Northern Star notches 110% leap in full-year profit as gold price soars
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The news: Gold miner Northern Star Resources more than doubled its full-year statutory profit to $1.34 billion and declared a record dividend, as the average gold price soared during the year.
The numbers: The result marked a 110% uplift year-on-year. Analysts had expected an even larger jump to $1.41 billion, according to consensus estimates compiled by Visible Alpha.
The mining group, which completed its $5 billion buyout of ASX rival De Grey in April, reported cash earnings of $2.87 billion, up 59% year on year. Revenue of $6.41 billion was up 30% year on year, compared to estimates of $6.43 billion.
The result was supported by a 29% rise in the annual average gold price, as gold sales nudged up 1% to 1.63 million ounces.
Northern Star declared a full-year dividend of 55 cents per share, topping estimates of 50 cents per share.
The context: Northern Star said it was boosted by a "favourable gold price environment" during the year. However, cost of sales rose 11% compared to FY24, driven by higher mining activity across the group at both underground and open pit operations. Costs were also pushed higher by inflationary factors, and elevated maintenance and energy costs.
Following its acquisition of De Grey's Hemi development in Western Australia, Northern Star said it is continuing to advance the state and federal permitting process ahead of a final investment decision. The current estimate of the transaction costs is in the range of $200 million to $250 million, it said.
The source: ASX
