Northern Star shares have been subdued in early trade despite the gold miner setting a new quarterly and annual sales record on progress at its Pogo mine in Alaska.
The company on Tuesday said it had sold a record 232,042 ounces of gold across its entire operations during the June quarter, including record sales of 184,033 ounces from its Kalgoorlie and Jundee operations in WA.
Pogo sales rose 33 per cent for the quarter to 48,009 ounces, with all-in sustaining costs (AISC) at the mine dropping by 18 per cent to $US1,207/oz compared to the March period.
Production had stalled at the mine during the March quarter after the late delivery of a new underground mining fleet and the introduction of a new mining method.
“We are confident that Pogo’s increasing rates of mine development and rising stoping tonnages will deliver higher gold production and lower costs,” executive chairman Bill Beament said in a release.
Northern Star said full-year FY19 sales came in at a record 840,580oz at an AISC of $1US,296/oz, slightly higher than the $US1,225/oz to $US1,275/oz guidance range offered in April.
Shares in the company were down by 0.87 per cent, or 11.5 cents, to $13.085 at 1037 AEST.
Northern Star bought Pogo, the eight largest gold mine in the US, from Japan’s Sumitomo in August last year for $347 million.
Mr Beament also noted on Tuesday the spot price of gold was currently $US200/oz higher than the average recorded across the June quarter, a figure which would have generated the company an extra $46 million in revenue for the period.
Gold was worth $US1,425.37 per ounce by 1037 AEST.
Shares in Northern Star have still gained more than 40 per cent so far in 2019.