Northern Star tracks downgraded guidance after Q3 update, plans $500m buyback
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The news: Gold miner Northern Star said it remains on track to deliver its twice-downgraded FY26 production guidance of “above 1.5 million ounces”, having produced 1.11 million ounces in the first nine months of the financial year.
The miner also announced plans for an on-market share buyback of up to $500 million, commencing on 23 April and running for 12 months.
The context: Northern Star said it is not currently experiencing any supply issues with diesel fuel, though this “remains a focus for the business and a key risk for the broader mining industry in Australia”.
“Northern Star will continue to actively manage and monitor the situation and will provide an update should there be a material change,” the company said.
Northern Star said the buyback aligns to its existing capital allocation priorities, including returning cash to shareholders, investing in growth projects and maintaining a strong balance sheet.
It will not affect the company’s dividend policy to pay out between 20% and 30% of cash earnings, it said.
What they said: “The on-market buyback, representing up to 1.6% of issued share capital, is an efficient way to return capital to shareholders while also being immediately earnings and value accretive,” Northern Star managing director Stuart Tonkin said.
“We believe current share prices do not fully reflect the quality and future potential of our assets.”
