22/08/2016 - 10:25

Larger payout for Northern Star investors

22/08/2016 - 10:25

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Gold miner Northern Star Resources has increased its dividend payout after confirming a 65 per cent jump in full-year profit, on the back of higher gold prices and a reduction in costs.

Northern Star managing director Bill Beament. Photo: Attila Csaszar

Gold miner Northern Star Resources has increased its dividend payout after confirming a 65 per cent jump in full-year profit, on the back of higher gold prices and a reduction in costs.

Northern Star reported a net profit of $151.4 million for the 2016 financial year, up from $91.9 million in FY15, with revenue up 5 per cent to $887.4 million.

All-in sustaining costs came in lower at $1,041 per ounce compared with the company’s $1,065/oz result in the previous corresponding period.

Earnings before interest, tax, depreciation and amortisation increased 27 per cent to $401.3 million.

The Perth-based gold miner declared a final dividend of 4 cents per share, to give a total dividend payout of 7 cents per share, up from its 5 cents per share payout in FY15.

Looking forward, managing director Bill Beament said the outlook for Northern Star was outstanding on every front.

“We have one of the lowest cost bases of any major gold producer in the world, we are generating some of the best financial returns on the ASX and we are set to grow production organically to 600,000oz a year by 2018,” Mr Beament said.

“We have a pipeline of growth, no debt and substantial cashflow underpinned by some of the best margins in the gold mining industry.”

Northern Star shares were 1.6 per cent lower to $4.63 each at 10am.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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