Northern Star Surpasses FY25 Gold Targets, Eyes Growth with Major Projects
Northern Star Resources has met its FY25 gold sales guidance with strong June quarter results and outlined an ambitious FY26 production and capital expenditure plan focused on growth and operational readiness.
- FY25 gold sales hit 1,634koz within revised guidance
- June quarter gold sales strong at 444koz, with Pogo outperforming
- FY26 gold sales guidance raised to 1,700-1,850koz amid planned shutdowns
- Major capital projects underway including KCGM Mill Expansion on track for FY27
- Exploration budget set at approximately A$225 million for FY26
Strong Finish to FY25
Northern Star Resources (ASX, NST) has delivered a robust operational update, confirming it met its revised FY25 gold sales guidance with a total of 1,634,000 ounces sold. The June quarter alone saw 444,000 ounces sold, underscoring a strong finish to the financial year. While the Kalgoorlie Production Centre slightly underperformed relative to guidance, the Pogo operation exceeded expectations, contributing to the overall solid performance.
Outlook for FY26, Growth and Transition
Looking ahead, Northern Star has provided its FY26 guidance, forecasting gold sales between 1.7 and 1.85 million ounces. This increase reflects the company’s confidence in its ongoing projects and operational improvements, despite anticipating a softer September quarter due to planned major shutdowns across all production centres. The All-In Sustaining Cost (AISC) is expected to rise to between A$2,300 and A$2,700 per ounce, influenced by inflationary pressures, increased sustaining capital, and higher royalties.
Capital Investment Fuels Future Growth
Central to Northern Star’s growth strategy is the KCGM Mill Expansion Project, with a budget of A$530-550 million and commissioning scheduled for early FY27. Complementing this are significant operational readiness investments, including new tailings dam facilities, a thermal power plant with renewable-ready infrastructure, and a permanent accommodation camp. These investments aim to support an expanded throughput capacity of 27 million tonnes per annum, positioning the company in the lower half of the global cost curve.
Additional growth capital is earmarked for the Yandal Production Centre, focusing on open pit development and infrastructure to support mill feed at 6 million tonnes per annum, and for Pogo, where underground development and mill optimisation are priorities. The Hemi Development Project also remains a key focus, with planned expenditure of A$140-150 million to advance engineering and procurement.
Exploration and Long-Term Vision
Northern Star plans to invest approximately A$225 million in exploration during FY26, underscoring its commitment to sustaining and extending its resource base. This exploration spend includes activities at the Hemi Development Project and other key sites, reflecting the company’s ambition to be a long-life, high-margin gold producer with a global footprint.
Overall, Northern Star’s update paints a picture of a company transitioning from steady production to a phase of significant growth and operational enhancement, balancing near-term challenges with long-term value creation.
Bottom Line?
Northern Star’s FY26 plans set the stage for a transformative year, but execution risks and cost pressures warrant close investor attention.
Questions in the middle?
- How will inflation and rising costs impact Northern Star’s margins throughout FY26?
- What regulatory approvals are needed for the new tailings dam and how might delays affect timelines?
- Can operational improvements at KCGM and other centres sustain production growth post-FY27?
