Sydney, April 24, 2026, 08:30 AEST
- Northern Star sold 380,807 ounces of gold in the March quarter, booking an all-in sustaining cost of A$2,709 per ounce. Underlying free cash flow landed at A$301 million.
- The company reaffirmed guidance for FY26 at above 1.5 million ounces of gold sold, while its A$500 million on-market buyback is slated to kick off around April 23.
- Jarden trimmed its price target for Northern Star to A$22.30 from A$22.50, sticking with its Underweight call. The average target among analysts surveyed by FactSet stands at A$27.87.
Northern Star Resources is kicking off a planned A$500 million share buyback, opening the window after its March quarter numbers came in strong enough for the Australian gold miner to maintain annual guidance. Kalgoorlie, though, remains the tougher nut to crack.
The timing is key here. Investors have to balance the prospect of a capital return with execution risks at Kalgoorlie Consolidated Gold Mines, Northern Star’s core operation in Western Australia. Back in March, Northern Star cautioned that its full-year production would depend largely on how much ore the current KCGM mill could process.
Gold sales for the March quarter hit 380,807 ounces, beating December’s tally. All-in sustaining cost (AISC) came in at A$2,709 per ounce. That metric wraps up both operating expenses and the capital needed to sustain output. By site: Kalgoorlie booked 210,312 ounces, Yandal moved 104,922, and Pogo in Alaska accounted for 65,573 ounces.
Northern Star reported an average realised gold price of A$5,283 per ounce, which brought in A$2.01 billion in gold revenue. As of March 31, cash and bullion holdings totaled A$1.18 billion. After distributing a A$347 million dividend, the miner was left with A$320 million in net cash.
Managing Director and Chief Executive Stuart Tonkin pointed to “improved operational performance” for the quarter, but cautioned that the outlook remains “particularly dependent” on KCGM mill throughput. As for the buyback, he cited “compelling value” in the share price, adding that expected cash from the Fimiston processing plant ramp-up was a factor.
Northern Star left its FY26 targets unchanged, sticking with guidance for over 1.5 million ounces sold and an AISC range of A$2,600 to A$2,800 an ounce. The miner is also projecting FY26 growth capex at A$2.315 billion to A$2.425 billion, with the KCGM mill expansion now expected to cost A$680 million to A$700 million—a bump from earlier estimates.
The KCGM project aims to boost processing capacity to 27 million tonnes annually, up from the current 13 million. Stage I is still slated for commissioning in early FY27. As for Stage II—this involves folding the Gidji facility into the expanded Fimiston mill—that’s due for completion before year-end.
The cushion is thin. Northern Star flagged that the June quarter will see fewer gold sales and face steeper diesel costs. Cost pressures and lagging construction productivity have already driven up the KCGM expansion budget. As for the buyback, it’s up in the air—management made it clear there’s no guarantee they’ll repurchase the full amount, or even any at all.
Shares in Northern Star ended April 23 at A$22.65, slipping 0.66% for the day and now off 15.26% year to date, according to MarketScreener. Analyst targets on the site mostly sit higher than Tuesday’s close, but Jarden’s move to trim its target down to A$22.30 signals not every broker is buying into a full rebound just yet.
The wider gold story still leans bullish, though it’s a tricky environment. Newmont—the top global gold miner and an Australian peer—topped profit forecasts last quarter, thanks to all-time high gold prices that cushioned its production dip. Still, it warned about softer output and steeper costs in the second quarter. Northern Star is in a similar position: strong bullion prices are a tailwind, but the market’s re-rating hinges on how well the company delivers.
Northern Star runs its core business out of Western Australia and Alaska. KCGM covers assets like the Super Pit, Mt Charlotte, plus the Fimiston and Gidji processing facilities. Investors are now waiting for June-quarter results, updates on how KCGM commissioning is unfolding, and news on the Hemi development approval process. The company is shooting for a green light on Hemi in FY27.
