PERTH (miningweekly.com) – Gold miner Northern Star Resources has reported a 43% increase in net profits after tax for the half-year ended December, driven by higher production and portfolio optimisation.

The ASX-listed miner on Thursday reported a net profit after tax of A$261-million for the six months under review, with underlying net profits after tax reaching A$108-million, excluding significant items of A$153-million.

Underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) were also up by 47% on the previous corresponding period, to A$699-million, with underlying Ebitda margins reaching 39%.

Revenue of A$1.8-billion was up 63% from the prior half-year, primarily owing to higher gold volumes, with gold sales 289 786 oz higher at 778 815 oz. The average realised gold price was consistent across both periods.

Gold production for the half-year reached 753 978 oz, with all-in sustaining costs (AISC) reaching A$1 613/oz in the half-year.

“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 two-million-ounce-a-year gold producer by 2026,” said MD Stuart Tonkin.

“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 2022 production guidance, which incorporates current Western Australian 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.”

For 2022, Northern Star has set a production target of between 1.55-million and 1.65-million ounces, with the AISC expected to reach between A$1 475/oz and A$1 575/oz.