Northern Star shares fall on mixed Q1 result
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Northern Star Resources fell after the gold miner reported a mixed result for the September quarter.
Northern Star shares were down 1.8% to $17.11 by 12:30pm AEDT, having gained around 40% over the last 12 months.
RBC Capital Markets analyst Alex Barkley said group production and all-in sustaining costs (AISC) were in-line with expectations, but production was 5% below consensus with AISC 7% higher after adjusting for excess sales.
Softness at Northern Star's KCGM mill expansion project in Western Australia, 18% short of RBC estimates, was offset by better production elsewhere, Barkley noted.
Jarden analysts described the result as "very much in line" with expectations. They noted that production and cost performance is expected to progressively improve over the course of FY25, largely due to expected grade improvements at KCGM.
Northern Star reiterates guidance after higher Q1 gold sales
The news: Northern Star Resources said it is on track to meet full-year production and cost guidance after recording a rise in gold sales in the September quarter.
The numbers: The company reported 394,000 ounces of gold sold during the quarter, at an all-in sustaining cost (AISC) of $2,082 per ounce.
In the previous corresponding period, Northern Star posted 369,000 in gold sales at an AISC of $1,939 per ounce.
The group said all-in costs (AIC) of $3,251 per ounce were higher than a year ago as capital growth projects continued, led by the KCGM Mill Expansion project in Western Australia.
Northern Star's full-year production guidance of between 1.65 million ounces and 1.8 million ounces of gold sold remains unchanged. The miner also reiterated its cost guidance of $1,850 to $2,100 per ounce.
The context: Northern Star said gold sales will be weighted towards the second half of the year due to increased production from higher grades at KCGM and improved mill availability at its Thunderbox and Pogo projects.
What they said: "As a result of the positive start into FY25, we are confidence we will achieve our full-year production and cost guidance providing shareholders the continued benefits of current higher gold prices," said Northern Star managing director Stuart Tonkoin.
The source: ASX announcement
