Gold miner Northern Star Resources reports strong results in FY21
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Gold miner Northern Star Resources reports strong results in FY21

26 Aug 2021 (Last Updated August 26th, 2021 12:40)

This is Northern Star’s first financial results following its merger with Saracen Mineral Holdings.

Australian gold miner Northern Star Resources has reported strong results in the fiscal year 2021 (FY21) following record production.

In the year ending 30 June 2021, the company’s revenue totalled $2bn (A$2.76bn). The figure represents a 40% increase from $1.43bn (A$1.97bn) recorded in the last fiscal.

This is notably Northern Star’s first financial results following its merger with Saracen Mineral Holdings. The results for FY21 incorporate Saracen from 12 February 2021.

The company’s cash earnings increased to $470.25m (A$648m) in FY21 from $426.71m (A$588m) in FY20.

Net profit after tax also rose from $187.23m (A$258m) to $750m (A$1.03bn) on a year-on-year basis.

EBITDA totalled $1.65bn (A$2.27bn) in the year to June 2021, compared with $520.3m (A$717m) reported in the previous financial year.

In FY21, the Australian miner sold 1,595koz of gold at an average price of A$2,277/oz with an AISC of A$1,483/oz.

Northern Star managing director Stuart 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.

“We have an enviable asset base and world-class inventory with significant scope for further organic growth. And as these results 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.”

In the 2022 financial year, the company’s production is expected to remain between 1.55Moz and 1.65Moz.

Northern Star Resources recently awarded a $73.4m contract to GR Engineering Services for the Thunderbox expansion project in Western Australia (WA).