Northern Star Resources has delivered improved operational performance in the March quarter, with gold sales of 381,000 ounces and an all-in sustaining cost of A$2,709 per ounce, positioning the company to meet its revised full-year production guidance of above 1.5 million ounces. This represents a meaningful operational achievement that underpins management’s confidence in the business, reflected in the announcement of a A$500 million on-market share buy-back program commencing 23 April.
The quarterly results demonstrate progress across Northern Star’s key operating centres. The Kalgoorlie Complex, the largest contributor, produced 210,312 ounces at an AISC of A$2,550 per ounce, with both open pit and underground mining trending toward annual target rates. The Yandal operation delivered 104,922 ounces, while Pogo achieved 65,573 ounces with improved grades from successful stope optimisation initiatives. Management highlighted accelerated volumes from the high-grade Golden Pike North area at Kalgoorlie, which has been prioritised to maximise cash flow during current mill constraints, a pragmatic operational response to bottlenecks.
From a financial perspective, the company generated group underlying free cash flow of A$301 million and net mine cash of A$426 million during the quarter, while maintaining an investment-grade balance sheet. Net cash stood at A$320 million following the A$347 million dividend payment, with total liquidity of A$1,183 million in cash and bullion. The company also refinanced its A$1,750 million undrawn corporate bank facility with maturity extended to 2030 and 2031, providing substantial financial flexibility.
The share buy-back announcement is particularly significant as it signals management’s conviction in both operational execution and share valuation. Managing Director Stuart Tonkin specifically cited the structural uplift in cash generation expected from the ramp-up of the new Fimiston processing plant at Kalgoorlie, which the company previously announced would commence processing in early financial year 2027. This mill expansion represents a critical inflection point for the business, with potential to substantially improve both production volumes and cost efficiency once fully operational.
Capital expenditure guidance for FY26 has been set at A$2,315 million to A$2,425 million, with revisions to the KCGM Mill Expansion Project and operational readiness capex detailed in the announcement. Exploration expenditure remains unchanged at approximately A$225 million. The company continues to advance the Hemi Development Project, with management optimising engineering and design while progressing regulatory approvals.
Key risks to monitor include the acknowledged dependence on mill throughput at Kalgoorlie for achieving production targets, with management noting both downside and upside potential relative to guidance. The successful ramp-up of the Fimiston mill in early FY27 will be critical to validate the structural cost improvements and production uplift assumptions embedded in management’s medium-term outlook. Investors should track quarterly results closely through the remainder of FY26 and into FY27 to assess execution against these milestones. This announcement has been classified as price sensitive and flagged as material by the ASX.
View the full ASX announcement (PDF)
About Northern Star Resources Limited (ASX: NST)
Northern Star Resources Limited is a gold mining and exploration company that engages in the exploration, development, mining, and processing of gold deposits. The company also sells refined gold and operates mining operations in Western Australia, the Northern Territory, and Alaska.
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