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Northern Star Resources Ltd (AU:NST)
ASX:NST

Northern Star Resources Ltd (NST) AI Stock Analysis

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AU

Northern Star Resources Ltd

(Sydney:NST)

76Outperform
Northern Star Resources Ltd scores well due to its strong financial performance and robust cash flow generation. The company’s strategic initiatives and positive earnings call sentiment contribute positively, despite challenges like weather impacts and lower equipment availability. The stock is in a favorable technical position, trading above key moving averages, while its valuation remains attractive with a reasonable P/E ratio and a solid dividend yield.

Northern Star Resources Ltd (NST) vs. S&P 500 (SPY)

Northern Star Resources Ltd Business Overview & Revenue Model

Company DescriptionNorthern Star Resources Limited engages in the exploration, development, mining, and processing of gold deposits in Australia. It also sells refined gold. The company holds interests in the Pogo, Kalgoorlie, KCGM, Jundee, Thunderbox, and Carosue Dam operations, as well as Bronzewing projects. It operates in Western Australia, the Northern Territory, and Alaska. The company was incorporated in 2000 and is headquartered in Subiaco, Australia.
How the Company Makes MoneyNorthern Star Resources Ltd makes money primarily through the exploration, mining, and sale of gold. Its revenue model is centered around the extraction of gold from its mining operations, which are then processed and sold in the global commodities market. The key revenue streams include the sale of gold bullion and, to a lesser extent, by-products such as silver and copper that are extracted during the mining process. Significant factors contributing to its earnings include the efficiency of mining operations, the market price of gold, and the company's ability to manage production costs. Northern Star Resources also engages in strategic partnerships and joint ventures to enhance its exploration opportunities, increase its resource base, and optimize its production capabilities, all of which contribute to its financial performance.

Northern Star Resources Ltd Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
4.92B4.13B3.81B2.76B1.97B
Gross Profit
1.16B577.90M529.90M564.40M512.32M
EBIT
1.03B889.60M420.00M474.00M438.10M
EBITDA
2.17B1.97B1.78B2.27B724.99M
Net Income Common Stockholders
638.50M585.20M429.80M1.03B258.33M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.12B1.13B571.10M771.90M677.26M
Total Assets
13.44B12.71B11.48B11.55B3.97B
Total Debt
1.34B1.32B511.50M888.10M811.06M
Net Debt
224.70M188.80M-59.60M116.20M133.80M
Total Liabilities
4.65B4.22B3.24B3.57B1.83B
Stockholders Equity
8.79B8.48B8.25B7.98B2.14B
Cash FlowFree Cash Flow
565.90M292.30M570.50M383.70M347.76M
Operating Cash Flow
2.07B1.35B1.63B1.08B710.44M
Investing Cash Flow
-1.50B-1.04B-913.20M-257.10M-1.67B
Financing Cash Flow
-577.60M245.70M-927.40M-718.60M1.38B

Northern Star Resources Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUNST
76
Outperform
$25.57B26.7411.01%2.35%25.11%28.88%
48
Neutral
$1.92B-1.99-22.85%3.95%0.94%-27.31%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NST
Northern Star Resources Ltd
22.35
7.33
48.75%
TSE:PRU
Perseus Mining Limited
3.03
1.04
52.26%
CAHPF
Evolution Mining Limited
5.25
2.73
108.33%
RGRNF
Regis Resources Limited
2.92
1.42
94.67%
RMLRF
Ramelius Resources Limited
1.72
0.44
34.37%

