Northern Star's FY profit lift falls short of forecasts
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The news: Gold miner Northern Star posted a jump in full-year profit, but failed to meet consensus forecasts for a 15% rise.
The numbers: Northern Star's full-year statutory net profit after tax climbed 9% year on year to $639 million, short of average analysts' expectations of $675 million.
The mining group reported cash earnings of $1.81 billion, up 48% year on year, and revenue of $4.92 billion, up 19%. Underlying EBITDA rose 43% to $2.19 billion.
The result was driven by a 15% rise in the annual average gold price, as gold sales increased 4% to 1.6 million ounces, at the lower end of its guidance range.
Northern Star declared a final dividend of 25 cents per share, beating estimates of 21.4 cents, with a total dividend of 40 cents per share coming in at the mid-point of its payout policy.
The context: Northern Star said its three production centres of Kalgoorlie and Yandal in Western Australia and Pogo in Alaska all contributed strongly towards group earnings during the year, reflecting strong operational performance and elevated gold prices.
Last month, the group said that planned major shutdowns will be carried out across its three production centres during the September quarter, However, it remains on track to deliver production growth, with gold sold weighted towards the second half.
The source: ASX announcement
