Northern Star Resources Limited has reported on a solid December Quarter which saw the Company continue to meet its key operational and growth objectives. Gold sold in the December Quarter totalled 128,819oz at an AISC of A$1,067/oz, taking the results for the six months to 31 December to 267,278oz at an AISC of A$1,043/oz.
During the quarter, Northern Star continued to accelerate the implementation of its growth strategy, bringing forward A$5 million in expansionary capital expenditure, including exploration. This took the total figure for the quarter to A$28 million.
This investment was part of the Company’s strategy to increase production to an annual rate of 600,000oz this calendar year and to continue growing its Reserves and Resources. After allowing for this expansionary capital, Northern Star generated free cash flow of A$35 million in the December Quarter, leaving it with cash and equivalents of A$433.1 million at 31 December 2017.
Northern Star Executive Chairman Bill Beament said the Company’s staff and contractors had done extremely well to meet the operational targets set for the quarter while at the same time executing the growth strategy. “Our production and costs were in line with our targets, ensuring we remain well on track to meet our full-year guidance on both fronts,” Mr Beament said.
After bringing forward $5 million in expansion capital spending during the quarter to help lift its annual production rate to 600,000oz, Northern Star Resources appears to be on track to meet cost guidance and after selling 128,819 oz in the December quarter at $1067/oz.
“This was a particularly strong achievement given we expedited what was already a heavy program of
expansion.
“The decision to accelerate the growth strategy was made partly in light of the strong exploration results we
have been achieving, which are creating opportunities to continue growing our inventory and also providing
more development options down the track.
“We anticipate being in a position to provide further details of our exploration activity in an update next
month.”
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