Northern Star Resources (NST) Q1 2025 earnings summary

Executive summary

• Gold sold totaled 393,890oz at an AISC of A$2,082/oz for the September 2024 quarter, with strong operational and cost performance across all production centers.

• Strong start to the year with operational and financial performance in line with expectations, positioning the business to reiterate FY 2025 production, cost, and CapEx guidance.

• Underlying free cash flow was A$52 million (+86% YoY) after major planned shutdowns and project capex; net mine cash flow reached A$122 million.

• Strategic plan on track to deliver 2 million ounces in FY 2026, with major projects such as KCGM mill expansion progressing ahead of schedule.

• Investment-grade balance sheet with net cash of A$148 million and cash/bullion of A$998 million after a A$280 million final dividend payment.

Financial highlights

• Sales revenue for the quarter was A$1,346 million at an average realized gold price of A$3,416/oz.

• Net cash position of AUD 148 million and cash/bullion holdings of AUD 1 billion at 30 September.

• Operational cash flow of AUD 585 million for the quarter; free cash generation of AUD 52 million after CapEx, exploration, and leases.

• Net mine cash flow of AUD 122 million, driven by higher gold prices and operational performance.

• Final FY 2024 dividend of AUD 280 million paid to shareholders.

Outlook and guidance

• FY25 gold sold guidance: 1,650-1,800koz; AISC: A$1,850-2,100/oz; growth capital: A$950-1,020 million plus KCGM Mill Expansion of A$500-530 million.

• Production, cost, and CapEx guidance for FY 2025 reiterated; free cash expected to increase as production lifts.

• KCGM mill expansion and other growth projects remain on track, supporting the goal of 2 million ounces in FY 2026.

• Gold sales expected to be weighted to 2H FY25 due to higher grades at KCGM and improved mill availability at Thunderbox and Pogo.

• Exploration spend guidance for FY25 is A$180 million.