Shares for Northern Star Resources Surge after Production Report
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.
Newmont acquires Canada’s GT Gold in $325mn deal
Newmont, the world’s biggest gold miner, has acquired Canada’s GT Gold in a deal worth $325mn. The gold giant now controls the Tatogga gold-copper project in the Traditional Territory of the Tahltan Nation.
“With the acquisition of GT Gold and the Tatogga project in the highly sought-after Golden Triangle district of British Columbia, Canada, Newmont continues to strengthen our world-class portfolio,” commented Newmont President and CEO Tom Palmer.
“We look forward to continuing to build a respectful and meaningful relationship with the Tahltan Nation, including the community of Iskut. The relationships we have with Indigenous communities, First Nations and host communities are critical to the way we operate. We will partner with the Tahltan Nation at all levels, and with the Government of British Columbia to ensure a shared path forward as the Company understands and acknowledges that Tahltan consent is necessary for advancing the Tatogga project.”
Newmont’s acquisition includes the Tatogga project, comprised primarily of the Saddle North deposit, which has the potential to contribute future significant gold and copper annual production. There are also further exploration opportunities beyond the known deposits at Saddle North within the land package. The Tatogga project adds to Newmont’s existing interest in the prospective Golden Triangle through the company’s 50% ownership in the Galore Creek project.
Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. A world-class portfolio of assets, prospects and talent is anchored in favourable mining jurisdictions in North America, South America, Australia and Africa. The American miner is celebrating its 100th anniversary this month.
With gold prices on the rise, the last six months has seen gold industry M&A activity accelerating. A recent Mckinsey report, advises that the industry need to be mindful of mistakes made during the previous gold price boom, when growth was chased unidirectionally by several companies.