Northern Star Resources revises FY26 cost guidance after lower gold sales

Northern Star Resources revised its FY26 cost and production guidance after lower gold sales and higher royalties.

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The Northern Star Resources Ltd (ASX: NST) share price is in focus after the company revised its FY26 all-in sustaining cost (AISC) guidance to A$2,600–2,800 per ounce. The gold miner also confirmed its annual production guidance will now be 1,600,000–1,700,000 ounces.

What did Northern Star report?

  • FY26 AISC guidance lifted to A$2,600–2,800/oz (up from A$2,300–2,700/oz)
  • FY26 Group production guidance downgraded to 1.6–1.7 million ounces (previously 1.7–1.85 million ounces)
  • Higher royalties due to increased gold prices are expected to add around A$40/oz to costs
  • Sustaining capital guidance for FY26 remains steady at ~A$750 million, or ~A$450/oz
  • 1H FY26 actual AISC was A$2,720/oz

What else do investors need to know?

Northern Star flagged these cost and production changes after disappointing gold sales across all three production centres in the December quarter. Management says the main drivers for higher AISC are lower volumes and increased royalties as gold prices have risen.

The company is sticking with its sustaining capital expenditure targets, signalling confidence in its long-term asset investment. Investors can expect further detail when Northern Star releases its December quarterly results on 22 January.

What's next for Northern Star?

Northern Star says these guidance changes are intended to give investors a clearer picture of FY26 expectations ahead of the quarterly report. The company will update shareholders further on its performance and outlook once the full quarterly results are out.

Focus will now turn to how management executes operational improvements and whether gold prices remain high enough to offset rising costs for the remainder of the year.

Northern Star share price snapshot

Over the past 12 months, Northern Star resources shares have risen 63%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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