The Northern Star Resources Ltd (ASX: NST) shares are on watch in early trade after the gold miner's latest quarterly update.
Why are Northern Star shares worth watching today?
Northern Star reported 214,635 ounces of gold sold for the period ended 31 December 2019. The Aussie gold miner did so at an all-in sustaining cost (AISC) of A$1,421 per ounce.
Australian operations sold 169,584 ounces at an AISC of A$1,263 per ounce compared to 155,043 ounces at $1,250 per ounce in the September quarter. The Northern Star share price could climb higher for a second straight day after these numbers exceeded the top-end of guidance on an annualised basis.
Underlying free cash flow came in at $88 million despite investing $53 million in growth capital and exploration.
However, the group's AISC did climb higher by approximately $117 per ounce during the December quarter. Management attributed this to increased mine development costs, changes in non-ore stockpile movements and extra royalty costs from elevated gold prices.
Cash, bullion and investments totalled $1.48 billion after the group readied funds for the 50% stake in the Super Pit gold mine for US$800 million. Northern Star is now a joint venture partner with fellow ASX gold miner Saracen Mineral Holdings Ltd (ASX: SAR).
The Northern Star share price is worth watching given these results put it on track for FY20 guidance. The ASX gold miner expects to produce 920,000 to 1,040,000 ounces at an AISC of $1,240 to $1,340 per ounce.
What else did Northern Star announce today?
On top of the quarterly results for the group, Northern Star provided a Q2 update on its Pogo operations.
Pogo is located in Alaska and a weak September quarter hit the Northern Star share price hard in October.
The group's Pogo is on an 18-month transition plan with December representing a key milestone. Production increased by 120% from October to December with Pogo producing 21,570 ounces in the final month of 2019.
Overall, Pogo sold 45,051 ounces at an AISC of A$1,263 per ounce. That represents a 56% increase in gold sold and 28% decrease in costs compared to September.
The Northern Star share price will be one to watch as it continues to develop its Pogo operations.
