The Northern Star Resources Ltd (ASX: NST) share price has slumped 1.6% lower in early trade despite reporting an increase in planned production.
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Why is the Northern Star share price on the move?
The Aussie gold miner reported FY21 expected production guidance, excluding KCGM, of 720,000 to 820,000 ounces.
KCHM is the joint venture between Northern Star and Saracen Mineral Holdings Limitedd (ASX: SAR) in the Kalgoorlie Super Pit gold mine.
Northern Star is forecasting production to climb to ~900,000 in FY22 and ~1,000,000 in FY23.
On top of that, the miner's all-in sustaining cost (AISC) is forecast to fall 10% lower over that period.
Despite the seemingly good news, the Northern Star share price has fallen lower in early trade. That comes after gold prices endured their worst day in seven years yesterday which sent ASX gold shares tumbling lower.
Northern Star reported an increase in Group Resources by 3,200,000 ounces to 22,300,000 ounces. Resources per share have grown by 120% over the past 5 years excluding KCGM.
It's a similar story in relation to Group Reserves which have jumped 12% to 6,000,000 ounces as at 30 June. Reserves per share are up 180% over the last 5 years despite production of 3,600,000 ounces.
FY21 guidance
The Aussie gold miner also provided FY21 guidance in today's update.
Northern Star expects Australian production guidance excluding KCGM to total 540,000 to 600,000 ounces in FY21. The miner is forecasting an AISC of A$1,425 to $1,525 per ounce this financial year.
FY21 guidance for its Pogo operations is expected to total 180,00 to 220,000 ounces at an AISC of US$1,200 to US$1,400 per ounce.
The Aussie gold miner continues to grow its exploration and production, budgeting A$95 million for exploration in FY21.
However, investors have continued to sell out this morning, sending the Northern Star share price down 1.6%.
The S&P/ASX 200 Index (ASX: XJO) has opened the day up 0.25% at just over 6,130 points in early trade.
