Live preview mode. Wire is not yet published.

Northern Star Resources Full Year Result: NST organic growth drives record profits

CommSec

Online Stockbroker

Northern Star Resources (NST) reported a slightly better than expected record net profit result of $215.3 million, up 42% on the prior year. The headline profit result included the 26.4 million from its Plutonic mine sale in October 2016. 

 Northern Star beat the streets expected Revenue, Earning Before Income Tax, Depreciation and Amortisation (EBITDA) and EBITDA Margin of 52% from 45% over FY16. Strong cost management and a lift in the average price of gold sold allowed Northern Star to pay out a higher than expected dividend. 

 NST sold 526,515 ounces of gold, down from 561,153 the same time last year. The average gold price for the year traded higher at $1,675 an ounce compared to $1,578 an ounce the year before. Northern Star expects its FY18 production to increase to 600,000 ounces per annum and expects to spend $100 million for exploration and expansionary capital as part of its ongoing organic growth strategy. Operating cash flow was also up by 9% to a record $435.3 million. 

 Northern Star’s CEO Bill Beament said “Maximising financial returns is the ultimate objective of everything we do and the success of our organic growth strategy, which has given us mine life visibility of 10 years, helps ensure we can deliver these results for a long time to come.” 

 Northern Star recently lifted its total reserves up by 2.3 million ounces (Moz) to 3.5Moz and NST’s resources increased by 2.7 Moz to 10.2 Moz. With expanded inventory and upgraded production capacity positions, NST now expects the Jundee and Kalgoorlie operations to each produce ~300,000ozpa within the next two years. 

 NST announced a 50% increase on its final dividend to $0.06 per share which is payable on 13 September 2017. 

 

For more Reporting Season coverage, please visit (VIEW LINK)


1 stock mentioned

CommSec
CommSec
Online Stockbroker
Online Stockbroker

CommSec is Australia's leading online broker. CommSec has been committed to providing the best in online trading since 1995. CommSec helps make informed investment decisions with comprehensive market research, free live pricing and powerful...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment