PERTH (miningweekly.com) – Gold miner Northern Star Resources has reported a strong quarter of production with gold sales during the three months to June reaching 426 000 oz, which was up from the 363 000 oz produced in the previous quarter.

The Kalgoorlie operations produced 244 368 oz of gold during the quarter, up from 191 031 oz in the previous quarter, while Yandal contributed 121 872 oz, down slightly from 125 072 oz in the March quarter, and Pogo delivered 80 029 oz, up from 46 978 oz in the March quarter.

This was a record quarter for Pogo, since its acquisition, with Northern Star noting record milled tonnes at the mine combined with increased grades. The company said that the June quarter successfully achieved consistent month-on-month performance to deliver above key growth objectives of an annualised processing rate of 1.3-million tonnes a year, a mining rate of 1.3-million tonnes a year, and gold sold rate of 300 000 oz/y.

Group all-in sustaining costs  (AISC)for the June quarter was reported at A$1 700/oz, which was also an improvement on the A$1 813/oz in the March quarter.

For the June quarter, the average sales price realised by Northern Star was A$2 818/oz to generate sales revenue of A$1.2-billion.

The miner told shareholders on Wednesday that following the strong June quarter, full-year sales and cost guidance had been delivered upon, with 1.56-million ounces sold at an all-in sustaining cost of A$1 759/oz.

“I am proud of our team for safely delivering our commitments in the 2023 financial year. We finished the year with increasing operational momentum, meeting our full-year production and cost guidance,” said Northern Star MD Stuart Tonkin.

“As we look ahead to 2024 and beyond, the quarterly performance reinforces the strength and stability of Northern Star’s asset base.

“The strong operational performance has driven significant cash flow generation and we remain well-positioned to fully fund our organic growth options. We welcome the recent approval of the Kalgoorlie Consolidated Gold Mine (KCGM) mill expansion, which sets up the next phase of enhancement for one of the world’s largest gold mines.

“Northern Star was able to improve the AISC performance from our assets in the June quarter, reflecting the positive impact from ongoing optimisation efforts and a higher production base. Our focus remains steadfast on operational excellence to maximise cash generation,” said Tonkin.

In the 2024 financial year, the gold miner is targeting production of between 1.6-million and 1.75-million ounces at an AISC of between A$1 730/oz and A$1 790/oz. Gold sales will be weighted towards the second half of the year as a result of increased production at Thunderbox as the mill sustainably delivers six-million tonnes a year, higher ore volumes and grade at KCGM and continuous grade improvements at Pogo.

In the September quarter, Northern Star is planning major shutdowns across its three project areas.

Meanwhile, Northern Star’s group capital expenditure for 2024 is forecast to be similar to 2023, excluding KCGM mill expansion capital expenditure of A$525-million.