Northern Star Resources halts $1.8B Kalgoorlie mill
Key points
- Northern Star Resources halted operations at its $1.8 billion Kalgoorlie mill for 3½ days due to technical issues.
- Output dropped to 15,300 ounces of gold from 766,000 tonnes of milled ore in October.
- The miner stated full-year output is tracking toward the lower end of its 550,000 to 650,000 ounce guidance.
Gold miner Northern Star Resources (ASX:NST) paused operations at its $1.8 billion Kalgoorlie processing mill for 3½ days following technical glitches.
The October disruption reduced monthly production to 15,300 ounces, which Citi estimated at roughly one-third of the mill's nameplate capacity.
"While commissioning performance has not progressed as smoothly as we would have liked, we are focused on systematically resolving the remaining issues, which we do not consider to be fundamental, and establishing stable, reliable operating performance," said Northern Star CEO Suresh Vadnagra.
The company stated that annual production is tracking toward the lower end of its forecast range of 550,000 to 650,000 ounces.
Management noted that full-year performance will depend on the pace of the plant's operational ramp-up.
Following the announcement, Northern Star Resources’ share price was $25.93.
The company aims to double output at the Fimiston plant to 27 million tonnes of ore annually at full capacity.
The operational delay occurred while the business reviewed takeover interest after rejecting a $39 billion offer from Gold Fields.
