Northern Star reports record earnings Amid Year-End Gold Price Surge

Company News

by Glenn Dyer

In a testament to the buoyancy of the gold market, Northern Star Resources (ASX:NST) has announced record earnings and dividends for the six-month period ending in December. The company's robust performance comes on the heels of a surge in gold prices, which soared to over $2,000 per ounce in the final weeks of 2023 and have since remained elevated, bolstered by the weakness of the Australian dollar.

According to a statement released to the ASX on Thursday, Northern Star is well on track to meet its guidance for the fiscal year ending June 30. Cash earnings have surged by an impressive 50% to reach $702 million, while underlying EBITDA has climbed by 41% to $889 million.

Despite challenges posed by industry-wide cost pressures, including higher gold royalties, fuel costs, and currency fluctuations, Northern Star remains optimistic about maintaining its FY24 guidance. The company's resilience is underscored by its commitment to delivering value to shareholders, as evidenced by the declaration of a record interim dividend of 15 cents per share, representing a 36% increase from the previous period.

CEO Stuart Tonkin expressed confidence in the company's sustainable growth strategy, highlighting the strong performance of the Kalgoorlie Production Centre as a key driver of success. Tonkin emphasized that Northern Star's strategic focus on low-risk, profitable growth has positioned the company for long-term success in the dynamic gold mining industry.

Notably, the Kalgoorlie Production Centre contributed more than half of the Group’s EBITDA, with record margins of 44%. This performance was buoyed by the commencement of mining operations at high-grade Golden Pike North material, signaling a promising start to a new era of production at the site.

Northern Star's robust financial results underscore its resilience in navigating market volatility and its commitment to maximizing shareholder value. With gold prices remaining strong and operational performance on the rise, the company is well-positioned to capitalize on future opportunities in the gold mining sector.

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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