Northern Star Resources has reported a robust half-year result with a 41% jump in net profit, driven by soaring gold prices despite operational setbacks. The company also declared a fully franked interim dividend of 25 cents per share.
- Revenue up 19% to A$3.41 billion
- Net profit after tax rises 41% to A$714.4 million
- Gold sales volume declines but offset by higher realised prices
- Interim fully franked dividend declared at 25 cents per share
- Significant capital investment in KCGM Mill Expansion and Hemi Project
Strong Financial Performance Despite Operational Challenges
Northern Star Resources Ltd has delivered a strong financial performance for the six months ended 31 December 2025, reporting a 41% increase in net profit after tax to A$714.4 million. This surge was primarily driven by a 31% rise in the average realised gold price, which climbed to A$4,670 per ounce, offsetting a decline in gold sales volume to 729,116 ounces from 804,140 ounces in the prior corresponding period.
Operational disruptions at several key mines, including KCGM, Jundee, Thunderbox, and Pogo, impacted production volumes. Issues ranged from equipment failures such as crusher breakdowns and carbon-in-leach tank downtime to geological challenges like underground mining dilution and a wall slip at South Kalgoorlie. Despite these setbacks, the company managed to increase revenue by 19% to A$3.41 billion.
Capital Investment and Strategic Growth
Northern Star continues to invest heavily in its growth pipeline, with capital expenditure focused on the KCGM Mill Expansion Project and the Hemi Development Project in Western Australia’s Pilbara region. The KCGM Mill Expansion aims to increase processing capacity to 27 million tonnes per annum by FY29, with significant structural and mechanical works underway. The Hemi project, acquired through the De Grey Mining Ltd scheme in May 2025, remains under evaluation with resource estimates expected in the upcoming annual report.
The company also completed the acquisition of Mt Roe Mining Pty Ltd, adding to its exploration portfolio, and divested its 50% interest in the Central Tanami Project Joint Venture for $50 million, reflecting a strategic portfolio optimisation.
Sustainability and Power Initiatives
In a notable move towards sustainable operations, Northern Star entered a joint venture with Zenith Energy to develop a 120MW thermal power facility complemented by renewable energy assets including wind, solar, and battery storage. This integrated power solution is designed to supply the KCGM operations with reliable and cleaner energy, with commissioning expected between FY28 and FY29.
Dividend and Balance Sheet Strength
The board declared a fully franked interim dividend of 25 cents per share, reflecting confidence in the company’s cash flow and earnings stability. Northern Star maintains a robust balance sheet with A$865 million in cash and cash equivalents and undrawn corporate facilities totalling A$1.5 billion. The company’s capital management strategy continues to balance growth investment with shareholder returns.
While the company recorded a non-cash impairment charge of A$77.6 million related to exploration assets, this was outweighed by operational earnings and strategic investments positioning Northern Star for future growth.
Bottom Line?
Northern Star’s strong half-year results underscore resilience amid operational hurdles, setting the stage for growth as key projects advance and sustainable power solutions come online.
Questions in the middle?
- How will operational disruptions at key mines affect production forecasts for the remainder of FY26?
- What impact will the KCGM Mill Expansion and Hemi Project have on future output and costs?
- How will the new renewable and thermal power joint venture influence Northern Star’s sustainability profile and operating expenses?