Northern Star Resources Reports Record Earnings and Increased Dividends for Shareholders

A surge of financial success for Northern Star Resources (ASX:NST) has translated into record earnings and enhanced dividends for shareholders in the fiscal year ending on June 30.

As the largest Australian-owned gold miner post the Newmont acquisition of Newcrest, the company recorded a 9% revenue increase, reaching $4.131 billion. While Underlying EBITDA of $1.537 billion saw a slight decline of 1%, statutory after-tax net profit surged by 29%, totaling $585 million.

Directors confirmed the company's achievement of delivering FY23 guidance, selling 1.563 million ounces of gold at an All-In Sustaining Cost (AISC) of $1,759 per ounce.

Northern Star reported record cash earnings of $1.223 billion (a non-standard profit measure), reflecting its robust operational and financial performance.

Shareholders are set to receive an unfranked final dividend of 15.5 cents per share, following the fully franked interim dividend of 11.0 cents. This brings the total dividend for the year to 26.5 cents, marking a 32% increase from the previous year's 21.5 cents per share.

Moreover, the ongoing $300 million on-market share buy-back has been extended for an additional 12 months, aligning with the company's proactive capital management strategy. By June 30, the buyback had reached 42% completion.

The company's guidance for 2023-24 remains unchanged from the fourth-quarter and 2022-23 production report issued last month. According to directors, "The Company is on track to deliver 1,600-1,750koz gold sold at an AISC of A$1,730-1,790/oz in FY24."

They elaborated on the production distribution, stating, "Gold sold will be weighted towards 2H due to increased production at Thunderbox as the mill sustains 6Mtpa, higher ore volumes and grade at KCGM, and continuous grade improvement at Pogo in Alaska. For the September quarter, planned major shutdowns will be carried out across all three production centers."

Northern Star emphasized its strong financial position, with net cash amounting to A$362 million. The company's FY24 growth program is fully funded and aligns with its well-defined capital management framework.

Given the takeover of Saracen Minerals, which granted NST full ownership of the SuperPit, directors noted, "The Company does not expect to generate franking credits for at least 18 months due to tax synergies resulting from the merger that have temporarily reduced the Company’s taxable income."

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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