The Northern Star Resources Ltd (ASX: NST) share price is pushing higher on Thursday.
In morning trade, the gold miner's shares are up almost 5% to $11.11 after investors responded positively to its FY 2023 results.
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Northern Star share price higher on record result
- Revenue up 9% to $4,131 million
- Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 10% to $1,943 million
- Underlying net profit after tax up 2% to $301 million
- Statutory net profit after tax up 29% to $585 million
- Record cash earnings of $1,223 million
- Final dividend of 15.5 cents per share
What happened in FY 2023?
For the 12 months ended 30 June, Northern Star reported a 9% increase in revenue to $4,131 million. This reflects broadly flat annual gold sales of 1,563,000 ounces and an improved average selling price of $2,639 an ounce.
However, with the company's all-in sustaining cost (ASIC) increasing by 7.7% to $1,759 million, this limited its underlying net profit after tax growth. Northern Star's underlying profit grew 2% to $301 million for the 12 months.
Finally, Northern Star's cash earnings came in at a record of $1,223 million. This is defined as underlying EBITDA less net interest, tax paid, and sustaining capital.
In light of this record result, the Northern Star board declared an unfranked final dividend of 15.5 cents per share, which brought its full-year dividend to 26.5 cents per share. This is up from 21.5 cents per share in FY 2022.
Management commentary
Northern Star's managing director, Stuart Tonkin, was pleased with the record result. He said:
Northern Star generated a record $1,223 million in Cash Earnings in the past financial year, the result of our focus on safely delivering operational excellence in parallel to adhering to a disciplined approach to investing shareholders' funds. The full-year result is a credit to our dedicated team, who have worked hard to offset what remains a challenging operating cost environment, particularly in Western Australia.
This full-year result also reinforces Northern Star's strategy to identify growth opportunities within our strongly endowed geological terrains that can deliver superior returns to shareholders. Our announcement in June to proceed with the Fimiston mill expansion at KCGM, our largest and most significant asset, highlights the organic optionality and upside potential built into our portfolio.
Outlook
Looking ahead, management is guiding to total gold sales of 1,600,000 to 1,750,000 ounces in FY 2024. This will be up from 1,563,000 ounces.
This is expected to be achieved with an AISC of $1,730 to $1,790 an ounce, which is broadly in line with FY 2023's levels.
The Northern Star share price is now up 45% over the last 12 months.
