Northern Star record profits bolstered by Goldfields production

Source: Northern Star

Northern Star posted a record net profit of $194 million in the 2018 financial year after both its Jundee and Kalgoorlie operations posted a combined 15 per cent increase in earnings, reaching $486 million.

This represents a 50 per cent increase in combined EBITDA margin at both Goldfields operations, thanks to strong production growth and low costs.

Northern Star achieved its targeted production rate of 600,000oz/y in the June quarter this year, six months ahead of schedule. The performance was underpinned by Northern Star’s $110 million growth program aimed at increasing annual production rates.

The company increased its production guidance for the 2019 financial year – ranging between 600,000 and 640,000oz – on the back of further anticipated production growth.

Chairman Bill 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 one projects in tier one jurisdictions.

“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.”

There are only 17 mines that produce over 300,000oz/y in tier one mining jurisdictions (Australia, Canada and the US) globally. Northern Star said the company would soon join that list.

Northern Star reached its production target four years after acquiring its gold portfolio.

The company has grown its total resources by 5.7 million ounces (Moz), hitting 15.9Moz. Its 55 per cent increase in measured and indicated resources since June 30 last year sets Northern Star up for a substantial reserves increase next year.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.