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Highlights
- Northern Star released its operational and financial results for the September 2022 quarter yesterday.
- Northern Star’s shares were trading at AU$7.90 each, down 1.68% at 12.32 PM AEDT.
Northern Star Resources Ltd (ASX:NST) shares were trading lower on Thursday, a day after releasing a quarterly update on its operation and financial performance for the September quarter of the financial year 2023.
Northern Star’s shares were trading at AU$7.90 each, down 1.68% at 12.32 PM AEDT. This is in line with ASX 200 Materials index which was 1.92% lower at 15,474.20 points today at 12.33 PM AEDT. However, the ASX 200 index was trading 1.20% lower at 6,718.40 points at 12.33 PM AEDT.
The materials company announced via an ASX filing on October 19 that its sales and revenue for the September quarter were marginally lower than the June quarter. Even as the sales and revenue fell marginally, the gold production and exploration company said that it was on track to meet its targets for the full financial year 2023.
For the September 2022 quarter, Northern Star’s gold sales stood at 368,956 oz, at an all-in sustaining cost (AISC) of AU$1,788/oz.
Overview of the production performance
Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 19 October
Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 19 October
FY23 Outlook
Northern Star stated in the ASX filing that it was responsibly advancing its strategic objective to provide better returns to shareholders while carrying out its operational improvement and expansion project pipeline. In this inflationary environment, the company was tightly controlling its costs and would keep adopting a flexible and responsible strategy for portfolio optimisation and capital expenditure.
The company also stated that it had solid financial standing, with net cash of AU$173 million. The company's growth plan for FY23 was fully funded and adhered to its criteria for allocating resources to projects that generate the highest returns.
The firm anticipates delivering 1,560 koz to 1,680 koz of gold in FY23 at an AISC of AU$1,630-1,690/oz. Due to the planned ramp-up of the Thunderbox mill expansion and grade improvements at Pogo, the weight of gold sold would be skewed towards the second half, the company said.
The group capital expenditures (sustaining, growth, and exploration) for Northern Star were anticipated to be comparable to FY22 in FY23.
