(Kitco News) – Northern Star (ASX: NST), a senior global gold producer, reported today that its operations delivered FY22 (year ended 30 June 2022) production and cost guidance of 1,561koz at an AISC of A$1,633/oz vs guidance of 1,550-1,650koz at an AISC of A$1,600-1,640/oz.
The company said that all three production centers achieved production guidance and demonstrated the capability for the Group to operate at 1.6Moz per annum, adding that Pogo delivered above H2 expectations with an annual run rate of 250koz.
Northern Star also reported FY22 underlying EBITDA of A$1,517 million (FY21: A$1,159 million) and cash earnings (cash earnings defined as underlying EBITDA less net interest, tax paid and sustaining capital) of A$1,022 million (FY21: A$648 million), showcasing the quality of the company’s assets to adapt to all operating environments.
The company’s operating cash flow was A$1,599 million (FY21: A$1,077 million) and statutory net profit after tax (NPAT) was A$430 million (FY21: A$1,032 million).
Northern Star also announced that its Board has declared a fully franked final dividend of A11.5cps, corresponding to 23% of cash earnings, adding that for FY22, the total fully franked dividend was A21.5cps, corresponding to 25% of cash earnings, and higher than the FY21 full year dividend of A19cps.
Importantly, the company noted it is well positioned to deliver 1,560koz – 1,680koz gold at an AISC of A$1,630-1,690/oz in FY23. Gold sold is expected to be weighted towards H2 as a result of the scheduled ramp up of the Thunderbox mill expansion and Pogo stoping schedule.
Commenting on the results, Managing Director Stuart Tonkin stated, “These results, which include for the first time Saracen and 100% of the Super Pit, clearly demonstrate Northern Star’s cash earnings potential. Our strong performance in FY22 generated $1 billion in cash earnings, which underscores the sustainability of the cash flow from our high quality assets located in tier-1 jurisdictions.
“We have made a solid start to FY23 and continue to progress the KCGM cutback with our new cost-efficient mining equipment. The SKO processing plant is now on care and maintenance, at Thunderbox we commence commissioning the expanded mill in Q1, while at Pogo we have removed surplus equipment, reflecting increased development rates across the fleet.
“We are a stronger and more resilient business today than ever before, with a clearly defined multi-year strategy to deliver higher margin ounces. This strategy, backed by our experienced team and portfolio of high quality assets, will enable Northern Star to create superior value for shareholders.”
Northern Star is a global-scale Australian gold producer that owns and operates three world-class gold production centers (Kalgoorlie, Yandal and Pogo), located in prospective geological settings in the low sovereign risk jurisdictions of Australia and North America.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
Read More:Gold miner Northern Star reports cash earnings of A$1 billion in FY22
2022-08-29 17:13:00
