Northern Star Resources Limited (ASX: NST) has announced its half-year profit for the period ended 31 December 2021.
- Reported net profit after tax of A$261 million (up 43%) driven by higher production and portfolio optimisation. Underlying NPAT of A$108 million, excluding significant items of A$153 million.
- Underlying EBITDA of A$699 million, up 47% from pcp. Group Underlying EBITDA margin of 39%.
- Cash earnings of A$430 million.
- Cash and bullion of A$588 million. Net cash of A$288 million.
- Board declares fully franked interim dividend of 10c per share, up 5% from pcp.
- Key growth projects progressing in line with strategy to become a 2Mozpa producer by FY26, including KCGM open pit development (Kalgoorlie) and Thunderbox mill expansion (Yandal).
Commenting on the results, Northern Star Resources Managing Director Stuart Tonkin said:
“These results cover the first full reporting period since our merger with Saracen in February 2021 and demonstrate the potential that exists within Northern Star as we work towards our strategy to become a 2Mozpa gold producer by FY26.
“This production growth, alongside a declining cost base, will be delivered organically and with one of the lowest capital intensities in the industry.
“We delivered strong half-year cash earnings of A$430 million and invested in our growth initiatives.
“The Board declared a fully franked interim dividend of 10c per share, a return to shareholders of 27% of cash earnings. This return is consistent with our capital management framework while having regard to the need of maintaining a strong balance sheet and the ability to pursue value-adding investment opportunities.
“We remain on track to meet our FY22 production guidance, which incorporates current WA border restrictions and the associated labour and cost impacts.
“During this period of continued market volatility, we are focused on operational delivery and proactively protecting the health, safety and wellbeing of our people and those in the communities in which we operate.”