NST Cuts FY26 Gold Output Guidance by Up to 8.1% Following Operational Setbacks

Operational Challenges Prompt Production Guidance Downgrade

Northern Star Resources Ltd (NST) has officially confirmed a downgrade to its FY26 annual gold production guidance, reducing the forecast from 1.7–1.85 million ounces to 1.6–1.7 million ounces. This adjustment, representing a decrease of up to 8.1%, follows a series of operational setbacks across its key mining centres.

The company’s January 2, 2026 Operational Update revealed that a primary crusher failure at the KCGM processing plant significantly curtailed throughput, reducing it to approximately 70% of the targeted rate for several weeks. The crusher’s performance deteriorated gradually before a shutdown was brought forward in mid-December, with full recommissioning only achieved on January 5, 2026. Constraints such as specialist labour availability over the Christmas period delayed repairs.

Impact of Processing Failures and Lower Grades

In addition to the KCGM issues, Northern Star disclosed unplanned processing downtime at its Thunderbox operation due to carbon-in-leach failures, which, combined with lower mined grades at the Orelia open pit, reduced gold sales by an estimated 16,000 ounces during the December quarter. These challenges, alongside lower gold sales across all three production centres, Kalgoorlie, Yandal, and Pogo, are expected to influence the company’s annual cost guidance, although the precise impact remains under assessment.

Northern Star emphasised that while the production downgrade was material and warranted immediate disclosure, the full effect on cost guidance requires further data and analysis. The company has committed to providing an update on costs and revised guidance with its December quarter results, scheduled for release on January 22, 2026.

Disclosure Timing and Compliance with ASX Rules

Responding to an ASX Aware Letter, Northern Star clarified that it only became aware of the full extent of these operational issues and their impact on production guidance on January 1, 2026, when actual December quarter production and sales figures were available. Prior to this date, despite some known operational challenges, the company reasonably considered its original guidance achievable, supported by offsetting positive outcomes at other sites.

The company confirmed that it released the production downgrade announcement promptly on January 2, 2026, in compliance with ASX Listing Rule 3.1. Northern Star also addressed concerns regarding the timing of disclosure, explaining that the primary crusher failure’s impact was uncertain until early January and that no earlier announcement was possible or warranted under continuous disclosure obligations.

Ongoing Operational Updates and Market Implications

Northern Star also provided updates on previously disclosed issues at Jundee and South Kalgoorlie, noting that recovery works at Jundee have taken longer than expected, pushing a return to normal operations into the March quarter. The company maintains that these delays are not material to its overall annual production guidance.

Investors will be closely watching Northern Star’s forthcoming quarterly results for further clarity on cost impacts and operational recovery. The company’s transparent communication and adherence to disclosure rules aim to maintain market confidence amid these challenges.