The Northern Star Resources Ltd (ASX: NST) share price is tumbling on the release of the company’s quarterly production update.

Right now, stock in the S&P/ASX 200 Index (ASX: XJO) gold producer is down 1.81%, trading at $13.54.

Northern Star share price falls on weak quarterly production

Here are the key takeaways from the company’s activities over the three months to 31 March:

• Sold around 363,000 ounces of gold – a 10% quarter-on-quarter (QoQ) fall
• All-in sustaining cost (AISC) of $1,813 an ounce – up 4% QoQ  
• Realised an average price of $2,696 per ounce – a 6% improvement QoQ
• Revenue from gold came to $979 million – down 4% QoQ
• Ended the period with $102 million of net cash

What else happened last quarter?

Northern Star’s production came in lower-than-expected last quarter.

The drop was driven by a three-week halt in works at its Alaskan Pogo operation. The company was forced to stop production as it repaired damage to a ball mill motor – originally expected to take six weeks.

Meanwhile, its KCGM operation underwent shovel maintenance.

What did management say?

Northern Star managing director Stuart Tonkin commented on the update weighing on the company’s share price today, saying:

This quarter was a challenging one for Northern Star but we have emerged with positive momentum, and the prospect of improved production across the group, to remain on track for a strong finish to financial year 2023.

Northern Star was able to improve the AISC performance across most of our assets with total costs, in dollar terms, lower than in the previous quarter. Unit costs will reflect this effort on increasing production.

Navigating the current cost environment remains challenging despite the benefits of our size and scale as well as our internal contracting business – Northern Star Mining Services.

What’s next?

On that note, Northern Star upped its full-year cost guidance this morning. It now expects its AISC to come in between $1,730 and $1,760 an ounce – up from $1,630 to $1,690 per ounce.

Though, its production guidance remains unchanged at 1.56 million ounces to 1.68 million ounces.

Northern Star share price snapshot

Today’s tumble hasn’t been enough to send the Northern Star share price into the longer-term red.

The stock is still 22% higher than it was at the start of 2023. It has also risen 41% since this time last year.

For comparison, the ASX 200 has risen 5% year to date and has traded flat over the last 12 months.

The post Northern Star share price slumps as gold sales plunge 10% appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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