Northern Star Resources shares (ASX: NST) have begun 2025 in strong form, adding 18.64% and breaking out into new all time high territory. The company has backed up the bullish share price action with strong half-year financial results.
The company reported 28% year-on-year growth in half-year revenue, amounting to $2.87 billion. This increase is partly attributed to a higher average realised gold price of $3,562 per ounce, compared to $2,873 per ounce in the previous year.
The company’s operational efficiency improved significantly, with operating cash flows growing by 49% year-on-year to reach $1.25 billion. Moreover, cash earnings saw a substantial climb of 63%, amounting to $1.15 billion.
Northern Star’s underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) hit a record $1.40 billion, marking a 58% increase from last year. This financial strength has provided the company with the resources to invest heavily, increasing total capital expenditure by 58% to $1.06 billion. These investments were primarily directed towards the KCGM Mill Expansion Project in Kalgoorlie and Yandal.
Shareholders were rewarded with a record interim dividend of 25.0 cents per share, which represents a 66.6% increase from the previous year, scheduled to be paid on March 27. This dividend announcement has contributed to the positive sentiment around the company’s share price. Over the past year, Northern Star’s share price has risen by a significant 39.3%.
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Looking forward, Northern Star has set a guidance range for FY 2025, projecting gold sales of 1.65 million to 1.8 million ounces at an All-in Sustaining Cost (AISC) of $1,850 to $2,100 per ounce, indicating continued ambitious growth plans.
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