Saracen, Northern Star half-year results

Local gold producer Saracen Mineral Holdings has announced an impressive rise in net profit for the half-year, while Northern Star Resources has recorded a slight dip in earnings in its results.

The 209 per cent lift in profit to $46 million for Saracen included a $10.6 million boost from the sale of the King of the Hills project in October.

Saracen’s $37.2 million underlying net profit for the period was up 149 per cent, and was driven by a 32 per cent uptick in gold sales revenue to $245.6 million, while gold production increased 24 per cent compared to the previous corresponding period.

Earnings before interest, tax, depreciation and amortisation jumped 123 per cent to $103.4 million.

Saracen managing director Raleigh Finlayson said it had been an outstanding six months on several fronts.

“These results show that we are reaping the rewards of our substantial investment in growth, which is now delivering record reserves, production and financial performance,” he said.

“We are continuing to invest in exploration and development, which we are confident will deliver further growth in our inventory and production.

“Recent drilling results across the portfolio show Saracen is well positioned to continue mining at Carosue Dam and Thunderbox for at least the next 10 years.”

Saracen shares were up .64 per cent at $1.57 at 2pm AEDT.

Meanwhile, Northern Star’s first-half profit fell 7 per cent to $79.1 million, despite a 5 per cent rise in revenue.

The company said the drop in profit was due to the wind-down of its Paulsens project.

Ebitda fell 8 per cent from $218 million in the previous half-year to $201 million.

Executive chairman Bill Beament said the company was on track to reach its full-year guidance.

“We are on track to increase our production rate to 600,000ozpa later this year, with all the growth coming from organic sources,” he said.

The company has also announced a fully franked interim dividend of 4.5 cents, up 50 per cent on last year.

Northern Star also announced a number of high-grade gold discoveries at the company’s Jundee mine.

The company said the discoveries establish a 10-year life for the project.

“With production of 7 million ounces over the past 22 years, Jundee has been an exceptional mine by any measure,” Mr Beament said.

“But these results show the Jundee Gold Field is now emerging as one of the greatest gold fields in Australia.

“We are now very confident that we will grow Jundee’s 1.4 million oz Reserve base significantly, adding years to its mine life.”

Shares in Northern were up .16 per cent at $6.11 at 2pm AEDT.