Northern Star Resources delivers robust half-year financials, confirming the integration of De Grey Mining’s Hemi Project and nearing completion of the KCGM mill expansion.
- Underlying EBITDA rises to A$1,876 million
- Net profit after tax reaches A$714 million
- FY26 gold production guidance set at 1.6-1.7 million ounces
- KCGM mill expansion 86% complete, on track for FY27 production
- Hemi Project progressing towards final investment decision in FY27
Strong Financial Performance Amid Strategic Growth
Northern Star Resources has reported a solid half-year performance for the six months ended 31 December 2025, underpinned by an underlying EBITDA of A$1,876 million and a net profit after tax of A$714 million. These results reflect a 34% increase in EBITDA and a 49% rise in underlying net profit compared to the prior corresponding period, signalling robust operational execution and favourable market conditions.
The company’s cash earnings stood at A$1,100 million, supported by disciplined cost management and a stable gold price environment. Northern Star declared a fully franked interim dividend of 25.0 cents per share, maintaining its dividend policy of distributing 20-30% of full-year cash earnings, which underscores confidence in its cash flow outlook.
Integration of De Grey Mining and Hemi Project Update
A key highlight of the period was the successful acquisition of De Grey Mining Ltd, completed in May 2025. This strategic move added the high-quality Hemi development project to Northern Star’s portfolio, although the Mineral Resources and Ore Reserves from Hemi are not yet reflected in the current reserves update. The company confirmed that the Hemi Project is advancing through state and federal permitting stages, with a final investment decision (FID) anticipated in FY27, subject to approvals. Engineering and design work is progressing, with an estimated two-and-a-half-year build timeline post-FID.
Operational Growth Supported by KCGM Mill Expansion
Northern Star’s KCGM mill expansion remains on schedule, with 86% of construction completed as of January 2026. The project aims to increase processing capacity from 13 million tonnes per annum to 27 million tonnes, enabling a significant uplift in gold production. Post-expansion, the company expects to produce between 750,000 and 900,000 ounces annually from FY27 to FY29, up from the current guidance of 520,000 to 550,000 ounces for FY26 pre-expansion.
The capital expenditure for the mill expansion is forecast between A$640 million and A$660 million for FY26, with additional operational readiness costs of A$370 million to A$390 million. This investment is part of Northern Star’s broader growth capital program, which also includes ongoing development at Fimiston South and underground activities at MTC and Fimiston.
Production and Cost Guidance
For the full fiscal year 2026, Northern Star has revised its gold sold guidance to 1.6 to 1.7 million ounces, with an all-in sustaining cost (AISC) range of A$2,600 to A$2,800 per ounce. This reflects a balanced approach to optimising production while managing costs amid inflationary pressures. The company’s disciplined capital management and strong liquidity position, with net cash of A$293 million and undrawn revolving credit facilities totaling A$1.5 billion, provide a solid foundation for ongoing operational and growth initiatives.
Exploration and Long-Term Value Creation
Exploration remains a strategic priority, with expenditure of approximately A$225 million planned for FY26. Northern Star continues to invest in extending its mineral resource base, supporting a reserve-backed production profile that extends beyond ten years. The company’s commitment to operational excellence, portfolio quality, and capital discipline positions it well to generate superior returns for shareholders while managing risks inherent in the gold mining sector.
Bottom Line?
Northern Star’s strong half-year results and strategic project advancements set the stage for sustained growth, but investors will watch closely as the Hemi Project moves towards final investment decision.
Questions in the middle?
- How will the Hemi Project’s permitting timeline impact Northern Star’s growth trajectory?
- What are the risks to production and cost guidance amid inflation and operational challenges?
- How will the integration of De Grey Mining influence Northern Star’s long-term reserve base and exploration strategy?