Northern Star flags hurdles in achieving FY26 gold production guidance

Australia’s Northern Star Resources warned on Friday that achieving the lower end of its fiscal 2026 production guidance will be challenging, flagging operational setbacks at its Kalgoorlie Consolidated Gold Mines (KCGM).

Northern Star said it continued to face difficulty in maintaining throughput at required levels through its existing mill at KCGM, one of Australia’s largest open-pit gold mines.

The gold miner also said that March quarter-to-date gold sales have been hit by weaker-than-planned milling performance at KCGM and reduced mining productivity across other operations including Jundee in Western Australia.

Northern Star reported its ‘best estimate’ for fiscal 2026 production to be above 1.5 million ounces, compared with the previous guidance range of 1.6 million to 1.7 million ounces.

The company in January cut its production forecast, citing unplanned maintenance and operational hurdles.

“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,” Stuart Tonkin, Northern Star’s managing director and chief executive, said.

The company is also undertaking an operational review at its Jundee operations to reduce costs and focus on higher-margin ounces, flagging possible redeployment of surplus personnel and equipment to higher-margin operations.

Northern Star reported total gold sales of 220 kilo ounces for January and February.

(By Nichiket Sunil; Editing by Sahal Muhammed)