Golden time for merger partners

Northern Star Resources and Saracen Mineral Holdings have reported strong quarterly updates.

Northern Star Resources and Saracen Mineral Holdings have reported strong quarterly updates just weeks before they are due to merge into what will be one of the world’s largest gold miners.

Saracen sold 150,163oz of gold in the quarter at an average price of $2322/oz on the back of bullish gold prices, with the company issuing half-year net profit after tax guidance of $115m-$125m. Over the first half the company has produced a record 309,512oz of gold.

Northern Star Resources sold 252,899oz of gold in the quarter, on the upper end of previous guidance, at an average realised price of $2205/oz.

The company is forecasting a net profit after tax for the half between $75m-$85m.

Strong cashflow meant the company could pay down $125m of its debt to $375m.

The expected merger date is February 12.

Lachlan Moffet Gray