Northern Star Resources Ltd (ASX: NST) shares are slipping today.
Shares in the S&P/ASX 200 Index (ASX: XJO) gold stock closed yesterday trading for $16.27. At the time of writing, shares are changing hands for $16.02 apiece, down 1.6%.
That leaves the Northern Star share price up 12.1% since this time last year.
This beats the 10.2% one-year gains delivered by the ASX 200.
But it significantly underperforms the 38.7% 12-month gains posted by the S&P/ASX All Ordinaries Gold Index (ASX: XGD), with most gold stocks surging higher alongside the fast-rising gold price.
Gold is currently trading for US$3,368 per ounce, up 40.5% in a year.
Now, we shouldn't forget about Northern Star's dividends.
Over the past year, the ASX 200 gold miner paid out two dividends totalling 50 cents per share. That sees Northern Star trading at an unfranked trailing dividend yield of 3.2%.
Which brings us back to our headline question.
With Northern Star shares now down 30.4% since trading at all-time closing highs of $23.01 a share on 22 April, is the miner now trading for a bargain?
Image source: Getty Images
Should I buy the big dip on Northern Star shares?
Morgans' Damien Nguyen recently offered his verdict on the ASX 200 gold miner (courtesy of The Bull).
"NST is one of Australia's leading gold producers," Nguyen said, commenting before the release of Northern Star's June quarterly update on Thursday.
"The stock was recently down by almost 30% from its 2025 peak, driven by softer-than-expected production and a cost-heavy outlook for fiscal year 2026," he noted.
Indeed, on 7 July, Northern Star shares closed down 8.7% after management forecast that FY 2026 all-in sustaining cost (AISC) will be in the range of AU$2,300 to AU$2,700 per ounce, significantly higher than in FY 2025.
But it's not all doom and gloom for the Aussie gold mining giant.
"Operational challenges at key sites and planned shutdowns raised concerns, but the company still delivered within guidance for fiscal year 2025 and maintains a strong balance sheet," Nguyen said.
At its June quarterly update on Thursday, the company reported cash and bullion holdings of $1.914 billion as at 30 June.
"For existing investors, it may be worth staying the course," said Nguyen, who has a hold recommendation on Northern Star shares.
"Combined with a positive outlook for gold prices, the company has scale and solid assets which could support a recovery in its share price once operational headwinds ease," he concluded.
