Full Year 2024 Northern Star Resources Ltd Earnings Call Transcript
Key Points
- Northern Star Resources Ltd (NESRF) reported a record underlying EBITDA of $2.2 billion and record cash earnings of $1.8 billion for FY24.
- The company declared a final unfranked dividend of $0.25 per share, up 61% from the previous year, and extended its $300 million share buyback program for another 12 months.
- Northern Star Resources Ltd (NESRF) is in a strong net cash position of $358 million as of June 30, 2024, with access to flexible long-term funding options and three investment-grade credit ratings.
- The company achieved significant progress in its five-year profitable growth strategy, with notable milestones such as the Thunderbox mill delivering 6-million-tonne nameplate and Pogo's record performance in Q4.
- Northern Star Resources Ltd (NESRF) doubled its return on capital employed year-on-year to 8.6%, reflecting the success of its profitable growth strategy and efficient capital allocation.
- The company's all-in sustaining cost (AISC) for gold was $1,853 per ounce, which may be considered high compared to industry standards.
- The first quarter of FY25 is expected to be the softest quarter due to planned major shutdowns across all processing plants, potentially impacting short-term production and financial performance.
- The company anticipates unfranked dividends for at least the next six months due to not paying tax for Australian operations until the second half of FY25.
- There is a potential for increased costs due to competitive pressures in procurement, supply, and service contracts, as well as labor market dynamics.
- The company's guidance indicates that production will be second half-weighted, which may pose risks if there are delays or issues in ramping up production in the latter part of the year.
Good morning, and thanks for joining us for our FY24 financial results presentation. With me today is Chief Financial Officer Ryan Gurner. We will refer to slides on the results presentation released on the ASX this morning, starting now on slide 3.
Now there are many records that we've delivered throughout the last year, but one record we can't claim credit for is the record gold pricing and in recent days, passing through USD2,500 an ounce. This is unprecedented territory.
What is relevant for Northern Star investors is the opportunity against this record pricing backdrop to the significant leverage to the gold price that Northern Star offers, from simplicity of our gold-only portfolio with globally significant scale in the low-risk jurisdictions of Western Australia and Alaska, whilst also offering a strategic advantage of organic profitable growth as our diligent investments deliver returns today and into the future.
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