Northern Star Resources Limited (ASX: NST) has released its financial results for the year to 30 June 2024, reporting record results as it progresses a profitable growth strategy.
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:
- Record cash earnings of A$1,805 million; underlying free cash flow of A$462 million
- Revenue of A$4,921 million, underlying EBITDA of A$2,192 million and reported NPAT of A$639 million
- Balance sheet remains strong with net cash of A$358 million
- Unfranked final dividend of A25cps declared, delivers record FY24 payout of A40cps
- On-market share buy-back extended for 12 months; A$128 million remaining of A$300 million program
- Achieved FY24 guidance with 1,621koz gold sold at an AISC of A$1,853/oz
Commenting on the FY24 results, Northern Star managing director Stuart Tonkin said:
“FY24 has been a strong year for Northern Star as we maintained a focus on delivering our organic profitable growth strategy. Our team’s commitment to safety continues our industry leading performance. Northern Star is well positioned to successfully continue to deliver value for all stakeholders.
“Record cash earnings of $1,805 million enabled the Board to declare a final dividend of 25 cents per share, at the mid-point of our policy, for a FY24 total dividend of 40 cents per share. In line with our proactive approach to capital management to deliver superior shareholder returns, we have also extended the buy-back program for a further 12 months.
“Gold sales of 1,621koz and a strong gold price, contributed to underlying group EBITDA of $2,192 million and our highest EBITDA margins since FY22. Our group underlying free cash flow for the year was $462 million.
“Our balance sheet is in very good shape and in a net cash position of $358 million with liquidity of $2,748 million. We remain committed to maintaining a disciplined approach to investing shareholder funds.
“Today we also released our FY24 annual reporting suite, which further demonstrates Northern Star’s commitment to being a responsible gold mining company.”
Northern Star today also reaffirmed its FY25 guidance, underpinned by a strong financial position. Its FY25 growth program is fully funded and supports the company’s clearly defined capital management framework.
Northern Star is on track to deliver 1,650-1,800koz gold sold at an AISC of A$1,850-2,100/oz in FY25. Gold sold will be weighted towards 2H as a result of increased production from higher grades at KCGM and improved mill availability at Thunderbox and Pogo. For the September quarter, planned major shutdowns will be carried out across all three production centres.
FY25 growth capital expenditure is forecast to be in the range of A$950-1,020 million plus the KCGM Mill Expansion cap-ex of A$500-530 million, reflecting the second year of its build phase. Sustaining capital expenditure is forecast to be in the range of A$200-250/oz.
