Northern Star (NST) delivered a mixed June Q with production of 226koz at an AISC of $1,238/oz (+21% on production, -10% on costs QoQ) and 813koz for FY19 at an AISC of $1,296/oz. On an operational basis (pre-recovery), NST produced 250koz for the Q and 900koz for FY19. NST generated record underlying free cashflow of A$104m and cash increased by $73m to $361m. Operations recorded significant production uplifts with Kalgoorlie +16% QoQ, Jundee +20% QoQ and Pogo +37% QoQ. FY19 production was a record, albeit 2% above the top end of guided costs. Overall NST, is an impressive growth story with YoY growth of +53% mined tonnes, +41% production and +46% milled tonnes as Jundee and Kalgoorlie max out on mining rates and milling capacity. This growth could predicate a move to lock in additional mill capacity, funded by its premium scrip price. HOLD recommendation maintained and target price of $10.07ps.
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