The Northern Star Resources Ltd (ASX: NST) share price sunk 10% this morning to $8.30 after the gold miner flagged rising costs in FY 2019 while maintaining its total production guidance of between 850,000 to 900,000 oz for the year.
The miner reported that its all in sustaining cost (AISC) would rise by A$75/oz higher than previously forecast due to increased investment at its Pogo mine and other foreign exchange factors.
For the quarter ending December 31 2018 Northern Star sold 210,562oz at an AISC of A$1,365/oz or US$981/0z. It posted positive operating cash flow up 73% to $110 million for the quarter, with free cash flow of A$36 million after investing A$52 million into exploration and expansion activities.
Northern Star has cash on hand of $292 million and no bank debt, which means it's well funded to capitalise on any unexpected surge in the gold price. Some of the other best gold miners to watch on the ASX include Newcrest Mining Limited (ASX: NCM) and Evolution Limited (ASX: EVN).
