Northern Star Resources (NST) Q2 2025 earnings summary

Executive summary

• December quarter saw strong operational performance, with 410,000 ounces sold at an all-in sustaining cost (AISC) of AUD 2,128/oz, and increased milling performance across several sites.

• Achieved record 1H net mine cash flow, driven by strong operational performance and higher gold prices; on track to meet FY25 guidance.

• Acquisition of De Grey and its Hemi project is progressing, expected to add a tier-one, low-cost production center.

• KCGM East Wall remediation completed, setting up for 2H production uplift; Jundee and Thunderbox mills delivered at nameplate capacity.

• The company remains on track to meet full-year production and cost guidance, with a stronger second half expected.

Financial highlights

• Cash and bullion at quarter-end totaled AUD 1.215 billion, with a net cash position of AUD 265 million.

• First-half FY2025 cash earnings estimated at AUD 1.13–1.17 billion, up from AUD 701.7 million in 1H24.

• Operating cash flow for the quarter was AUD 692 million, up 18% from the prior quarter.

• Quarterly free cash generation was AUD 72 million after significant capital and exploration spend.

• December quarter sales revenue was AUD 1,519 million at an average price of AUD 3,703/oz.

Outlook and guidance

• Full-year production and cost guidance reaffirmed, with a stronger second half anticipated due to increased access to high-grade ore and project completions.

• FY25 guidance unchanged: 1,650–1,800koz gold sold at AISC of AUD 1,850–2,100/oz.

• FY25 growth capital guidance at AUD 950–1,020 million, plus KCGM Mill Expansion capex of AUD 500–530 million.

• Pogo plant expected to operate at a targeted throughput of 1.4 million tonnes per annum in the second half.

• De Grey acquisition expected to close in May, with integration and project progression as top priorities.