Northern Star Resources has continued to grow its production rate at the Kalgoorlie gold operations, with the company anticipating a 40 per cent rise over the next three years.
The company hailed its strong operating performance for the September quarter, selling 227,532 ounces of gold in total, which sits at at the upper end of its 207,00–233,000 ounce quarterly guidance.
Northern Star executive chair Bill Beament said the company had earned one of the strongest growth profiles in the gold industry globally, with that position further cemented by the merger-of-equals with Saracen.
“Our changes with joint venture partner Saracen at KCGM (Kalgoorlie Consolidated Gold Mines) are also paying dividends, with costs beating guidance,” he said.
“Overall, we expect to increase production at the Kalgoorlie operations each quarter this year and ultimately meet our full year guidance there.
“We have one of the strongest growth profiles in the global gold industry and we will achieve this with one of lowest capital intensities in the global gold industry.
“This combination enables us to deliver strong growth in production and free cashflow while maintaining our superior financial returns.”
Northern Star expects its production to increase to 1.25 million ounces in the next three years along with a 10 per cent decrease to costs.
Northern Star produced 64,064 ounces of gold at the Kalgoorlie operations in the September quarter, and 46,018 attributable ounces at its 50-per-cent-owned KCGM gold operations.
Beament said that Northern Star and Saracen’s merger would continue to grow as the full potential of its tier 1 assets are unlocked.
“Both companies have again demonstrated the tier 1 quality of our assets,” he said.
“Our combined production is growing to (two million ounces) a year by (2027 financial year) while most of our peers have a falling production profile. Our costs will continue to reduce and our combined scope for further organic growth in tier 1 locations is exceptional.”