Northern Star Resources and Regis Resources delivered record gold sales in the June 2024 quarter, all while producing strong gold production across operations.
Northern Star Resources
Northern Star achieved its 2023–24 financial year (FY24) guidance through 1.62 million ounces (oz) of gold sold at an all-in sustaining cost (AISC) of $1853/oz.
The gold miner sold 438,926oz at an AISC of $1815/oz during the June quarter, with its Pogo operations selling a quarterly record 90,819oz (annualised rate of 363koz) at an AISC of $US1091/oz ($1662/oz).
Northern Star’s Thunderbox operations delivered its nameplate mill throughput of six million tonnes per annum during the quarter, alongside achieving record mill throughput of 1.5 million tonnes, a 30 per cent increase from the previous quarter.
“During the June quarter Thunderbox and Pogo were both highlights achieving record performances,” Northern Star managing director Stuart Tonkin said.
“Overall, FY24 delivered record gold sold and net mine cash flow, demonstrating the quality of the asset portfolio across our three production centres and also the investment we are making to unlock future low-cost, high-margin ounces.”
“We have entered FY25 with positive momentum as we progress the KCGM (Kalgoorlie Consolidated Gold Mines) mill expansion project, execute on Yandal’s hub strategy to lower its cost base and continue Pogo’s excellent performance.
“We are majority of the way through our five-year profitable growth strategy which sees our production grow to 2Moz (two million ounces) by FY26, and more importantly, enables the delivery of higher free cash flow levels.”
Northern Star closed the quarter with $189 million in underlying free cash flow, $359 million in net cash, and $1.24 billion in cash and bullion.
The company’s FY25 production guidance sits at 1.65–1.8Moz sold and AISC of $1850–2100/oz.
Regis Resources
During the June quarter, Regis’ Duketon operation produced 75,600oz of gold at an AISC of $2249/oz and Tropicana produced 30,800oz of gold at an AISC of $2145/oz, bringing the company’s total to 106,400oz at an AISC of $2247/oz.
Regis achieved its FY24 guidance, producing 417,700oz at an AISC of $2286/oz for the financial year.
The company achieved multiple financial records during the June quarter, including $166 million in operating cash comprising $106 million from Duketon and $60 million from Tropicana.
Regis also ended the quarter with a record $295 million in cash and bullion following a $50 million investment in capital expenditure and $16 million in exploration and the McPhillamys gold project in New South Wales.
“This has been a significant few months for the company,” Regis managing director Jim Beyer said. “The cash generating capacity of Regis is now clear for all to see after we broke free of the longstanding hedge book.
“With a healthy gold price tailwind and mines continuing to recover from extreme wet weather, Regis delivered record cash and bullion build of $109 million in the last quarter and $141 million since the hedge book was closed out in December 2023. We continue work on delivering ongoing cash build into the future.”
Regis used the quarter to progress several key value growth activities across its operations.
“At Duketon we continued to build on our underground-centric strategy, targeting four to five sustainable operating underground mines,” Beyer said.
“Delivering into this strategy, work is now underway on the development of a third mine, Garden Well Main and significant life extension at Rosemont with Stage 3. In-line with our underground growth strategy, for a third consecutive year, we delivered underground ore reserve growth at Duketon and Tropicana, with growth outpacing depletion.
“We believe that this underground reserves growth trend will continue, and while we continue to drill for high-value, open pit ounces, we are confident we can add further value by identifying additional underground mines.”
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