Insights

Why the Northern Star (ASX:NST) share price is surging 7% today

Investors are reacting positively to the company’s performance update.
The post Why the Northern Star (ASX:NST) share price is surging 7% today appeared first on The Motley Fool Australia. –

Key Points

Northern Star shares up 6.86% to $9.35
Strong performance by Kalgoorlie and Yandal, but operations at Pogo lagging behind
On track to meet guidance for FY22

The Northern Star Resources Ltd (ASX: NST) share price is up and away on Thursday. This comes after the company released the results for its second quarter of FY22.

At the time of writing, the Australian gold miner’s shares are up 6.86% to $9.35.

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

What’s did Northern Star report?

The Northern Star share price is on the move in early morning trade following the company’s latest performance report.

For the quarter ending 31 December, Northern Star revealed a modest result whilst managing COVID-19 impacts.

Gold sold during the three months totalled 392,655 ounces at an all-in sustaining cost (AISC) of $1,631 per ounce.

Northern Star noted that Kalgoorlie and Yandal continue to perform in line with expectations. On the other hand, Pogo delivered below expectations but is well-positioned to increase mining rates in the second-half of FY22.

Despite the small hiccup, the company advised it is on track to meet its FY22 guidance of 1.55 million ounces to 1.65 million ounces. AISC is also expected to be in the range of $1,475 to $1,575 per ounce.

Net mine cash flow for the quarter came to $175 million. This is due to the company investing $150 million in growth capital and $28 million in exploration activities.

Northern Star declared a healthy balance sheet with $774 million in liquidity, excluding $700 million in undrawn available facilities. Cash and bullion stood at $588 million, along with $300 million in corporate bank debt.

The company’s hedge book (total outstanding contracts and transactions) is at 1.13 million ounces at an AISC of $2,405 per ounce.

Management commentary

Northern Star managing director, Stuart Tonkin touched on the company’s performance, saying:

During the quarter we safely advanced our growth strategy towards becoming a 2Mozpa producer and entered into a convertible funding agreement with Osisko Mining that we believe has the potential to deliver significant value for shareholders.

We remain on track to meet our FY22 guidance, which incorporates the current WA border closure and associated labour and cost impacts. Our experience at Pogo in Alaska has provided examples of the disruption we may face in WA and the mitigating actions required to reduce operational impact.

About the Northern Star share price

Over the last 12 months, Northern Star shares have failed to take off, dropping more than 30%. In 2022 alone, the company’s shares are relatively flat.

Based on valuation grounds, Northern Star is ASX’s 50th largest company with a market capitalisation of approximately $10.82 billion.

The post Why the Northern Star (ASX:NST) share price is surging 7% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Northern Star right now?

Before you consider Northern Star, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Northern Star wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

5 things to watch on the ASX 200 on Wednesday

Is the Northern Star (ASX:NST) share price trading at attractive levels?

5 things to watch on the ASX 200 on Tuesday

5 things to watch on the ASX 200 on Monday

5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Aaron Teboneras owns 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Free Share Allocation Reward Levels

STARTER

Class
$ 2,500 Deposit & Trade
  • REWARD^
  • 1 x Marathon Oil Corporation (NYSE:MRO)

ECONOMY

Basic
$ 5,000 Deposit & Trade
  • REWARD^
  • 1 x Pfizer Inc (NASDAQ:PFE)

ECONOMY

Standard
$ 10,000 Deposit & Trade
  • REWARD^
  • 1 x Amazon.com Inc (NASDAQ:AMZN)

ECONOMY

Plus
$ 25,000 Deposit & Trade
  • REWARD^
  • 2 x Apple Inc (NASDAQ:AAPL)
POPULAR

BUSINESS

Class
$ 50,000 Deposit & Trade
  • REWARD^
  • 4 x Apple Inc (NASDAQ:AAPL)

FIRST

Class
$ 150,000 Deposit & Trade
  • REWARD CHOICES^
  • 12 x Apple Inc (NASDAQ:AAPL)
  • 2 x Tesla (NASDAQ:TSLA)
^Please refer to the Free Share Promotion Terms and Conditions for details.

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info