Northern Star Resources (NST) Q2 2025 earnings summary

Executive summary

• December quarter gold sales totaled 410,000 ounces at an all-in sustaining cost (AISC) of AUD 2,128/oz, reflecting strong operational performance and project advancement.

• Record 1H net mine cash flow achieved, driven by higher gold prices and operational efficiency; company remains on track to meet FY25 guidance.

• Major projects advanced, including KCGM East Wall remediation and mill expansion, with Jundee and Thunderbox mills operating at or above nameplate capacity.

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

• Underlying free cash flow for the quarter was AUD 72 million, with a stronger second half anticipated from higher gold sales.

Financial highlights

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

• 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, and mine operating cash flow was AUD 675 million.

• Repurchased 24.8 million shares for AUD 257 million; AUD 43 million remains in buy-back program.

Outlook and guidance

• FY25 guidance reaffirmed: 1,650–1,800koz gold sold at AISC of AUD 1,850–2,100/oz, with a stronger second half expected due to higher grades and project completions.

• 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 advancement as priorities.

• KCGM expected to deliver 650koz in FY26 and ~900kozpa from FY29 after Mill Expansion ramp-up.