Northern Star Resources Ltd
(ASX: NST)Share Price and News

Overview of Northern Star Resources

Northern Star Resources is a globally recognised gold miner - the largest on the ASX. The company operates a diversified portfolio of high-quality underground and open-pit gold mines across Western Australia and Alaska.

Its key production centres include the Kalgoorlie and Yandal operations in Western Australia, along with Pogo in Alaska. Each of these contribute significantly to its annual gold output of 1.6Moz. Recently, the company picked up the Hemi project in WA, taking over owner and discoverer De Grey for $5bn. It is expected to produce 530,000/oz over the first 10 years of production.

Northern Star's Company History

Northern Star Resources was founded in December 2003, and was another small cap explorer. The company's transformation into a gold producer began with the acquisition of the Paulsens Gold Mine in 2010, which NST held until 2022.

Pogo was picked up in 2018, then Yandal in 2019 and the Kalgoorlie Super pit in 2020. When it first bought Kalgoorlie, it bought a 50% from Newmont and Saracen holding the other half, having bought it from Barrick Gold only weeks earlier. In February 2021, Northern Star took over Saracen consolidating ownership of the Super Pit gold mine in Kalgoorlie.

In 2024, Northern Star announced it was buying De Grey Mining for over $5bn, a deal that sent the Hemi gold project in Western Australia's Pilbara region into its hands. This acquisition, one of the largest in the sector, is expected to significantly increase Northern Star's annual gold production, reinforcing its position as a leading global gold producer.

Future Outlook of Northern Star Resources (ASX: NST)

Northern Star Resources Ltd's future outlook appears robust, underpinned by record high gold prices. Analysts forecast the company’s revenue to grow from $4.9 billion in FY25 to $6.4 billion, with further growth expected to reach $8 billion in FY26.

That's before you account for the acquisition of the Hemi gold project. Hemi is projected to produce 530,000 ounces of gold annually in its first decade, with the potential to increase to 700,000 ounces. This addition is expected to elevate Northern Star’s total annual production to approximately 2.5 million ounces by 2028-29.

While the outlook is positive, potential risks include regulatory approvals for new projects, fluctuations in gold prices, and operational challenges. It is easy to forget the gold bust of the early 2010s that ironically helped many of today's gold majors buy decent assets at discounted prices. However, Northern Star's diversified asset base and strategic planning position it well to navigate these uncertainties.

Is Northern Star a Good Stock to Buy?

As one of the ASX's biggest gold miners, Northern Star Resources presents a compelling investment opportunity. Key upside will be realised when Hemi enters production, which will boost output by over 500koz.

The key risk facing the company include sovereign risk, key personnel and commodity price risk; although the company is more immune than many of its peers given there's no end in sight to the current gold boom and it is in stable jurisdictions.