Cost pressures for Northern Star

Rising cost pressures and a soaring gold price have resulted in Northern Star Resources revising its all-in-sustaining-cost guidance for the 2024 financial year.

The Stuart Tonkin-led goldminer told the market its AISC would rise from between $1,730 and 1,790 per ounce to $1,810-1,860/oz, in a week where the spot price of gold hit a record $US2,364/oz. 

Despite weather affecting the northern Goldfields at times throughout the March 2024 quarter, Northern Star produced 401,000oz, which was down from 412,000oz during the December 2023 quarter.

The company is confident of a strong finish, due to having garnered positive momentum since the beginning of its final quarter. 

In addition, the Super Pit owner said it had $174 million net cash on hand, and was on course to reach its 2024 financial year annual gold sold guidance of between 1.6 million and 1.9 millionoz. 

Mr Tonkin said shareholder value remained a high priority for the company.

"Our profitable growth strategy coupled with elevated gold prices is expected to deliver significant cashflow generation, and in turn, superior shareholder returns," he said. 

Northern Star's underlying net profit after tax climbed 287 per cent during the first six months of the 2024 financial year from $55 million to $211 million, while its underlying earnings before interest, tax, depreciation and amortisation jumped by 41 per cent from $633 million to $889 million. 

As of 10.30am WST, Northern Star was trading at $15.41 per share, up 3 per cent.