Australian gold miner Northern Star Resources on Thursday reported a record dividend on the back of surging cash flow and a stronger balance sheet, as the company pushes ahead with major growth projects including the newly acquired Hemi development in Western Australia.

The Perth-based producer declared a final dividend of 30c a share, lifting the full-year payout to an all-time high of 55c a share. Alongside the completion of a A$300-million share buyback, Northern Star said it would return more than A$840-million to shareholders for the 12 months to June 30, 2025.

“The company has delivered another record-breaking financial performance on the back of a dedicated team effort in a favourable gold price environment,” MD Stuart Tonkin said.

“For FY25, we reported record group underlying free cashflow of A$536-million, or A$328/oz, which underscores the value of the profitable growth path we have been on for the past four years to deliver sustaining long-term returns for shareholders.”

Underlying earnings before interest, taxes, depreciation and amortisation rose to A$3.5-billion, while net profit after tax came in at A$1.4-billion, or A$1.19 a share. Revenue climbed 30% to A$6.4-billion as realised gold prices averaged A$3 922/oz, up almost A$900/oz from the previous year. Gold sales were flat at 1.63-million ounces.

Tonkin said the result also demonstrated “the strength and value-creation that we are embedding in the business", highlighting consistent improvements in returns on capital employed. 

Northern Star, which completed its takeover of De Grey Mining last year, said its focus had turned to unlocking value across its three production hubs and advancing the Hemi project.

Looking ahead, the miner guided the 2026 financial year production to be between 1.7-million and 1.85-million ounces, with the June quarter expected to be strongest as major shutdowns in earlier quarters are completed. All-in sustaining costs are forecast at A$2 300/oz to A$2 700/oz , with inflation, higher royalties and sustaining capital driving costs higher in the near term.

Growth spending will remain elevated, including more than A$1-billion across KCGM to complete a mill expansion that will lift capacity to 27-million tonnes a year by the 2027 financial year. Northern Star also plans A$30-million at its Yandal operations, up to $80-million at Pogo in Alaska, and A$150-million at Hemi to fund early works.

“Looking ahead, our focus remains on unlocking the full value of our production centres and advancing the newly acquired Hemi project, which aligns with both our portfolio and purpose to responsibly deliver superior returns for shareholders," said Tonkin.