Northern Star jumps 6.4% on strong production

The news: Northern Star Resources has surged in early trading after the gold explorer and producer announced strong production results and an early commencement at a new mine site.

The numbers: NST shares were trading 6.4% higher at $12.85 at 10:40am AEDT, after the miner affirmed 2024 guidance. Northern Star sold 412koz at an all in sustaining cost of $1,824/oz and an average price of $2,873/oz, compared to 404koz at an AISC of $1,746/oz at a price of $2,513 year earlier. It also boosted underlying free cash flow by $102 million, and lifted its earnings for the first half by at least 31.8% to $685 million and 715 million compared to the previous corresponding period.

The context: Gold prices rallied to an all time high of $2,135.39/oz ($3,244) at the end of 2023, lifted by a weakening US dollar, increasing geopolitical risks and strong demand from central banks, particularly in emerging markets.

What they said: "At KCGM, our hard work is paying off with early access into the high-grade Golden Pike North mining area while Pogo achieved a record mining and milling performance," Northern Star managing director Stuart Tonkin said in a statement. "Improved mill availability across Yandal should normalise costs in the second half."