Following a strong second quarter performance, Northern Star Resources is on track to achieve its full-year sales and cost guidance — a result of robust mine cash flow and higher gold prices.
This outlook is supported by continued gold price strength after the quarter's end, with the precious metal reaching an all-time high in Australian dollar terms of more than A$4,375 an ounce on January 7.
Northern Star has maintained its full-year guidance after reporting gold sales of 410,249 ounces for the December quarter, all-in sustaining costs of A$2,128 per ounce and a $20 million lift in underlying free cash flow to $72 million.
Production was about 20,000 ounces below consensus, according to Citi, while AISC cost guidance was 6% higher than expected and underlying free cash flow was below expectations.
Yet the gold miner has maintained its full-year 2025 guidance for gold sales at 1.65 million to 1.85 million ounces at an AISC cost of A$1,850-A$2,100 per ounce.
Citi analyst Kate McCutcheon said “We expect a modest EBITDA consensus downgrade for 1H25 after the result and a muted-to-down reaction to the result.”
Northern Star operates several production centres, including Kalgoorlie, Yandal and Pogo, and is involved in major projects like the KCGM Mill Expansion to enhance its production capabilities.
The company recently announced its planned acquisition of De Grey Mining, aiming to add a new low-cost production centre, to expand its portfolio and enhance its market position.
NST shares have gained 38% over the past 12 months.