Northern Star Resources Limited (ASX: NST), the largest gold producer listed on the ASX, has released its quarterly report for the period ending 30 June 2024, showcasing a robust performance that successfully meets its FY24 guidance.
The company, which operates primary production centres in Kalgoorlie and Yandal in Western Australia, as well as Pogo in Alaska, US, reported a Lost Time Injury Frequency Rate (LTIFR) of 0.5 injuries per million hours worked, reflecting a strong commitment to safety.
In terms of production, Northern Star sold a total of 439,000 ounces of gold at an All-In Sustaining Cost (AISC) of $1,815 per ounce (US$1,196 per ounce).
The Kalgoorlie operations, including Carosue Dam, performed well, although sales from KCGM were delayed due to shipment timing.
At Yandal, the Thunderbox mine achieved a nameplate mill throughput of six million tonnes per annum for the quarter, while the Jundee operation saw an increase in grade.
Pogo set a record with quarterly gold sales of 91,000 ounces, translating to an annualised rate of 363,000 ounces, alongside a record net mine cash flow.
For the fiscal year 2024, Northern Star reported an AIC of $2,750 per ounce, as major growth projects, including the KCGM Mill Expansion, continued to progress.
The company delivered a total of 1,621,000 ounces of gold sold at an AISC of A$1,853 per ounce.
Underlying free cash flow for FY24 reached $462 million, with $189 million generated in the June quarter alone.
Looking ahead to FY25, Northern Star is optimistic about its production targets, projecting sales between 1,650,000 and 1,800,000 ounces of gold at an AISC of $1,850 to $2,100 per ounce.
The company has set guidance for growth capital between $950 million and $1,020 million, in addition to $500 million to $530 million allocated for the KCGM Mill Expansion.
In terms of financial strategy, Northern Star is currently executing a $300 million on-market share buy-back, with 57 per cent completed and $172 million paid to date.
The company reported a strong balance sheet with net cash of $359 million as of 30 June, complemented by cash and bullion totalling $1,248 million.
Managing Director Stuart Tonkin expressed pride in the company’s achievements during the June quarter, highlighting record performances at Thunderbox and Pogo.
He noted that FY24 demonstrated the quality of Northern Star’s asset portfolio and the effectiveness of ongoing investments aimed at unlocking future low-cost, high-margin gold production.
Tonkin emphasised the company’s commitment to its five-year profitable growth strategy, which aims to increase production to 2 million ounces by FY26 while delivering higher free cash flow levels.
