The Northern Star Resources Ltd (ASX: NST) share price is in focus today after the gold miner flagged it may miss the lower end of its full-year production forecast, with operational challenges impacting FY26 so far.
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What did Northern Star report?
- Total gold sales for January and February 2026: 220,000 ounces (koz)
- FY26 production now expected above 1.50 million ounces (Moz), previously guided higher
- Weaker-than-planned milling performance at KCGM and reduced mining productivity at Jundee weighed on results
- KCGM mine open pit high-grade ore mined: averaged 1.6g/t for the first two months of 2026
- KCGM mill expansion project remains on track for early FY27 commissioning
What else do investors need to know?
Northern Star's board and management said operational pressures remain high, as the company faced difficulties achieving required throughput at the existing KCGM mill. The main priority for the coming months is to set up Northern Star to realise its full potential in FY27, rather than focusing solely on this year's guidance.
The KCGM mill expansion, designed to lift future production, remains on schedule with about 800 contractors working on the plant. In the meantime, KCGM's run-of-mine stockpiles of high-grade ore have grown to around 100koz, which should benefit output once the expanded mill comes online.
At Jundee, a review is under way to cut costs and focus on higher-margin ounces, with personnel and equipment to be redeployed to more profitable areas during the June quarter.
What did Northern Star management say?
Managing Director & CEO Stuart Tonkin said:
Front of mind for Management and the Board is that efforts to achieve the FY26 forecast do not compromise the transition to the new plant and have negative implications for Q1 next year. To deal with that concern, Management's focus over the next four months will be to set the Company up to achieve its full potential from the start of FY27 and not on the achievement of short-term guidance above all else. The production focus over this period will be on extracting ounces in the most effective way, from both a cost and mining efficiency perspective.
What's next for Northern Star?
Northern Star expects to provide more detail on FY26 production and costs with its March quarterly results on 22 April 2026. Beyond near-term operational headwinds, the company's main focus is hitting a strong start to FY27 as the expanded KCGM mill comes online.
Management is also working on refreshed medium-term forecasts across its assets, aiming to give investors more clarity around production, costs and capital needs later in the year.
Northern Star share price snapshot
Over the past 12 months, Northern Star resources shares have risen 54%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.