Northern Star Resources Ltd Earnings Call Summary

Earnings Call Date: Feb 12, 2025 | % Change Since: 23.90% | Next Earnings Date: Aug 21, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong operational and financial performance with strategic growth initiatives underway. However, some challenges such as weather impacts and equipment downtime affected certain operations, and free cash flow was not as high as anticipated. Overall, the sentiment is positive due to the company's robust financial position and successful project completions.
Highlights
Increased Gold Sales and Cost Management
Northern Star sold 410,000 ounces of gold at an all-in sustaining cost of A$2,128 per ounce, with a focus on operational performance, cost control, and capital discipline.
Strong Financial Position
The company is in a net cash position with A$1.2 billion in cash and bullion, demonstrating strong cash earnings of A$1.13 billion to A$1.17 billion in the first half of FY '25.
Successful Projects and Developments
Completion of the East Wall remediation at KCGM, commissioning of the renewables energy project at Jundee, and the start of new portals for higher-margin underground ounces.
Pogo Mill and Mine Performance
The Pogo operation delivered 71,000 ounces for the quarter with the mill operating at a run rate annualized of 1.5 million tonnes per annum.
Lowlights
Weather Impact on KCGM
Weather conditions affected operations at KCGM, impacting ore availability and causing a need for rescheduling.
Free Cash Flow Below Expectations
Free cash flow was weaker than expected at A$72 million, attributed to first-half heavy capital expenditure and growth projects.
Lower Equipment and Heading Availability at Jundee
Operational challenges at Jundee due to equipment downtime and focus on larger development reduced production areas in the short-term.
Company Guidance
During the Northern Star December 2024 Quarterly Results call, CEO Stuart Tonkin highlighted several key metrics demonstrating the company's robust performance and strategic initiatives. Northern Star sold 410,000 ounces of gold at an all-in sustaining cost of A$2,128 per ounce, with a net cash position of A$265 million at the end of the quarter. The company generated A$692 million in operating cash flow, a significant 18% increase from the previous quarter, and maintained a strong cash and bullion balance of A$1.2 billion. The Kalgoorlie Production Centre alone sold 208,000 ounces and generated A$358 million in mine operating cash flow. Capital expenditures were substantial, with A$308 million spent on growth projects, including A$139 million on the KCGM mill expansion. The Pogo operation in Alaska also performed well, delivering 71,000 ounces for the quarter. Looking ahead, Northern Star expects a stronger second half, with the Pogo plant targeting a throughput of 4 million tonnes per annum. The company remains committed to delivering shareholder value through strategic growth, operational excellence, and maintaining a strong financial position.

Northern Star Resources Ltd Corporate Events

Northern Star Resources Ltd Updates Shareholder Registry Services
Apr 4, 2025

Northern Star Resources Ltd has announced a change in its shareholder registry service provider, transitioning from MUFG Pension & Market Services to Automic Pty Ltd. This change is set to take effect from April 7, 2025, and is expected to enhance shareholder management through Automic’s secure online investor portal, allowing for efficient handling of shareholder details and transaction history.

Northern Star to Acquire De Grey Mining: Court Hearing Scheduled
Apr 4, 2025

Northern Star Resources Ltd is set to acquire 100% of the shares in De Grey Mining Ltd through a Court-approved scheme of arrangement. The Federal Court of Australia has ordered De Grey to convene a shareholder meeting to vote on the scheme, with the final Court hearing scheduled for April 22, 2025. Shareholders have the right to oppose the scheme at the hearing.

Northern Star Resources to Announce March 2025 Quarterly Results
Apr 1, 2025

Northern Star Resources Ltd is set to release its quarterly results for the period ending 31 March 2025 on 29 April 2025. The announcement will be accompanied by a conference call hosted by key executives to discuss the results, reflecting the company’s commitment to transparency and stakeholder engagement.

Northern Star Resources to Acquire De Grey Mining
Mar 17, 2025

Northern Star Resources Ltd, a company involved in the acquisition of mining shares, is set to acquire 100% of De Grey Mining Ltd through a Court-approved scheme of arrangement. De Grey Mining has dispatched the Scheme Booklet to its shareholders, detailing the proposed acquisition and the upcoming Scheme Meeting scheduled for April 16, 2025. The directors of De Grey recommend shareholders vote in favor of the acquisition, pending no superior proposals. The completion of this acquisition could significantly impact Northern Star’s market position by expanding its mining portfolio.

Northern Star Resources Updates Dividend Announcement with DRP Price
Mar 14, 2025

Northern Star Resources Ltd announced an update to its previous dividend distribution announcement, now including the Dividend Reinvestment Plan (DRP) price. The dividend relates to the six-month period ending December 31, 2024, with a record date of March 6, 2025, and an ex-date of March 5, 2025. This update may impact shareholders’ decisions regarding dividend reinvestment and reflects the company’s ongoing commitment to shareholder returns.

Northern Star Resources Updates Share Buy-Back Progress
Mar 12, 2025

Northern Star Resources Ltd has announced an update on its ongoing share buy-back program, revealing that a total of 301,248 ordinary fully paid securities were bought back on the previous day, adding to the cumulative total of 24,972,383 securities repurchased. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

Northern Star Resources Updates on Buy-Back Program
Mar 11, 2025

Northern Star Resources Ltd has announced an update regarding its ongoing on-market buy-back program. As of March 12, 2025, the company has repurchased a total of 24,972,383 ordinary fully paid securities, reflecting its strategic initiative to enhance shareholder value and optimize capital structure.

Northern Star Resources to Acquire De Grey Mining in Court-Approved Scheme
Mar 11, 2025

Northern Star Resources Ltd is set to acquire De Grey Mining Ltd through a Court-approved scheme of arrangement. The Scheme Booklet, registered by the Australian Securities and Investments Commission, provides detailed information about the acquisition, including the Independent Expert’s Report which deems the scheme fair and reasonable. De Grey’s directors recommend shareholders vote in favor of the scheme, which will be decided at a meeting scheduled for April 16, 2025.

