Northern Star MD Bill Beament
Photo by: Bloomberg
PERTH (miningweekly.com) – Gold miner Northern Star Resources has reported a 61% year-on-year surge in net profit to A$104.6-million for the six months to December 31.
The miner told shareholders on Monday that the increase in net profit was driven by the A$19.9-million profit from discontinued operations, which included a A$15.3-million gain from the sale of the Plutonic gold operations in October 2016, compared with a A$7.2-million loss from discontinued operations in the previous corresponding period.
Earnings before interest, taxes, depreciation and amortisation were up 21% from the previous corresponding period, to A$218.8-million.
Executive chairperson Bill Beament described the interim results as outstanding because it showed the company was achieving both its short- and long-term objectives at the same time.
“We have generated significant profit growth and maintained some of the highest financial returns on the ASX, while investing heavily in our expansion strategy.
“The organic growth strategy is aimed at increasing our total cash flow and profit while maintaining these high rates of return.”
Some 246 229 oz of gold were sold during the interim period, at an average price of A$1 683/oz, generating revenues of A$415.5-million. Revenue was down 2% on the previous corresponding period, driven by a 13% drop in gold sold, offset by a A$186/oz increase in the average realised gold price.
“We are very confident that we will generate both strong returns on the capital we are investing in these growth projects and significant increases overall in cash flow as we ramp up to 600 000 oz/y next year,” Beament said.