Northern Star shares tumble 8% on cost-heavy outlook despite strong quarter
Shares in Northern Star Resources fell more than 8% on Monday, as investors reacted to a higher cost outlook for the 2026 financial year, along with a production miss at its key Kalgoorlie operation, despite a strong finish to the 2025 financial year.
The company posted group gold sales of 1.634-million ounces for the financial year, landing within its revised guidance of 1.63-million to 1.66-million ounces. All-in sustaining costs (AISC) for the year are expected to be within the guidance range of A$2 100/oz to A$2 200/oz.
Northern Star's 2026 guidance includes a forecast production range of 1.7-million to 1.85-million ounces but at a higher AISC of A$2 300/oz to A2 700/oz – a sharp increase reflecting inflationary pressure and a ramp-up in development activity across its operations.
Northern Star is also planning to spend between A$2.13-billion and A$2.27-billion in capital expenditure during 2026, including A$530-million to A$550-million on its KCGM Mill Expansion and up to A$550-million on operational development at the Kalgoorlie Super Pit.
The company's stock closed at A$17 a share, down A$1.49 a share, the largest single-day fall in months.
While the June quarter saw 444 000 oz of gold sold – helped by improved productivity at Kalgoorlie's underground and openpit mines – output at the flagship Kalgoorlie centre still came in short for the full year at 832 000 oz, below the lower end of revised guidance.
Pogo in Alaska outperformed, producing 283 000 oz, while the Yandal centre delivered 518 000 oz, in line with expectations.
Despite the elevated costs, Northern Star said it remained focused on becoming a "long-life, high-margin, returns-focused global gold producer."
Major projects underpinning that ambition include the KCGM Mill Expansion, designed to increase processing capacity to 27-million tonnes a year by the 2027 financial year. Additional infrastructure spend includes a new tailings dam, a thermal power station, and a permanent accommodation facility—all aimed at supporting sustained long-term growth.
Northern Star will release its full June quarterly results on July 24.
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