Full Year 2026 Northern Star Resources Ltd Earnings Call Transcript
Key Points
- Northern Star Resources Ltd (NESRF) delivered a strong financial performance in FY26, with underlying EBITDA up 22% to $4.3 billion and cash earnings of $2.9 billion.
- The company maintained a robust balance sheet, ending the year with $1.2 billion in cash and bullion, and retaining three investment-grade credit ratings.
- Shareholder returns remained a priority, with a fully franked final dividend of $0.30 per share, bringing the total FY26 dividend to $0.55 per share, alongside a $129 million share buyback.
- The KCGM mill expansion is on schedule, with commissioning underway and Stage 2 expected to deliver improved recoveries and eliminate concentrate haulage, positioning the asset for increased earnings and cash flow.
- The company continues to grow its resource base, ending with 88.9 million ounces of mineral resources and 28.4 million ounces of ore reserves, supporting a production profile of more than 10 years.
- Exploration remains a high-value investment, with resource additions achieved at an attractive average cost of $23 per ounce during the year.
- FY27 production guidance of 1.5 million to 1.65 million ounces is expected to be weighted to the second half, reflecting planned major shutdowns and the KCGM commissioning ramp-up.
- All-in sustaining costs are forecast to rise to $3,050-$3,450 per ounce in FY27, impacted by approximately 5% inflation, higher royalties, and increased oil price assumptions.
- The company faces operational challenges, including a rationalized mine plan at Jundee that reduces primary ore production in FY27, supplemented by lower-grade stockpiles.
- Total capital investment for FY27 is significant at $2.6 billion to $2.9 billion, with a large portion allocated to growth capital and the Hemi project, which carries execution and approval risks.
- The KCGM ramp-up carries inherent risks, with guidance reflecting a balanced assessment of potential downside scenarios related to ramp-up performance, stockpile grade variability, and recovery rates.
- The Hemi project's final investment decision is targeted for late FY27, subject to external approvals, which introduces uncertainty regarding the project's timeline and capital expenditure.
Thank you for standing by, and welcome to the Northern Star FY26 financial results. (Operator Instructions)
I would now like to hand the conference over to Mr. Stuart Tonkin, Managing Director and CEO. Please go ahead.
Good morning, and thanks for joining us on the call today. As this is my last market call, I'll speak briefly on my tenure at Northern Star Resources and then hand over to Ryan Gurner to present the highlights for the financial year and the outlook for FY27. There's been a lot to focus on in the recent trading period. But for those that have been here with me on the journey for the past 13 years, we've been on an incredible journey and had some real fun along the way.
During that time, we've seen annual gold production increase twentyfold. We've enjoyed a 30 times uplift in share price from $0.70. Over the 13 years, gold resources have grown 40 times to 89 million ounces, and market capitalization is up 100 times from
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