Northern Star delivers ‘remarkable’ quarter

The Jundee mine.

Northern Star Resources has finished off the December quarter as a one million ounce per year gold producer with four Tier 1 assets.

The company’s Australian operations, the Jundee and Kalgoorlie mines in the Goldfields region of Western Australia surpassed guidance with 169,584 ounces of gold sold at an all-in sustaining cost (AISC) of $1263 per ounce.

Northern Star mined 96,944 ounces with a sale of 82,434 ounces at an AISC of $1030 at Jundee, while at Kalgoorlie it mined 90,724 ounces, selling 87,150 ounces with an AISC of $1483 per ounce.

During the quarter, Northern Star also acquired 50 per cent interest in the Super Pit through Kalgoorlie Consolidated Gold Mines (KCGM) in a joint venture with Saracen Mineral Holdings.

“This will go down as a remarkable quarter in the history of Northern Star,” company chairman Bill Beament said.

“We are delighted with the performance of our Australian operations and we acquired a half-share in one of the most significant gold systems in the world through the KCGM deal.

“We now have four Tier 1 assets in Tier 1 locations delivering well over a million ounces a year, underpinned by long mine lives and generating vast amounts of free cashflow.”

Together, Northern Star and Saracen have set up an executive management committee for the Super Pit and initiate a strategic review covering technical operations, commercial and exploration and growth for the asset.

“It is already clear that the strong cooperative approach adopted by the two companies will enable us to further unlock this exceptional opportunity and create significant value,” Beament said.

“Both companies will also benefit enormously from the complementary skill sets, given Saracen’s well-established open pit capability and Northern Star’s extensive underground and large-scale operational experience.”

Northern Star also took full ownership of Echo Resources during the quarter, having owned a 98.14 per cent interest in the company previously.

It acquired the remaining 1.86 per cent of Echo shares in early December.

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