Northern Star Resources has been the best performing global gold stock for total shareholder returns (TSR) over the last 12 months, the company said in its report for the December quarter.
The gold miner has delivered a 20 per cent TSR in the past year compared with the -1 per cent TSR from the S&P/TSX Global Gold Index and -7 per cent TSR from the VanEck Gold Miners ETF.
Northern Star said it ranked as the eighth best TSR performer on the ASX 50 in calendar 2022. The ASX 50 also features miners, BHP, Rio Tinto, Fortescue Metals Group, IGO and Newcrest Mining.
It appears the decision to launch a $300 million share buy-back in August last year has paid dividends for Northern Star, which the company said was 42 per cent complete, with $127 million raised or 15.5 million shares.
Northern Star’s performance for the December quarter was in line with expectations, with a focus to manage heightened costs a priority across each of the company’s three production centres, Kalgoorlie, Yandal and Pogo.
Kalgoorlie sold 210,000 ounces (oz) of gold at an all-in sustaining cost (AISC) of $1738/oz for the December quarter, compared with 215,000oz at an AISC of $1762/oz in the September quarter.
Yandal sold 128,000oz of gold at an AISC of $1591/oz in the December quarter, compared with 103,000oz at an AISC of $1584/oz in the September quarter.
Pogo boosted its output from 51,000oz of gold sales to 65,000oz of gold sales quarter-on-quarter and saw its AISC drop from $US1581/oz to $US1362/oz between the quarters.
This led to total group gold sold of 404,000oz (September quarter: 369,000oz) at an AISC of $1746/oz (September quarter: $1788/oz).
“The December quarter has demonstrated our capability to operate at 1.6Mozpa (million-ounce-per-annum), in line with our five-year growth strategy,” Northern Star managing director Stuart Tonkin said.
“All three production centres achieved positive net mine cash flow after funding their capital requirements. We remain on track to deliver our FY23 guidance.”
Tonkin said Northern Star’s largest asset Kalgoorlie Consolidated Gold Mines (KCGM) remained in “very good shape”, while an expected production uplift in the second half of FY23 will be driven by an expanded mill at the Thunderbox mine at Yandal.