Northern Star (NST) delivered a positive Sept Q with production of 208koz, albeit at an elevated AISC of $1,226/oz (+13% on production, +25% on costs). The result was broadly in line with our expectations following the integration of the higher cost SKO asset into the Kalgoorlie Op’s and the newly acquired Pogo asset into the portfolio. Net cash increased to $277m (+5% post Pogo acquisition). For the remainder of FY19 NST is setting up for strong performance. Mined and milled tonnes rose by 41%/13% respectively. We see improvement as Pogo utilisation rates lift to 90-100% over the remainder of FY19 as mining is optimised to synchronise with mill availability. We see NST reaching the mid-point of 850-900koz FY19 guidance.
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