Pogo hitting its straps despite pandemic
Northern Star Resources has reported quarterly gold sales towards the top end of guidance (reports MiningNews)
30th October 2020
Resources Rising Stars
Northern Star Resources has reported quarterly gold sales towards the top end of guidance (reports MiningNews) .
old sold in the September quarter was 227,532 ounces at the upper end of guidance of 207,000-233,000oz.
The average realised price for the quarter was A$2493 an ounce, generating revenue of $530.3 million.
"This has been a very strong quarter for Northern Star at all levels," executive chairman Bill Beament said.
Beament said the September quarter had been guided to account for about 22% of full-year production, which is expected to be 940,000oz to 1.06 million ounces.
"So we are comfortably on track to achieve full-year guidance," he said.
"Our results are set to get stronger as the year progresses."
Underlying free cashflow was $132 million, after an investment of $42 million in growth capital and exploration.
Operating mine cashflow was $254 million and net mine cashflow was $170 million.
The unaudited net profit after tax for the quarter was about $100 million.
The company reported all-in costs (AIC) of $1752/oz.
Both Northern Star and its peer Evolution Mining reported AIC today as headline numbers for the first time.
Northern Star CEO Stuart Tonkin said the figure demonstrated the company's "very cheap capital intensity".
"The majors are reporting this way and that's our new peer group," he said.
A highlight of the quarter was the continued improvement at the Pogo mine in Alaska.
During the quarter, gold recovered was 53,810oz, the highest since Northern Star took ownership two years ago, while gold sold was 51,006oz, the highest since the company embarked on a change of the mining method to long-hole open stoping.
All-in sustaining costs of US$1199/oz were 14.5% lower than the 2020 financial year.
"These results show the Pogo plan is delivering," Beament said.
"We're making great free cashflow there and it's only going to get better."
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