PERTH (miningweekly.com) – Gold miner Northern Star has reported increased revenue and profit for the half-year ended December on the back of the acquisition of the Pogo gold mine, in Alaska.
Revenue for the six months under review was reported at A$633.5-million, up 43% on the previous corresponding period, while underlying net profit after tax for the same period was up by 11%, to A$89.1-million.
Northern Star sold 423 243 oz of gold during the six months under review, at an average price of A$1 700/oz.
Statutory net profits after tax were up by 4%, to A$82.1-million, with cash flow from operations up by 33% on the first half of 2018, to A$169.1-million, while earnings before interest, taxes, depreciation and amortisation were up by 10%, to $221.8-million.
Northern Star executive chairperson Bill Beament said on Wednesday that the solid results were driven by the strong performance of the Australian operations, and the up-front investment made at the Pogo mine.
“We generated an industry-leading return on equity of 20%, excluding the Pogo acquisition, which is particularly exceptional when compared with the Van Eck GDX index five-year average of negative 2.9%,” Beament said.
“At the same time, we invested a record A$83-million in exploration and expansionary capital, A$10-million of which was at Pogo.”
For 2019, Northern Star is on track to meet its full year production targets of between 850 000 oz and 900 000 oz, with all-in sustaining costs estimated at between A$1 125/oz and A$1 225/oz.