Northern Star shares fall on 'challenging' third quarter
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The news: Shares in Northern Star lowered in morning trading after the gold miner released third-quarter results that managing director Stuart Tonkin described as "challenging".
The numbers: Northern Star shares fell 5.2% to $14.49 by midday AEST.
RBC Capital Markets analysts called the quarter "mixed" for the miner, with gold production of 387,000 ounces coming 14,000 ounces lower than the 401,000 ounces previously flagged.
However, the analysts noted that overall production levels were "not too surprising or concerning" given weather issues in Western Australia, and group all-in sustaining costs of $1,844 per ounce were "around market expectations".
The context: The analysts, which considered Northern Star's Q3 report as a "neutral result", saw positives in the miner's most valuable site Kalgoorlie Consolidated Gold Mines, "which accessed better grade than expected with overall gold production in-line on lower throughput". The better grades of the Golden Pike North area were also seen as "somewhat reassuring", with expectations that Q4 and FY25 grades could shift higher, with throughput expected to lift as inclement weather abates.
Analysts said negatives for the quarter included "hiccups" in the ramp up of Northern Star's Thunderbox gold deposit in Western Australia.
The sources: RBC Capital Markets research, ASX announcement
