Ann: June 2025 Quarterly Activities Report, page-41

from yesterdays $tockhead!
Northern Star Resources (ASX:NST), for instance, reported record underlying free cash flow of $536 million for FY25 on Thursday, after selling 1.634Moz at an all in sustaining cost of $2163/oz.
It has a whopping $1.914bn cash on the balance sheet with net cash of $1.013bn after its deal to acquire De Grey Mining, which brought a cash pile with it alongside its world-class Hemi gold project.
Cash earnings are expected to clock in at $2.8-2.95bn, with Northern Star also winding down hedging commitments to reflect its balance sheet strength.
Yet, NST shares have shed close to 5% over the past week and over 18% in the last month.
Despite gold prices climbing 28% YTD, NST shares have barely budged.
Dilution from the DEG deal is one thing, but there are also concerns that future earnings will be chewed up by increased capex, especially around its critical Kalgoorlie hub and Super Pit gold mine.
Citi downgraded its price target this week from $18 to $21 and reduced EBITDA estimates going forward between 3-7%.
Analysts are also questioning the timeliness of numbers on a project to expand the KCGM business and processing plant.
MD Stuart Tonkin admitted on an earnings call the operating cost of $1425/oz could be old given the run up in gold prices since the decision was taken. But he maintains it will still be one of the top cash spinners globally.
“That $1425 (an ounce) is perhaps a stale number, albeit this asset will be a top 5 global gold mine, and it will be setting inside the third lowest quartile global cost curve, and that’s been the investment case,” Tonkin said.
“So relative it will generate as much cash flow as anything globally.”