Northern Star Resources has delivered record financial results for the first half of the 2024–25 financial year (FY25), driven by higher gold prices, increased production, and a record interim dividend of $0.25 per share.
Northern Star’s revenue rose by 28 per cent to $2.8 billion, capitalising on a booming gold price of $3562 per ounce and sales volume of 804,140 ounces.
“We are excited to report record underlying earnings for a second consecutive period, which underscores the value of the profitable growth strategy that we embarked on in FY22,” Northern Star managing director Stuart Tonkin said.
“In addition to record half-year cash earnings of $1.1 billion, up 63 per cent period-on-period, Northern Star also reported strong half-year underlying free cash flow after accounting for growth capital investment across our business.”
Tonkin highlighted Northern Star’s financial stability with earnings before interest, taxes, depreciation, and amortisation and return on capital employed metrics continuing to improve, while the balance sheet remains strong and in a net cash position.
“The board has declared a record interim dividend of $0.25 per share, complementing the $300 million share buy-back program which remains open, demonstrating our purpose to delivering superior shareholder returns,” Tonkin said.
“We remain well positioned to achieve our FY25 production and cost guidance while retaining a firm focus on progressing our key growth plans, including the KCGM (Kalgoorlie Consolidated Gold Mines) mill expansion project which remains on time and within budget.
“We continue to pursue exploration success at existing operations, while advancing our recommended offer to acquire De Grey Mining.”
Operating cash flows rose 49 per cent to $1.25 billion and financing cash outflows totalled $495 million, with capital expenditure increasing 58 per cent to $1.06 billion due to ongoing investments at the KCGM operations and the Yandal operation in Western Australia.
Northern Star said it remains on track to meet its FY25 production guidance of 1.65–1.8 million ounces and all-in sustaining costs of $1850–$2100 per ounce.
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