Northern Star Resources (NST) Q2 2026 earnings summary

Executive summary

• Gold sales for the December quarter totaled 348,000 ounces at an all-in sustaining cost (AISC) of A$2,937/oz, impacted by one-off operational events such as a primary crusher failure at KCGM and unplanned mill downtime at Jundee and Thunderbox, leading to revised FY26 production and cost guidance.

• Revised FY26 guidance: 1.6–1.7 million ounces of gold sold at AISC of A$2,600–2,800/oz, with detailed production and cost guidance by production center.

• Operational disruptions at key sites have been addressed, with a focus on productivity improvements and cost discipline for a stronger second half.

• Group underlying free cash flow was negative A$328 million, with net mine cash of A$129 million and net cash position of A$293 million after significant tax payments.

• Balance sheet remains in a net cash position, with growing exposure to spot gold prices as hedges unwind.

Financial highlights

• December quarter gold sales revenue was A$1,709 million at an average price of A$4,908/oz.

• Cash and bullion at 31 December: A$1,176 million; net cash position of A$293 million.

• H1 FY26 cash earnings estimated at A$1,060–1,110 million; dividend policy remains at 20–30% of cash earnings.

• Q2 operating cash flow: A$738 million, including $18 million in note coupon payments and A$30 million in insurance premiums.

• All-in costs (AIC) rose to A$4,534/oz, reflecting ongoing capital projects.

• Q2 group AISC included ~$20 million in additional costs from disruption events.

• Non-cash inventory charges for Q2: $93 million credit due to stockpile builds.

Outlook and guidance

• FY26 gold sales guidance revised to 1.6–1.7 million ounces at AISC of A$2,600–2,800/oz, down from previous guidance.

• Operational growth capital guidance unchanged at A$1,140–1,220 million.

• KCGM Mill Expansion Project on track for early FY27 commissioning; FY26 capex revised up to A$640–660 million, with increased labor and targeted CapEx to ensure schedule.

• Hemi project progressing with ongoing permitting and optimization; FID targeted by end of calendar year.

• Exploration spend for FY26 maintained at ~A$225 million.

• Second half expected to deliver stronger production and lower costs as operational issues are resolved.