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Highlights
- FY25 gold sales met revised guidance range
- FY26 production forecast shows growth despite cost pressure
- Major expansion projects continue to support long-term goals
Shares of Northern Star Resources (ASX:NST), one of the prominent names in the Australian gold mining sector, declined 9% after the company released its FY25 performance update alongside its FY26 production and cost outlook.
FY25 Performance Overview
For the financial year, the company reported gold sales of 1.634 million ounces, in line with its revised guidance range of 1.63–1.66 million ounces. During the June quarter alone, 444,000 ounces were sold.
Breaking down the regional contributions, the Kalgoorlie production centre delivered 832,000 ounces, which fell short of guidance despite improved mining productivity in the latter part of the quarter. Yandal operations achieved 518,000 ounces, meeting the midpoint of its forecast, while Pogo surpassed expectations with 283,000 ounces sold.
Production costs, represented by all-in sustaining costs (AISC), are anticipated to remain within the FY25 guidance band of A$2,100–A$2,200 per ounce, highlighting stable operational cost management.
FY26 Outlook and Investment Plans
Looking ahead, Northern Star has projected gold sales of 1.7–1.85 million ounces for FY26. However, the first quarter of FY26 is expected to be the lowest in production due to planned maintenance shutdowns across all three production hubs.
KCGM is forecast to contribute 550,000–600,000 ounces for the year, with mining activity in open pits expected to gain momentum over time. The company’s Kalgoorlie mill expansion remains on schedule, targeting commissioning by early FY27—a key component of its strategy to become a high-margin, long-life gold producer.
On the cost front, FY26 AISC is forecasted between A$2,300–A$2,700 per ounce. This increase reflects sector-wide inflation pressures, higher sustaining capital requirements, and increased royalties. The company also outlined more than A$2.3 billion in capital expenditure planned for FY26, emphasizing its ongoing investment in infrastructure and exploration.
As a constituent of the ASX 200, Northern Star Resources plays a significant role in the Australian mining landscape. While the latest update may have triggered a market reaction, the company’s focus on long-term growth, capacity expansion, and operational upgrades remains intact.
