The Northern Star Resources Ltd (ASX: NST) share price is in focus after the ASX gold share announced two exciting updates.
Northern Star is one of the largest gold miners in the world.
Production update
The ASX gold share decided to announce the preliminary sales figures for its three months to 31 March 2026.
It revealed that its preliminary figure for gold sold for the March quarter came to 381,000 ounces. It’s forecasting that it will deliver its revised FY26 production guidance of above 1.5 million ounces. In the nine months to date, it has achieved 1.11 million ounces.
Northern Star Resources noted that the numbers remain “particularly dependent” on mill throughput at KCGM – one of its main assets. There is potential for it to be both better and worse than expected.
The ASX gold share said that the new KCGM mill remains on track for commissioning in early FY27.
Northern Star Resources said that it’s not currently experiencing any supply issues with diesel fuel, and this remains a focus for the business and a key risk for the broader mining industry in Australia.
It said it will continue to actively manage and monitor the situation, and provide an update if there is a sizeable change.
The miner plans to release its March quarterly result on Wednesday, 22 April 2026.
Northern Star Resources share buyback
The gold miner also announced it intends to do an on-market share buyback of up to $500 million as part of a proactive capital management strategy.
This figure takes into account its expected operating and cashflow requirements.
The buyback will start on or around 23 April 2026 and be completed within 12 months.
Northern Star Resources also said this would not affect the company’s dividend policy to pay out between 20% to 30% of cash earnings.
The Northern Star Managing Director Stuart Tonkin said:
Today’s announcement reflects our confidence in the strength of our business, the structural uplift in cash generation expected from the commissioning of the KCGM Mill Expansion and the compelling value we see in our share price.
The on-market buy-back, 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. We believe current share prices do not fully reflect the quality and future potential of our assets.
Final thoughts on the Northern Star Resources share price
Despite jumping 30% from the low in March, it’s still down 30% from where it was at the start of March.
This could be a good time to invest for the long-term if the gold prices rises over time, but I’m wary of what could happen to production if the business isn’t able to secure the fuel it needs for its operations.
