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BMO Capital has maintained its Outperform rating on Northern Star Resources (NST: AU) (OTC: NESRF) with a steady price target of AUD17.00. Northern Star Resources, a notable gold mining firm, disclosed its financial results for FY24, which included a second-half earnings per share (EPS) of A38 cents.
The figure fell short of both BMO Capital's and the consensus estimates, which were A42 cents and A41 cents, respectively.
Despite the lower-than-expected earnings, Northern Star demonstrated a robust year in production and benefited from rising gold prices. The miner reported a substantial liquidity position, with A$2.7 billion on hand. Alongside its financial results, Northern Star declared an unfranked dividend of A25 cents per share. Additionally, the company announced a 12-month extension of its A$300 million share buyback program.
Northern Star also reiterated its guidance for FY25, as well as its long-term growth objectives. The firm's solid performance and strategic plans underpin BMO Capital's decision to sustain its Outperform rating and A$17.00 price target.
In other recent news, Northern Star Resources has been the subject of attention due to its financial performance and strategic growth initiatives. The company reported an underlying EBITDA of AUD2,192 million, closely aligning with Jefferies' forecast. The firm also declared a final unfranked dividend of 25 cents per share, surpassing Jefferies' expectations.
Emphasizing its commitment to shareholders, Northern Star Resources has extended the timeline for the remaining AUD128 million of its AUD300 million share buyback program. In addition, the company confirmed that its capital expenditures at the KCGM project are fully funded by operational cash flow and a significant net cash position of AUD358 million.
The company also reported a 32% increase in underlying free cash flow for the June quarter, reaching AUD $189 million. This, coupled with a strong net cash position of AUD $359 million, underscores Northern Star's financial resilience.
Looking forward, Northern Star has set a production target of 1.65 to 1.8 million ounces of gold for FY'25. The company also has growth strategies in place to achieve the 2 million ounce mark by FY'26, with significant capital investments anticipated for the upcoming fiscal year.
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