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Highlights
- Northern Star cuts 2025 production guidance
- Shares slide after lower-than-expected Q3 results
- Rising costs and royalties impact outlook
Shares of Australian gold miner Northern Star Resources (ASX:NST) have come under pressure this week, following a revision to the company’s production outlook. The miner reduced its gold output forecast for the 2025 financial year, attributing the move to higher maintenance costs and an increase in royalties.
On Wednesday, the stock declined a further 3.6% by early afternoon, building on Tuesday’s 4.7% fall, where it closed at $19.88. This marked one of the most significant declines on the ASX200 index during the trading session. The back-to-back decline has positioned Northern Star among the day’s weakest performers on the benchmark.
The company’s latest quarterly update revealed gold production of 388,000 ounces for the March quarter—falling short of market expectations. Despite the softer results, Northern Star reiterated its full-year guidance of 2 million ounces for 2026. However, some analysts foresee challenges in reaching that goal, with updated estimates lowering potential 2026 output to 1.9 million ounces.
Rising costs continue to be a headwind for the miner. Northern Star indicated that increasing maintenance requirements across its assets, coupled with higher government royalty obligations, have prompted the downward revision for FY25. This has raised concerns among market watchers about profitability, particularly in a market environment where input costs are rising broadly across the sector.
Northern Star remains one of Australia’s major gold producers, operating flagship assets such as the Kalgoorlie Super Pit. The company’s performance is closely tracked by those focused on the resources segment, especially given its prominence among ASX dividend stocks.
The recent developments serve as a reminder of the operational risks faced by miners, even those with established track records. Market participants will now be closely watching for updates in the next quarterly report, which may offer more clarity on how the miner plans to navigate its revised production and cost landscape.
The pressure on Northern Star’s share price underscores the importance of production consistency and cost discipline in the capital-intensive gold sector. While the company holds significant assets, the current trajectory points to a cautious outlook as 2025 approaches.
