PRECIOUS METALS

Northern Star finalises Pogo buy

Northern Star Resources has completed the US$260 million acquisition of the Pogo gold mine in Alaska.

 Pogo adds 250,000-260,000oz to Northern Star's FY19 guidance

Pogo adds 250,000-260,000oz to Northern Star's FY19 guidance

The acquisition from Sumitomo Metal Mining Co and Sumitomo Corporation was finalised on Friday.

Northern Star executive chairman Bill Beament praised Sumitomo for its professionalism throughout the process.

"On behalf of Northern Star, I would like to thank Sumitomo for their assistance and the outstanding condition in which they have left the Pogo mine," he said.

The buy was funded via Northern Star's cash balance and a A$175 million raising priced at $6.70.

Shares reached as high as $9.25 last month and rose by 1.1% to $8.395 this morning.

Northern Star will receive the full financial benefit of Pogo from July 1 and around 16 of the company's staff were onsite planning for the integration ahead of the close of the transaction.

The company's FY19 guidance now stands at 850,000-900,000 ounces of gold at an all-in sustaining cost of $1,050-1,150 an ounce (US$787-862/oz).

Northern Star has started the process of converting the 4.1 million ounce Pogo resource to JORC status.

The company will provide more details about Pogo in its upcoming September quarterly report to be released later this month.

Coming up: Kristie Batten's full report from a site visit to Pogo.

 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.