Northern Star Resources Limited (ASX: NST) has released its financial results for the year to 30 June 2022, reporting cash earnings of $1 billion and a statutory net profit after tax of $430 million and declaring a final fully franked dividend of 11.5c per share.
In addition, Northern Star this morning also announced an on-market share buy-back of up to $300 million.
Northern Star managing director Stuart Tonkin will be hosting an investor webcast at 7am AWST today.
Highlights of the FY22 results, which demonstrated a strong company-wide performance that drove shareholder returns, included:
- Delivered to FY22 guidance of 1,561koz at AISC of A$1,633/oz
- First 12-month period since Saracen merger, Super Pit ownership consolidation delivers revenue of A$3,735 million, underlying EBITDA of A$1,517 million and statutory NPAT of A$430 million
- Cash Earnings of A$1.0 billion, reflecting strong operational and financial performance
- Balance sheet remains well within financial policy targets, with cash and bullion of A$628 million
- Fully franked final dividend of A11.5cps, following on from fully franked interim dividend of A10cps
- Subsequent to year end, Northern Star announced on-market share buy-back of up to A$300 million as part of proactive capital management strategy
Commenting on the FY22 performance, Northern Star Managing Director Stuart Tonkin said:
“These results, which include for the first time Saracen and 100% of the Super Pit, clearly demonstrate Northern Star’s cash earnings potential. Our strong performance in FY22 generated $1 billion in cash earnings, which underscores the sustainability of the cash flow from our high-quality assets located in tier-1 jurisdictions.
“The fully franked final dividend of 11.5cps, within our dividend policy target and payable next month, will mean we have returned $1 billion cash to shareholders since FY12.
“The announcement today of the first buy-back in Northern Star’s history presents compelling value and confirms the board’s confidence in our strong balance sheet and cash generation outlook and aligns with our fiscal discipline and returns focus.
“We have made a solid start to FY23 and continue to progress the KCGM cutback with our new cost-efficient mining equipment. The SKO processing plant is now on care and maintenance, at Thunderbox we commence commissioning the expanded mill in Q1, while at Pogo we have removed surplus equipment, reflecting increased development rates across the fleet.
“We are a stronger and more resilient business today than ever before, with a clearly defined multi-year strategy to deliver higher margin ounces. This strategy, backed by our experienced team and portfolio of high-quality assets, will enable Northern Star to create superior value for shareholders.”