Northern Star Resources Limited (ASX: NST) has achieved its twin aims of maximising Shareholder returns today and laying the foundations for tomorrow’s growth, posting a 30 per cent increase in after-tax profit to $28.3 million for the year to 30 June 2013. The result came on the back of record revenue of $144.2 million, up 45 per cent and production of 88,614 ounces, up 32 per cent. In light of the outstanding outcome, Northern Star has declared a final fully-franked dividend of 2.5¢ a share, taking the year’s payout to 3.5¢ a share. This represents a fully-franked yield of 4.5 per cent based on a share price of 79¢. Importantly, Northern Star achieved these results despite outlaying $44 million on capital expenditure, including $17.5 million on items which underpinned its expansion. This included the plant upgrade, which lifted throughput by 30 per cent and helped the Company generate the record production.

The profit also came after a $10 million non-cash write-down on the carrying values of exploration and investments. Managing Director Bill Beament said it was the ideal outcome for Shareholders. “We have delivered a record profit and a strong dividend while expanding our plant, growing our mine life and making the significant Titan discovery,” Mr Beament said. “The key to achieving this combination is maximising our productivity to keep our costs low.” EBITDA was up 29 per cent to $63.8 million, earnings per share were up 29 per cent to 6.6¢, cash costs were down 5 per cent to $680/oz (inclusive of $38/oz royalties) and all-in sustaining costs totaling $1,016/oz. The result leaves Northern Star with $61 million in cash, bullion and investments at 30 June 2013. The Company has no bank debt. The dividend will be declared to all Shareholders on the register at 16 August 2013 and is expected to be paid on 27 September 2013.

Resource Update

Northern Star is also pleased to announce today an updated JORC-compliant resource estimate for its Paulsens Gold Mine of 2.9 million tonnes at 5.6gpt for 532,000 ounces1. This is despite mining 53,500 ounces since the March Resource update. This latest estimate continues to underpin a mine life of at least five years. The resource estimate at Paulsens comprises 399,000oz underground and 61,000oz in the planned open pit. In addition, there are the satellite resources that make up the Paulsens Project, these being Merlin, Belvedere and the Mt Clement JV.

The resource upgrade announced in March this year delivered substantial additional ounces, whereas this upgrade was aimed at improving the confidence level of those resources. This goal has been achieved, with a substantial improvement in the confidence level of the Voyager Resource, as shown by the 15 per cent increase in the Measured and Indicated ounces. These two categories now account for 91% of the total resource ounces. Importantly, the key Voyager resource grade of 12.2gpt has been maintained, ensuring that the Company continued to be among the lowest cost producers in the industry. This latest resource estimation does not take into account the recent Titan discovery (see ASX Announcement dated 1 August 2013). The discovery hole at Titan returned 6.9m at 24.7gpt. Titan lies just 100m from the Paulsens mine infrastructure.