Australian gold miner Northern Star ups net profit 300% in FY2021
(Kitco News) - Australian gold mining company Northern Star Resources (ASX: NST) today reported its first annual financial results since merging with Saracen Mineral Holdings, incorporated from 12 February.
According to the company's statement, for the year to 30 June 2021 (FY2021), its gold production rose 13% to 1,605,405oz (FY2020: 1,425,591oz).
The company's revenue was A$2,761 million, a 40% increase compared to A$1,972 million in FY2020, whereas net profit after tax jumped 300% to A$1,032 million (FY2020: A$258 million).
Cash earnings were A$648 million, reflecting record production volumes and a steady Australian-dollar gold price.
Managing Director Stuart Tonkin said the results provided valuable insight into the scale, profitability and growth potential of the enlarged company.
"With the completion of the merger, we have established a simple, effective strategy based on our three production centres in world class locations," Tonkin said. "We have a clear five-year pathway to annual production of 2Moz a year with a strong emphasis on ensuring it is profitable growth."
"This strategy involves investing capital in those projects which will generate the strongest returns and actively managing our asset portfolio to maximise this outcome," added Tonkin.
The company also added that its Board has determined that the final, fully-franked dividend for FY2021 will be A9.5cps under an updated dividend policy, with a record date of 7 September 2021 and a payment date of 29 September 2021.
This final dividend reflects 31% of cash earnings and provides a higher return to shareholders than would have been declared under the previous dividend policy, the company said.