Workers at the Kalgoorlie production centre. Source: Northern Star Resources
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  • Gold mining big-cap Northern Star Resources (NST) flags almost a billion dollars in quarterly revenue in its financial report for the three months to the end of December 2021
  • The company sold almost 393,000 ounces of gold at an average price of $2429 per ounce over the quarter to pocket around $950 million in sales revenue
  • All-in sustaining costs (AISC) for the quarter topped $1631 per ounce, according to Northern Star, though this is expected to decrease in the second half of the financial year
  • The company says its Kalgoorlie and Yandal production centres in WA met expectations, but its Pogo centre in Alaska fell short in terms of gold sales
  • Shares in Northern Star were up 9.14 per cent to $9.55

Shares in gold mining big-cap Northern Star Resources (NST) have jumped following the company’s financial report for the three months to the end of December 2021 where it reported sales revenue of $950 million.

Northern Star flagged almost 393,000 ounces of gold sold at an average price of $2429 per ounce.

All-in sustaining costs (AISC) for the quarter topped $1631 per ounce, according to the company.

At the end of December, Northern Star had around $588 million in cash and bullion on hand. When accounting for its $300 million in corporate bank debt, the company’s net cash position at the end of the quarter was $288 million.

Importantly, the company is on track to meet its 2022 financial year sales and cost guidance of between 1.55 million and 1.65 million ounces of gold at an AISC of between $1475 and $1575 per ounce.

Northern Star Managing Director Stuart Tonkin said the company made “positive progress” during the December quarter at its three production centres at Kalgoorlie and Yandal in Western Australia and Pogo in Alaska.

“Kalgoorlie and Yandal continue to perform in line with our expectations,” Mr Tonkin said.

“Pogo made solid progress with development crews achieving 1500 metres during December and the mill operating at 1.2mtpa (expansion completed in the quarter to 1.3mtpa, from 1.0mtpa).

“This provides confidence in Pogo’s ability to deliver ounces in the second half and beyond.”

From Kalgoorlie, 244,915 ounces of gold were sold at an AISC of $1538 per ounce. From Yandal, 102,163 ounces of gold were sold at an AISC of $1518 per ounce, and from Pogo, 45,577 ounces of gold were sold at $1735 per ounce.

While Pogo’s performance fell below company expectations, Northern Star said the centre was “well-positioned” to increase mining rates in the second half of the financial year.

“We remain on track to meet our FY22 guidance, which incorporates the current WA border closure and associated labour and cost impacts,” Mr Tonkin said.

With the Kalgoorlie and Yandal centres in Western Australia, Northern Star said it was gearing up for international borders to open in early February, which will likely cause an influx of COVID-19 into the state.

Northern Star said it had had practice adjusting rapidly to the spread of COVID-19 through the Pogo operation, and the company would lean on this experience to minimise the potential disruption of opening to its WA operations.

The company spent $28 million on exploration and $150 million on net growth capital over the December quarter as it works to become a two-million-ounce-per-year producer by the 2026 financial year.

Shares in Northern Star were up 9.14 per cent at 12:46pm AEDT to $9.55 each.

NST by the numbers
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