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Highlights

  • Northern Star shares decline 2.8% to AUD 16.20 following June quarter update

  • FY25 gold sales totalled 1.634 million ounces with record free cash flow of AUD 536 million

  • FY26 guidance issued for up to 1.85 million ounces at higher cost expectations

Shares of Northern Star Resources Ltd (ASX:NST) fell in morning trade on Thursday following the release of the company’s June 2025 quarterly production update. The stock dropped 2.8% to AUD 16.20, compared to the previous close of AUD 16.67, while the S&P/ASX 200 Index (ASX:XJO) rose 0.2% during the same session.

The decline came despite the company reporting several operational and financial metrics for FY25 that met or exceeded its revised guidance.

FY25 Results and Financial Position

For the full year ended 30 June 2025, gold sales totalled 1.634 million ounces at an all-in sustaining cost (AISC) of AUD 2,163 per ounce, which aligned with Northern Star’s updated guidance. During the June quarter alone, the company sold 444,000 ounces at an AISC of AUD 2,197 per ounce (US$1,408/oz).

The company recorded record underlying free cash flow of AUD 536 million and net mine cash flow of AUD 1.19 billion for FY25. Estimated cash earnings for the year came in between AUD 2.80 billion and AUD 2.95 billion, compared to AUD 1.81 billion in FY24.

However, total all-in costs (AIC) rose to AUD 3,352 per ounce, an increase from the prior year, driven primarily by ongoing capital growth initiatives, including the KCGM Mill Expansion Project.

Northern Star ended the fiscal year with net cash of AUD 1.013 billion, following the acquisition of De Grey, and reported combined cash and bullion holdings of AUD 1.914 billion.

Production Centre Highlights and Comments from Management

The company noted that its Yandal and Pogo operations delivered record quarterly and annual net mine cash flow.

Managing Director Stuart Tonkin stated that the June quarter marked the completion of a year focused on growth investment and added that the company would reduce its gold price hedging in line with balance sheet improvements.

Tonkin said the KCGM Mill Expansion Project remains on schedule and is expected to support long-term output. He also highlighted that the company met its revised FY25 guidance and completed key acquisitions, including the Hemi deposit, positioning the business for future development.

FY26 Outlook and Capital Plans

For the 2026 financial year, Northern Star has issued guidance for 1.70 to 1.85 million ounces of gold sold. The expected AISC range has increased to AUD 2,300 to AUD 2,700 per ounce.

Growth capital expenditure is forecast between AUD 2.125 billion and AUD 2.270 billion, covering the final phase of the KCGM Mill Expansion, operational readiness, and further development of the Hemi Project. The company has also allocated AUD 225 million for exploration activities in FY26.

With today’s drop included, Northern Star’s share price remains up 13.4% over the past 12 months.