Australian gold mining company Northern Star Resources has announced the completion of its inaugural on-market share buyback programme, valued at A$300m ($192m).
The programme, which began on 15 September 2022, resulted in the acquisition of 27.17 million shares at an average price of A$11.04 per share.
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The total number of securities on issue in the class of securities to be bought back stood at 1.43 billion in September 2022. The maximum number of securities proposed to be bought back was 39.52 million.
The buyback initiative is part of Northern Star’s strategic approach to capital allocation, aimed at maximising shareholder value.
This approach includes a commitment to returning cash to shareholders, investing in organic growth that promises profitability and sustaining a robust balance sheet.
The share buyback programme is designed to work in tandem with the company’s dividend policy, which has a payout target of 20–30% of cash earnings.
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By GlobalDataThe board is assessing all forms of capital management to create “superior” returns for shareholders.
Northern Star managing director Stuart Tonkin said: “I am pleased that we have completed our $300m share buyback programme. The average purchase price of $11.04 per share demonstrates our disciplined approach to value creation for all our shareholders.”
In its first-quarter report, the company announced that it has a robust investment-grade balance sheet and is equipped to fund its organic growth strategy.
Despite a dividend payment of A$279m, the net cash position remains at A$181m, with a total of A$1.12bn in cash and bullion in the March quarter of 2025.
Earlier this month, Northern Star completed the acquisition of gold mining company De Grey Mining through a court-approved scheme of arrangement.
