PERTH, April 25, 2026, 05:05 (AWST)
Northern Star Resources Ltd repurchased 455,738 shares for A$10.3 million on April 23, according to a company filing released Friday. This marks the first reported buy under its on-market program, which allows for up to A$500 million in purchases. In this approach, shares are acquired directly through exchange trading rather than via a tender offer.
The capital return kicks off right as investors are watching to see if Northern Star’s March-quarter cash flow can translate into more reliable production at Kalgoorlie, the company’s flagship site in Western Australia. For the March quarter, the gold miner logged sales of 380,807 ounces. All-in sustaining cost came in at A$2,709 per ounce—AISC folds in both operating expenses and the investments required to keep production going.
The company announced plans for a buyback of up to 22.6 million shares, with Royal Bank of Canada handling the broker role. On the first day, shares were picked up at prices ranging from A$22.32 to A$22.91. That initial round leaves roughly 22.2 million shares remaining under the previously stated cap.
Northern Star is sticking with its fiscal 2026 outlook: gold sales topping 1.5 million ounces and all-in sustaining costs running between A$2,600 and A$2,800 per ounce. For the March quarter, Kalgoorlie delivered 210,312 ounces, Yandal posted 104,922 ounces, and the Pogo mine in Alaska produced 65,573 ounces.
Stuart Tonkin, Managing Director and Chief Executive, described the buyback as a sign of “confidence” in the company and the cash flow that should come from the new Fimiston processing plant. Still, he cautioned that Northern Star’s prospects are linked to mill throughput at KCGM—there’s room for gains, but risks too.
During the quarterly call, Tonkin pointed to better performance as the driver behind “high-margin ounces” and A$301 million in group underlying free cash flow. At KCGM, the focus is firmly on cash flow, with the company pushing ahead on high-grade Golden Pike ore while mill constraints persist. Seeking Alpha
Northern Star shares ended Friday at A$21.86, dropping 3.49%. Over the past week, MarketScreener data put the loss at 10.04%, with the stock now down 18.22% for the year. Jarden maintained its underweight stance, trimming its price target to A$22.30 from A$22.50.
Gold miners are seeing cash pile up as bullion prices stay elevated, but expenses remain a headache. Newmont—the sector’s heavyweight and a key benchmark for big players with Australian operations—topped first-quarter profit forecasts and greenlit another $6 billion for buybacks. Even so, it flagged higher unit costs ahead for this quarter.
Northern Star operates three major production hubs spread across Western Australia and Alaska. Near Kalgoorlie-Boulder, roughly 600 kilometres from Perth, sits KCGM—home to the Fimiston Open Pit (also called the Super Pit), the Mt Charlotte Underground Mine, plus the Fimiston and Gidji processing plants.
The company reiterated that the KCGM mill expansion is still scheduled to start up in early fiscal 2027. In parallel, it’s pushing ahead with engineering and approval processes for the Hemi development, aiming for a final investment decision in fiscal 2027, pending permits and signoff.
The risk is hard to miss. Northern Star bumped up its projected fiscal 2026 KCGM mill expansion budget to A$680 million-A$700 million, up from its earlier A$640 million-A$660 million range, blaming sluggish construction and rising costs. It also flagged higher diesel prices for the June quarter. A buyback might help returns, but it won’t solve a mill bottleneck.
