JOHANNESBURG (miningweekly.com) – ASX-listed Northern Star grew its net profit by 79% to A$65.18-million in the half-year ended December 31, the company reported on Friday.
The company, which operates five mines in Western Australia, posted revenue of A$425.3-million, an improvement of 3% on the previous corresponding period.
A total of 283 573 oz of gold were sold in the six months under review, at an average price of A$1 497/oz, which compares with the current spot price of about A$1 700/oz.
Northern Star reported all-in sustaining costs of A$1 062/oz, which was at the lower end of its guidance and which it said reflected the flat cost environment amid the resources downturn.
MD Bill Beament stated that the gold miner’s results for the interim period demonstrated its cash generating capacity, based on its current production rate of 570 000 oz/y.
Cash flow from operations was also up 35% to A$173.4-million.
“This growing cash flow is underpinned by the increasingly favourable cost environment stemming from the resources. Given our forecast growth in production, combined with today’s gold price and our current costs, Northern Star could be well on its way to generating A$450-million a year in operating cash flow,” he noted.
Beament added that in light of this current strong cash position, Northern Star increased its interim dividend by 50% to 3c, fully-franked.
“This increased payout is the result of our flexible dividend policy, which is aimed at ensuring that our dividends reflect the company’s current financial performance, its need for investing capital at the time and the prevailing market conditions,” he said.
The miner aimed to grow production to 700 000 oz/y by 2018, which Beament noted was well on track.