Updates with share moves in the last bullet
April 2 (Reuters) - Australian gold miner Northern Star Resources NST.AX said on Thursday it would launch a share buyback programme of up to A$500 million ($346.4 million) and reaffirmed its fiscal 2026 gold production forecast of above 1.5 million ounces.
Here are the details:
On a preliminary basis, the company sold 381 kilo ounces of gold in the quarter ended March 31, compared with 385 kilo 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 1,110 kilo 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 said.
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.
Shares of the gold explorer rose as much as 4.1% to A$22.995, their highest in nearly three weeks. The stock has gained nearly 23% so far this week, on track for its best week since November 2011.
($1 = 1.4434 Australian dollars)
(Reporting by Keshav Singh Chundawat in Bengaluru; Editing by Shreya Biswas and Subhranshu Sahu)
((Keshav.singhchundawat@thomsonreuters.com))
