Northern Star Resources Limited (ASX: NST) has released its quarterly report for the period to 30 June 2024, reporting that a strong June quarter delivered FY24 guidance.
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:
Operating performance
- LTIFR at 0.5 injuries per million hours worked (12-month moving average)
- Gold sold totalled 439koz at an AISC of A$1,815/oz (US$1,196/oz)
- Kalgoorlie: Carosue Dam and Kalgoorlie Operations stand out; KCGM sales delayed by shipment timing
- Yandal: Thunderbox delivers nameplate mill throughput of 6Mtpa for the quarter; Jundee grade lifts
- Pogo: Record quarterly gold sold of 91koz (annualised rate of 363koz) and record net mine cash flow
- AIC of A$2,750/oz as major growth projects continue across the group, including KCGM Mill Expansion
- FY24 sales and cost guidance delivered with 1,621koz gold sold at an AISC of A$1,853/oz
- FY24 underlying free cash flow of A$462 million (vs FY23: A$359 million) and A$189 million in June quarter
FY25 builds positive momentum to 2Moz production growth target
- Profitable growth strategy delivered A$1.3 billion in underlying free cash flow, cumulatively over FY22-24
- FY25 production guidance of 1,650-1,800koz gold sold and AISC of A$1,850-2,100/oz
- FY25 growth capital guidance of A$950-1,020 million plus KCGM Mill Expansion of A$500-530 million
Fully funded organic growth strategy; A$300 million on-market share buy-back open (A$128 million remaining)
- FY24e Cash Earnings of A$1,780-1,820 million (1H24a: A$702 million; 2H24e: A$1,078-1,118 million)
- A$300 million on-market share buy-back 57% complete, A$172 million paid to date
- Strong balance sheet with net cash of A$359 million at June 30; cash and bullion of A$1,248 million
Commenting on the June quarter and the FY24 operating performance, managing director Stuart Tonkin said:
“During the June quarter, Thunderbox and Pogo were both highlights achieving record performances. Overall, FY24 delivered record gold sold and net mine cash flow, demonstrating the quality of the asset portfolio across our three production centres and also the investment we are making to unlock future low-cost, high-margin ounces.
“I am proud of our team for safely delivering on our FY24 commitments while confronting the external challenges we continue to face including inflationary pressures. We have entered FY25 with positive momentum as we progress the KCGM mill expansion project, execute on Yandal’s hub strategy to lower its cost base and continue Pogo’s excellent performance.
“We are a majority of the way through our five-year profitable growth strategy, which sees our production grow to 2Moz by FY26, and more importantly enables the delivery of higher free cash flow levels. Our capital allocation to the highest returning projects will deliver on our company purpose, which is to generate superior shareholder returns.”
