Northern Star Resources reports record earnings in FY24

Northern Star Resources (ASX: NST) has reported record cash earnings of $1.8b for FY24, plus revenue of $4.92b.

Other highlights include, underlying free cash flow of $462m, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $2.19b and net profit after tax of $639m.

The company recorded a 4% increase from FY23 to FY24 regarding gold sold, with just over 1.62boz sold in the year at an all-in sustaining cost (AISC) of $1853/oz.

This record cash earnings enabled Northern Star to declare an unfranked final dividend of 25¢, for a FY24 total dividend of 40¢ per share. This is an increase from the FY23 total dividend return of 26.5¢ per share.

Northern Star credits these results on the strong operational performance across its Kalgoorlie and Yandal production centres in WA, plus its Pogo production centre in Alaska.

As of June 30, 2024, Northern Star’s $300m on-market share buy-back was 57% complete, corresponding to $172m. The buy-back has been extended for a further 12 months to September 14, 2025, and remains subject to prevailing share price and market conditions.

The company’s financial position remains strong, with net cash of $358m.

Northern Star managing director Stuart Tonkin commented on the results.

“FY24 has been a strong year for Northern Star as we maintained a focus on delivering our organic profitable growth strategy,” he said.

“Gold sales of 1.62boz and a strong gold price contributed to underlying group EBITDA of $2.19b and our highest EBITDA margins since FY22.

“Our team’s commitment to safety continues our industry-leading performance. Northern Star is well positioned to successfully continue to deliver value for all shareholders.”

Northern Star remains on track to deliver 1.65moz – 1.8moz gold sold in FY25, with capital expenditure forecast to be in the range of $950m – $1.02b.