Insights

Northern Star share price tumbles on guidance update

This gold miner’s shares aren’t glittering today…
The post Northern Star share price tumbles on guidance update appeared first on The Motley Fool Australia. –

The Northern Star Resources Ltd (ASX: NST) share price is dropping on Wednesday.

In morning trade, the gold miner’s shares are down 2% to $10.00.

Why is the Northern Star share price dropping?

Investors have been selling down the Northern Star share price today after the gold miner’s quarterly update disappointed.

For the three months ended 31 March, Northern Star reported total gold sold of 380,075 ounces at an all-in sustaining cost (AISC) of A$1,656 per ounce.

This reflects 212,820 ounces of gold sold with an AISC of A$1,659 per ounce at Kalgoorlie, 109,766 ounces of gold sold with an AISC of A$1,444 per ounce at Yandal, and 57,489 ounces of gold sold at an AISC of US$1,483 per ounce at Pogo.

While this means that its Australian operations, which account for 85% of total production, are on track to meet FY 2022 production and cost guidance, this won’t be the case for its Pogo operation. It is expected to fall short of its guidance for production and costs.

In light of this, management has retained its FY 2022 group production guidance at 1.55M ounces to 1.65M ounces but has lifted its AISC guidance to A$1,600 to A$1,640 per ounce. The latter is up from its previous guidance of A$1,475 to A$1,575 per ounce.

Nevertheless, for the quarter, thanks to an average realised price of A$2,468 per ounce, Northern Star reported sales revenue of A$937 million for the quarter. This was broadly in line with what was recorded during the December quarter.

Management commentary

Northern Star’s Managing Director, Stuart Tonkin, acknowledged that the company had a tough quarter.

He commented: “During the quarter, Kalgoorlie was impacted due to unplanned mill downtime events while Yandal performed in line with expectations. As foreshadowed, higher mining inventory at Pogo is delivering a better milling outcome but we have more work to do to deliver on Pogo’s potential.

“Group-wide and against a challenging operating backdrop, we continue to safely advance the foundation of our five-year profitable growth plan. One year in, we have significantly lifted material movement volumes at KCGM, working through the OBH cutback, almost completed the Thunderbox mill expansion and successfully commissioned Pogo’s expanded mill.”

The post Northern Star share price tumbles on guidance update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Northern Star right now?

Before you consider Northern Star, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Northern Star wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

5 things to watch on the ASX 200 on Wednesday

5 things to watch on the ASX 200 on Wednesday

What’s boosting the Northern Star share price on Tuesday?

These were the best performing ASX 200 shares last week

Here’s why the Northern Star share price is climbing today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!