NST -3.53%: the gold stocks struggled today alongside the price of the precious metal, and Northern Star’s 1Q update did little to stem the flow on NST shares. The Aussie gold company sold 401koz of gold in the quarter, with an All In Sustaining Cost (AISC) of $1,844/oz. Weather and mill downtime impacted the quarter, with sales falling ~6% from 3Q23 and ~3% from the prior period as a result. The company maintained FY24 guidance of 1.6-1.75moz of sales at an AISC of $1,810-1,860/oz implying the June quarter will have to be their best in FY24, selling at least 419koz just to meet the low end. They noted grades had improved in April while mill capacity had also increased – still, not much wiggle room at this stage. Cash & Bullion on hand fell slightly after paying the interim dividend, still holding $1.08b.
MM remains bullish NST medium term, in line with our view on gold
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