Gold producer and mineral explorer Northern Star Resources (ASX:NST) has reported a maiden profit of $20 million for FY11, after growing production through a recent acquisition.
Northern Star attributed the results to record production from the Paulsens gold mine in Western Australia.
Managing director Bill Beament said he believes the company is on track to becoming one of Australia's top gold miners, following the acquisition of this site from Intrepid Mines (ASX:IAU) during the financial year.
“Paulsens has provided Northern Star with an outstanding financial foundation on which to grow production and profits,” he said. Beaument added that the company aims to “aggressively expand... through exploration, organic growth and acquisitions” going forward.
But FY11 profit was impacted by $22 million in acquisition costs for the mine, as well as $24 million in depreciation and amortisation expenses.
The ebitda result of $67 million is also net of acquisition royalty agreements with Intrepid Mines.
Northern Star now believes it is on track to beat its forecasts for calendar 2011. These targets include $40 million in surplus cash and 75,000 ounces of production. The longer-term goal is to grow production to 200,000 ounces per year
NST shares jumped 9.3% on Tuesday to $0.470.