The Northern Star Resources Ltd (ASX: NST) share price is in focus today after the gold miner delivered a record net profit after tax (NPAT) of A$1.7 billion, up 24% year on year, and maintained its fully franked dividend to 55 cents per share.
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What did Northern Star Resources report?
- Revenue rose 19% to A$7.6 billion (FY25: A$6.4 billion), driven by a 26% higher realised gold price.
- Statutory NPAT of A$1.66 billion, with underlying NPAT at A$1.79 billion (up 26%).
- Underlying EBITDA increased 22% to A$4.27 billion.
- Cash earnings totalled A$2.91 billion, up 1% from last year.
- Fully franked FY26 dividend of 55 cents per share, including a 30 cent final dividend.
- On-market buy-back program commenced, with A$129 million spent to buy back over 6.3 million shares so far.
What else do investors need to know?
Northern Star ended FY26 with A$1.2 billion in cash and bullion, maintaining a strong balance sheet despite higher capital investments and shareholder returns. The group kicked off commissioning for the KCGM Mill Expansion, a key growth project expected to unlock greater operational consistency and support future cash flows.
The company is investing heavily in both organic growth and exploration, including the ongoing integration of the Hemi gold project. During the year, capital investment focused on expanding processing facilities and upgrading key mining infrastructure, while a new power station was built at KCGM to support future mining volumes.
What did Northern Star Resources management say?
Commenting on its results, Northern Star's managing director, Stuart Tonkin, said:
We are at an important inflection point for Northern Star. The KCGM Mill Expansion marks a significant milestone for the Company, with the expanded processing plant expected to deliver greater operational consistency and reliability, while supporting a significant increase in free cash generation as it ramps up.
We have a strong track record of disciplined capital allocation, supported by an investment-grade balance sheet, and have returned $3.3 billion of cumulative capital management to shareholders to date. As we enter this next phase, disciplined capital allocation remains a priority, with a clear commitment to generating superior shareholder returns.
To enhance the quality of the portfolio, the KCGM Mill Expansion is expected to structurally reset the cost base and create a stronger platform for long-term value creation. The development of Hemi provides a further opportunity to strengthen the portfolio and underpin the Company's growth profile.
What's next for Northern Star Resources?
Looking to FY27, Northern Star has guided to group gold production of 1.5–1.65 million ounces at an all-in sustaining cost (AISC) of A$3,050–3,450/oz. The KCGM ramp-up is underway, with production expected to reach 550–650koz in its initial stages.
Capital expenditure is forecast between A$2,550 million and A$2,935 million, with flexibility to adjust spending as operational needs evolve. The group is also allocating A$230–250 million for exploration, focusing on growing resources and extending mine life at key operations including KCGM, Pogo, and Hemi.
Northern Star Resources share price snapshot
The Northern Star Resources share price has outperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of 24%. This has been driven largely by a rising gold price.