Northern Star’s Acquisition of De Grey Mining Progresses with Court Approval
Mar 10, 2025

Northern Star Resources Ltd is set to acquire 100% of De Grey Mining Ltd’s shares through a court-approved scheme of arrangement. The Federal Court of Australia has ordered De Grey to hold a shareholder meeting to vote on the scheme, which is recommended by De Grey’s directors and deemed fair by an independent expert. The scheme booklet will be distributed to shareholders, with the meeting scheduled for April 16, 2025, and the implementation date set for May 5, 2025.

Northern Star Resources Updates on Ore Reserves and Financial Performance
Feb 24, 2025

Northern Star Resources Ltd has announced an update on its current ore reserves and mineral resources, confirming no material changes except for normal mining depletion. The company maintains its production targets based on existing operational structures and market conditions, and reports on financial metrics such as EBITDA and free cash flow. The announcement reinforces Northern Star’s steady position within the industry, highlighting its commitment to shareholder returns through dividends and share buy-back programs.

Van Eck Associates Corporation Ceases Substantial Holding in Northern Star Resources
Feb 13, 2025

Van Eck Associates Corporation, along with its associates, has ceased to be a substantial holder in Northern Star Resources Ltd as of February 11, 2025. This change in holding may impact the company’s shareholder structure and voting dynamics, potentially influencing its strategic decisions and future operations.

Northern Star Resources Maintains Stability in Half-Year Financial Results
Feb 12, 2025

Northern Star Resources Ltd released its results presentation for the half year ended 31 December 2024, highlighting its financial performance. The company has maintained its operational capital and cost structures while continuing to uphold previous estimates for Ore Reserves and Mineral Resources. There have been no significant changes in assumptions regarding these reserves, and the company continues to focus on its 5-year gold production profiles. This stability suggests a consistent position in the gold market, potentially providing assurance to stakeholders about the company’s future performance.

Northern Star Reports Record Financials and Dividend Amid Growth Strategy
Feb 12, 2025

Northern Star Resources Ltd has announced record financial results for the half-year ending 31 December 2024, driven by increased gold sales and realized prices. The company reported a 63% increase in cash earnings to A$1.1 billion, a 58% rise in underlying EBITDA, and a strong balance sheet position with a net cash of A$265 million. The board declared a record interim dividend of 25.0 cents per share, amid ongoing A$300 million share buy-back program. These results reflect the successful execution of Northern Star’s growth strategy initiated in FY22, positioning the company well to meet its FY25 production and cost guidance, while also pursuing key growth projects such as the KCGM Mill Expansion and potential acquisition of De Grey Mining.

Northern Star Resources Announces New Dividend of AUD 0.25 Per Share
Feb 12, 2025

Northern Star Resources Ltd has announced a new dividend distribution of AUD 0.25 per share for its ordinary fully paid shareholders. The distribution pertains to the financial period ending December 31, 2024, with an ex-date of March 5, 2025, and a payment date scheduled for March 27, 2025. This move reflects the company’s ongoing commitment to delivering value to its shareholders and signals strong financial health, which may bolster its standing within the mining industry and attract further investor interest.

Northern Star Resources Reports Strong Financial Performance and Dividend Announcement
Feb 12, 2025

Northern Star Resources Ltd reported a significant increase in financial performance for the six months ended December 31, 2024, with a 28% rise in revenue from ordinary activities and a 155% increase in net profit attributable to members. The company announced an interim dividend of 25 cents per share for FY25, maintaining its commitment to shareholder returns. The financial results reflect strong operational efficiencies and effective market positioning, with implications for continued growth and stakeholder confidence.

Northern Star to Release FY25 Half-Year Results
Feb 3, 2025

Northern Star Resources Ltd will announce its FY25 half-year financial results for the period ending 31 December 2024 on 13 February 2025. A conference call hosted by key executives will follow the release to discuss the results, allowing stakeholders to gain insights into the company’s financial performance.

Northern Star Resources Reports Robust Q4 Performance and Strategic Acquisition Plan
Jan 20, 2025

Northern Star Resources Ltd reported strong operational performance for the December 2024 quarter, with gold sales totaling 410,249 ounces at an all-in sustaining cost of A$2,128 per ounce. The company is on track to meet its FY25 guidance, driven by robust mine cash flow and higher gold prices. Key developments include the completion of the East Wall remediation and ongoing progress on the KCGM Mill Expansion project. The company also announced its planned acquisition of De Grey, aiming to add a new low-cost production center, which aligns with its strategy for superior shareholder returns.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.