Northern Star Resources has detailed its 2022–23 financial year (FY23) performance and shined a light on its outlook for the coming financial year.
The company hit its FY23 guidance for gold sales and all-in sustaining cost (AISC), with 1.563 million ounces (Moz) of gold sold (guidance: 1.56–1.68Moz) at an average AISC of $1759/oz (guidance: $1730–1760/oz) across the 12 months.
Northern Star sold gold at an annualised rate of 1.7Moz in the June quarter, which drove down the AISC to $1700/oz across the three months.
This came despite growth capital expenditure (capex) of $752 million being above revised expectations of $700 million, which Northern Star put down to expansion works advancing ahead of plan.
Northern Star managing director Stuart Tonkin said the company finished the financial year with operational momentum.
“The strong operational performance has driven significant cash flow generation and we remain well-positioned to fully fund our organic growth options,” he said.
“We welcome the recent approval of the KCGM (Kalgoorlie Consolidated Gold Mines) mill expansion, which sets up the next phase of enhancement for one of the world’s largest gold mines.
“Northern Star was able to improve the AISC performance from our assets in the June quarter, reflecting the positive impact from ongoing optimisation efforts and a higher production base. Our focus remains steadfast on operational excellence to maximise cash generation.”
As Northern Star embarks on FY24, the company has $362 million in the bank, with its FY24 growth program fully funded.
The gold miner said it was aiming to sell 1.6–1.75Moz of gold at an AISC of $1730–1790/oz in FY24, with gold sales to be weighted towards the second half of FY24 as the Thunderbox mill ramps up, ore volumes and grade increase at KCGM and grade improves at Pogo.
Major shutdowns are planned across Northern Star’s three production centres in the September quarter.
The company’s guidance for FY24 growth capex is $1.15–1.25 billion. This includes $890-960 million for KCGM with $525 million going towards the $1.5 billion mill expansion.
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