Northern Star Resources launches up to $346M buyback, reaffirms outlook

Australian gold miner Northern Star Resources said on Thursday it would launch a share buyback of up to A$500 million ($346.4 million) and reaffirmed its fiscal 2026 gold production outlook of above 1.5 million ounces.

On a preliminary basis, the company sold 381,000 ounces of gold in the quarter ended March 31, compared with 385,000 ounces sold in the prior corresponding period.

The buyback, equal to up to 1.6% of Northern Star’s issued share capital, is expected to start on or about April 23 and run for up to 12 months, the miner said.

“We believe current share prices do not fully reflect the quality and future potential of our assets,” managing director Stuart Tonkin said.

In mid-March, Northern Star lowered its fiscal 2026 production forecast to 1.5 million ounces from the previous range of 1.6 million to 1.7 million ounces, flagging operational setbacks at its Kalgoorlie Consolidated Gold Mines (KCGM) in Western Australia.

The company said it produced 1.11 million ounces of gold in the nine months to April 2, adding the full-year outcome would remain particularly dependent on mill throughput at KCGM.

“While the company is not currently experiencing any supply issues with diesel fuel, this remains a focus for the business and a key risk for the broader mining industry in Australia,” Northern Star added.

The new KCGM mill remained on track for commissioning in early fiscal 2027, a key milestone in its efforts to lift production and improve operational flexibility at the flagship asset.

($1 = 1.4434 Australian dollars)

(By Keshav Singh Chundawat; Editing by Shreya Biswas)