Northern Star Resources says it is set to embark on a new phase of growth after booking a 250 per cent spike in half-year profit.
The WA-based sharemarket darling booked profit of $18 million before tax in the six months to December 31, on the back of production of 35,128 ounces of gold.
Over the past 18 months, Northern Star stocks have risen from 5 cents to trade at 96 cents at close of trade today.
Managing director Bill Beament said the company had made an “ideal start” to life as a gold miner.
"In the process, we have taken Paulsens from an eight month mine life and set it up for at least a five year outlook,” Mr Beament said.
"We have also had a host of spectacular exploration results of up to 12,000-gpt and these will underpin a resource upgrade for Paulsens later this Quarter.
"But while these outcomes have been excellent, they should still be viewed as just the foundations of the significantly larger gold mining house we are building at Northern Star.”
Mr Beament said the company’s strategy was to grow production to 200,000oz/year through its Paulsens and Ashburton gold projects.
“Now we have the cashflow and balance sheet to make the next quantum leap in production and profitability,” he said.
"We expect that this will come via a combination of exploration and acquisition, with the latter becoming increasingly attractive as more companies need development capital for projects."
