Perth, April 28, 2026, 05:09 AWST
Northern Star Resources has bought back 923,598 shares in the first two trading days of its new on-market buy-back, a fresh filing showed, putting its A$500 million capital return plan back in focus after a choppy week for the Australian gold miner. The company bought 467,860 shares on April 24 after purchasing 455,738 shares a day earlier, paying about A$20.6 million across the two sessions.
The timing matters. Northern Star is trying to show investors it can fund both shareholder returns and heavy growth spending at Kalgoorlie Consolidated Gold Mines, or KCGM, while recovering from earlier operating setbacks. Its shares closed Monday at A$22.14, up 1.28% on the day but down 6.82% over the week.
The buy-back is also a test of management’s argument that the market has marked down the stock too far. Northern Star said this month its board had approved an on-market buy-back, meaning it will repurchase shares through normal exchange trading, of up to A$500 million over 12 months. Managing Director Stuart Tonkin said at the time that the price did not “fully reflect the quality and future potential” of the miner’s assets.
The latest filing showed 21.7 million shares remained available to be bought back under the maximum programme, which was calculated at 22.6 million shares based on a A$22.10 closing price on April 1. The broker named for the buy-back is Royal Bank of Canada.
Northern Star’s March-quarter numbers gave the programme some backing. The company sold 380,807 ounces of gold at an all-in sustaining cost, or AISC — a miner’s cost measure that includes operating costs and sustaining capital — of A$2,709 an ounce. It reported A$301 million in group underlying free cash flow and A$426 million in net mine cash flow.
The company maintained fiscal 2026 guidance for more than 1.5 million ounces of gold sold and AISC of A$2,600 to A$2,800 an ounce. It also kept the KCGM mill expansion on track for commissioning in early fiscal 2027, although full-year growth capital expenditure is now forecast at A$2.315 billion to A$2.425 billion.
On the results call, Tonkin said the quarter had delivered “high margin ounces” and A$301 million in free cash flow, helped by accelerated volumes from the high-grade Golden Pike zone at KCGM while mill capacity remains constrained. He added that the outlook still depended on KCGM mill throughput, with “both downside and upside potential.” Investing
Finance chief Ryan Gurner defended the capital return when asked about the buy-back, saying repurchasing stock was “some of the most accretive capital allocation” available to the company, according to a transcript of the call. He said Northern Star expected a lift in cash flows as the new KCGM mill comes on. Investing
But the plan still leans on execution. Northern Star said KCGM mill expansion spending had risen because of poor construction productivity and cost inflation, while June-quarter costs are expected to feel pressure from higher oil prices. The company also said work at Hemi, its Pilbara development project, was still moving through approvals and design optimisation.
The market has not fully let the company off the hook. Jarden kept an Underweight rating on Northern Star and cut its target price to A$22.30 from A$22.50 after the March-quarter update, MarketScreener reported.
The move sits inside a firmer tone for Australian gold names, not a broad market lift. Evolution Mining rose 2.51% on Monday while the ASX 200 slipped 0.23%, according to Trading Economics data; Northern Star’s own 1.28% gain left it behind that local peer on the day.
Northern Star remains one of Australia’s larger gold producers, with operations across Western Australia and at Pogo in Alaska. Its key test over the next few months is less about the buy-back headline and more about whether KCGM throughput, fuel costs and project spending move in line with the tighter guidance it has now put in front of investors.
