Northern Star Resources Ltd. produced 124,871 ounces of gold in the second quarter of fiscal 2017, up from 109,995 ounces produced in the previous quarter, it said Jan. 25.
The increase in output was partially attributed to substantial improvements in the Jundee mill throughput, while improvements in both grades and throughput are expected to generate further production increases at Jundee in the second half of the fiscal year.
All-in sustaining costs for the second fiscal quarter totaled A$1,063 per ounce, compared to A$1,091 per ounce in the previous quarter, in line with budget. The company maintained its fiscal 2017 AISC guidance of between A$1,000 per ounce and A$1,050 per ounce.
Production for the first half of fiscal 2017 totaled 234,866 ounces, falling short from the forecast of 241,000 gold ounces. AISC came in at A$1,076 per ounce in the period.
However, the company said it remains on track to meet the annual production guidance of 485,000 to 515,000 ounces of gold.
Northern Star said that strong exploration successes, particularly at the Jundee and Kalgoorlie operations, ensure the company is poised to lift its annual production to 600,000 ounces next financial year.
The company sold 120,089 ounces of gold in the quarter at an average realized price of A$1,645 per ounce, compared to sales of 106,519 ounces at an average realized price of A$1,720 per ounce in the previous quarter.
As a result, revenue for the quarter totaled A$197.5 million, reflecting an improvement from A$183.2 million reported in the previous quarter.
Gold sales in the first fiscal half totaled 226,608 ounces at an average realized price of A$1,680 per ounce, while revenue in the period came in at A$380.7 million.
Additionally, the company noted that the construction of the 50,000-ounce-per-annum Millennium underground mine is ahead of schedule and under budget, with first development ore expected in the September quarter.