Northern Star reported full-year sales and gold production dropped 1.6 per cent on earlier guidance. Image by Kim Christian/AAP PHOTOS

gold and precious material

Northern Star FY sales, output steady

2020-07-08 09:49:31

Gold miner Northern Star has reported full-year sales and gold production dropped 1.6 per cent on the lower end of its earlier guidance, but said the result was solid given the coronavirus pandemic.

The company sold 900,388 ounces of gold in the 12 months to June 30 and produced 905,177 ounces.

Northern Star in March withdrew its production guidance due to uncertainty from the pandemic, and postponed its interim dividend to October.

However in an upbeat trading update, the company reinstated the payout and shareholders will receive the fully-franked interim dividend of 7.5 cents per share on July 16.

Gold prices have surged in recent months as a jump in COVID-19 cases has boosted hopes for more accommodative monetary policy measures and demand for the safe-haven metal, and is now within striking distance of $US1,800 ($A2,594) per ounce level.

Northern Star’s cash, bullion and investments rose by 40 per cent to $769.5 million for the three months to June 30, and the company was net cash positive.

Chief executive Bill Beament said the company generated quarterly free cashflow of $217.9 million.