Northern Star Resources Ltd reported a record half-year financial performance for the period ending 31 December 2023, with significant increases in cash earnings and underlying EBITDA.
The company sold 781koz of gold at an AISC of A$1,878/oz and AIC of A$2,653/oz, maintaining its trajectory to meet FY24 guidance.
Cash earnings rose by 50% from the previous corresponding period (pcp) to A$702 million, and underlying EBITDA increased by 41% to A$889 million, primarily driven by higher realized gold prices.
Northern Star declared a record interim dividend of A15 cents per share, up 36% pcp, aligning with its 20-30% dividend payout policy.
The company has a strong balance sheet with net cash of A$229 million and has progressed 56% of its A$300 million on-market share buy-back program.
Revenue for the half-year increased by 15% to A$2,248 million, attributed to a higher average gold price, with gold sales volume remaining consistent year-on-year.
Operating cash flows surged by 79% to A$840 million, largely due to the higher realized gold price, despite a 23% increase in total capital expenditure to A$673 million.
Northern Star refinanced its corporate bank facilities, totaling A$1.5 billion, with maturity dates in December 2027 and December 2028, leaving A$1.5 billion undrawn at the reporting period's end.
The company maintains its FY24 guidance, acknowledging ongoing cost pressures from higher gold royalties, fuel costs, and a weaker Australian dollar.
Northern Star is executing a low-risk, five-year profitable growth strategy, with significant developments at its Kalgoorlie, Yandal, and Pogo production centers to optimize operations and expand capacity.
This announcement is a summary of the company approved ASX announcement on 22/2/2024 and is based on facts.