Northern Star Resources has confirmed another record profit despite taking a $10 million hit on the values of its tenements and other assets over the 2013 financial year.
The gold miner announced today it achieved revenue of $144.2 million for FY2013, up 45 per cent on the previous year, for a 30 per cent lift in profit to $28.3 million.
Cash costs were down 5 per cent to $680 per ounce of gold, while all in sustaining costs came in at $1,016/oz, Northern Star said.
Production was up 32 per cent to 88,614 ounces of gold.
Northern Star declared a fully-franked dividend of 2.5 cents per share, taking its total financial year payout to 3.5 cents per share.
Managing director Bill Beament said the results were pleasing considering the $44 million the miner outlayed on capital expenditure, including $17.5 million on plant upgrades.
The company also took a $10 million non-cash write-down on the carrying values of its exploration tenements and other investments.
“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 in a statement.
“The key to achieving this combination is maximising our productivity to keep costs low."
The news wasn’t all positive for Northern Star over the financial year, however, after the miner put plans to establish a second 100,000 ounce per year gold mine at its Ashburton tenements, near Tom Price, on ice.
The company will re-evaluate the Ashburton operation if conditions in the gold sector improve.
For the year ahead, Northern Star said it was likely to produce between 100,000 and 115,000oz of gold, at cash costs of between $610 to $690/oz and all-in sustaining costs of $900 to $1,050/oz.
The miner says it will spend $28 million over FY2014, 90 per cent of which will be “sustaining capital”.
At 10:20AM, WST, Northern Star shares were up 7.6 per cent, at 85 cents.
