Highlights

  • Northern Star Resources shares dropped 14.96% on 13 March 2026, following the operational update regarding guidance downgrade.
  • March quarter-to-date gold sales were 220koz, affected by weaker milling performance at KCGM and lower mining productivity at Jundee.
  • FY26 production is now estimated to be above 1.50Moz, though achieving the lower end of prior guidance is challenging.
  • KCGM Mill Expansion Project remains on track for early FY27 commissioning, with ~1,200 contractors engaged to support progress.
  • Management prioritizes long-term efficiency and FY27 readiness over short-term guidance achievement.

Northern Star Resources Ltd (ASX:NST) shares fell sharply by 14.96% to AUD 22.96 during the morning session on 13 March 2026, placing the stock among top ASX decliners. Despite today’s decline, the stock remains up 30.88% over the past year, reflecting broader investor confidence in the company’s growth potential.

Today’s drop came following the release of its latest operational update, which highlights ongoing operational challenges, particularly at KCGM and Jundee, which are impacting near-term production and cost targets.

Operational Challenges Affect Short-Term Production

For the March quarter-to-date, Northern Star reported total gold sales of 220,000 ounces, hindered by weaker milling performance at the Kalgoorlie Consolidated Gold Mines (KCGM) mine and reduced mining productivity at several sites, notably Jundee.

The company noted that meeting the lower end of full-year production guidance is now expected to be difficult, although FY26 production is still estimated to remain above 1.50 million ounces. The final outcome will largely depend on throughput at KCGM, which continues to show variable performance. The market will receive further details with the March quarterly report scheduled for 22 April 2026.

Focus on Efficiency and FY27 Readiness

CEO Stuart Tonkin emphasized that the priority over the next four months is to position Northern Star for a favourable start to FY27 rather than overextending resources to meet short-term targets. “Management’s focus will be on extracting ounces in the most effective way, from both a cost and mining efficiency perspective,” he said.

At KCGM, mining volumes remain favourable, and ROM stockpiles are building, including ~100,000 ounces of high-grade ore (average grade 1.6g/t) to be processed in FY27. Mining productivity for both open pit and underground operations remain in line with December quarter performance, progressing toward annual guidance levels.

KCGM Mill Expansion Project On Track

The KCGM Mill Expansion Project continues to advance as planned, with commissioning expected in early FY27. To protect the timeline and address lower-than-expected productivity, Northern Star has increased labor, now employing roughly 800 contractors on the plant and another 400 on enabling works. Management remains committed to the safe, timely, and disciplined delivery of this high-value project.

Cost Discipline and Medium-Term Planning at Jundee

At Jundee gold mine, the company is reviewing operations to reduce costs and prioritize higher-margin ounces. This includes redeploying surplus personnel and equipment to more profitable operations, with adjustments expected in the June quarter. Northern Star is also developing medium-term production, cost, and capital forecasts, which will be released later in 2026 to provide investors with greater visibility into its asset base.

What This Means for Investors?

Today’s decline in Northern Star’s share price reflects market reaction to the operational update, highlighting the short-term challenges at KCGM and Jundee. However, the company’s ongoing focus on efficiency, high-grade stockpiles, and the strategic KCGM Mill Expansion Project underscores a commitment to favourable performance in FY27. Investors are likely to monitor the upcoming March quarterly report for a clearer view of FY26 outcomes and cost management.

Frequently Asked Questions (FAQs)

  1. Why did Northern Star Resources shares fall on 13 March 2026?
    Shares dropped 14.96% to AUD 22.96 after the company reported operational challenges affecting gold production and milling performance, particularly at KCGM and Jundee.
  2. What is the company’s FY26 production outlook?
    Northern Star estimates FY26 production to be above 1.50 million ounces, though achieving the lower end of prior guidance is now challenging due to operational variability.
  3. What is the status of the KCGM Mill Expansion Project?
    The project is progressing well and remains on track for early FY27 commissioning, with ~1,200 contractors supporting the plant and enabling works.