Northern Star Resources (ASX:NST) FY25 Outlook: Targets 1,800koz Gold Sales and De Grey Mining Acquisition

Highlights

• NST has allocated AUD 180 million for exploration in FY25 and is progressing with the acquisition of De Grey Mining.
• In 1H FY25, the company recorded net mine cash flow, 410,249 ounces sold, AISC of AUD 2,128/oz.
• The company has set sales target of 1,650-1,800koz of gold at an AISC of AUD 1,850-2,100/oz for FY25.

Northern Star Resources Ltd (ASX:NST) is an ASX-listed global gold producer with operations in Western Australia and Alaska. The company is committed to expanding its asset base through exploration activities and has allocated an FY25 exploration budget of AUD 180 million. Furthermore, the company is advancing the acquisition of De Grey Mining Ltd (ASX:DEG). The transaction includes DEG’s flagship Hemi project, Western Australia, which isan emerging tier-1, low-cost development project.

Financial Performance in 1H FY25

NST achieved a record net mine cash flow in the first half of (1HFY25), attributed to  operational performance and higher gold prices. During the reported period, gold sales stood at 410,249 ounces at an all-in sustaining cost (AISC) of AUD 2,128/oz. Assets such as KCGM, Yandal, and Pogo contributed significantly to the results.

In 1HFY25, underlying free cash flow of AUD 72 million was recorded, with expectations of further growth in the second half of FY25.

Meanwhile, in the second quarter of FY25 (2QFY25), the company recorded gold sales of 410,249 ounces at an AISC of AUD 2,128/oz.

Financial performance in FY24

In FY24, NST’s revenue increased by 19% YoY, reaching AUD 4,921 million, compared to AUD 4,131 million in FY23. Meanwhile, underlying EBITDA saw a substantial rise of 43% YoY, totaling AUD 2,192 million, while cash earnings surged by 48%, amounting to AUD 1,805 million. The company benefited from higher gold prices, selling 1,621koz of gold. Underlying NPAT soared by 129% YoY in FY24, reaching AUD 689 million.

During the reported period, NST achieved its highest EBITDA margins since FY22 and declared a total dividend of 40 cents per share for FY24.

Company Outlook for FY25

In FY25, NST intends to achieve sales of 1,650-1,800koz of gold at an AISC of AUD 1,850-2,100/oz. Growth capital guidance is set at AUD 950-1,020 million, with AUD 500-530 million allocated to the KCGM Mill Expansion. Notably, the KCGM Mill expansion is advancing as per the schedule.

Share performance of NST

NST shares closed 1.45% higher at AUD 17.48 per share on 4 February 2025. Over the past year, NST’s share price has increased by over 30% and in six months, it has recorded a rise of nearly 23%.

52-week high of NST is AUD 18.32, recorded on 25 October 2024 and 52-week low is AUD 12.42, recorded on27 February 2024.

NST Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 04 February 2025. The reference data in this report has been partly sourced from REFINITIV.

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