Northern Star tops analyst profit forecasts, expects a stronger second-half

It’s business as usual for the growth-oriented Northern Star Resources (ASX: NST), even though its share price is trading at almost 2-year lows.

The gold miner reported a 43% rise in net profits in the first-half of FY22 to $261m, underpinned by higher production and portfolio optimisation. 

The profit result came in well-above Bell Potter estimates of $176.2m and consensus forecasts of $209.5m. 

Northern Star earnings at a glance:

• Revenue of $1.8bn, up 63% 

• Gold sales of 779,000 oz, up 62%

• Average gold price realised of $2,388, flat compared to last year

• All-in sustaining cost (AISC) of $1,613/oz, up 2% 

• Interim dividend of 10 cents per share, up 5% 

“We remain on track to meet our FY22 production guidance, which incorporates current WA border restrictions and the associated labour and cost impacts,” said Managing Director Stuart Tonkin.

The reaffirmed guidance includes full-year FY22 gold production between 1,550 - 1,659koz at an all-in cost between $1,475 - $1,575/oz. Gold production is weighted towards the second-half of FY22, driven by increasing grades and mining rates.

Northern Star said it expects all-in costs to progressively decrease throughout the year.  

“The Board declared a fully franked interim dividend of 10 cents per share, a return to shareholders of 27% of cash earnings. This return is consistent with our capital management framework while having regard to the need of maintaining a strong balance sheet and the ability to pursue value-adding investment opportunities,” added Tonkin. 

Northern Star shares will go ex-dividend on Monday, 7 March.