Northern Star Resources has admitted that hitting its full-year production targets for fiscal 2026 will be challenging following a period of operational turbulence at its flagship Australian sites.
In an updated guidance, the gold miner revealed that while it still expects to exceed 1.5 million ounces for the financial year, achieving even the lower end of its previous forecasts is now at risk. The announcement comes after a sluggish start to the calendar year, with total gold sales for January and February stalling at 220,000 ounces.
The primary drag on performance has been the ageing mill at the Kalgoorlie consolidated gold mines (KCGM) operation. Northern Star reported that maintaining throughput at the existing facility remains difficult, with performance described as highly variable.
Issues are not confined to Kalgoorlie; the company also noted reduced mining productivity at Jundee, prompting an immediate operational review. This review aims to pivot the site toward higher-margin ounces, with surplus equipment and personnel expected to be redeployed during the June quarter.
Despite the short-term headwinds, Managing Director Stuart Tonkin emphasised that the board would not sacrifice long-term stability for short-term guidance.
“Management’s focus over the next four months will be to set the company up to achieve its full potential from the start of fiscal 2027 and not on the achievement of short-term guidance above all else,” Tonkin said.
“The production focus over this period will be on extracting ounces in the most effective way, from both a cost and mining efficiency perspective.”
The KCGM mill expansion project is progressing well and is on track for commissioning in early fiscal 2027. To protect this timeline, the company has bolstered its workforce, with approximately 1,200 contractors currently active on the plant and enabling works.
While milling remains a bottleneck, mining volumes at KCGM have been a bright spot. High-grade ore stockpiles reached roughly 100,000 ounces by the end of February.
This banked material is slated for processing in fiscal 2027, which the company expects will significantly boost margins by displacing lower-grade ore.
