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Highlights
- Revenue Surge: Northern Star's revenue jumped 28% year-on-year to $2.87 billion, driven by higher gold prices.
- Record Profitability: EBITDA rose 58% to $1.40 billion, with operating cash flows up 49% to $1.25 billion.
- Dividend Boost: A record interim dividend of 25 cents per share, up 66.6%, will be paid on 27 March.
Shares of Northern Star Resources Ltd (ASX:NST) climbed 0.57% to $18.405 in early trading on Thursday after the release of its half-year results for the six months ending 31 December 2024. Investors welcomed the 28% increase in revenue to $2.87 billion, which was primarily driven by higher gold prices, averaging $3,562 per ounce, up from $2,873 per ounce in the prior corresponding period.
The company also reported a 3% increase in gold sales, reaching 804,140 ounces at an all-in sustaining cost (AISC) of $2,105 per ounce. While mining costs rose, operating cash flows surged 49% to $1.25 billion, and cash earnings jumped 63% to $1.15 billion.
Record Profitability and Dividend Growth
Northern Star delivered record underlying EBITDA of $1.40 billion, marking a 58% year-on-year increase. This was fueled by both higher gold sales and elevated gold prices.
Despite higher capital expenditure of $1.06 billion—largely due to investment in Kalgoorlie’s KCGM Mill Expansion Project and Yandal—the company's cash flow enabled it to declare a record interim dividend of 25 cents per share, up 66.6% from last year.
The company ended the half-year with a net cash balance of $265 million and cash and bullion holdings of $1.22 billion, reinforcing its solid financial position.
Outlook: Continued Growth and Gold Production Expansion
Looking ahead, Northern Star has reiterated its FY 2025 production guidance of 1.65 million to 1.8 million ounces of gold at an AISC of US$1,850 to US$2,100 per ounce.
