Latest news with #NorthernStarResources
Yahoo
3 days ago
- Business
- Yahoo
Northern Star Resources Limited (ASX:NST) Stock Is Going Strong But Fundamentals Look Uncertain: What Lies Ahead ?
Northern Star Resources (ASX:NST) has had a great run on the share market with its stock up by a significant 20% over the last three months. But the company's key financial indicators appear to be differing across the board and that makes us question whether or not the company's current share price momentum can be maintained. Specifically, we decided to study Northern Star Resources' ROE in this article. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Northern Star Resources is: 11% = AU$946m ÷ AU$8.9b (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. So, this means that for every A$1 of its shareholder's investments, the company generates a profit of A$0.11. Check out our latest analysis for Northern Star Resources Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. At first glance, Northern Star Resources' ROE doesn't look very promising. However, given that the company's ROE is similar to the average industry ROE of 11%, we may spare it some thought. Having said that, Northern Star Resources has shown a modest net income growth of 13% over the past five years. Considering the moderately low ROE, it is quite possible that there might be some other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently. We then compared Northern Star Resources' net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 20% in the same 5-year period, which is a bit concerning. Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. What is NST worth today? The intrinsic value infographic in our free research report helps visualize whether NST is currently mispriced by the market. Northern Star Resources has a significant three-year median payout ratio of 59%, meaning that it is left with only 41% to reinvest into its business. This implies that the company has been able to achieve decent earnings growth despite returning most of its profits to shareholders. Moreover, Northern Star Resources is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 39% over the next three years. The fact that the company's ROE is expected to rise to 15% over the same period is explained by the drop in the payout ratio. On the whole, we feel that the performance shown by Northern Star Resources can be open to many interpretations. While no doubt its earnings growth is pretty respectable, the low profit retention could mean that the company's earnings growth could have been higher, had it been paying reinvesting a higher portion of its profits. An improvement in its ROE could also help future earnings growth. We also studied the latest analyst forecasts and found that the company's earnings growth is expected be similar to its current growth rate. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Northern Star Resources Limited (ASX:NST) Stock Is Going Strong But Fundamentals Look Uncertain: What Lies Ahead ?
Northern Star Resources (ASX:NST) has had a great run on the share market with its stock up by a significant 20% over the last three months. But the company's key financial indicators appear to be differing across the board and that makes us question whether or not the company's current share price momentum can be maintained. Specifically, we decided to study Northern Star Resources' ROE in this article. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Northern Star Resources is: 11% = AU$946m ÷ AU$8.9b (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. So, this means that for every A$1 of its shareholder's investments, the company generates a profit of A$0.11. Check out our latest analysis for Northern Star Resources Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. At first glance, Northern Star Resources' ROE doesn't look very promising. However, given that the company's ROE is similar to the average industry ROE of 11%, we may spare it some thought. Having said that, Northern Star Resources has shown a modest net income growth of 13% over the past five years. Considering the moderately low ROE, it is quite possible that there might be some other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently. We then compared Northern Star Resources' net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 20% in the same 5-year period, which is a bit concerning. Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. What is NST worth today? The intrinsic value infographic in our free research report helps visualize whether NST is currently mispriced by the market. Northern Star Resources has a significant three-year median payout ratio of 59%, meaning that it is left with only 41% to reinvest into its business. This implies that the company has been able to achieve decent earnings growth despite returning most of its profits to shareholders. Moreover, Northern Star Resources is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 39% over the next three years. The fact that the company's ROE is expected to rise to 15% over the same period is explained by the drop in the payout ratio. On the whole, we feel that the performance shown by Northern Star Resources can be open to many interpretations. While no doubt its earnings growth is pretty respectable, the low profit retention could mean that the company's earnings growth could have been higher, had it been paying reinvesting a higher portion of its profits. An improvement in its ROE could also help future earnings growth. We also studied the latest analyst forecasts and found that the company's earnings growth is expected be similar to its current growth rate. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
20-05-2025
- Business
- Yahoo
Northern Star completes $192m on-market share buyback
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. 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. The 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. "Northern Star completes $192m on-market share buyback" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
News.com.au
18-05-2025
- Business
- News.com.au
Albion could host WA's next big gold play CEO Peter Goh says
