The Northern Star Resources Ltd (ASX: NST) share price is pushing higher on Thursday following the release of the gold miner's quarterly update.
At the time of writing, the gold miner's shares are up 1.5% to $12.20.
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Northern Star share price higher on solid quarterly update
- Quarterly gold production of 397,783 ounces
- All-in sustaining cost (ASIC) of A$1,746 per ounce
- Gold sales of 404,287 ounces
- Average realised price of A$2,531 per ounce
- Half year gold production of 764.4k ounces and sales of 773.24k ounces
- Full year guidance maintained
What happened during the quarter?
For the three months ended 31 December, Northern Star delivered gold sales of 404,287 ounce at an ASIC of A$1,756 per ounce.
Management advised that this was driven by its operations delivering in line with expectations and a significant cost improvement at key growth projects, Pogo and Thunderbox.
And with Northern Star reporting an average realised price of A$2,531 per ounce for the period, it achieved an ASIC margin of A$775 per ounce.
This helped underpin strong profitability during the first half, which could be boosting the Northern Star share price today. In fact, management advised that it expects to deliver cash earnings of A$460 million to A$475 million for the half. This will be an increase of 7% to 10.4% over the A$430 million recorded during the prior corresponding period.
What did management say?
Northern Star's managing director, Stuart Tonkin, was pleased with the quarter and notes that the company is on track to achieve its production guidance for the full year. He said:
The December quarter has demonstrated our capability to operate at 1.6Mozpa, in line with our five-year growth strategy. All three production centres achieved positive net mine cash flow after funding their capital requirements. We remain on track to deliver our FY23 guidance.
This will mean 1,560k ounces to 1,680k ounces of gold at an AISC of A$1,630-1,690 per ounce.
What's next?
Tonkin also spoke positively about the company's prospects in 2023 and its value-creation plans. He added:
We have entered the 2023 calendar year with a stable and united team and a strong safety culture. I'm proud of our people and their commitment to safely and sustainably execute our value-creation strategy. This strategy is built on world-class gold assets in Western Australia and Alaska that provide us with superior organic growth optionality. This is complemented by our ongoing exploration success, which enables the low-cost resource inventory build needed for long-term success.
Northern Star share price snapshot
Following today's gain, the Northern Star share price has now risen 10% since the start of the year and, as shown below, 40% over the last 12 months.
