ASX-listed Northern Star Resources Ltd. (AU:NST) soared on Wednesday following a strong quarterly update. The company also confirmed its FY24 guidance and remains on track to achieve it. The Northern Star share price gained 6.04% in trading today. However, the stock is trading down by 6.63% year-to-date.
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Northern Star is a mining company focused on developing gold resources through its projects in North America and Australia.
Robust Q2 Earnings and Bullish FY24 Outlook
During the quarter that ended on December 31, 2023, Northern Star achieved a total gold sales volume of 412,000 ounces at an all-in-sustaining cost (AISC) of AU$1,824 per ounce. The estimated first-half cash earnings of $685 million to $715 million mark a significant increase from the H1 FY23 figure of $467 million.
The highlight of the update was net cash of AU$238 million at the end of the December quarter, reflecting the strong balance sheet position.
For the full year, Northern Star confirmed gold sales guidance in the range of 1.60 million to 1.75 million ounces, with an AISC of AU$1,730 to AU$1,790 per ounce. The company’s strong financial position and a fully-funded growth program for FY24 continue to enhance investor confidence. Also, the Northern Star share price could gain further momentum from the remaining buyback plan worth AU$131 million.
Is Northern Star a Good Buy?
According to TipRanks, NST stock has a Moderate Buy consensus rating backed by three Buy and three Hold recommendations. The average price forecast for 12 months is AU$13.87, which is 8.6% higher than the current price.
