Northern Star Resources Ltd (ASX: NST) shares are slipping today.
Shares in the S&P/ASX 200 Index (ASX: XJO) gold stock closed yesterday trading for $18.32. In morning trade on Thursday, shares are changing hands for $18.07 apiece, down 1.4%.
For some context, the ASX 200 is down 0.3% at this same time.
This morning, Northern Star released its annual Mineral Resources and Ore Reserves update for the 12 months ended 31 March.
Here's what we learned.
Image source: Getty Images
Northern Star shares encompass growing gold inventory
Northern Star shares are slipping today despite the miner revealing that both its Mineral Resources and Ore Reserves increased over the year, after mining depletion.
Northern Star's Mineral Resources increased by 9.4 million ounces to 70.7 million ounces. Ore Reserves increased by 1.4 million ounces to 22.3 million ounces.
Management highlighted that the Mineral Resources at its KCGM gold mine in Western Australia have doubled since Northern Star acquired the project five years ago. Ore Reserves at KCGM have increased by 50% over this time.
Over the 12-month reporting period, Mineral Resources at KCGM increased by 7.2 million ounces to 38.9 million ounces. Ore Reserves increased by 1.2 million ounces to 14.4 million ounces.
Likely offering some tailwinds to Northern Star shares longer term, the increased Mineral Resources and Ore Reserves reported do not include the miner's recently acquired Hemi gold mine.
"This update does not include the Hemi Project, the world-class discovery we now own following the recent acquisition of De Grey Mining Ltd," Northern Star managing director Stuart Tonkin said.
"We look forward to incorporating Hemi into our gold inventory, while progressing development for what will become our fourth production centre," he added.
Northern Star said its growing gold resources and reserves are testament to its ongoing exploration success, which continues to drive organic growth across the miner's three production centres.
A word from management
Commenting on the growing gold inventory that should offer long-term support for Northern Star shares, Tonkin said, "Exploration remains a highly attractive lever for us to create value by adding extra resource ounces at a cost of AU$20 per ounce, to help drive superior shareholder returns."
Tonkin continued:
Our team continues to generate significant increases in group gold inventory through the drill bit.
Our portfolio of assets across tier-1 locations continues to deliver exploration success with a significant uplift to both group Mineral Resources and Ore Reserves. At our largest asset KCGM, the Mineral Resources across open pit, underground and regional areas increased 23% year-on-year, while Ore Reserves increased 9% year-on-year highlighting the ongoing potential to extend mine life.
How have Northern Star shares been tracking?
With today's intraday dip factored in, Northern Star shares remain up 23% since this time last year.
