Northern Star shares have lost some lustre after the gold miner said it had budgeted a record $76 million for exploration in the current financial year as it seeks to consolidate an increased level of production.
The company’s FY19 reserve and resource statement on Thursday said that progress at its Pogo mine in Alaska had helped drive a 31 per cent increase in resources to 20.8 million ounces for the year, and a 35 per cent increase in reserves to 5.4Moz.
Northern Star executive chairman Bill Beament also said the company expected to consolidate its increased production levels with $116 million in expansionary capital in FY20, as well as a record $76 million for exploration.
FY20 group guidance is 800,000oz to 900,000oz at an all-in sustaining cost of $1,200/oz to $1,300/oz.
Northern Star on Tuesday reported that its Pogo operations helped its FY19 gold sales hit a record 840,580oz at an AISC of $1,296/oz.
Shares in the company slipped by 5.84 per cent to $12.25 by 1137 AEST, and have now lost 7.41 per cent this week so far.
In addition, a further 60,000oz is forecast to be stockpiled at the Jundee operations in WA in FY20 due to “milling constraints”, which means that ore from the open pit mining at Ramone will not currently be processed during the year.