Photo by: Bloomberg
PERTH (miningweekly.com) – A larger asset base has resulted in record underlying profit for Australian gold miner Northern Star Resources during the year ended June.
The miner on Thursday reported a 36% increase in underlying profit for the year, to A$36.8-million, up from the A$28.3-million reported in 2013. Net profit after tax of A$24-million was recorded during the full year, after a one-off acquisition and redundancy cost of A$7.4-million and A$7.2-million, respectively.
Northern Star’s share of production during the year increased to 215 410 oz, compared with the 88 614 oz produced during 2013, at an all-in sustaining cost (AISC) of A$1 094/oz.
The company’s gold production increased during the full year after Northern Star acquired the Plutonic, Kanowna Bell and Kundana gold mines, in Western Australia.
MD Bill Beament said on Thursday that the results demonstrated the substantial cash flow generating capacity of the company’s expanded asset base.
“These results show clearly that our recent acquisitions have delivered critical mass at both the production and cash flow levels. In addition, we have reduced the risk associated with the expanded asset base and the financial muscle to take full advantage of our opportunities to grow mine lives through exploration.”
Beament noted that in light of the company’s strong cash position, Northern Star would spend A$50-million on exploration around its five projects, which he hoped would result in significant increases in gold inventories.
During 2015, Northern Star would spend between A$100-million and A$110-million, of which 95% would be spent on sustaining capital, while A$5-million would be spent on bringing the Pegasus deposit, at the Kundana operation, into production.
For the 2015 financial year, Northern Star was hoping to produce between 550 000 oz and 600 000 oz at an AISC of between A$1 050/oz and A$1 100/oz.