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Mining

Northern Star Resources awash with cash from gold production

Perth based Northern Star Resources (ASX:NST) has followed a 78 per cent higher net profit with payment of an interim dividend of $0.01 per share.

This follows a maiden full year dividend of $0.025.

The profit result of $22.3 million stems from production of 39,377 ounces of gold at a cash cost of $638 per ounce at a total cost of $908 per ounce.

This comes from spending $21 million to upgrade production capacity at the mine to 100,000 ounces of gold per annum.

The capital expenditure will also focus on exploration and further evaluation of the Ashburton project.

Northern Star said it is on track to generate up to $85 million in surplus cash this calendar year from production of 100,000 ounces.

Drilling and studies are progressing to establish a second 100,000 ounce per annum operation at the Ashburton Project.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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