The takeover of Saracen and the reuniting of the Super Pit near Kalgoorlie under one owner paid off for Northern Star Resources in the year to June 30.
The company saw record revenue, record earnings because of the incorporation of Saracen in its results from February 12 this year (post the December 31 halfway mark) and a new dividend policy.
The shares ended a touch lower at $7.72, down 0.4%.
Revenue jumped 40% to $2.761 billion while earnings before interest, tax, depreciation and amortisation surged 216% to $2.268 billion
Net profit after tax (NPAT) jumped 300% to $1.032 billion and Northern Star declared a new dividend policy, targeting a total annual dividend payment of 20-30% of cash earnings.
That saw a final dividend of 9.5 cents a share for a full year payment of 19 cents a share.
That was sharply down from the 27 cents a share paid in 2019-20 but will be paid on an issued capital expanded by the Saracen purchase.
Northern Star reported a 3% in its annual average realised old price of $A2,227 an ounce while the company’s all-in sustaining cost (AISC) increased 10% to $A1,483 an ounce.
Besides full ownership of the Super Pit, the takeover of Saracen also brought the Mt Charlotte underground mine in Kalgoorlie as well as two new operations in the Thunderbox and Carosue Dam in Western Australia.
The takeover saw group resources increase 15% to 56 million ounces and Group reserves increasing 8% to 21 million ounces over the 9-month period to March 31,2021.
Northern Star forecasts 2021-22 production of 1.55-1.65 million ounces at an AISC between $A1,475 to $A1,575 an ounce.
“This expanded inventory will underpin the Company’s announced strategy to grow production to 2Moz per annum by FY26,” the company told investors on Thursday.
Northern Star CEO Stuart Tonkin said in yesterday’s statement “With the completion of the merger, we have established a simple, effective strategy based on our three production centres in world class locations.
“We have an enviable asset base and world-class inventory with significant scope for further organic growth. And as these result show, we have the balance sheet and cash strength to unlock the full value of these opportunities in a way which will drive strong financial returns.”
Northern Star said that at June 30 it had total available liquidity of $1.141 billion (including $799 million in cash and bullion), before proceeds of the $400 million sale of the Kundana Assets received on August 18.
