Northern Star shares slip on softer-than-expected quarter
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More news: Shares in Northern Star Resources are down 0.2% to $16.96 after the gold producer outlined improved performance for the December quarter that was below market expectations.
The materials sector was up 1.32% while the ASX 200 gained 1.2% in early trading.
Citi analysts said the December quarter production and sales of 410,000 ounces was around 20,000 ounces softer than consensus, largely on account of its Kalgoorlie mine, while group costs were 6% higher.
Meanwhile, shares in smaller rival De Grey Mining, which Northern Star is buying out, are up 0.9% to $1.98 each.
What they said: "We expect a likely modest EBITDA consensus downgrade for 1H25 after the result and a muted to down reaction to the result," the analysts said, retaining their 'neutral' rating on Northern Star.
Northern Star keeps FY guidance after strong December quarter
The news: Gold miner Northern Star Resources is on track to achieve its full-year sales and cost guidance after a strong second quarter performance.
The numbers: The miner sold 410,249 ounces of gold in the three months to December 2024, slightly lower from 412,000 a year ago. It had an all-in sustaining cost (AISC)of $2,128 per ounce for the period.
The context: The gold miner said it remains on track to deliver full year guidance for gold sales of 1.65-1.80 million ounces, at an AISC of $1,850 to $2,100 an ounce in FY25.
It expects sales to be weighted towards the second half as a result of increased production from higher grades at the KCGM mine in Western Australia.
Meanwhile, takeover target De Grey Mining which Northern Star agreed to buy out for $5 billion last month, said it had cash and short-term deposits of $786 million at the end of December.
That along with the planned senior debt facility, are expected to fully fund its under development Hemi Gold Project. De Gre shareholders are expected to vote on the deal in April.
The sources: ASX announcement, ASX announcement
