Northern Star Resources has outlined a clear and firm focus on driving greater productivity and strengthening cost discipline after “a number of one-off operational events” led to softer-than-expected December quarter results.
The company saw 348,000 ounces of gold sold for an all-in-sustaining-cost of $2937 an ounce, with underlying free cashflow sitting at $328 million.
Northern Star noted recovery works at its Jundee operations in Western Australia took longer than expected, with Thunderbox operations impacted by unplanned downtime.
Despite a slightly lower than expected production result for the quarter, operational growth capital remains unchanged at between $1.14–1.22 billion.
Operations for the upcoming year have been revised with around 1.6–1.7 million ounces of gold expected to be produced in 2026.
“As previously announced, a number of one-off operational events across our assets resulted in a softer December quarter and prompted us to revise FY26 production and cost guidance. Looking ahead, our team remains firmly focused on driving productivity improvements and strengthening cost discipline,” Northern Star Resources managing director Stuart Tonkin said in a statement.
Growth across two key growth projects was achieved in the quarter, however, with the company’s KCGM mill expansion on track for commissioning in early 2027 and positive engineering works taking place at the Hemi development project.
“The December quarter delivered positive advances at our two key growth projects that will structurally reshape our cost base and support delivery of higher-margin ounces,” Tonkin said.
Cash earnings for the first half of the year are forecast to be around $1.1 billion.
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