Western Australia’s gold miners are shining bright during the current reporting season for ASX-listed companies.
Gold-focused companies in the state recorded more than $1 billion in gross profits last week, guided by growth and productivity initiatives, and high Australian dollar gold prices.
Saracen Mineral Holdings, Northern Star Resources, St Barbara, Resolute Mining, Ramelius Resources and Silver Lake Resources all reported, delivering $1.2 billion in combined earnings before interest, tax, depreciation and amortisation (EBITDA).
The strong results were based on production of 1.8 million ounces of gold – mostly from WA mines.
Northern Star, a gold miner that has focused on growth and productivity improvements, reported EBITDA of $461.3 million, up 16 per cent, after producing 567,578 ounces of gold at a cost of $1032 an ounce.
The company’s results were driven predominately by an organic growth strategy, according to chairman Bill Beament.
“The lucrative benefits of this strategy are still unfolding, with further production increased forecast for this year and beyond,” he said.
“The ongoing production growth is underpinned by the substantial increase in our inventory which has resulted from the organic growth strategy.”
Australia’s leading gold miners – Newcrest Mining and Evolution Mining – reported their results the previous week, recording EBITDA of $1.78 billion and $714 million, respectively.