Australia-based gold miner Northern Star CEO Stuart Tonkin on Tuesday highlighted the company’s strong financial position, describing it as “exceptional”, with an investment-grade balance sheet that remains in a net cash position of A$265-million at the end of December.

Reporting on the company’s December quarter and half-year results, he stated that Northern Star’s total cash and bullion holdings reached A$1.2-billion, positioning the gold miner to fully fund all its capital management initiatives.

“We remain in a net cash position and are well-positioned to fund all our capital management initiatives,” Tonkin said.

For the first half of the 2025 financial year, Northern Star estimates cash earnings of between A$1.13-billion and A$1.17-billion, compared with A$701.7-million recorded during the same period in the 2024 financial year.

The company’s dividend policy remains based on 20% to 30% of cash earnings, ensuring robust shareholder returns, adds CFO Ryan Gurner.

He noted that all three production centres – Kalgoorlie, Yandal and Pogo –  delivered positive free cash flow during the period, with capital expenditure and exploration fully funded.

Operationally, the company sold 410 000 oz of gold during the December quarter at an all-in sustaining cost of A$2 128/oz ($1 391/oz). Production at the KCGM operations is expected to increase in the second half of the financial year following the completion of East Wall remediation and consecutive quarterly improvements in underground development rates.

The Yandal operations achieved record net mine cash flow, supported by the Jundee and Thunderbox mills operating at nameplate capacity.

Meanwhile, Pogo, in Alaska, delivered 71 000 oz of gold, with the mill reaching an annualized run rate of 1.5-million tonnes a year.

Further, Northern Star stated that it was advancing its acquisition of De Grey Mining through a recommended scheme of arrangement. Upon completion, which remains subject to De Grey shareholder and court approvals, the company will integrate the Hemi development project in Western Australia into its portfolio.

Tonkin highlighted Hemi as a Tier 1 future production centre that aligned with Northern Star's focus on delivering low-cost production and superior returns to shareholders.