Both gold-focused companies, Northern Star has projects in Western Australia and Northern Territory while Alacer Gold operates in Turkey.
For investors focused on the resource space, a good way to track companies listed in Australia is to look at the S&P/ASX 300 (INDEXASX:XKO). The index includes all S&P/ASX 200 (INDEXASX:XJO) companies as well as about 100 smaller-cap companies, and as of April 2015 accounted for 74 percent of the Australian equities market. Specifically, the S&P/ASX 300 Metal & Mining (INDEXASX:XMM) division is a great source for companies to watch.
The Investing News Network is thus profiling companies on the S&P/ASX 300 Metal & Mining index. This week’s companies are Northern Star Resources (ASX:NST) and Alacer Gold (ASX:AQG,TSX:ASR).
Northern Star is a gold producer with a portfolio of low-cost, high-grade underground operations in Western Australia and Northern Territory. The company has five operating mines — Jundee, Kundana, Kanowna Belle, Plutonic and Paulsens — and is conducting exploration to extend their lives.
At the end of October, Northern Star released its third-quarter results, reporting record net profit of AU$108.9 million and a 315-percent increase in underlying free cash flow. “The results we are generating continue to demonstrate that this organic growth will continue to deliver far superior financial returns,” Northern Star Managing Director Bill Beament said.
Alacer Gold is a low-cost, intermediate gold producer focused on the Çöpler gold mine in Turkey. The company poured its millionth ounce of gold at the mine in August, four and a half years after pouring its first ounce. The first million ounces were processed from 33.6 million tonnes of ore grading an average of 1.6 g/t with an average cash cost of $401 per ounce.
More recently, Alacer signed a $250-million project finance facility and reported its Q3 operational and financial results. In Q3, the Çöpler mine produced 53,728 ounces of gold at an all-in sustaining cost of $672 per ounce. For the quarter, cash flow from operating activities totaled $32.7 million, while net profit was $7.4 million, or $0.03 per share.
Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article.
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