Northern Star Resources (NST) H2 2024 earnings summary

Executive summary

• Achieved record underlying EBITDA of AUD 2.2 billion and cash earnings of AUD 1.8 billion for FY24, driven by strong gold prices and operational execution, with gold sales of 1.62Moz at an AISC of AUD 1,853/oz.

• Revenue rose 19% year-over-year to AUD 4,921 million, with underlying NPAT up 129% to AUD 689 million.

• Generated AUD 462 million in underlying free cash flow after growth capital investment, supporting a final unfranked dividend of AUD 0.25 per share, up 61% year-over-year.

• Maintained a net cash position of AUD 358 million and extended the AUD 300 million share buyback program for another 12 months.

• Return on Capital Employed more than doubled to 8.6% from 4.1% in FY23, reflecting improved profitability.

Financial highlights

• Underlying EBITDA margin improved to 45% from 37% in FY23; EBITDA per ounce rose to AUD 1,353/oz.

• Cash earnings increased 48% to AUD 1,805 million; operating cash flow up 53% to AUD 2,070 million.

• Average gold price realised was AUD 3,031/oz, up 15% year-over-year.

• Dividends for FY24 total AUD 0.40 per share (interim 0.15, final 0.25), with a share buy-back of AUD 172 million to date.

• Cumulative free cash flow of AUD 1.7 billion generated over FY22–FY24.

Outlook and guidance

• FY25 gold sales guidance set at 1,650–1,800koz, with AISC expected between AUD 1,850–2,100/oz.

• Growth capital expenditure for FY25 forecast at AUD 950–1,020 million, plus AUD 500–530 million for KCGM Mill Expansion.

• FY25 production expected to be second-half weighted due to planned major shutdowns in Q1 and increasing grades at KCGM.

• No Australian tax expected until H2 FY25; dividends to remain unfranked for at least six months.

• Tax payments expected to rise to AUD 50–70 million in FY25, with future tax as 3–4% of revenue.