Northern Star Resources Limited (ASX:NST) operated its Dividend reinvestment plan for the FY26 final dividend, providing eligible shareholders with the option to receive additional shares instead of taking their full dividend entitlement in cash. The company declared a fully franked final dividend of 30 cents per share.

Together with the 25 cent interim dividend, the final distribution took total FY26 dividends to 55 cents per share. The DRP allocation price for the final dividend was AUD 22.06 per share, with no discount applied.

Latest developments

Northern Star reported Revenue of approximately AUD 7.6 billion for FY26, an increase of 19% from the previous financial year. Underlying EBITDA increased 22% to AUD 4.27 billion, while underlying net profit after tax rose 26% to AUD 1.79 billion.

Statutory net profit after tax was AUD 1.66 billion. The company sold approximately 1.54 million ounces of gold during the year and finished FY26 with around AUD 1.2 billion in cash and bullion.

Northern Star also continued its capital-management program during FY26, with approximately AUD 129 million deployed through its on-market share buy-back program. The company has authorised an on-market buy-back of up to AUD 500 million.

Key numbers

Northern Star’s FY26 final dividend was 30 cents per share and fully franked, following a fully franked Interim Dividend of 25 cents per share. The total FY26 distribution was therefore 55 cents per share.

The final dividend had a Record Date of 10 September 2026 and is scheduled for payment on 15 October 2026. The DRP pricing period ran over five trading days and resulted in an allocation price of AUD 22.06 per share.

Northern Star’s dividend policy targets distributions equivalent to approximately 20% to 30% of full-year cash earnings, subject to the company’s financial position, investment requirements and board approval.

About the company

Northern Star Resources is a global-scale Australian gold producer with operations in Western Australia and Alaska. Its principal production centres include Kalgoorlie, Yandal and Pogo, while the company is also progressing development of the Hemi gold project in Western Australia.

The Kalgoorlie production centre includes the KCGM operation and Super Pit. Northern Star has been investing in the KCGM Mill Expansion to increase processing capacity, improve operational consistency and support higher production over the longer term.

The company also maintains an active exploration program around its operating Assets as part of its strategy to extend mine lives and support future production.

How the DRP works

Northern Star’s DRP allows eligible shareholders to reinvest all or part of their dividend entitlement in additional fully paid ordinary shares rather than receiving the entire distribution in cash.

For the FY26 final dividend, the allocation price was calculated using the average of daily volume-weighted average prices over five trading days from 11 September to 17 September 2026. The resulting DRP price was AUD 22.06 per share, with no discount applied.

The shares allocated under the FY26 final dividend DRP were newly issued shares. Participation is optional, and shareholders who do not elect to participate continue to receive their eligible dividend payments in cash.

Why the DRP matters

The DRP provides shareholders with an alternative method of receiving dividends while allowing their eligible distributions to be applied toward additional Northern Star shares.

No discount was applied to the FY26 final dividend allocation, meaning participating shareholders received shares based on the market-derived DRP pricing methodology established for the relevant period.

Future operation of the DRP, including any discount and the method used to source shares, remains subject to the company’s decisions for each eligible dividend.

What comes next

Northern Star has provided FY27 gold production guidance of approximately 1.5 million to 1.65 million ounces. All-in sustaining costs are expected to range between AUD 3,050 and AUD 3,450 per ounce.

The ramp-up of the KCGM Mill Expansion remains an important operational priority. The expanded processing infrastructure is intended to support greater throughput and improve operational performance as the project progresses toward its targeted operating configuration.

The company is also continuing development work at Hemi while investing across its broader asset portfolio. Capital requirements associated with these projects will remain relevant to cash generation and future Shareholder distributions.

Risks and context

Northern Star’s financial performance remains exposed to movements in the gold price, operating costs, production volumes and Capital Expenditure requirements. Gold production can also be affected by processing performance, ore grades, recoveries and mine sequencing.

Execution of the KCGM Mill Expansion and development of Hemi involve construction, commissioning and cost risks. Higher capital expenditure associated with growth projects can also affect free Cash Flow available for other purposes.

Leadership transition represents an additional area to monitor as the company progresses changes to its executive and board structure. Future dividends and DRP arrangements will continue to depend on cash earnings, investment priorities and board decisions.

Key Insights

Northern Star Resources operated its DRP for the fully franked FY26 final dividend of 30 cents per share, with participating shareholders receiving newly Issued Shares at an allocation price of AUD 22.06 and no discount.

The company reported higher revenue, underlying EBITDA and Underlying Profit during FY26 while continuing investment in the KCGM Mill Expansion, Hemi and its broader growth portfolio. FY27 performance will depend partly on production delivery, operating costs and execution of major development projects.