NESRF - Northern Star Resources: Margins Surge Despite Q3 Setbacks

2024-04-28 12:42:44 ET

Summary

• Northern Star had a tough quarter in fiscal Q3 because of heavy rainfall in Australia, but still reported much higher production and cash flow with a strong quarter from KCGM.
• Although Q3 has left the company tracking well behind its guidance midpoint, fiscal Q4 will be a monster quarter and an even stronger FY2025 from KCGM with access to GPN.
• In this update we'll dig into the company's fiscal Q3 2024 results, recent developments, and how its valuation stacks up vs. peers.

The Q1 Earnings Season for the Gold Miners Index ( GDX ) began last week and the market has embraced the margin recovery with strong reactions out of two of the top three gold producers. Meanwhile, the Australian producers are busy reporting their calendar year Q1 (fiscal Q3 2024) results and the most recent major producer to report was Northern Star Resources ( NESRF ). Unfortunately, the company had a tough quarter due to minor setbacks at some sites exacerbated by heavy rainfall and will need a monster fiscal Q4 to meet its FY2024 guidance midpoint of ~1.68 million ounces. ...

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