The Northern Star Resources Ltd (ASX: NST) share price is on watch after the gold miner’s first post-merger quarterly update.
The post The Northern Star (ASX:NST) share price is on watch. Here’s why. appeared first on The Motley Fool Australia. –
Why is the Northern Star share price on watch?
Northern Star this morning provided a quarterly performance update after its merger with Saracen Mineral Holdings Ltd (ASX: SAR).
The gold miner reported that March quarterly gold sold 368,273 ounces for the period that ended 31 March 2021. That came at an all-in sustaining cost (AISC) of A$1,598 or US$1,235 per ounce.
Kalgoorlie site production contributed 234,419 ounces with Yandal and North American production of 94,116 ounces and 40,008 ounces, respectively. The Northern Star share price will be one to watch as it looks to hit full-year production guidance.
Gold that sold for the 9 months till 31 March 2021 came in at 1.15 million ounces. The Aussie miner is targeting a full year guidance production of 1.5 million to 1.7 million ounces at an AISC of A$1,370 to A$1,470 per ounce for Australian operations.
Investors will be watching the Northern Star share price following this morning’s update – the first since the Saracen merger. Northern Star and Saracen announced a $16 billion merger of equals which was implemented on 12 February 2021.
For the March quarter, Northern Star reported an average realised price of A$2,222 per ounce for revenue of A$772 million. The group had cash and bullion of A$696 million at the quarter end after dividends, acquisitions and growth capital expenditure.
The Aussie gold miner will provide an exploration and reserves/resources update in early May 2021. Investors will be keeping a close eye on the newly-formed gold giant’s next release.
An important takeaway from today’s release is the reassurance that Northern Star remains on track to achieve Pro-forma FY2021 guidance despite a number of one-off events.
The Northern Star share price will be one to watch in early trade following the latest update on its March performance.
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Motley Fool contributor Ken Hall 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.