Northern Star Resources has revealed its preliminary March 2024 quarter results, recording strong gold sales.
The gold major sold 401,000 ounces (oz) of gold during the period. Northern Star credits the sales decrease from the previous quarter to significant weather events taking place across the Northern Goldfields during the March quarter.
The weather events have led Northern Star to change its 2023–24 financial year (FY24) all-in sustaining cost (AISC) guidance from $1730–1790/oz to $1810–1860/oz.
Despite the weather impacting operations during the March quarter, Northern Star said it’s started the June 2024 quarter with “strong operational momentum” through the Kalgoorlie Production Centre having increased access to high-grade Golden Pike North material.
Early access to first ore at Wonder underground in the Yandal Production Centre and grade improvements at Pogo Production Centre have also contributed to the strong start.
“The resilience of our team and assets was demonstrated during the quarter with operations further challenged due to adverse weather,” Northern Star Resources managing director Stuart Tonkin said.
“Our profitable growth strategy coupled with elevated gold prices is expected to deliver significant cashflow generation, and in turn, superior shareholder returns.”
Northern Star closed the March quarter with $174 million in net cash and about $1 billion in cash and bullion, after $169 million in dividends was paid to shareholders.
The gold miner remains on track to deliver its FY24 group gold sold guidance of 1.60–1.75Moz, and it will keep its FY24 growth capital guidance at about $1.15–$1.25 billion and exploration budget at $150 million.
The company will release its full March 2024 quarterly results on April 23.
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