Photo by: Bloomberg
PERTH (miningweekly.com) – Gold miner Northern Star Resources said on Thursday that an effective cost-cutting programme during the March quarter had enabled the company to maximise margins and free cash flows.
MD Bill Beament said that this was evident in the A$60-million increase in cash, bullion and investments reported during the quarter which, at the end of March, tipped at A$286-million.
“The increase [came] after spending $18-million on exploration and expansionary capital as part of our strategy to grow production to 700 000 oz/y by 2018,” said Beament.
“This organic growth strategy, underpinned by the extremely cost-effective exploration campaign, which has seen our resource base grow to 8.9-million ounces, also reflects our commitment to maximising financial returns,” he added.
During the three months ended March, Northern Star generated record operating cash flows of A$103-million from the sale of 143 369 oz of gold. This was up from the 142 017 oz of gold sold during the previous three months.
The Jundee gold operation delivered 60 165 oz of gold during the three months to March, while the Kundana operation delivered 32 755 oz and the Kanowna Bell operation delivered 24 063 oz.
The Paulsens mine added 24 336 oz to Northern Star’s production portfolio during the quarter under review, while the Plutonic gold operation delivered a further 17 352 oz.
All-in sustaining costs for the quarter also fell by 5% on the December quarter, to A$985/t.
Northern Star previously maintained its full year production guidance of between 535 000 oz and 570 000 oz of gold.