- Listing on the ASX in 2003, junior gold miner Northern Star emerged from the pack in 2010 with its first acquisition – the Paulsens Mine.
- The company is now the second-largest gold miner on the ASX.
- In 2018, Northern Star acquired its first North American asset – the Pogo Production Centre in the US state of Alaska.
Northern Star now has three gold mining production centres – Kalgoorlie, Yandal, and Pogo. The company began an aggressive acquisition campaign following the 2010 Paulsens Mine deal, with the share price heating up immediately and catching fire in 2014.
Source: ASX
The company has paid double-digit dividends every year since 2018, with a five-year average payment of $0.17 and a five-year yield of 1.65%. Although the yield might seem low, the five-year average payout ratio of 44.16% suggests dividends are relatively safe.
The share price got a boost following the release of the full-year 2023 financial results. Northern Star hit its guidance, increasing revenues by 9% and net profit by 2%.
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Perhaps the best news was the company’s performance against its profitable growth strategy, now in its second year. Each of the three production centres saw substantial growth towards the 2026 target, with Kalgoorlie up 31%, Yandal up 26%, and Pogo up 23%.
An analyst at Marcus Today has a HOLD recommendation on Northern Star Resources shares, summing up the case based on recent record production levels, retaining FY 2024 guidance, and a continuation of the war in the Middle East.
Of the 16 analysts covering the stock, two have STRONG BUY recommendations, four are at BUY, seven at HOLD, and three at UNDERPERFORM.
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