ended March 31 with gold revenue weighing in at $772 million
- NST said cost and production figures were on track to meet FY21 guidance despite a series of planned and unplanned setbacks at its mining operation
- The company also touted an underlying free cashflow of $97 million for the period at an average realised price of A$2222 per ounce, however, bank debt sits at $658 million with $283 million of this taken on as part of its Saracen merger
- Northern Star Resources is off 2.81 per cent following the announcement to trade at $11.05 per share
Northern Star Resources (NST) has delivered its first quarterly report since merging with Saracen Mineral Holdings in February.
The ASX200 company sold 368,273 ounces of gold at an all-in sustaining cost (AISC) of A$1598 per ounce, which NST said is a promising enough figure to meet FY21 cost guidance of between $1370 and 1470 per ounce.
Northern Star affirms the quarter was strong overall, despite a 14-day mill shutdown at its Kalgoorlie KCGM operations, unplanned maintenance at the Thunderbox mill and lower head grades at Pogo which the company attributed to mine plan sequencing.
Gold sold for the nine months preceding March 31 has clocked in at 1.15 million ounces, with the company targeting an FY21 guidance of 1.5 to 1.7 million ounces.
Total gold revenue weighed in at $772 million for the period ended March 31.
The company also touted an underlying free cashflow of $97 million for the period at an average realised price of A$2222 per ounce, however, bank debt sits at $658 million with $283 million of this taken on as part of its Saracen merger.
In the same breath, Northern Star affirmed it is looking to consolidate the debt facilities into “arrangements more suitable for the merged entity”, with existing arrangements under standstill until November this year.
Northern Star’s Executive Chair Bill Beament said the combination of the operating and financial results made it a highly productive quarter.
“In addition to this achievement, there has been enormous progress made behind the scenes on several fronts. This includes the extensive exploration campaign, which will feed into the May Reserve and Resource update,” he commented.
“We are still three months away from completing this detailed plan, but the huge opportunities we have in so many areas are already very clear and demonstrate the significant benefits of combining the Groups’ assets and people,” he added.
Northern Star Resources is off 2.81 per cent following the announcement to trade at $11.05 per share at 1:21 pm AEST.
