Originalmente publicado por jerez1
Ver Mensaje
- Aug 3 2017 at 6:22 PM
- Updated Aug 3 2017 at 6:22 PM
- Save article
- License article
Northern Star Resources maps out mine lives for a decade
- Share
- Share via Email
- Share on Google Plus
- Post on facebook wall
- Share on twitter
- Post to Linkedin
- Share on Reddit
Northern Star says it now has mine life visibility of 10 years. Ryan Stuart 
by Tess Ingram
Northern Star Resources executive chairman Bill Beament says he hopes the gold miner's new 10-year production plan will "well and truly put to bed" persistent concerns in the market about the company's mine life.
The gold miner unveiled a tripling of gold reserves across its land holding on Thursday, which will result in higher annual production and longer lives for its assets.
Northern Star mapped out a 10-year production plan to help give the market more confidence in the sustainability of its asset base, amid ongoing concerns from analysts about a lack of long-term visibility.
Driven by increased production from its two key operations, Kalgoorlie and Jundee, Northern Star plans to increase production from 525,000 to 575,000 ounces of gold this financial year to 550,000 to 600,000 ounces in fiscal 2019 and 575,000 to 625,000 ounces from 2020 onwards.
Northern Star's Paulsens gold mine. Ryan Stuart The miner said this could increase to more than 700,000 ounces a year, if it has exploration success at its third operation, Paulsens, and pushed ahead with the development of its Central Tanami project in the Northern Territory from about 2021.
Related Quotes
Last updated: Updating...
Last updated: Updating...
View full quote
Company Profile
ASX Announcements Expand
| ASX Announcements |
"I think our shareholders got over our mine life issue 12 to 18 months ago but this now to me is the final piece for the wider investment community," Mr Beament told The Australian Financial Review. "This well and truly puts it to bed."
The dramatic increase in reserves has been driven by Northern Star's focus on exploration around its existing assets over the past three years. A $150 million spend in that time has delivered the miner an additional 4 million ounces of gold reserves at a cost of $37 an ounce and 7 million ounces of resources at a cost of $21 an ounce.
RBC Capital Markets analyst Paul Hissey said the "strong" increase in reserves should "address persistent questions around mine life from its key assets at Jundee and Kalgoorlie".
"This, along with the strong cash margins and balance sheet strength, should be sufficient to entice fresh investment for generalists seeking domestic gold exposure," Mr Hissey said in a note to clients.
Northern Star is hosting a strategy day with analysts and investors on Saturday, which Argonaut analyst James Wilson said should provide more clarity on how the increase in reserves will translate to greater production volumes, particularly at Kalgoorlie where processing capacity is a potential bottleneck.
"Overall it is a great result and it really does reflect the significant spending they have put into exploration and the returns they are going to get out of it will be a lot more than what they have put in," Mr Wilson said.
Shares in Northern Star closed up 4 per cent or 18¢ at $4.67 per share.
It came as ASX-listed gold junior Red 5, which has a market capitalisation of about $28 million, revealed it had inked dual agreements to acquire two gold assets in Western Australia.
Red 5 will pick up Gold Fields' Darlot gold mine for $18.5 million in cash and shares as well as the King of the Hills project from Saracen Mineral Holdings for $16 million in cash and shares.
The projects are about 80 kilometres apart. Red 5 said the deals, to be part-funded via a rights issue, would provide immediate production and cash flow, offered good growth potential and set it up to utilise Darlot as a hub to process ore from other gold deposits in the region.
reports.afr.com
Read more: http://www.afr.com/business/mining/g...#ixzz4ohMPYtLG
Follow us: @FinancialReview on Twitter | financialreview on Facebook
Why the Northern Star Resources Ltd share price is climbing today
Gold miner
Northern Star Resources Ltd
(ASX: NST) is top of the
S&P/ASX 200 (Index: ^AJXO) (ASX: XJO) leaderboard today after if flagged it would lift its gold production rate to 600,000ozpa in calendar year 2018. This compares to previous guidance for production of 525,000-575,000ozpa at A$1,000 – A$1,050/oz for FY 2018.
As a result of the improved forecast Northern Star advanced 4 per cent to $4.67 today, with the miner flagging a tripling of estimated reserves to 3.5 million ounces. Its Jundee and Kalgoorlie operations in WA both expanding their inventory and production capacity estimates.
The majority of Northern Star’s operating costs are incurred in Australian dollars, while it sells its gold in U.S. dollars, which means it is a beneficiary of a stronger U.S. dollar. However, as cash rates rise in the U.S. the gold price may suffer as gold produces no income and may become less attractive to investors who could park their money in cash as an alternative and receive growing risk-free interest payments.
According to The Financial Times the 14 analysts covering Nothern Star have a median share price target of $4.63 on the business, with a high estimate of $5.10.
Dejar un comentario: