PERTH (miningweekly.com) – Gold miner Northern Star Resources on Tuesday reported a 42% increase in net profit after tax for the year ended June, as the company’s organic growth strategy continued to deliver.

Net profit increased to a record A$215.3-million, while earnings before interest, taxes, depreciation and amortisation also hit a record A$461.3-million, up 16% on the previous corresponding period.

Northern Star sold 526 515 oz of gold, at an average price of A$1 675/oz, generating revenue of A$883.8-million, which was on par with the 2016 revenue figures, despite the sale of the Plutonic gold mine in September last year.

“These results reflect an outstanding year for Northern Star. We have again met or exceeded our guidance figures; these are high-quality earnings which flow from world-class operations in a tier-one jurisdiction, and we have generated significant free cash flow which has led to a 50% increase in the final dividend,” said executive chairperson Bill Beament.

He noted that further production increases were expected in 2018 as the benefits from the company’s organic growth strategy continued to unfold.

“The ongoing production growth is underpinned by the substantial increase in our inventory, which has resulted from the organic growth strategy.

“The fact that we have just added 2.3-million ounces in reserves at a cost of just A$24/oz, compared with the price of several hundred dollars an ounce we would have to pay to acquire them, means our production growth will deliver superior results to shareholders.”

Total reserves are now estimated at 3.5-million ounces, despite depletion of 546 000 oz in the full 2017, while resources increased by 2.7-million ounces to 10.2-million ounces.

Looking ahead, Northern Star expects to produce between 525 000 oz and 575 000 oz during the 2018 financial year, with production expected to rise to around 600 000 oz/y within the next two years.