Northern Star says commissioning at the expanded KCGM plant remains uneven, with October output below plan and production tracking towards the lower end of guidance. November performance has stabilised so far, while the Hemi project has cleared its primary environmental approvals.
- KCGM October production of 15.3koz from 766kt milled
- Plant availability and throughput affected by commissioning issues
- KCGM output tracking towards the lower end of 550-650koz guidance
- FY27 group production guidance remains 1,500-1,650koz
- Hemi receives Federal and State environmental approvals
KCGM Commissioning Remains Uneven
Northern Star Resources Ltd (ASX:NST) has conceded that the expanded KCGM processing plant is taking longer than hoped to settle, with October gold production falling to 15.3koz from 766kt milled. Plant availability and throughput were hit by commissioning-related problems, including intermittent mill motor control issues and ongoing rectification work on selected equipment.
The company said the motor control problems have been addressed, while specialist technical teams and equipment vendors continue working on the remaining issues. A planned 3.5-day maintenance shutdown, completed on 30 October, allowed further remedial and commissioning work. The update follows the KCGM tie-in completion, after which the expanded plant entered the early stages of commissioning.
Lower-End KCGM Guidance Now in View
KCGM production is currently tracking towards the lower end of its previously announced 550-650koz FY27 range. Northern Star stressed that the eventual result within that range will depend chiefly on the timing and pace of the plant ramp-up during the rest of the financial year.
There is at least an early sign of improvement: November month-to-date performance is showing greater stability, with higher availability and average throughput. The immediate task is to make that improvement consistent before progressively increasing throughput and recovery. Mining across KCGM's open pit and underground operations remains on plan, and growing run-of-mine stockpiles are providing higher-grade ore inventory for the ramp-up.
Group Guidance Holds While Hemi Clears Primary Approvals
Despite the KCGM disruption, Northern Star has left FY27 group production guidance unchanged at 1,500-1,650koz of gold sold. Production is expected to be weighted towards the second half, reflecting the planned progressive ramp-up of the expanded plant. Chief executive Suresh Vadnagra said the issues identified so far were not considered fundamental and had not changed the company's confidence in KCGM's long-term value (ASX:NST).
Hemi has reached a separate regulatory milestone, receiving its primary Federal approval under the Environment Protection and Biodiversity Conservation Act and State approval under Part IV of Western Australia's Environmental Protection Act. The project still needs secondary approvals under the Mining Act, the Rights in Water and Irrigation Act and Part V of the EP Act, alongside management plans, groundwater licensing work, the Managed Aquifer Recharge Trial, land access and a separate approval pathway for its accommodation village.
Northern Star plans to provide another KCGM commissioning update at its 18 November annual general meeting and again in early December. Those checkpoints should help establish whether November's improved plant stability represents a sustained operational step forward or merely a temporary pause in a still-variable ramp-up.
Bottom Line?
The immediate test is whether November's improved availability can become reliable throughput before the second-half production ramp-up gathers pace.
Questions in the middle?
- Can KCGM sustain the improved November availability and throughput through the next commissioning update?
- Will production remain within the 550-650koz KCGM range as the ramp-up progresses?
- How quickly can Hemi secure its outstanding approvals, groundwater licences and land access?