Northern Star Advances KCGM Expansion with Strong FY26 Production Outlook
Northern Star Resources confirms steady Ore Reserves at KCGM and outlines robust FY26 production guidance amid ongoing mill expansion. The company highlights strategic underground development and exploration efforts supporting future growth.
- KCGM Ore Reserves and Mineral Resources stable with normal mining depletion
- FY26 gold production guidance set at 550-600koz with inflationary cost pressures
- Fimiston Mill Expansion on track for 27Mtpa capacity by FY29
- Significant underground development and exploration programs underway
- Capital expenditure guidance detailed for FY26-FY29 including tailings and power infrastructure
Stable Reserves and Resources Amid Ongoing Mining
Northern Star Resources has reaffirmed the status of its KCGM Operations' Ore Reserves and Mineral Resources as of 31 March 2025, confirming no material changes beyond normal mining depletion. This stability underscores the resilience of the asset base that underpins the company’s production targets and strategic plans.
Production and Cost Guidance for FY26
The company projects gold sales of between 550,000 and 600,000 ounces for FY26, supported by a 12 million tonnes per annum throughput at the Fimiston Processing Plant. While inflationary pressures of approximately 5% are expected to impact costs, Northern Star anticipates sustaining capital expenditure in the range of A$380-420 per ounce. The guidance also accounts for planned mill shutdowns and investments in underground ventilation, power, and pumping infrastructure.
Progress on Mill Expansion and Capital Investment
The KCGM Mill Expansion project remains on schedule, targeting a ramp-up to 27 million tonnes per annum by FY29. Capital expenditure for the expansion is forecast at A$530-550 million in FY26, complemented by operational readiness investments including tailings dam facilities, a new thermal power plant, and a permanent accommodation camp. These investments are critical to supporting the increased throughput and operational scale.
Underground Development and Exploration Drive Future Growth
Significant underground mining development continues at Mt Charlotte and Fimiston, with multiple mining fronts and portals enhancing ore haulage efficiency. Exploration efforts remain robust, with a FY26 budget of A$48 million focused equally on discovery and resource conversion. Notably, regional projects such as Hercules and Red Hill offer promising high-grade potential, further underpinning long-term resource growth.
Strategic Outlook
Northern Star’s integrated approach; combining stable reserves, disciplined capital investment, and active exploration; positions KCGM as a cornerstone asset in its portfolio. The company’s ability to maintain operational cash flow during expansion and to unlock new ore sources bodes well for sustaining production and shareholder returns in the years ahead.
Bottom Line?
As Northern Star advances KCGM’s expansion and exploration, investors will watch closely for delivery on production ramp-up and cost control amid evolving market conditions.
Questions in the middle?
- How will inflationary pressures impact KCGM’s all-in sustaining costs beyond FY26?
- What are the timelines and risks associated with final approvals for tailings storage expansions?
- How quickly can underground exploration convert resources into reserves to support mill feed growth?