Northern Star Resources (NST) H2 2024 earnings summary

Executive summary

• Achieved record underlying EBITDA of A$2.192 billion and record cash earnings of A$1.805 billion for FY24, driven by strong gold prices and operational execution.

• Revenue rose 19% year-over-year to A$4.921 billion, with underlying NPAT up 129% to A$689 million.

• Generated A$462 million in underlying free cash flow after growth capital investment, supporting a final unfranked dividend of A$0.25 per share, with total FY24 dividends of A$0.40 per share.

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

• Achieved FY24 guidance with 1,621koz gold sold at an AISC of A$1,853/oz, with all production centers contributing positively.

Financial highlights

• Underlying EBITDA reached A$2.192 billion, up 43% year-over-year; EBIT was A$1.1 billion.

• Cash earnings increased 48% to A$1.805 billion; operating cash flow up 53% to A$2.07 billion.

• Gold sold totaled 1.62 million ounces at an AISC of A$1,853/oz; average gold price realized was A$3,031/oz, up 15% year-over-year.

• Dividend payout for FY24 was 25–25.5% of cash earnings, with total dividends of A$0.40 per share.

• Cumulative free cash flow of A$1.3 billion generated over FY22–FY24.

Outlook and guidance

• FY25 guidance targets 1,650–1,800koz gold sold at an AISC of A$1,850–2,100/oz, with production expected to be second-half weighted due to planned major shutdowns and increasing grades.

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

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

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

• Sustaining capital expenditure for FY25 forecast at A$200–250/oz.