Northern Star Resources share price on watch amid strong June quarter and KCGM expansion progress

This popular gold giant has released its fourth-quarter update this morning.

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The Northern Star Resources Ltd (ASX: NST) share price is in focus after the company reported gold sales of 433,482 ounces for the June quarter at an all-in sustaining cost (AISC) of A$2,651 per ounce, with the KCGM Mill Expansion Project commissioning on schedule.

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What did Northern Star Resources report?

  • June quarter gold sold: 433koz at AISC of A$2,651/oz (US$1,821/oz)
  • FY26 gold sold: 1,543koz at AISC of A$2,698/oz (within guidance)
  • Group underlying free cash flow: A$206 million; net mine cash: A$443 million (June quarter)
  • All three centres generated FY26 net mine cashflow of A$1,179 million
  • KCGM Mill Expansion Project Stage 1 commissioning underway (on time)
  • Cash and bullion: A$1,235 million after A$129 million spent on share buy-back

What else do investors need to know?

The KCGM Mill Expansion Project achieved a key milestone as commissioning of Stage 1 commenced, increasing processing capacity to 27Mtpa. This is expected to enhance operational efficiency and gold recovery once fully ramped up in the coming year.

Northern Star has announced that Suresh Vadnagra will commence as the new Managing Director and CEO from 5 October 2026, bringing global mining leadership experience. The company continued its buy-back, purchasing A$129 million of shares during the quarter.

Exploration investment remains strong, with A$58 million spent in the June quarter—supporting growth projects like the Hemi Project, for which a final investment decision is targeted in late FY27. The company's cash earnings for FY26 are projected to land between A$2,860 million and A$2,950 million.

What did Northern Star Resources management say?

Northern Star's managing director, Stuart Tonkin, commented:

The June quarter delivered improved operational performance and positive net mine cashflow of A$443 million demonstrating the quality of our portfolio and reinforcing the long-term value potential of the business. With the commissioning of the KCGM Mill Expansion Project now underway, Northern Star is well positioned to deliver significant shareholder returns.

What's next for Northern Star Resources?

Northern Star will release its FY27 group guidance alongside its FY26 financial results on 20 August 2026. As the KCGM expansion ramps up, the company will monitor plant performance before providing detailed production and cost outlooks for the next financial year.

Major shutdowns are scheduled across operations in the September quarter, while exploration and project development will continue. The Hemi Project will proceed with aquifer recharge trials and remains on track for a late FY27 investment decision.

Northern Star Resources share price snapshot

Despite falling heavily from its high, the Northern Star share price remains up 27% on a 12-month basis. This compares favourably to a 2.8% gain by the S&P/ASX 200 index (ASX: XJO).

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Motley Fool contributor James Mickleboro 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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