Delays at Northern Star’s Alaskan operations have weighed on the gold miner’s quarterly production, but the company says a record June quarter is now in the offing.
While the company’s Australian mines performed comfortably within guidance, its Alaskan operations sagged after the late delivery of a new underground mining fleet and the introduction of a new mining method.
This limited production temporarily, while also driving up costs.
Total gold sold by the group in the three months to March 31 was 185,296 ounces, down 12 per cent from the December quarter, at a marginally higher all-in sustaining cost of $1,369 per ounce, Northern Star said on Wednesday.
But executive chairman Bill Beament said the changes at the Pogo mine in Alaska had begun to take effect.
Nearly 45 per cent of gold sold over the quarter was sold in March.
He tipped a record group production in the June quarter and maintained Northern Star’s full-year guidance of between 850,000 and 900,000 ounces, with expectations to hit the upper end of the range.
“We always said it would take 18 months to implement our strategy at Pogo, so despite the temporary delays we are still on schedule,” Mr Beament said.
The company has, however, increased its all-in sustaining cost guidance slightly from $1,125 to $1,225 an ounce to $1,225 to $1,275 an ounce.
Shares in Northern Star were 3.84 per cent lower at $8.145 at 1053 AEST on Wednesday.