ASX Share Prices: Northern Star (ASX:NST) Quarter Update Puts KCGM Mill Expansion in Focus

Sonal Goyal

04 November 2026 10:49 PM AEDT

ASX Share Prices: Northern Star (ASX:NST) Quarter Update Puts KCGM Mill Expansion in Focus

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Key Highlights

Northern Star sold 363,891 ounces in the September 2026 quarter at an AISC of A$3,217 an ounce.
FY27 guidance of 1.5 million to 1.65 million ounces was maintained, with output weighted to the second half.
The KCGM mill tie-in is complete and commissioning has begun.
Mill work was completed on 28 September 2026, about two weeks behind plan.

Northern Star Resources Limited (ASX:NST) is one of the gold miners drawing attention among ASX share prices after its September 2026 quarterly activities report showed about 364,000 ounces of gold sold at an All-In Sustaining Cost (AISC) of A$3,217 an ounce, with full-year guidance left unchanged. The report, released on 21 October 2026, also confirmed that the tie-in of the expanded Kalgoorlie Consolidated Gold Mines (KCGM) processing plant had been completed, and it was the first quarterly update since Suresh Vadnagra became Managing Director and Chief Executive Officer on 5 October 2026. For a gold producer, the main drivers behind the share price are ounces, costs, the gold price and the delivery of growth projects.

The Quarter in Numbers

Northern Star sold 363,891 ounces of gold during the quarter at a group AISC of A$3,217 an ounce. Its average realised gold price was A$4,999 an ounce, generating Revenue of A$1,819 million. All-in costs, which include growth spending, were A$4,647 an ounce.

By production centre, Kalgoorlie, which includes KCGM, sold 193,540 ounces at an AISC of A$2,919 an ounce. Yandal sold 117,631 ounces at A$3,687 an ounce. Pogo in Alaska sold 52,720 ounces at an AISC of US$2,307 an ounce, or A$3,260 an ounce.

Net mine Cash Flow was A$210 million. Group underlying free cash flow was negative A$31 million after A$113 million in corporate tax payments, reflecting the heavy Capital spending phase the company is in.

FY27 Guidance Holds, With a Second-Half Weighting

Guidance for the 2027 financial year was unchanged at 1,500,000 to 1,650,000 ounces of gold sold, at an AISC of A$3,050 to A$3,450 an ounce. The company said production is weighted to the second half of the year.

That weighting matters for investors. A first quarter that runs below a quarter of the annual range is not unusual when a major processing expansion is being commissioned, but it places more emphasis on the ramp-up of new capacity over the coming months. Growth capital guidance for the year is A$1,700 million to A$2,020 million, and exploration guidance is A$230 million to A$250 million, with A$56 million spent on exploration in the September quarter.

KCGM Mill Expansion: The Key Project

The KCGM mill expansion is the centrepiece of Northern Star's growth plans. Stage I replaces about 85 per cent of the existing 13 million tonne per annum capacity and lifts total capacity to 27 million tonnes per annum. The legacy plants were shut on 21 September 2026 and the tie-in to the expanded plant was completed on 28 September, about two weeks later than planned. Integrated plant commissioning is in its early stages, and Stage II, which creates a single processing hub, is scheduled to begin commissioning early in the second half of the 2027 financial year.

Spending on the KCGM Mill Expansion and readiness was A$221 million in the quarter, part of A$418 million of growth capital at Kalgoorlie. How smoothly commissioning proceeds is likely to influence both ounces and unit costs for the rest of the year. A larger, more efficient mill at Kalgoorlie is designed to process more ore at lower cost per tonne, which is why the project features so prominently in the company's longer-term production and cost plans, and why any delays tend to draw close scrutiny from shareholders.

New Chief Executive and Board Changes

Vadnagra started as Managing Director and CEO on 5 October 2026. In the report he said: "Consistent delivery will be fundamental to our success", and pointed to a group-wide focus on "costs, execution and capital discipline".

The Board has also been refreshed. Mark Cutifani and Peter Rozenauers joined as non-executive directors from 1 October 2026, Terry Bowen from 1 September and Jeff Quartermaine from 9 July. Shareholders will have a chance to hear from the new Leadership at the Annual General Meeting on 18 November 2026.

Hemi, Hedging and the Balance Sheet

The Hemi gold project in the Pilbara, acquired through the De Grey Mining transaction, remains in study and permitting. Northern Star said engineering and design are progressing and a final Investment decision is on track for late in the 2027 financial year. Managed aquifer recharge trials began during the quarter to support the Western Australian Environmental Protection Authority approval process.

On hedging, 647,500 ounces remained committed at an average of A$3,423 an ounce, and about 140,000 ounces were delivered into hedges during the quarter at A$3,278 an ounce. Because hedged ounces are sold below the recent realised price, the hedge book reduces some of the benefit of higher gold prices on those volumes.

Cash and bullion totalled A$1,200 million at 30 September 2026, made up of A$968 million in cash and A$232 million in bullion. The company drew A$500 million of bank facilities on 9 October to fund its final FY26 Dividend of A$0.30 per share, which was paid on 15 October 2026.

Gold Price and Rate Backdrop

Gold producers are sensitive to both the US dollar gold price and the Exchange Rate between the local and US currencies, since costs are largely incurred in Australian dollars. The Reserve Bank of Australia raised the cash rate target to 4.85 per cent on 3 November 2026, saying Inflation "remains elevated" and pointing to higher fuel and Commodity prices linked to the Middle East conflict. Higher diesel and input costs can feed into AISC over time, while Interest Rate settings in Australia and overseas can influence currency movements and the gold price.

Key Takeaways

Northern Star sold 363,891 ounces in the September 2026 quarter at an AISC of A$3,217 an ounce and kept FY27 guidance of 1.5 million to 1.65 million ounces, with output weighted to the second half. The KCGM mill tie-in is complete and commissioning has begun, while new chief executive Suresh Vadnagra has emphasised delivery and cost control. Commissioning progress at KCGM, the Hemi investment decision, the hedge book and the gold price are likely to remain the main drivers of the Northern Star share price ahead of the 18 November AGM.

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