Paulsens gold mine poured 17,957 gold ounces in the December quarter 2010, despite several setbacks, with 18,587 gold ounces sold providing Northern Star Resources (ASX: NST) with A$25 million in revenue for the period.
The setbacks included a fire on site and a shortage of crucial processing supplies, which have now been solved.
With mining continuing during the setbacks, Northern Star now has a large amount of gold in stockpiles, around 11,000 ounces at the end of 2010, with the impact going forward minimal as the ore is processed.
Northern Star sits in a very enviable position with $7.8 million in cash and bullion with no bank debt.
The company owes $5 million in production-based royalty payments on the $40 million acquisition of Paulsens.
Northern Star remains unhedged as a position to the strong gold price which continues to sit above US$1350 an ounce, and allows for upside should the gold price continue its bull run over the past five years.
Going forward, there remains potential for mining to continue beyond the stage one plan with some new high grade discoveries last month.