PERTH (miningweekly.com) – Gold miner Northern Star Resources has reported massive surges in revenue and profit for the financial year ended June, following the acquisition of a number of gold projects in Western Australia over the past year.

Underlying net profit for the full year increased by 198% year-on-year to A$108.9-million, while underlying earnings before interest, taxes, depreciation and amortisation were up 220% to A$333.1-million.

The acquisition of the Jundee, Plutonic, Kundana and Kanowna Bell mines resulted in a 176% increase in total gold sold during the 2015 financial year, which increased to 580 784 oz, from the 210 055 oz sold the year before.

As a result, revenue for the full year was up 185%, from the A$296.9-million reported in 2014, to A$845.6-million.

“Our acquisitions have delivered exceptional results at the profit, production and return on equity levels,” said Northern Star MD Bill Beament.

“They are now also generating strong exploration results, with substantial growth in resources and reserves, which will underpin increases in mine lives.”

Beament noted that, while Northern Star had completed three major acquisitions over the past 18 months, repaid all of the debt used to fund these acquisitions, and invested A$50-million in exploration, the company also adopted a prudent and cautious approach to capital management, keeping and building upon its cash balance.

“This reflects our philosophy of increasing the dividend payout to a level that is both meaningful and sustainable, while maintaining a balance sheet that can withstand the increased level of volatility we are currently seeing in commodity markets and also provide the firepower to make opportunistic acquisitions without creating financial duress.”

The A$50-million spend on exploration had paid strong dividends, with Northern Star increasing its measured and indicated resources by some 42% to 4.4-million ounces.

In light of this success, Beament said on Thursday that Northern Star would invest a further A$74-million in both exploration and expanding capital to potentially bring a further 1.5-million ounces into future mine plans.

This investment was expected to see Northern Star’s production profile increase from the current 2016 estimates of between 535 000 oz and 570 000 oz.

“Northern Star now has total flexibility and a host of options. We can implement prudent capital allocation, while retaining our status as a growth stock on the back of exploration and development, as well as the potential for further strategic acquisitions,” Beament said.