MENU

Northern Star Resources Ltd is poised to ramp up gold production

The Northern Star Resources Ltd (ASX: NST) share price was up 0.2% to $6.39 on Monday, on top of a 50% increase over the past 12 months, following the release of the gold miner’s quarterly report.

The result was weak compared to the previous quarter. Gold production decreased 4% to 120,000 ounces, yielding a 9% decline in revenue, despite a higher average realised gold price of $1,720 per ounce.

The all-in sustaining cost (AISC) increased slightly to $1,075 per ounce – not exactly one of the lowest in the industry, but still ensuring a healthy operating margin.

Northern Star generated an underlying free cash flow of $32 million in the quarter, despite investing $33 million in expansionary capital.

The good news is that the company has now completed an investment strategy poised to lift production to 600,000 ounces per annum, starting with a 150,000 ounces output estimated for the current quarter.

The plan included the expansion of activities at the company’s Jundee project, exploration of new projects and the acquisition of South Kalgoorlie from Westgold Resources Ltd (ASX: WGX) for $80 million.

Northern Star has a strong financial position, with $439 million in cash and no bank debt.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tommaso Autorino has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.