Northern Star Resources Limited (ASX: NST) has released its financial results for the December half period to 31 December 2023.
Northern Star is the largest gold producer with a primary listing on the ASX. Its production centres are Kalgoorlie and Yandal in Western Australia and Pogo in Alaska, US.
Key points:
- Sold 781koz gold at AISC of A$1,878/oz and AIC of A$2,653/oz; remain on track to meet FY24 guidance
- Cash Earnings of A$702 million, up 50% pcp
- Underlying EBITDA of A$889 million, up 41% pcp, driven by higher realised prices
- Strong balance sheet with net cash of A$229 million; cash and bullion of A$1,089 million
- Record interim dividend of A15 cents per share (unfranked), up 36% pcp; represents 25% payout of Cash Earnings vs 20-30% dividend policy
- A$300 million on-market share buy-back program 56% (A$169 million) progressed
Commenting on the December half results, Northern Star managing director Stuart Tonkin said:
“We are incredibly proud of our team, who have delivered this record half-year result. Consistent operational delivery combined with record cash generation are a testament to the simplicity and scale of our business – three production centres in two tier-1 jurisdictions (Western Australia and Alaska) producing one commodity, gold. This has enabled the board to declare a record interim dividend of 15 cents per share, complementing a A$300 million share buy-back program that remains open, to confirm our focus on delivering superior shareholder returns.
“This interim result is a glimpse of the cash-generating potential that our business is positioned for on a sustainable basis as we reach the halfway mark of our low-risk, five-year profitable growth strategy. In addition to record half-year cash earnings of A$702 million, +50% higher period-on-period, Northern Star also posted half-year underlying free cash flow of A$131 million, notwithstanding significant growth capital investment. The highlight of our strong half was the performance of the Kalgoorlie Production Centre, which contributed more than half of the group’s EBITDA and record EBITDA margins of 44% as our largest asset – KCGM – began a new era of mining high-grade Golden Pike North material.
“Cost pressures remain prevalent across our industry – including higher gold royalties and fuel costs and a weaker Australian dollar – and continue to be a key focus for our teams as we work towards delivering our FY24 guidance, which remains 2H weighted.”
