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Northern Star Resources Ltd records 65% rise in FY16 net profit, lifts dividend

Northern Star Resources Ltd records 65% rise in FY16 net profit, lifts dividend

Northern Star Resources Ltd (ASX:NST) has recorded an unaudited FY16 net profit after tax of A$151. Million, a 65% increase on FY15.

This drove FY16 earnings per share (EPS) to $0.252, up 62% on FY15.

The profit reflects strong gold sales of 561,153 ounces at an all-in sustaining cost (AISC) of A$1,041 per ounce, down from A$1,065 per ounce in FY15.

Northern Star remains debt free with cash and equivalents of
A$326 million, up from A$178 million a year earlier.

In light of this strong balance sheet, Northern Star has increased its final dividend by 33% to $0.04 from $0.03, lifting the full-year fully franked dividend to $0.07 from $0.05.

Bill Beament, managing director, commented: “The strong operational performance, including further cost reductions, underpinned a record profit.

“Most importantly, we achieved this significant growth in profit, cash holdings and the dividend while generating a 39 per cent return on equity and a return on invested capital of 28%.

“This is one of the highest rates of return of any ASX-listed company and is the key barometer of a company’s performance.”

Northern Star has a portfolio of low-cost, high-grade underground gold mines located in Western Australia and Northern Territory.


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