Five Years Later: How Much Passive Income Has Northern Star Resources Ltd Shareholders Earned?
May 27, 2023
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Investing in Northern Star Resources ($ASX:NST) Ltd (NSR) five years ago would have been a wise decision. If you had invested $7,000 in NSR shares five years ago, you would have earned a passive income of at least double the original amount due to the rise in share price. Northern Star Resources Ltd is an established and successful gold production and exploration company, focusing on projects in Western Australia. It is very well known for its quality flagship asset, the world-class Jundee Gold Mine, located in the northeast of Kalgoorlie. The company has a strong portfolio of assets, including the Paulsens Gold Mine, which has recently been recommissioned, and the Kalgoorlie operations, which have achieved strong production and exploration success.
The company’s business strategy has enabled it to generate strong returns for its shareholders over the past five years. Its commitment to fostering strong working relationships with its stakeholders and consistent delivery of higher quality services have all contributed to a steady increase in its share price. This has allowed NSR shareholders to benefit from a passive income which has at least doubled the amount originally invested in just five years. With the company continuing to make long-term investments in its projects, it is expected to generate further income for its shareholders in the future, providing them with additional returns on their investments.
Dividends
Five years ago, Northern Star Resources Ltd was just starting to build up its dividend yield, offering shareholders a modest but steady return on their investments. Fast forward to 2021 and the company has firmly established itself as a leader in the field of dividend payments, issuing annual dividends of 0.22, 0.2 and 0.19 AUD over the last three years. This has resulted in a dividend yield of 2.67%, 2.12% and 1.44% from 2021 to 2023 respectively, with an average dividend yield of 2.08%. For those keen on dividend stocks, Northern Star Resources Ltd may be worth considering.
They have a proven track record when it comes to dividend payments and the stable return on investment they offer is attractive to many investors. As Northern Star Resources Ltd continues to grow and expand its dividend yield, this may be a great opportunity for those wanting to benefit from passive income.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for NST. More…
| Total Revenues | Net Income | Net Margin |
| 3.88k | 216.5 | 5.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for NST. More…
| Operations | Investing | Financing |
| 1.45k | -1.11k | -465.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for NST. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 11.1k | 3.05k | 7 |
Key Ratios Snapshot
Some of the financial key ratios for NST are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 34.5% | -1.8% | 8.1% |
| FCF Margin | ROE | ROA |
| 8.6% | 2.4% | 1.8% |
Market Price
Monday’s closing price of Northern Star Resources Ltd (NORTHERN STAR RESOURCES) marked a 0.9% decrease from the prior closing price of AU$13.3. The stock opened at AU$13.5 and closed at AU$13.2, leaving investors wondering how much passive income they have earned during the five years since the company’s initial listing. Since then, the company has become a major player in Australia’s gold industry due to its expansive operations across the country. Over the past five years, it has consistently returned impressive profits and dividend yields.
However, it is important to note that short-term stock market movements are not always indicative of the return on investment. For example, over the past five years, the stock price of NORTHERN STAR RESOURCES has fluctuated wildly, making it difficult to predict where it will be in the future. Investors should also consider other factors when trying to answer the question of how much passive income they have earned from their investments in NORTHERN STAR RESOURCES. For example, they could look at the company’s dividend policy and track record of dividend payments. They could also consider the company’s financial strength and stability, as well as its ability to withstand economic shocks. Overall, it is difficult to determine the exact amount of passive income that NORTHERN STAR RESOURCES shareholders have earned over the past five years. However, by researching the company’s current performance and past track record, investors can gain a better idea of how much they can expect to earn from their investments moving forward. Live Quote…
Analysis
At GoodWhale, we’ve conducted a thorough analysis of NORTHERN STAR RESOURCES’s financials. According to our Risk Rating, NORTHERN STAR RESOURCES is a medium risk investment in terms of financial and business aspects. We’ve also detected two risk warnings in the income and balance sheet. If you’re interested in learning more, be sure to register on GoodWhale.com and check it out. With our detailed analysis, you can make the right decision and manage your investments accordingly. More…
Peers
Northern Star Resources Ltd is an Australian-based gold exploration and production company, operating in Western Australia and the Northern Territory. Its main competitors in the region are Beacon Minerals Ltd, Western Gold Resources Ltd, and Riversgold Ltd. All four organizations are significant players in the gold industry, with a strong presence in the region.
– Beacon Minerals Ltd ($ASX:BCN)
Beacon Minerals Ltd is a mineral exploration and development company focused on gold and nickel projects in Western Australia. With a market cap of 101.43M as of 2022, Beacon Minerals has a strong financial position that is supported by its Return on Equity of 24.66%. The company’s healthy financial position has enabled it to focus on the development of its gold and nickel projects, which has yielded positive returns over the past few years. Beacon Minerals’ strong market cap and ROE indicate that the company is well positioned to continue its success in the future.
– Western Gold Resources Ltd ($ASX:WGR)
Western Gold Resources Ltd is a gold exploration and development company based in British Columbia, Canada. The company is focused on the exploration and development of its flagship property, the Jewel Ridge Gold Project, located in the Walker Lane mineral belt of Nevada. As of 2022, the company has a market cap of 6.02M. The return on equity (ROE) for Western Gold Resources Ltd is -201.61%, which indicates an overall loss in profitability. The negative ROE reflects the poor performance of the company, as it has been unable to generate sufficient returns from its investments. Despite this, the company continues to invest in exploration and development activities in order to identify potential new sources of gold in the region.
– Riversgold Ltd ($ASX:RGL)
Riversgold Ltd is a mining and exploration company that engages in the exploration, extraction, and processing of gold and other minerals. With a market cap of 22.51M as of 2022, the company has strong potential for growth and profitability. However, its Return on Equity (ROE) of -97.5% indicates that the firm is operating with a significant amount of debt, making it difficult for the company to generate profits. Despite this, Riversgold Ltd’s strong balance sheet, experienced management team and high-grade gold reserves make it an attractive investment opportunity.
Summary
Northern Star Resources Ltd is an Australian gold mining company whose stock price has been on the rise over the past five years. A $7,000 investment in the company five years ago would now be worth more than double, and the company has paid out a steady stream of dividend payments since then. Investing in Northern Star Resources is a great way to diversify your portfolio and provide yourself with a reliable passive income.
