Northern Star reports higher costs and lower output
- Northern Star Resources reported a lower gold output of nearly 364,000 ounces alongside a 20% cost increase to $3,217 per ounce for the September quarter.
- The operational update coincides with an uninvited takeover approach from Gold Fields, which previously valued the Australian miner at nearly $39 billion.
- Northern Star stated that the cost increases stemmed from integrating its new $1.8 billion mill at the Kalgoorlie Consolidated Gold Mines operations.
Northern Star Resources (ASX:NST) posted a quarterly gold production drop of roughly 19% to nearly 364,000 ounces while its all-in sustaining costs rose 20% to $3,217 per ounce.
The latest quarterly figures followed an uninvited takeover proposal from South African miner Gold Fields, which Northern Star rejected for undervaluing the business.
"Commissioning is progressing in line with expectations for this early stage," said Northern Star CEO Suresh Vadnagra.
The company reported that net mine cash flow reached $210 million for the quarter, while full-year production guidance remained unchanged at 1.50 to 1.65 million ounces of gold.
Following the announcement, the Northern Star share price was down at $24.62.
The Perth-headquartered miner operates major gold assets in Western Australia and Alaska, anchored by its core Kalgoorlie, Yandal, and Pogo production centres.
The company continues to advance the expansion of its Kalgoorlie Consolidated Gold Mines processing facility to streamline regional production hubs.
