Northern Star Resources Reports Strong Second Quarter Earnings for FY2023
March 3, 2023
Earnings report
Northern Star Resources ($ASX:NST) has reported their earning results for the second quarter of FY2023, ending on December 31st, 2022. The company’s total revenue for this quarter reached AUD 47.7 million, a decrease of 81.7% compared to the same quarter of the previous year. Despite the year-on-year decrease in total revenue, Northern Star Resources has fared better than expected, recording a net income of AUD 1948.7 million in the quarter, a 7.9% increase from the same quarter of the previous year. This sentiment is echoed by shareholders who are expecting steady returns for the upcoming financial year.
The strong second quarter earnings reported by Northern Star Resources is a testament to their commitment to providing investors with value and profitability. With careful investments and prudent strategies, the company is poised to continue its robust performance in the coming quarters.
Market Price
Northern Star Resources, a mining and exploration company, recently released its second quarter report for the financial year of 2023. The results were strong, demonstrating growth in profits and sales for the quarter. On Monday, the company’s stock opened at AU$11.1, and closed at AU$11.2, a modest 1.5% decrease from last closing price of AU$11.4. Despite this, Northern Star Resources appears to be in solid financial standing as we move into the third quarter of the current fiscal year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for NST. More…
| Total Revenues | Net Income | Net Margin |
| 3.88k | 216.5 | 5.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for NST. More…
| Operations | Investing | Financing |
| 1.45k | -1.11k | -465.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for NST. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 11.1k | 3.05k | 7 |
Key Ratios Snapshot
Some of the financial key ratios for NST are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 34.5% | -1.8% | 8.1% |
| FCF Margin | ROE | ROA |
| 8.6% | 2.4% | 1.8% |
Analysis
At GoodWhale, we recently conducted an analysis of NORTHERN STAR RESOURCES’ financials. Based on our Risk Rating, NORTHERN STAR RESOURCES is classified as a medium risk investment when it comes to both financial and business aspects. Further, we detected two risk warnings in the income sheet and balance sheet which you can check out on our website if you register. Our analysis provides investors an overall view of the company’s financial condition by focusing on various indicators like liquidity, solvency and profitability. All in all, we can help you with your due diligence to make better informed financial decisions. More…
Peers
Northern Star Resources Ltd is an Australian-based gold exploration and production company, operating in Western Australia and the Northern Territory. Its main competitors in the region are Beacon Minerals Ltd, Western Gold Resources Ltd, and Riversgold Ltd. All four organizations are significant players in the gold industry, with a strong presence in the region.
– Beacon Minerals Ltd ($ASX:BCN)
Beacon Minerals Ltd is a mineral exploration and development company focused on gold and nickel projects in Western Australia. With a market cap of 101.43M as of 2022, Beacon Minerals has a strong financial position that is supported by its Return on Equity of 24.66%. The company’s healthy financial position has enabled it to focus on the development of its gold and nickel projects, which has yielded positive returns over the past few years. Beacon Minerals’ strong market cap and ROE indicate that the company is well positioned to continue its success in the future.
– Western Gold Resources Ltd ($ASX:WGR)
Western Gold Resources Ltd is a gold exploration and development company based in British Columbia, Canada. The company is focused on the exploration and development of its flagship property, the Jewel Ridge Gold Project, located in the Walker Lane mineral belt of Nevada. As of 2022, the company has a market cap of 6.02M. The return on equity (ROE) for Western Gold Resources Ltd is -201.61%, which indicates an overall loss in profitability. The negative ROE reflects the poor performance of the company, as it has been unable to generate sufficient returns from its investments. Despite this, the company continues to invest in exploration and development activities in order to identify potential new sources of gold in the region.
– Riversgold Ltd ($ASX:RGL)
Riversgold Ltd is a mining and exploration company that engages in the exploration, extraction, and processing of gold and other minerals. With a market cap of 22.51M as of 2022, the company has strong potential for growth and profitability. However, its Return on Equity (ROE) of -97.5% indicates that the firm is operating with a significant amount of debt, making it difficult for the company to generate profits. Despite this, Riversgold Ltd’s strong balance sheet, experienced management team and high-grade gold reserves make it an attractive investment opportunity.
Summary
Northern Star Resources has recently reported its quarterly financial results for the quarter ending December 31st. Total revenue was AUD 47.7 million, a sharp decline of 81.7% from the same quarter in the prior year. Despite this revenue decline, the firm reported a modest increase in net income of 7.9%, bringing it to AUD 1948.7 million in the quarter.
Despite the decline in revenue, investors may be encouraged by the net income increase and the cost cutting efforts that Northern Star appears to have implemented since last year. Overall, these results suggest that the company is continuing to stay competitive in the market and could be a viable investment opportunity.
