Northern Star Resources Limited (ASX: NST) has provided a production update and announced plans for an on-market share buy-back worth up to $500 million.
Northern Star is the largest gold producer with a primary listing on the ASX. Its production centres are Kalgoorlie and Yandal in Western Australia and Pogo in Alaska, US. The company also owns the Hemi development project in the Pilbara, Western Australia.
Preliminary gold sold for the March quarter totalled 381koz. The company is forecast to deliver its revised FY26 production guidance of above 1.5Moz (9 months to date: 1,110koz). As previously disclosed, this result remains particularly dependent on mill throughput at KCGM, with downside and upside potential. The new KCGM mill remains on track for commissioning in early FY27.
While Northern Star is not currently experiencing any supply issues with diesel fuel, this remains a focus for the business and a key risk for the broader mining industry in Australia. Northern Star will continue to actively manage and monitor the situation and provide an update should there be a material change.
Taking into account Northern Star’s future expected operating and cash flow requirements, the board has unanimously approved an on-market share buy-back for up to $500 million to commence on or about 23 April 2026 and be completed within 12 months. The buy-back is subject to prevailing share price and market conditions and will be executed at the company’s discretion.
The buy-back aligns with Northern Star’s disciplined capital allocation priorities, which include returning cash to shareholders, investing in growth projects and maintaining a strong balance sheet. The share buy-back will not affect the company’s dividend policy to pay out between 20% and 30% of cash earnings.
Commenting on the company’s share buy-back, Northern Star managing director Stuart Tonkin said:
“Today’s announcement reflects our confidence in the strength of our business, the structural uplift in cash generation expected from the commissioning of the KCGM Mill Expansion and the compelling value we see in our share price.
“The on-market buy-back, representing up to 1.6% of issued share capital, is an efficient way to return capital to shareholders while also being immediately earnings and value accretive. We believe current share prices do not fully reflect the quality and future potential of our assets.”
Northern Star will release its March quarterly results on Wednesday, 22 April 2026.
