Northern Star share price edges higher following ‘strong’ quarterly performance

The Northern Star Resources Ltd (ASX: NST) share price is edging higher on Wednesday.

This comes after the company released its operational and financial results to wrap up the fourth quarter of FY22.

At the time of writing, the Australian gold miner’s shares are up 0.59% to $6.80. Earlier, they were in the red before edging back into the green.

Let’s take a look to see how Northern Star performed over the 3-month period.

What did Northern Star report?

For the quarter ending 30 June, Northern Star delivered a strong result whilst managing current macroeconomic challenges.

Gold sold during the three months came to 402,069 ounces (oz) at an all-in sustaining cost (AISC) of $1,650/oz.

For FY22, the company sold a total of 1,561koz of gold at an ASIC of $1,633/oz. This is in line with the guidance range of 1,550-1,650koz at an ASIC of $1,600-1,640/oz.

Here’s a breakdown of Northern Star’s three operating assets:

Kalgoorlie’s performance was in-line with expectations. Its mines sold 213,310oz of gold at an AISC of A$1,791/oz.

On the other hand, Yandal lifted its performance to 121,601oz gold sold at an AISC of A$1,403/oz.

And lastly, Pogo delivered above second-half FY22 expectations with 67,158oz gold sold at an AISC of US$1,184/oz.

Northern Star advised it has a strong balance sheet with cash, bullion and investments of $812 million at 30 June.

Nonetheless, it appears investors are unfazed by the exceptional result, sending Northern Star shares in reverse.

The company is targeting FY23 guidance of 1,560-1,680koz gold sold at an AISC of A$1,630-1,690/oz. However, this will be mostly weighted towards the second half due to the scheduled ramp up of the Thunderbox mill expansion.

What did management say?

Managing director of Northern Star, Stuart Tonkin commented:

I am extremely proud of our team for delivering our FY22 guidance in a year that has seen extraordinary challenges. Further, we have maintained reliable operations over the past year and protected the health and wellbeing of our team.

The first full year of operating as the enlarged Northern Star has provided us a true understanding of the opportunities and requirements of our assets, particularly in this inflationary environment, and resulted in us increasing our FY23 capital budget. Our responsible approach to growth means we will be disciplined in how and when we spend the budget, at all times focused on maximising returns.

… Northern Star is in a strong position to deliver a successful FY23.

Northern Star share price snapshot

Over the last 12 months, the Northern Star share price has fallen 33% as the price of gold continues to wane.

Currently, the yellow metal is fetching at US$1,711 an ounce, down from its US$2,050 highs earlier in the year.

Northern Star is ASX’s second largest gold company with a market capitalisation of approximately $7.92 billion.

The post Northern Star share price edges higher following ‘strong’ quarterly performance appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has positions in Northern Star Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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