Northern Star Resources Ltd (ASX: NST) is happy to announce that it was able to meet the requirements of the FY19 guidance report by producing 850,000-900,000oz of gold at an all-in sustaining cost (AISC) of A$1,050-1,150/oz (US$777-851/oz). In the September quarter, gold was sold at an AISC of A$1,122/oz (US$830/oz).
The Gold sold in the September quarter of 212,682oz at an AISC of A$1,226/oz (US$907/oz) which comprises of to sell 153,115oz of gold at an AISC of A$1,122/oz (US$830/oz) from the Australian operations and 59,567oz of gold at an AISC of A$1,493/oz (US$1,105/oz) from the US operations. The Cash and cash equivalents at end of quarter (30 September 2018) was A$277M (A$512M at June 30) which was the amount left after paying A$350M for the Pogo mine. The company was able to raise A$175 million via share placement, used A$20 million to exercise the Tanami JV option and paid dividend of A$32 million. At present, Northern Star has reported no debt from bank.
As per the September quarter production report, 84,399oz of gold was mined from the Jundee Gold Operations and 73,018 oz was sold at an AISC A$908/oz. 94,190oz of gold was mined from the Kalgoorlie Gold Operations and 80,097 oz was sold at an AISC A$1,318/oz and 66,364oz of gold was mined from the Pogo Gold Operations and 59,567oz of gold was sold at an AISC A$1,493/oz.
The reserves at the Australian operations got increased from 0.5Moz to 4.0Moz. This result was obtained after the deducting the depletion of 0.6 Moz. The measured and indicated resource of NST increased by 55% which lays foundation of mine’s life by 10 years.
The Pogo operation at present is under the management control of NST. At present Pogo is running its mill with 70% capacity. It is expected that by the June quarter 2019, Pogo mill will be running with 100% capacity there is reported certain operational changes generating substantial increase in mined tonnes. As a result of scheduled increase in tonnages and utilization of mills of Pogo has brought it on track so that it is able to meet FY2019 guidance of 250,000-260,000oz at US$880/oz (A$1,189/oz).
By the quarter ending September 2018, Northern Star declared the status of Maiden JORC Resource at Pogo of 4.15Moz at 14.7gpt. As per the estimate of Pogo JORC, there was an increase of 24% in the mine resource and an additional 765,000oz in non-JORC resources available in satellite deposits.
The current focus of Northern Star is organic growth across all its operations in FY2019 considering a record exploration/drilling budget of A$75-A$80 million and A$74 million as an expansionary capital.
The past one-year performance of the company is 82.4%. The performance report of 5 years and 10 years are 950.05% and 33361.62% respectively. The overall performance of the company since inception is 29457.76%. The current market price of the share is A$9.310 with a market capitalization of $6.03 billion and PE ratio of 29.38x. As per the chart we see that moving average convergence line (MACD line) is moving above the signal line.
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