Northern Star Resources Ltd
Northern Star Resources Ltd
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A milestone for West Australian miner Northern Star, which has achieved its long-promised ambition of reaching an annual production rate of 600,000oz gold at its Jundee, Kalgoorlie and Paulsens operations.
Northern Star has produced 150,000oz in the June qtr to date, with 10 days to spare.
And its financial YTD total is 540,000oz, on track to exceed FY18 guidance of 540,000-560,000oz.
NST predicts a lift to over 150,000oz in its final quarter production after delivering 123,913oz gold at AISC of $A1,075/oz in the 3 months to end March (Q3FY18), compared to 128,836oz at $1,067/oz in the Dec qtr.
The West Australian miner has narrowed its FY18 production guidance to 540,000-560,000oz at $1,000-1,050/oz (previously 525,000-575,000oz).
Northern Star promises a surge in free cash-flow as its hits its 600,000ozpa production target in the June quarter.
Westgold has hit its April 1 target for commercial production after completing the refurbishment and pouring first gold at its 1.2-1.4Mtpa Tuckabianna plant in the Murchison region of Western Australia.
The company acquired the plant and gold resource last year from Silver Lake Resources for $10M and has since refurbished it for about $20M.
At the same time, Westgold completed the $80M sale of its 1.2Mtpa Jubilee plant to Northern Star Resources.
Westgold hits its April 1 target for commercial production after completing the refurbishment and pouring first gold at its recently acquired Tuckabianna plant in Western Australia.
Northern Star has agreed to pay $A80M cash/shares to acquire the South Kalgoorlie Operations of Westgold Resources, comprising a 1.2Mtpa processing plant, working mines and 4Moz resources 25km south of Kalgoorlie, Western Australia.
The company says the deal will support its plan to increase production to 300,000ozpa from its operations around Kalgoorlie.
In what they both agree is a "nice deal", Northern Star will pay $80M to acquire the South Kalgoorlie Operations of Westgold Resources to support its gold production target of 300,000oz. John Feary reports
West Australian gold miner Northern Star posted $A79.1M NPAT for the Dec half (H1FY18), down from $104.6M in the previous corresponding period.
The result was achieved on revenue of $435.3M (H1FY17: $415.5M) from sales of 267,278oz gold (246,229oz) at $1,678/oz ($1,683/oz). AISC was $1,043/oz ($1,111/oz).
Northern Star is on track for FY18 production of 525,000-575,000oz at AISC of $1,000-1,050/oz.
Australian gold miner Northern Star remains on track to reach an annual production rate of 600,000oz in 2018 after lifting output in the December 2017 half-year.
Long-term investors Tribune Resources and Rand Mining have pumped a further $A1.1M into West Australian explorer Torian Resources to support aggressive drilling at its Zuleika gold project, 50km N of Kalgoorlie.
As well as being cornerstone investors in Torian, Tribune and Rand are partners in Northern Star Resources' 220,000ozpa East Kundana JV adjoining the Zuleika project.