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Highlights

  • In FY24, NST’s revenue rose by 19% YoY to AUD 4,921 million
  • In FY25, the company aims to achieve gold sales of 1,650-1,800koz at an AISC of AUD 1,850-2,100/oz
  • NST plans to complete its AUD 300 million share buyback program by September 2025

Northern Star Resources Limited (ASX:NST) is an ASX-listed gold production company, involved in the development, mining, and processing of gold deposits in Western Australia, the Northern Territory, and Alaska.

Recently, the company announced the acquisition of De Grey Mining, an ASX-listed company, via a recommended scheme of arrangement. The acquisition includes the Hemi Project, in Western Australia.  The combined NST will operate across two Tier-1 jurisdictions and four production centres, with Proforma mineral resources of 74.9Moz and ore reserves of 26.9Moz.

This acquisition, along with the KCGM Mill Expansion is expected to deliver targeted growth of nearly 2.5Mozpa by FY29.

Recent financial results

In the financial year 2024 (FY24), the company recorded a 19% YoY rise in revenue to AUD 4,921 million, 9% YoY jump in NPAT to AUD 639 million, and a 53% YoY increase in operating cash flow to AUD 2,070 million.

The period saw gold sales of 1,621koz, and higher gold prices contributed to underlying EBITDA of AUD 2,192 million.

In the first quarter of FY25 (1QFY25), the gold sales stood at 394koz at an AISC of AUD 2,082/oz. Meanwhile, underlying free cash flow increased by 86% YoY to AUD 52 million.

Outlook

In FY25, the company expects to deliver gold sales of 1,650-1,800koz with an AISC of AUD 1,850-2,100/oz. FY25 growth capital guidance is AUD 950-1,020 million and a further AUD 500-530 million is projected for the KCGM Mill Expansion. For the year, the expected exploration expenditure is AUD 180 million.

The company has been advancing its AUD 300 million on-market share buy-back program, which is expected to be completed by September 2025.  

Top 10 shareholders of NST

The top 10 shareholders of NST have around 29.50% shareholding in the company. Van Eck Associates Corporation has the largest stake in the firm with a shareholding of around 5.64%, followed by The Vanguard Group, Inc., with a shareholding of approximately 5.49%.

Share performance of NST

NST shares closed 2.36% higher at AUD 16.90 apiece on 10 December 2024. In the last one year, NST’s share price has surged by almost 36.95% and in three months, the share price has increased by nearly 15.75%.

52-week high of NST is AUD 18.32, recorded on 25 October 2024, while 52-week low is AUD 12.00, recorded on 18 January 2024.

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 10 December 2024. The reference data in this report has been partly sourced from EODHD/Others.