KCGM expansion fuels Northern Star’s outlook

Northern Star Resources has wrapped up a strong June quarter, reporting gold sales of 444,034 ounces at an all-in sustaining cost (AISC) of $2197 per ounce.

This result brings full-year gold sales to 1.63 million ounces (Moz), aligning with revised guidance. For the 2025–26 financial year (FY26), the company expects sales of between 1.7–1.85Moz, supported by major growth projects nearing completion.

The Kalgoorlie Consolidated Gold Mines (KCGM) operation is forecast to contribute 550,000–600,000 ounces in FY26, with underground mining volumes reaching three million tonnes per annum. Open-pit productivity is set to improve as Golden Pike North returns to a single mining horizon in the second half of FY26.

“For FY25, our team safely delivered our revised guidance, which included new milestones of 1.63Moz gold sold and net mine cash flow of $1.189 billion,” Northern Star Resources managing director Stuart Tonkin said.

“With the KCGM mill expansion tracking to plan, we’ll begin winding down gold price hedging, reflecting our confidence in the outlook and balance sheet.”

Kalgoorlie led the June quarter with 222,236 ounces sold at an AISC of $2234 per ounce, followed by Yandal with 136,673 ounces at $2383 per ounce. The Pogo mine in Alaska delivered 85,125 ounces at a competitive $US1254 per ounce.

Cash generation remained strong, with $957 million in mine operating cash flow and $505 million in net mine cash flow after growth capital.

FY26 guidance includes an AISC range of $2300–2700 per ounce, with production weighted towards the June quarter due to planned shutdowns in the first half.

Capital investment will remain high, with $1.14–1.2 billion allocated for growth, including $530–550 million for the KCGM mill expansion, which remains on schedule for early FY27 commissioning.

Northern Star also completed a $300 million share buy-back and ended June with $1.9 billion in cash and bullion. Exploration will remain a priority, with $225 million budgeted for FY26.