Image source: © Bashta | Megapixl.com

Highlights

  • Northern Star is a gold production company with operations in Australia and North America.
  • In FY23, the company registered double-digit growth in statutory net profit after tax over the previous year.
  • The company expects gold sales of 1,600-1,750 Koz at an AISC of AUD 1,730-1,790/oz in FY24.

Northern Star Resources Limited (ASX: NST) is an ASX-listed gold mining company with operations in North America and Australia. The prime operations of the company include processing, mining, development and exploration of gold deposits and sale of refined gold.

In the financial year 2023 (FY23), the company achieved its production and revised cost guidance while registering record revenue of AUD 4,131 million, 9% higher than the previous year. Statutory net profit after tax during the reported period stood at AUD 585 million, 29% up from a year earlier, and cash earnings reached AUD 1,223 million, 16% up from the previous year.

The period saw gold sales of 1,563koz at an AISC of AUD 1,759/oz, delivering upon its FY23 guidance. Also, during the period, cash generation was seen across all production centres – Pogo in Alaska, Kalgoorlie and Yandal in Western Australia.

Top 10 shareholders of NST

The top 10 shareholders of NST have around 30.25% shareholding in the company, while the top four have nearly 20.26% stake. Van Eck Associates Corporation and BlackRock Investment Management (UK) Ltd. have the highest stake in the firm, with shareholding of ~6.82% and ~5.33%, respectively.

Recent business update

Through an ASX update dated 25 July 2023, the company informed about the completion of the sale of Strickland Metals Limited’s interest in the tenement comprising the Millrose Project to NST.

The project's mineral resource comprises 6Mt at 1.80g/t  for 346,000 ounces.

Outlook

In FY24, the company estimates record gold sales of 1,600-1,750 Koz at an AISC of AUD 1,730-1,790/oz. The capital expenditure is expected to be in line with FY23, excluding the KCGM mill expansion project, which is expected to involve a capital expenditure of AUD 525 million.

The company is committed to achieving its five-year profitable growth plan to deliver gold production of 2Mozpa by FY26.

Also, the company is focused on the organic growth of its three large-scale production centres and assessing potential acquisitions and investment in exploration.

Share performance of NST

Shares of NST closed 0.89% up at AUD 11.28 apiece on Tuesday. Including this gain, NST's share price has appreciated 45.93% in the last 12 months and recorded a rise of 3.30% in the past one month.

The 52-week high of NST is AUD 14.44 apiece, recorded on 14 April 2023, and the 52-week low is AUD 6.93 apiece, recorded on 27 September 2022. Worth mentioning here is that today’s closing price is 62.77% higher than its 52-week low.

 

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

 

Note 2: The reference date for all price data, currency, is 12 September 2023. The reference data in this report has been partly sourced from REFINITIV.