Perth, March 14, 2026, 05:38 AWST
Northern Star Resources fell sharply on Friday, tumbling 18.75% to A$21.75 after the company warned it may miss the lower bound of its fiscal 2026 output target. Ongoing issues at Kalgoorlie Consolidated Gold Mines (KCGM) and softer mining productivity at Jundee are weighing on operations.
Northern Star felt the blow, just weeks after gold’s surge helped push its shares to a record A$30.16 on Feb. 11, following a 49% jump in first-half profit. Now, a fresh warning has investors questioning if soaring bullion is enough to cushion operational missteps at the miner’s key sites.
Back in January, investors had to deal with a guidance cut as Northern Star trimmed its fiscal 2026 output forecast from 1.7 million-1.85 million ounces down to 1.6 million-1.7 million, citing maintenance and operational hiccups across the portfolio. Now, Friday’s update has the company targeting just above 1.5 million ounces—meaning there’s little margin left for error before the year wraps up.
Northern Star flagged that gold sales in the March quarter have fallen short, citing softer-than-expected milling at KCGM and a dip in mining productivity across multiple sites, most notably Jundee. For January and February, reported gold sales reached 220,000 ounces.
Stuart Tonkin, chief executive, told investors the company isn’t about to prioritize “short-term guidance above all else.” Instead, Tonkin said the focus is on getting the group firing on all cylinders by the start of FY27. More specifics are coming, too: after pressure from shareholders for greater clarity, the company plans to release a more detailed view on its production, costs, and capital outlook later this year. NSR Limited
Everything still comes down to the KCGM mill expansion. Northern Star says commissioning remains set for early fiscal 2027. On site, around 800 contractors are focused on the plant, with an additional 400 handling enabling works. By the end of February, the company had stacked up about 100,000 ounces of high-grade ore, all earmarked for processing in fiscal 2027.
Sellers dominated across the board. The S&P/ASX 200 slipped 0.14% Friday, with Reuters flagging that Northern Star’s retreat pulled down gold stocks and took a bite out of the mining sub-index. Higher oil prices didn’t help—adding to inflation jitters before the Reserve Bank of Australia gathers next week.
Right now, KCGM’s throughput is the main risk—essentially, how quickly the mill can handle ore before the new plant kicks in. Northern Star kept its fiscal 2026 guidance open-ended, flagging both possible dips and gains ahead. At Jundee, a site review might shuffle workers and gear over the June quarter.
April 22 is circled on the calendar—that’s when Northern Star will put out its March-quarter production and cost numbers. Investors, in the meantime, are left guessing: can a better fiscal 2027 restore faith in a stock that only a month ago was sitting at all-time highs?
