Northern Star Resources (ASX:NST): How Are KCGM Commissioning and FY27 Costs Developing?

Aditi Sarkar

28 October 2026 06:10 PM AEDT

Northern Star Resources (ASX:NST): How Are KCGM Commissioning and FY27 Costs Developing?

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Highlights

Northern Star Resources (ASX:NST) sold 363,891 ounces of gold in the September 2026 quarter.
Quarterly all-in sustaining costs were AUD 3,217 per ounce, with gold sales revenue of AUD 1,819mn.
Cash and bullion totalled AUD 1,200mn at 30 September 2026; underlying free cash flow was negative AUD 31mn.
FY27 guidance remains 1.50–1.65mn ounces of gold sold as KCGM mill commissioning progresses.

Northern Star Resources Limited operates gold mining and processing assets across Western Australia and Alaska, with major production centres at Kalgoorlie, Yandal and Pogo. Its September 2026 quarterly update detailed lower gold sales than in June, higher unit costs and progress on the KCGM mill expansion. As these operating developments remain in focus, Northern Star Resources (ASX:NST) was quoted at AUD 25.39 on 28 October 2026, up 0.16% during the trading session at the time of writing. The next updates will provide further detail on commissioning progress, cost management and performance against FY27 guidance.

Company Business

Northern Star Resources (ASX:NST) produces gold through three regional operating centres. Kalgoorlie includes the KCGM operation and associated mining and processing infrastructure in Western Australia. The Yandal centre incorporates Jundee and Thunderbox, while Pogo is an underground gold mine in Alaska. Production depends on mining volumes, processed grades, plant availability, metallurgical recovery and transport arrangements.

Its development portfolio also includes the Hemi gold project in Western Australia. The company is conducting project studies to inform a final investment decision targeted for late FY27. Exploration is directed towards extensions around existing mines as well as regional targets, including work in the Pilbara. These activities sit alongside capital expenditure on existing processing infrastructure.

Recent Development

In its 21 October 2026 quarterly announcement, Northern Star Resources (ASX:NST) reported gold sales of 363,891 ounces for 1QFY27, with all-in sustaining costs (AISC) of AUD 3,217 per ounce. The result compared with approximately 433,482 ounces sold in the June 2026 quarter at AISC of AUD 2,651 per ounce. Management retained full-year guidance of 1.50–1.65mn ounces of gold sold and AISC of AUD 3,050–3,450 per ounce.

The KCGM mill expansion remains a major operational focus. The company reported completion of its mill tie-in and said commissioning was progressing. The ramp-up of this plant will be important to processing capacity and operating performance in Kalgoorlie. The September report also noted the arrival of a new chief executive, with emphasis placed on cost control, capital discipline and consistent operating delivery.

The company plans to hold its annual general meeting on 18 November 2026. It also reported that Hemi project studies were progressing towards the intended late-FY27 decision point, providing a separate development milestone from the ongoing KCGM commissioning program.

Financial Performance and Sector Context

Northern Star Resources (ASX:NST) reported AUD 1,819mn of September-quarter gold sales revenue at an average realised gold price of AUD 4,999 per ounce. Net mine cash flow was AUD 210mn. Group underlying free cash flow was negative AUD 31mn, including AUD 113mn of corporate tax payments. Cash and bullion stood at AUD 1,200mn at 30 September, compared with AUD 1,235mn at 30 June.

For FY26, revenue was AUD 7,623.1mn, an increase of 19% YoY, while statutory net profit attributable to shareholders rose 24% YoY to AUD 1,664.3mn. The company reported underlying EBITDA of approximately AUD 4.3bn and gold sales of 1.54mn ounces at AISC of AUD 2,698 per ounce. These annual figures provide context for the higher unit costs reported at the start of FY27.

Gold prices, fuel and labour costs, foreign exchange movements and ore grades affect sector profitability. For Northern Star, the scheduling and commissioning of major processing assets can also influence quarterly costs, throughput and cash generation.

Risks to Consider

Northern Star Resources (ASX:NST) faces operational risk from unplanned plant downtime, lower grades, underground mining conditions and commissioning delays. The KCGM ramp-up carries execution and capital-cost exposure, while mining operations remain sensitive to gold prices, input inflation and currency movements. The Hemi project will require further study and investment decisions before development proceeds.

What to Watch Next

Key measurable developments include KCGM commissioning and throughput, quarterly sales against FY27 guidance, AISC trends, and the balance between operating cash generation and project expenditure. Investors may also monitor Hemi study milestones, the proposed late-FY27 investment decision, and updates on grades and processing reliability across the three production centres.

Key Insights

Northern Star Resources (ASX:NST) began FY27 with 363,891 ounces of quarterly gold sales and an AISC of AUD 3,217 per ounce. Its latest report retained full-year guidance while recording negative underlying free cash flow and AUD 1,200mn of cash and bullion. KCGM commissioning, costs and the timing of Hemi studies are central to the company’s next operational updates.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.