Operational Failures Force Northern Star to Lower FY26 Gold Production Forecast

Operational Challenges Weigh on December Quarter

Northern Star Resources (ASX:NST) has reported a softer-than-expected December 2025 quarter, with gold sales totalling approximately 348,000 ounces. This performance was hampered by a series of isolated but impactful operational setbacks across its key production centres, including equipment failures and unplanned maintenance.

The company’s half-year gold sales reached around 729,000 ounces, but the December quarter disruptions have forced a downward revision of its full-year FY26 production guidance to between 1.6 and 1.7 million ounces, down from the previous range of 1.7 to 1.85 million ounces.

Site-Specific Issues Drive Production Decline

At the Kalgoorlie Production Centre, gold sales were approximately 203,000 ounces in December. A significant factor was a primary crusher failure at the KCGM processing plant, which curtailed throughput for four weeks. Although milled grades improved to about 1.6 grams per tonne, the plant’s output remained variable as it transitions to a new expanded mill scheduled for commissioning in early FY27.

Meanwhile, the Yandal Production Centre saw gold sales of roughly 91,000 ounces, impacted by slower-than-expected recovery at Jundee following a structural failure in the crushing circuit, and lower mined grades at Thunderbox due to operational downtime and equipment issues. Cost-saving measures, including a reduced mining fleet at Thunderbox, were introduced during the quarter.

At Pogo, gold sales of around 53,000 ounces were affected by underground mining dilution, which lowered the grade of ore processed. Despite these challenges, mining productivity at both open pit and underground operations remained broadly in line with annual targets.

Looking Ahead, Cost Guidance and Recovery

Northern Star has indicated that the softer production will likely impact cost performance, with revised cost guidance to be provided alongside the full December quarter results on 22 January 2026. The company will also host a management call on 5 January to discuss the updated FY26 outlook in more detail.

While the operational setbacks have tempered near-term production expectations, the commissioning of the new expanded mill at Kalgoorlie in early FY27 offers a potential catalyst for improved throughput and efficiency in the coming year.