Australia's largest gold miner Northern Star has posted a record net profit after tax of A$1.7-billion, or A$1.17 apiece, in the year ended June 30, marking a 24% year-on-year increase from the prior year's net profit after tax of A$1.3-billion.

The group's underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) came to A$4.3-billion, with underlying free cashflow of A$190-million. This compares to underlying Ebitda of A$3.5-billion and underlying free cashflow of A$563-million in the prior year.

Northern Star declared a dividend of A$0.55 apiece for the year, which is at the upper end of its dividend policy range.

The company sold 1.54-million ounces of gold in the reporting year.

Notably, the company is unlocking the next phase of growth at its flagship Kalgoorlie Consolidated Gold Mines (KCGM), or 'Super Pit' mine, with a mill expansion project targeted to double the site's processing capacity from 13-million tonnes a year to 27-million tonnes a year.

MD Stuart Tonkin says the company is at an important inflection point with the KCGM Mill Expansion marking a significant milestone. The expanded processing plant is expected to deliver greater operational consistency and reliability, while supporting a significant increase in free cash generation as it ramps up.

The KCGM expansion is expected to be fully ramped up during the 2029 financial year.

"We have a strong track record of disciplined capital allocation, supported by an investment-grade balance sheet, and have returned $3.3-billion of cumulative capital to shareholders to date. As we enter this next phase, disciplined capital allocation remains a priority, with a clear commitment to generating superior shareholder returns.

“To enhance the quality of the portfolio, the KCGM Mill Expansion is expected to structurally reset the cost base and create a stronger platform for long-term value creation. The development of Hemi provides a further opportunity to strengthen the portfolio and underpin the company’s growth profile," Tonkin states.

Hemi refers to Northern Star's low-cost, long-life and large-scale gold development project located in the Pilbara region of Western Australia. A final investment decision on the project is targeted for late in the 2027 financial year.

Northern Star entered the new financial year with cash and cash equivalents of A$1-billion and set its 2027 guidance at between 1.5-million and 1.65-million ounces of gold.