PERTH, April 3, 2026, 06:04 AWST
Northern Star Resources announced plans Thursday to buy back as much as A$500 million of its own shares. Preliminary gold sales for the March quarter came in at 381,000 ounces, the company said, putting the Australian miner on pace to reach its updated target: more than 1.5 million ounces for the full year.
These twin updates hit just ahead of Northern Star’s full March-quarter numbers. The buyback, then, stands out—hardly a vanilla return. Back in January, the company trimmed its 2026 output forecast, and by March 13, it was warning that even the bottom end looked tough after milling performance slipped at Kalgoorlie Consolidated Gold Mines, its Western Australia flagship. 1
Northern Star’s Thursday buyback spells out the math: up to 1.6% of the company’s issued capital. Their ASX filing capped the plan at 22.6 million shares, calculated using the A$22.10 price from April 1. The buyback starts April 23 and could continue right through to April 22, 2027.
The company said its buyback won’t affect the dividend policy—still set at 20% to 30% of cash earnings. Management signaled the repurchase could be paused or scrapped if market conditions or capital requirements shift. Under Australia’s 10/12 rule, the plan does not require a shareholder vote, since firms can repurchase up to 10% of shares over a 12-month stretch.
Stuart Tonkin, managing director, tied the decision to the anticipated jump in cash flow once the KCGM mill expansion gets underway. “Current share prices do not fully reflect the quality and future potential of our assets,” he said.
Northern Star reported March-quarter sales that brought nine-month sales up to 1.11 million ounces. The company maintained its full-year guidance above 1.5 million ounces through June 30, though hitting that target still rides on mill throughput at KCGM — essentially, how fast the plant can process ore. As for the new mill, commissioning is still expected in early fiscal 2027.
The old mill is still the wild card. Back in March, Northern Star pointed to softer-than-expected milling at KCGM and sluggish mining at Jundee for the dip in January-February sales. Tonkin made it clear: chasing quick ounces won’t come at the expense of switching to the new plant. The company also brought up diesel supply as a risk for miners across Australia, but noted it isn’t running into shortages right now. 2
Investors gave the capital return a warm reception. Northern Star jumped as much as 4.1% Thursday morning after the news, building on momentum in Australian gold stocks as bullion surged to $4,784.22 an ounce Wednesday—its best mark since March 19. Tim Waterer, chief market analyst at KCM Trade, pointed to “the potential of further upside” in gold, fueling gains not just for Northern Star but also for Evolution Mining in Wednesday’s session. 3
Northern Star had the financial flexibility for the decision. For the half ending Dec. 31, net cash stood at A$293 million, with underlying EBITDA at A$1.876 billion. The miner stuck with a 25 Australian cent interim dividend, even as it poured capital into the KCGM expansion and Hemi project. 1
Northern Star has been stepping up its expansion. Back in December 2024, the company signed off on an all-share acquisition of De Grey Mining, putting a A$5 billion price tag on the Australian gold developer—a move aligned with the broader push for consolidation, as surging gold prices gave miners more room to maneuver. 4
April 22 brings the next key update: Northern Star will release full March-quarter numbers and take questions on a results call. Should KCGM throughput hold steady, the buyback timing appears solid. But another slip, and the miner has already cautioned that this year’s results could still swing either way.
