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Northern Star’s Exploration and Renewables Drive Might Change The Case For Investing In Northern Star Resources (ASX:NST)

Simply Wall St · 2d ago
  • Northern Star Resources has recently accelerated its long-term push into large-scale exploration around existing hubs and expanded the roll-out of renewable power across its Australian gold operations, reinforcing its position as a flagship domestic producer.
  • A key implication is that by tying mine-life extension efforts directly to lower-carbon, potentially more stable energy sources, the company is trying to secure operational flexibility and social licence at the same time, which could matter for how investors assess its long-run production and cost profile.
  • Next, we’ll examine how this expanded exploration and renewables push could reshape Northern Star Resources’ existing investment narrative and risk balance.

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Northern Star Resources Investment Narrative Recap

To own Northern Star, you generally need to believe it can keep turning its tier-one Australian assets, disciplined capital program and ESG focus into resilient cash generation over time. The latest exploration and renewables push supports that longer-term view, but it does not materially change the near term focus on delivering against production guidance and containing cost inflation, or the execution and permitting risks around large projects like Hemi and the Fimiston mill expansion.

Against that backdrop, the reaffirmed FY2026 production guidance of 1.7–1.8 million ounces at AISC of A$2,300–A$2,700 per ounce is especially relevant, because it frames how quickly today’s exploration and renewable investments might flow through to volumes, costs and cash flow, while keeping attention on the risk that complex growth projects, including Hemi and the De Grey integration, stay on schedule and on budget.

Yet while these long-life assets are an important anchor, investors should also be aware of...

Read the full narrative on Northern Star Resources (it's free!)

Northern Star Resources' narrative projects A$9.1 billion revenue and A$2.0 billion earnings by 2028. This requires 12.3% yearly revenue growth and an earnings increase of about A$0.7 billion from A$1.3 billion today.

Uncover how Northern Star Resources' forecasts yield a A$27.39 fair value, a 3% upside to its current price.

Exploring Other Perspectives

ASX:NST 1-Year Stock Price Chart
ASX:NST 1-Year Stock Price Chart

Thirteen members of the Simply Wall St Community currently value Northern Star anywhere between A$13.56 and A$57.58, highlighting sharply different expectations. When you set those views against the dependence on large capital projects like Hemi and the Fimiston mill expansion, it underlines why many investors look at several scenarios for future performance.

Explore 13 other fair value estimates on Northern Star Resources - why the stock might be worth over 2x more than the current price!

Build Your Own Northern Star Resources Narrative

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This 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.