Highlights

  • FY26 gold sales were 1.54 million ounces, down 6%.
  • Revenue rose 19% to AUD7.6 billion as the average realised gold price increased.
  • All-in sustaining costs increased to AUD2,698 per ounce.
  • FY27 guidance includes higher expected costs and significant capital expenditure.

Northern Star Resources Limited (ASX:NST) operates gold mines and processing Assets in Australia and the United States. Its FY26 results reflected higher realised gold prices but lower gold sales and increased production costs. At the same time, the company continued major Investment in its KCGM processing expansion, making commissioning progress and capital requirements central considerations for FY27.

FY26 Earnings and cost pressures

Northern Star (ASX:NST) sold 1.54 million ounces of gold during FY26, a decline of 6% from the prior year. Its average realised price increased 26% to AUD4,925 per ounce, while Revenue rose 19% to AUD7.6 billion. The combination illustrates how a higher realised price can support revenue even when sales volumes decline.

Underlying EBITDA was AUD4.27 billion, up 22%, and underlying net profit after tax was AUD1.79 billion, up 26%. Statutory net profit was AUD1.66 billion, up 24%. Underlying Earnings Per Share increased 5% to AUD1.24, a smaller percentage change than underlying profit.

All-in sustaining cost increased 25% to AUD2,698 per ounce, while cost of sales rose 15% to AUD4.7 billion. Northern Star (ASX:NST) reported free Cash Flow of AUD627.7 million, down 56%, during a period of substantial spending on the KCGM mill expansion. These measures show that higher reported earnings did not translate into an equivalent increase in free cash flow.

Operating performance and guidance changes

During 2026 Northern Star (ASX:NST) revised its FY26 outlook following weaker-than-planned operating performance. Management identified milling constraints at KCGM and Mining productivity issues at Jundee. It subsequently indicated gold production would exceed 1.50 million ounces, below earlier expectations. Actual FY26 gold sales of 1.54 million ounces should be distinguished from production guidance because the two measures are not identical.

The company’s operating portfolio includes KCGM in Western Australia, Jundee and the Pogo mine in Alaska. Disruptions at major assets can affect group output, cost absorption and the timing of gold sales. The 2026 revisions make operational delivery a relevant Factor when assessing subsequent guidance rather than relying only on the annual profit result.

KCGM commissioning and capital plans

The KCGM mill expansion is a central part of Northern Star’s investment programme. During 2026 the company described commissioning as planned for early FY27. Its FY27 gold sales guidance was 1.50 million to 1.65 million ounces, including an expected 550,000 to 650,000 ounces from KCGM during commissioning.

Northern Star (ASX:NST) guided to FY27 all-in sustaining costs of AUD3,050 to AUD3,450 per ounce, compared with AUD2,698 per ounce in FY26. It also forecast Capital Expenditure of AUD2.55 billion to AUD2.94 billion, including AUD350 million to AUD470 million for the KCGM mill expansion.

Financial commitments and risks

The company declared a 30-cent final dividend, bringing FY26 dividends to 55 cents per share, fully franked. It also continued a previously announced AUD500 million on-market buyback, with AUD129 million completed at the reported date. Northern Star (ASX:NST) must balance these distributions against capital expenditure and operating requirements.

Key risks include a slower KCGM ramp-up, further cost escalation, operational interruptions and lower realised gold prices. The company’s next production and cost disclosures will indicate whether performance is tracking within FY27 guidance. A forecast range does not eliminate the possibility of outcomes outside it.

Key Insights

Northern Star (ASX:NST) reported higher FY26 revenue and earnings alongside increased costs and lower free cash flow. FY27 performance will depend on KCGM commissioning, production delivery and the cost of completing the expansion.