Northern Star Resources Limited (ASX: NST) has released its December quarter activities report. As already announced, one-off operational events had impacted quarterly sales and annual guidance.
Northern Star is the largest gold producer with a primary listing on the ASX. Its production centres are Kalgoorlie and Yandal in Western Australia and Pogo in Alaska, US. The company also owns the Hemi development project in the Pilbara, Western Australia.
Northern Star’s management team will be hosting an investor call today at 9am AEDT (6am AWST) to discuss the December quarter performance. The call can be accessed here.
December quarter highlights
Operating performance
- SLTIFR at 0.6 injuries per million hours worked
- Group underlying free cash flow of A$(328) million and net mine cash of A$129 million
- Gold sold totalled 348koz at an AISC of A$2,937/oz (US$1,938/oz)
- KCGM open pit and underground productivity in line with original annual guidance; gold sales affected by lower throughput from primary crusher failure with normal operations resuming early January
- Jundee recovery works longer than planned; Thunderbox impacted by unplanned mill downtime
- Pogo mined grades lower from new mining areas but improved late in the quarter
FY26 outlook – revised
- FY26 revised guidance of 1,600-1,700koz gold sold and AISC of A$2,600-2,800/oz
- Group Operational Growth Capital of A$1,140-1,220 million remains unchanged
- KCGM Mill Expansion Project remains on schedule for early FY27 commissioning, FY26 capex revised to A$640-660 million from A$530-550 million
- FY26 Mill Operational Readiness capex increases to A$370-390 million from A$315-370 million, with tailings dam project ahead of schedule
Investment-grade balance sheet; declining hedge book
- 1H FY26 Cash Earnings estimate of A$1,060-$1,110 million (1H25: A$1,146 million)
- Net cash of A$293 million; cash and bullion of A$1,176 million after A$370 million in corporate tax instalments during the quarter
- Hedge commitments continue to unwind with 158Koz delivered in the quarter
Commenting on the December quarter performance, Northern Star managing director Stuart Tonkin said:
“As previously announced, a number of one-off operational events across our assets resulted in a softer December quarter and prompted us to revise FY26 production and cost guidance. Looking ahead, our team remains firmly focused on driving productivity improvements and strengthening cost discipline.
“The December quarter delivered positive advances at our two key growth projects that will structurally reshape our cost base and support delivery of higher-margin ounces. The KCGM Mill Expansion remains on track for commissioning in early FY27. At the same time, our team continues to optimise the engineering and design of the Hemi Development Project while progressing approvals.
“Northern Star’s balance sheet remains in a net cash position and we expect future free cash generation to increase materially as production lifts and our hedge book unwinds into this elevated gold price environment.”