Albion's new CEO Peter Goh is hunting for the next discovery in WA's Yandal gold province Yandal West project has the right geology in the right region with three mills nearby Company is confidence of project's potential considering current gold prices Albion Resources has a new CEO at the helm as it looks to unearth a major greenfields discovery in WA's Yandal gold province. The company holds the Yandal West project, which sits around 55km north of Northern Star Resources' (ASX:NST) Bronzewing gold mine and 60km south of its Jundee gold mine, a multi-million ounce district producing around 300,000ozpa. The region is, however, remote and remains underexplored as underlined by the success of neighbour Yandal Resources (ASX:YRL), which drew serious investor interest last year with the Siona gold discovery 20km southeast of Yandal West – 107m at 1g/t Au from 96m to end of hole. For new CEO Peter Goh, these are just some of the many X-factors that drew him to the role with Albion Resources (ASX:ALB). 'It's in the world class Yandal greenstone belt, and within 60km of us there's three processing plants, which was a huge strategic advantage and tick for me when I was doing my due diligence,' Goh said. 'Not only is this a big tick of approval for resource endowment in the area, with big players nearby, geologically we know there's gold mineralisation on the tenements, there's been historical drilling there, there's been historical mining there back in the 1900s and it's significantly underexplored. 'We think we can apply new exploration techniques and that will offer a really good opportunity in this rising gold market.' Gold bull market Coming from a background as a chartered accountant and an analyst building financial models with IPM Global before a stint in business development with Iluka Resources (ASX:ILU), Goh brings a wealth of knowledge and passion about junior resources and small caps to the company. With this background in financial analysis, when Goh says the company's finances are strong, he knows what he's on about. 'They've got $4m in the bank, a tight capital structure with only 132m shares on issue, and it has strong support from the top 20 shareholders, who have about 57% of the register,' Goh said. 'So with the geology and the finances, we have all the right ingredients to have some success here. 'When that opportunity came across my desk it was an easy decision to make the move over from the very structured role with Iluka into this small cap space, and I'm really excited about it.' That's a strong launching pad for a junior in the current gold market, with prices riding high at close to A$5000/oz. Don't need 1Moz to create value Goh notes that the landscape for gold exploration has shifted in the last few years, where historically juniors needed to demonstrate a pathway to 1Moz before really being taken seriously by the market and majors. Now some outperformers boast far smaller resources, which are cash printing machines with US dollar prices of around US$3150/oz. 'To the north of us is Strickland Metals (ASX:STK) who pulled up a 350,000oz deposit and they sold that to Northern Star (ASX:NST) for $61m in 2023,' Goh said. 'That's not a 1Moz deposit that's 350,000oz close to the Jundee mine. 'So that highlights that if processing plants are hungry, being close strategically offers some value for small scale deposits. 'We haven't started drilling and I don't want to get ahead of myself here, but you don't need that 1Moz mark to add value.' Goh also flagged new director Chris Tuckwell, who came along with the Yandal West acquisition, is another feather in the company's cap. 'That's a huge win for us,' he said. 'He has 11 years' experience with MACA, the mining contractor, so if we do have some success here, and obviously we've got to walk before we can run, but he will be invaluable to me and to the company as we try to unlock value for shareholders.' Earlier this month, the company announced two promising drill targets identified via a dipole induced polarisation survey which have never been touched by the drill bit and are expected to be encountered at shallow depths. Albion is just waiting on soil samples to come through, with heritage surveys underway and plans drill these promising new targets as part of its maiden campaign in June.
Business Recorder
14-05-2025
- Business
- Business Recorder
Gold stocks drag Australian shares lower
Australian shares declined on Wednesday, after ending the last session at an 11-week high, as a slide in gold stocks outweighed the strength in tech and energy, amid growing expectations of an interest rate cut by the local central bank next week. The S&P/ASX 200 index fell 0.1% to 8,260.3 points by 0053 GMT. The benchmark had ended 0.4% higher on Tuesday. The Reserve Bank of Australia is expected to cut rates at its policy meeting on May 20, with expectations currently indicating a 95.3% chance of a cut. Gold miners shed 0.3%, with St Barbara and Northern Star Resources losing 0.9% and 2%, respectively. 'Gold miners continue to be sold off amid increased appetite for growth stocks following the temporary China-US trade deal announcement,' said Grady Wulff, a market analyst at Bell Direct. Insignia Financial, one of the biggest losers on the benchmark, slumped as much as 14.8% after Bain Capital walked away from a binding takeover bid. Aristocrat Leisure slipped more than 15% after the gaming firm missed its half-year revenue estimates. Meanwhile, Australia's corporate regulator said it has started legal action against Macquarie Securities (Australia), alleging the firm inaccurately reported millions of short sales for more than 14 years. The company is owned by Macquarie, which is down 1.1%. Energy stocks rose 2.6% on the back of rising oil prices. Woodside advanced 3.9% on signing a non-binding agreement with Aramco to explore opportunities, including the Saudi Arabian company's potential stake acquisition in the Louisiana LNG project. Santos gained 2.5%. Australian shares rise on trade optimism Technology stocks tracked their overseas peers higher, rising 1.4%. Financials added 0.1%, with the Commonwealth Bank of Australia climbing 0.3% after posting a 6% rise in its third-quarter cash earnings. New Zealand's benchmark S&P/NZX 50 index rose 0.1% to 12,798.75 points.
