Australia's heavyweight gold miner Northern Star Resources Ltd (ASX: NST) is well on its way to ramp up annual production above 600,000 ounces.
Today the company released its quarterly report and announced its production guidance for FY19: 600,000 to 640,000 ounces of gold at an all-in sustaining cost (AISC) of between $1,025 and $1,125 per ounce.
The figure appears easily attainable considering the result for the June 2018 quarter.
Northern Star had a record production of 184,000 ounces, equally distributed between its two operations in Jundee and Kalgoorlie. Thanks to this strong performance, annual production totalled 575,000 ounces, exceeding the top end of the company's guidance.
In the quarter, Northern Star produced an underlying free cash flow of $93 million, despite investing $46 million in expansionary capital and exploration. The company now has a $512 million net cash position.
Northern Star Executive Chairman Bill Beament has indicated exploration as the cornerstone of the company's growth and exceptional financial returns. To pursue organic growth in the near future, the company has already allocated $134 million in the FY19 budget for exploration and expansion.
At the time of writing, shares in Northern Star are down 0.7% to $7.16.
