Northern Star Resources Limited (ASX: NST) has released its financial results for the six-month period to 31 December 2024 (1H FY25).
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:
- 1H FY25 sold 804koz gold at AISC of A$2,105/oz
- Cash Earnings of A$1,146 million, up 63% pcp, corresponding to A$1.00/share
- Underlying EBITDA of A$1,402 million, up 58% pcp, driven by higher gold sales and realised gold prices
- Strong balance sheet with net cash of A$265 million; cash and bullion of A$1,215 million
- Record interim dividend of A25.0 cents per share (unfranked), up 67% pcp; represents 25% payout of Cash Earnings, at the mid-point of 20-30% dividend policy
- A$300 million on-market share buy-back program 86% (A$257 million) progressed
Commenting on the 1H FY25 results, Northern Star managing director Stuart Tonkin said:
“We are excited to report record underlying earnings for a second consecutive period, which underscores the value of the profitable growth strategy that we embarked on in FY22. In addition to record half-year cash earnings of A$1.1 billion, up 63% period-on-period, Northern Star also reported strong half-year underlying free cash flow after accounting for growth capital investment across our business.
“This interim result again demonstrates the strength and value-creation that we are embedding in our business. EBITDA and ROCE metrics continue to improve while the balance sheet remains strong and in a net cash position.
“The Board has declared a record interim dividend of 25.0 cents per share, complementing the A$300 million share buy-back program which remains open, demonstrating our purpose to delivering superior shareholder returns.
“I thank our team for the effort and commitment that delivered this excellent result. We remain well positioned to achieve our FY25 production and cost guidance while retaining a firm focus on progressing our key growth plans, including the KCGM Mill Expansion Project which remains on time and within budget. We continue to pursue exploration success at existing operations while advancing our recommended offer to acquire De Grey Mining.”
