Northern Star Resources has withdrawn its production and cost guidance for the 2020 financial year due to uncertainty caused by the coronavirus pandemic.
The gold mining company expects its March quarter production to be 10–15 per cent lower than expected.
It can also provide no assurances about production levels in the June quarter.
Northern Star has implemented financial measures to preserve its long-term value.-
“Our business continuity plans have been fully mobilised in response to the COVID-19 (coronavirus disease of 2019) global pandemic,” Northern Star chair Bill Beament said.
“We are working closely with our local communities, indigenous peoples, state and federal governments and health experts to protect our workforce, local suppliers/service providers and nearby communities.
“However, while these measures are essential, they are creating unavoidable disruptions to normal operations and affecting gold production.”
Beament expects further restrictions upon the movement of workers in suppliers from Western Australia and Alaska, adding that “The company’s outlook is becoming more difficult to predict with any certainty.”
The company, however, has secured a strong financial position in terms of both cashflow and balance sheet.
Northern Star operates the Jundee and Kalgoorlie concentrated centres in Western Australia, including the Super Pit joint venture with Saracen Mineral Holdings, as well as the Pogo operations in Alaska.