Northern Star sees 1Mozpa even without Super Pit

Northern Star Resources has flagged a 30% increase in production over the next two years and a 10% reduction in costs, not yet including its 50% stake in Kalgoorlie Consolidated Gold Mines (reports MiningNews).
14th August 2020
Resources Rising Stars

Northern Star Resources has flagged a 30% increase in production over the next two years and a 10% reduction in costs, not yet including its 50% stake in Kalgoorlie Consolidated Gold Mines (reports MiningNews).

The company has set FY21 production guidance, excluding KCGM's Super Pit, at 720,000-820,000 ounces of gold, compared to about 785,000oz in FY20.

Jundee and Kalgoorlie in Western Australia are expected to produce 540,000-600,000oz at all-in sustaining costs of A$1425-1525 an ounce, while Pogo in Alaska is expected to produce 180,000-220,000oz at US$1200-1400/oz, taking the impacts of COVID-19 into account.

Northern Star will spend A$99 million on growth in FY21, including $50 million at Pogo to expand the plant to 1.3 million tonnes per annum, $37 million at Jundee for surface infrastructure upgrades, and $12 million at Kalgoorlie for capital works.

An additional $95 million will be spent on exploration, the largest budget in the company's history.

The bulk of the funds will go to Kalgoorlie ($35 million), followed by Jundee ($28 million), Pogo ($21 million) and regional ($11 million).

The recently acquired Bronzewing project will be merged with Jundee and renamed the Yandal operations, with the company seeing potential for annual production of 400,000oz in the next 2-3 years.

Northern Star sees production rising to about 900,000oz in FY22 and 1 million ounces in FY23, with costs falling by 10% to roughly US$1000/oz.

JP Morgan was forecasting total production of 1.2Moz in FY22, which still could be possible once guidance for the Super Pit is released in September.

Northern Star said capital required to reach 1Mozpa is A$175 million, with non-sustaining capital to drop away significantly after FY22.

The company expects to be able to maintain the 1Mozpa run-rate for at least seven years.

The forecast is underpinned by a 3.2Moz increase in group resources, excluding the Super Pit, to 22.3Moz, after depletion of 912,000oz and the acquisition of the 1.6Moz Bronzewing project.

Read more at https://www.miningnews.net/resource-definition/news/1392974/northern-star-sees-1mozpa-even-without-super-pit

 

Image: Jundee, supplied by Northern Star Resources

 

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