May 17, 2020

Shares for Northern Star Resources Surge after Production Report

Northern Star Resources Ltd
Newmont Mining
Jundee Gold Min
Newmont Mining
2 min
Northern Star Resources’ Paulsens gold mine
Northern Star Resources, the second biggest ASX-listed gold producer, has seen a rise in more than nine percent after the company announced its better-t...

Northern Star Resources, the second biggest ASX-listed gold producer, has seen a rise in more than nine percent after the company announced its better-than-expected second quarter production results. The company beat its June-quarter production guidance by nearly 30 percent.

In the three months to June 30, the mining company produced and sold 115,819 ounces of gold from its Paulsens, Plutonic, Kundana and Kanowna Belle projects in Western Australia. The recently acquired Jundee gold mine produced 75,390 ounces of gold in the second quarter of 2014.

“Whilst the ounces produced from Jundee are not attributable to Northern Star due to the handover occurring on 1 July, the combined total would equate to 191,209oz for the June Quarter 2014,” Northern Star said.

Northern Star, which recently acquired the Jundee gold Mine from Newmont Mining for $82.5 million, expects total production to increase to the rate of 550,000-600,000 ounces per annum.

According to managing director Bill Beament, the newly acquired mines are performing better than anticipated. “Production has exceeded our guidance across the board, putting us well on track to achieve our goal of being the second-biggest and one of the most profitable ASX-listed gold producers with the scale and asset diversity demanded by global institutions.”

The company spent $182.5 million buying the Plutonic, Kundana and Kanowna Belle mines from Barrick Gold.

Northern Star now has $82.3 million in cash compared with $67 million on March 31. Market value for the company is now $883 million and the stock is just 6.5 cent short of a closing record hit 18 months ago.

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Jun 29, 2021

Vale invests $150mn to extend life of Manitoba operations

battery metals
2 min
Vale’s $150mn investment in operations at Thompson, Manitoba will extend mine life by 10 years

Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.

Global energy transition is boosting the market for nickel

The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.

“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.

“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”

Vale continues drilling program at Manitoba

Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.

“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.

“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”

The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history.  Mining of the Thompson orebody began in 1961.

“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.

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