Northern Star Shares Slide After Gold Output Guidance Cut
Australian miner trims annual production outlook after December-quarter maintenance and operational disruptions hit gold sales.
This article first appeared on GuruFocus. Shares in Northern Star Resources Ltd. (NSTYY) fell as much as 10% after the Australian gold miner revised down its annual production outlook, following a series of maintenance and operational disruptions during the December quarter that weighed on output across its operations. Warning! GuruFocus has detected 9 Warning Signs with BIDU. Is NSTYY fairly valued? Test your thesis with our free DCF calculator. In a statement on Friday, the company lowered full-year production guidance to between 1.6 million and 1.7 million ounces, from a previous range of 1.7 million to 1.8 million ounces.
Management said lower gold sales across its three production centers could impact costs, reflecting softer volumes tied to the recent operational setbacks. Production at the Kalgoorlie center was disrupted for four weeks due to a primary crusher failure, with the processing plant expected to return to normal early this month, although throughput is expected to remain variable during the second half. Operations at Jundee are expected to normalize during the March quarter, and the company is scheduled to release its quarterly results on Jan. 22.