The Northern Star Resources Ltd (ASX: NST) share price is in focus today after the company reported September quarter gold sales of 364,000 ounces at an all-in sustaining cost (AISC) of A$3,217 per ounce, with net mine cash flow of A$210 million.
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What did Northern Star Resources report?
- Gold sold: 363,891 ounces for the quarter
- All-in sustaining cost (AISC): A$3,217/oz (US$2,244/oz)
- Net mine cash flow: A$210 million (all three centres positive)
- Group underlying free cash flow: negative A$31 million (including A$113 million tax payments)
- Cash and bullion as at 30 September: A$1,200 million
- FY27 production guidance unchanged: 1,500–1,650koz gold sold at AISC of A$3,050–3,450/oz
What else do investors need to know?
Northern Star completed the KCGM mill tie-in during the September quarter, with commissioning of the expanded plant now underway. This milestone is key for the group's long-term production plans, though mill ramp-up affected grades and recoveries for the quarter.
All three production centres—Kalgoorlie, Yandal, and Pogo—delivered positive cash flow. The company invested A$56 million in exploration, while the Hemi Project studies are progressing to plan towards a final investment decision late in FY27.
Northern Star's balance sheet remains strong, with A$1.2 billion in cash and bullion and bank facilities in place. The company utilised A$500 million of these facilities post quarter-end to help maintain targeted cash levels ahead of a dividend payment.
What did Northern Star Resources management say?
Suresh Vadnagra, Managing Director & CEO, commented:
The September quarter has delivered another major milestone for Northern Star with completion of the KCGM mill tie-in and commencement of commissioning of the integrated plant. Commissioning is progressing in line with expectations for this early stage. We have also had a solid start to FY27 across our operations, with all sites delivering in line with plan. While I still have a lot to learn about our individual assets, we have a high-quality asset base and a strong foundation on which to grow. Consistent delivery will be fundamental to our success and will require strong operating discipline, clear accountability and a group-wide focus on costs, execution and capital discipline. My immediate priority is to understand the business in parallel with focusing on completing the KCGM mill expansion safely and efficiently as well as ensuring consistent delivery across the portfolio.
What's next for Northern Star Resources?
FY27 production guidance is unchanged, with the company aiming for up to 1.65 million ounces of gold sold at lower costs over the year. Production is expected to be weighted to the second half, as the expanded KCGM plant ramps up.
Northern Star is focused on cost discipline, capital management, and advancing its growth projects, including Stage II of the KCGM expansion and the Hemi Project. Management says a portion of FY27's capital expenditure remains discretionary, giving flexibility should operating conditions change.
Northern Star Resources share price snapshot
Over the past 12 months, Northern Star Resources shares have declined 5%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 3% over the same period.
