Northern Star Resources Ltd (ASX: ASX:NST) shares are showing resilience in the face of a broader market decline. While the S&P/ASX 200 Index (ASX: XJO) experienced a 1% drop, Northern Star's share price increased by 2%, rising from $14.35 to $14.64 per share in Thursday morning trading.
The positive movement in Northern Star's share price, an ASX 200 stock, follows the release of its quarterly update for the three months ending June 30. The update revealed a significant increase in underlying free cash flow, with FY 2024 figures reaching $462 million, up from $359 million in FY 2023. During the June quarter, the company generated $189 million in underlying free cash flow.
Northern Star sold a total of 439,000 ounces of gold during the quarter, with an all-in sustaining cost (AISC) of $1,815 per ounce (US$1,196/oz). The company's major growth projects, including the KCGM Mill Expansion, contributed to an all-in cost (AIC) of $2,750 per ounce.
The Pogo gold mine, operated by Northern Star, an ASX-listed mining stock, achieved record quarterly gold sales of 91,000 ounces, translating to an annualized rate of 363,000 ounces. The mine also reported a record net mine cash flow. For FY 2024, Northern Star met its sales and cost guidance, with total gold sold reaching 1.621 million ounces at an all-in sustaining cost (AISC) of $1,853 per ounce.
The company's financial position remains strong, with a net cash position of $359 million and cash and bullion totaling $1.25 billion. Additionally, Northern Star has progressed significantly on its $300 million on-market share buy-back program, with $172 million already spent, representing 57% of the total.
Stuart Tonkin, Managing Director of Northern Star, highlighted the company's record performance during the June quarter, particularly noting the successes at Thunderbox and Pogo. Tonkin expressed optimism for FY 2025, emphasizing ongoing projects such as the KCGM Mill Expansion and the Yandal hub strategy. He reiterated the company's commitment to its five-year profitable growth strategy, aiming to achieve a production level of two million ounces by FY 2026 and increased free cash flow.
With the recent share price movements included, Northern Star’s shares have appreciated by 25% over the past year, reflecting investor confidence in the company's growth trajectory and financial stability.