The Northern Star Resources Ltd (ASX: NST) share price is charging higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) gold stock closed yesterday trading for $18.30. In morning trade on Thursday, shares are swapping hands for $18.54 apiece, up 1.3%.
For some context, the ASX 200 is up 0.1% at this same time.
This follows on the release of Northern Star's half-year results for the six months through to 31 December (1H FY 2025).
Here are the highlights.
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Northern Star share price shining bright on revenue surge
ASX 200 investors are bidding up the Northern Star share price after the gold miner reported a 28% year on year increase in half-year revenue to $2.87 billion. Management said the big boost was primarily driven by a higher average realised gold price of $3,562 per ounce, up from $2,873 per ounce in 1H FY 2024.
The volume of gold sold increased by 3.0% to 804,140 ounces at an all-in sustaining cost (AISC) of $2,105 per ounce. Higher mining costs saw an uptick in the cost of sales.
Operating cash flows came in at $1.25 billion, up 49% year on year, with cash earnings up 63% to $1.15 billion.
Also likely offering the Northern Star share price a boost today, the miner achieved record underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $1.40 billion. That's up 58% from 1H FY 2023, driven by higher gold sales and realised gold prices.
Total capital expenditure, including exploration, was also higher, up 58% to $1.06 billion. This was spurred by Northern Star's investment in capital, primarily across Kalgoorlie (KCGM Mill Expansion Project) and Yandal.
And passive income investors will be pleased by the record interim dividend of 25.0 cents a share, unfranked. That's up 66.6% from last year. The Northern Star dividend will be paid on 27 March.
The ASX 200 gold miner ended the half year with a net cash balance of $265 million, and cash and bullion of $1.22 billion.
What did management say?
Commenting on the results helping lift the Northern Star share price today, managing director Stuart Tonkin said, "We are excited to report record underlying earnings for a second consecutive period, which underscores the value of the profitable growth strategy that we embarked on in FY 2022."
Tonkin added:
In addition to record half-year Cash Earnings of A$1.1 billion, up 63% period-on-period, Northern Star also reported strong half-year underlying free cash flow after accounting for growth capital investment across our business.
This interim result again demonstrates the strength and value-creation that we are embedding in our business. EBITDA and ROCE metrics continue to improve while the balance sheet remains strong and in a net cash position.
What's next for the Northern Star share price?
Looking at what could impact Northern Star in the months ahead, the ASX 200 miner's full-year FY 2025 guidance is for 1.65 million to 1.8 million ounces of gold sold at an AISC of US$1,850 to US$2,100 per ounce.
Commenting on the outlook, Tonkin said:
We remain well positioned to achieve our FY25 production and cost guidance while retaining a firm focus on progressing our key growth plans, including the KCGM Mill Expansion Project which remains on time and within budget.
We continue to pursue exploration success at existing operations, while advancing our recommended offer to acquire De Grey Mining.
With today's intraday gains factored in, the Northern Star share price is up 39.3% since this time last year, not including dividends.
