Perth, April 26, 2026, 22:03 AWST
Northern Star Resources Ltd bought back 455,738 ordinary shares on April 23, paying A$10.3 million in the first disclosed purchase under its on-market share buyback, a daily notice filed on Friday showed. The Australian gold miner can buy back up to A$500 million of stock under the program.
The timing matters because the buyback is now running while investors are still testing Northern Star’s operating reset at Kalgoorlie Consolidated Gold Mines, or KCGM, the company’s key Western Australian production centre. Northern Star has said its full-year output outlook remains tied to KCGM mill throughput, meaning the pace at which ore can be processed into saleable gold.
Northern Star shares last closed at A$21.86 on April 24, down 3.49% on the day, according to market data. The stock has fallen since the company released its March-quarter report on April 22, even as the buyback moved from approval to execution.
The buyback notice showed zero shares had been bought before April 23. Northern Star said the proposed start date was April 23 and the end date April 22, 2027, with Royal Bank of Canada named as broker and 22.6 million shares listed as the maximum number proposed for purchase.
Managing Director and Chief Executive Stuart Tonkin said earlier this month the buyback reflected confidence in the business and the “compelling value” seen in the share price. He also said current prices did not fully reflect the “quality and future potential” of Northern Star’s assets.
Northern Star sold 380,807 ounces of gold in the March quarter at an all-in sustaining cost, or AISC, of A$2,709 an ounce. AISC is a broad cost measure used by gold miners that includes operating costs and spending needed to sustain production. The company reported A$301 million in group underlying free cash flow and net cash of A$320 million.
On the results call, Tonkin said the quarter delivered higher-margin ounces and that the company was prioritising cash flow at KCGM by accelerating volumes from the high-grade Golden Pike zone while mill constraints remain. Chief Financial Officer Ryan Gurner said the balance sheet remained strong, with cash and bullion of A$1.2 billion at March 31.
The pressure point is still capital and execution. Northern Star said KCGM mill expansion spending for FY26 is now expected at A$680 million to A$700 million, above the earlier A$640 million to A$660 million range, because of poor construction productivity and cost inflation; the project remains on track for commissioning in early FY27.
The stock’s Friday fall came in a softer tape for several ASX gold names. MarketIndex data showed Evolution Mining down 1.11%, Emerald Resources down 2.42% and Ramelius Resources down 2.72% in the same sector table, putting Northern Star’s decline in a wider gold-equity pullback rather than a clean company-only move.
Brokerage Morgans took a more constructive view after the quarterly update, writing that gold sold at AISC of A$2,709 an ounce beat its revised expectations and that production improved across all three production centres. Morgans kept a buy rating and a A$30.00-a-share price target.
The risk is that the buyback does not carry much weight if KCGM throughput disappoints again, diesel prices add to costs, or Hemi approvals take longer than expected. Northern Star has kept FY26 guidance at more than 1.5 million ounces of gold sold and AISC of A$2,600 to A$2,800 an ounce, but it has already flagged both downside and upside potential around KCGM.
For now, the daily buyback notices will give investors a near-term read on how hard Northern Star is leaning into the program. After the April 23 purchase, the company said 22,168,696 shares remained available to be bought back under the stated maximum.
