No details on earnings, revenue or possible dividends in yesterday’s June 30 update from Northern Star Resources (NST) which seems to have been more designed to reassure investors that the company isn’t going down the plughole or being damaged by the step up in market volatility.
Directors said the company generated “record free cashflow of $183 million” in the year to 30 June, which left Northern Star highly liquid at the end of the year with $178 million in cash, bullion and investments, up from $96 million a year earlier.
This came despite the spending of $82.5 million to acquire the Jundee Gold Mine and $50 million on exploration during the year (just on $16 million was spent in the June quarter alone).
Northern Star said it made record gold sales of 152,447oz in the June quarter, taking the year’s sales to 580,784oz, which was within its guidance range.
"All-in sustaining costs for both the June Quarter and the full year are expected to come in at the lower end of the Company’s guidance range of A$1,050-$1,100/oz,” the company told the ASX yesterday.
The price received in the June Quarter averaged $A1,498/oz compared with the current spot price of $A1,550/oz, directors said.
NST 1Y – Northern Star looks to reassure market
Northern Star Managing Director Bill Beament said in yesterday’s statement "the excellent performance reflected the priority the Company placed on financial and Shareholder returns, not just tonnes and ounces.
“We say we are a business first and a mining company second and these results demonstrate that emphasis.
“Our production performance, throughout the year was outstanding and our costs were tightly controlled. In these areas, we have met our market guidance comfortably,” Mr Beamer said,
Northern Star plans to release its full June quarterly report in the week commencing 20 July 2015.
The company shares rose 0.4% $2.21 yesterday.
