Bill Beament says 2018 was a transformative year for the company. Photo: Attila Csaszar

Northern Star posts $194m profit

Thursday, 23 August, 2018 - 12:32

Bill Beament-led Northern Star Resources has reported a record profit for the 2018 financial year, driven by increased production and sales.

Subiaco-based Northern Star posted net profit of $194.1 million, a 3 per cent rise on last year’s result, while revenue was up 11 per cent at $964 million.

The company produced 612,254 ounces of gold for the year, with 570,110oz sold, representing a 12 per cent uptick from 2017.

Northern Star is the state’s third largest gold miner, according to the BNiQ Search Engine.

The company’s all-in sustaining cost was up slightly to $1,029/oz.

Northern Star also announced an 11 per cent rise in the final dividend to 5 cents per share, full franked, taking the full-year payout to 9.5 cents each.

Cash and equivalents rose to $512 million at June 30, up from $447 million a year earlier.

“This was a year of huge transformation for Northern Star as we moved our focus to two concentrated centres of production and established mine life visibility of more than 10 years in both cases,” executive chairman Mr Beament said.

“We hit our target of producing from these two centres at the rate of 600,000oz a year, in the process returning them to their status as world-class Tier-1 projects in Tier-1 jurisdictions.

“The success of this strategy is demonstrated not only by the inventory and production growth at these centres, but also by the 15 per cent increase in their earnings before interest, taxes, depreciation and amortisation (EBITDA) to $486 million and their exceptional EBITDA margin of over 50 per cent.”

The gold miner has provided a production guidance of between 600,000oz and 640,000oz for FY19.

Shares in Norther Star were off 1.64 per cent at $6.88 each at 2pm AEDT.