PERTH, March 30, 2026, 01:16 AWST
- Northern Star issued 388,238 new shares under its dividend reinvestment plan, following the payment of a 25 Australian cent interim dividend.
- Shares went out at A$26.36 apiece, totaling roughly A$10.2 million in reinvested dividends.
- After NSR Limited’s March 13 FY26 output warning, investors have their eyes on the miner’s next quarterly results, due April 22.
Northern Star Resources on Thursday announced it will quote 388,238 new ordinary shares through its dividend reinvestment plan, letting shareholders opt for stock rather than a cash payout. The DRP price landed at A$26.36 per share, putting the total value of these reinvested dividends near A$10.2 million.
The timing of the filing comes into play because the price was pegged to the volume-weighted average traded from March 6 to March 12, yet DRP elections had already wrapped up on March 6. Then, just seven days later, Northern Star flagged challenges in reaching the lower end of its FY26 production guidance, which left the DRP price sitting roughly 42% higher than the A$18.55 where the stock finished on March 27.
Back on March 13, the Perth miner pointed to softer mill performance at Kalgoorlie Consolidated Gold Mines (KCGM) and sluggish mining activity—most notably at Jundee—as the main culprits limiting gold sales to 220,000 ounces for January and February. Looking ahead, the company projects FY26 production north of 1.5 million ounces, though it notes output will still hinge on how much KCGM can push through the plant.
The fresh stock offering barely dents Northern Star’s 1.431 billion shares on issue post-quotation—roughly 0.03% dilution. This looks like standard capital management, not a new equity raise.
Even so, Northern Star remains entrenched in a high-expenditure cycle. Back in February, the company projected FY26 growth capital spending between A$2.315 billion and A$2.425 billion, covering both the KCGM mill expansion and the Hemi development project—brought on board with the De Grey takeover slated for 2025.
Back in February, Stuart Tonkin pointed to “resilience and growing returns” in the first-half numbers, which let the board sign off on a fully franked 25 Australian cent interim dividend—tax credits included—despite what he called “a soft operating performance.” As of Dec. 31, Northern Star held A$293 million in net cash, with A$1.176 billion in cash and bullion. NSR Limited
But on March 13, Tonkin changed tack. Management, he said, had “heard the clear feedback from our investors” and planned to provide a fuller medium-term view on production, costs, and capital spending later this year. The KCGM mill expansion remains slated for early FY27 commissioning. NSR Limited
Morningstar equity analyst Jon Mills, CFA, trimmed his earnings outlook for fiscal 2026-28 following the downgrade, citing reduced production expectations, mainly because of the older KCGM mill. Mills expects the planned, bigger replacement mill will fix most output challenges but now factors in a more gradual ramp-up. He’s sticking with his A$15 fair value estimate.
KCGM could drop back before the new plant is ready. Northern Star flagged FY26 production as a swing factor, with both downside and upside in play depending on throughput. Mills, for his part, expects a slower ramp—so analysts aren’t betting on a fast turnaround.
Northern Star’s next scheduled update comes April 22, with March-quarter numbers and additional FY26 production and cost guidance expected. The DRP’s impact is marginal—just 0.03% of shares—so attention is squarely on that quarterly report as the key event ahead.
