Northern Star boosted by bumper quarter

Northern Star Resources shares rose more than 7 per cent after the gold miner predicted it will meet its full year production targets after a bumper quarter.

Investors are also looking to the gold sector as a safe haven due to recent volatility and uncertainty on global markets.

Northern Star, which owns five gold mines in Western Australia, said it hit the top end of expectations for the December quarter and is on track to meet its 2016 full year production guidance of between 535,000 and 570,000 ounces.

Managing director Bill Beament said the combination of strong operational results and a healthy gold price in Australian dollars highlighted the company's capacity to generate cashflow.

"We produced gold at the rate of 580,000 ounces per annum in the December quarter," Mr Beament said.

Northern Star produced 145,253 ounces in the three months to December 31, selling most of that at an average price of $AUD1484 per ounce.

The company added that it is on track to grow production to 700,000 ounces per annum in full year 2018.

OptionsXPress analyst Ben Le Brun said the gold sector was performing well on Thursday so the timing of Northern Star's announcement was good.

"It's a double shot in the arm for them today," Mr Le Brun said.

"Gold is acting as a major store of value in these times of uncertainty and that seems to be what's giving the sector a good lift and Northern Star is the real standout performer."

Australian stocks are down around 1.5 per cent after the Dow Jones industrial average closed 2.2 per cent lower as investors grew anxious about weak energy prices, US corporate earnings and the global economy.

The price of gold in Sydney at 1655 AEDT was $US1091.80 per fine ounce, up from Wednesday's closing price of $US1084.80.

Northern Star shares were 19 cents, or 7.5 per cent, higher at $2.71 at 1130 AEDT.

They finished the session up by 14.00 cents, or 5.6 per cent, at $2.66.