Northern Star tumbles after guidance cut
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More news: Shares in Northern Star Resources have tumbled more than 5% to $19.80 in early trading on the ASX after the gold miner cut its full-year production guidance due to operational challenges at its Kalgoorlie mine.
It now expects FY25 production to be in the range of 1.63 million to 1.66 million ounces, down from its previous estimate of 1.65 million to 1.80 million. Cost guidance has been revised upwards to between $2,100 and $2,200 per ounce from $1,850-$2,100/oz previously.
Northern Star cuts FY guidance after operational challenges
The news: Gold miner Northern Star Resources has cut its full year production guidance due to operational challenges at its Kalgoorlie mine, despite a steady third quarter performance.
The numbers: The miner sold 385,441 ounces of gold in the three months to March, down from 410,249 ounces in the preceding quarter. It had an all-in sustaining cost of $2,246 per ounce for the period.
It now expects FY25 production to be in the range of 1.63 million to 1.66 million ounces, down from its previous estimate of 1.65 million to 1.80 million. Cost guidance has been revised upwards to between $2,100 and $2,200 per ounce from $1,850-$2,100/oz previously.
The context: The gold miner attributed the revised guidance to delayed access to Golden Pike North pits at its Kalgoorlie operations, higher maintenance costs across the Yandal project and higher royalties from elevated gold prices. It also slightly lifted FY25 growth capital and exploration guidance to a range of $950 million to $1,100 million due to increased activity.
“During the March quarter, we delivered strong net mine cash flow of A$295 million across all production centres despite operational challenges at our biggest asset, KCGM. Mining of higher-grade ore in the KCGM open pit was delayed because of low productivity in the Golden Pike North area,” Managing Director Stuart Tonkin said.
Meanwhile, the company said it will complete its $5 billion takeover of De Grey Mining by 5 May after De Grey shareholders voted overwhelmingly in favour of the scheme earlier this month.
The source: ASX
