Northern Star Resources (ASX: NST), the leading Perth-based gold miner with production centres in Western Australia and Alaska, has released its financial results for the half-year to 31 December 2022.
- Sold 773koz gold at AISC of $1,766/oz and AIC of $2,299/oz; on track to meet FY23 guidance
- Cash earnings of $467 million, up 3% pcp
- Underlying EBITDA of $633 million, down 12% pcp, as cost challenges offset higher gold prices
- Strong balance sheet with net cash of $145 million; cash and bullion of $495 million
- Record interim fully franked dividend of 11cps, up 10% pcp; represents 27% payout of cash earnings vs 20-30% dividend policy
- $300 million on-market share buy-back program 42% ($127 million) complete
Commenting on the results, Northern Star Managing Director Stuart Tonkin said:
“The strength and resilience of our world-class gold assets in Western Australia and Alaska were on show in the first half and delivered significant cash earnings despite the industry wide cost pressures. This has enabled the board to declare a record interim dividend of 11c per share, at the top end of our dividend policy and complementing the $300 million share buy-back that commenced during the half.
“At the same time we have made further progress with executing our low-risk, profitable growth strategy to become a 2Mozpa gold producer by FY26. Key growth projects Pogo and Thunderbox are delivering significant cost improvements. A continued focus in the second half on costs across all three operating centres, alongside the expected lift in group production to meet our FY23 guidance, should further build cash to maintain Northern Star’s strong financial position. Work is also continuing on finetuning the KCGM mill optimisation project.
“Northern Star made great progress during the half to deliver superior returns to shareholders. Our focus remains steadfast on operational excellence and a disciplined and mature approach to investing shareholders’ funds.”