Northern Star Resources Ltd (ASX: NST) has reported a robust financial and operational performance for the half year ended 31 December 2025, highlighting strong margins, disciplined capital management and continued advancement of its major growth projects.
The ASX 50 gold producer generated A$1.88 billion in underlying EBITDA, supported by elevated realised gold prices and operational stability across its Kalgoorlie, Yandal and Pogo production centres. Management said the result strengthens financial flexibility to fund organic growth while maintaining shareholder distributions.
Northern Star’s Kalgoorlie Operations, where the KCGM mill expansion is set to lift processing capacity to 27Mtpa. [Australian Mining]
For the period, revenue rose 19% year-on-year to A$3.41 billion, while underlying net profit after tax increased 49% to A$760 million. EBITDA margins improved to 55%, reflecting higher gold prices and disciplined cost control.
Strong Financial and Operational Performance
Key half-year metrics included:
- Underlying EBITDA: A$1.88 billion
- Underlying NPAT: A$760 million
- Cash earnings: A$1.10 billion
- Net cash position: A$293 million
- Interim dividend:0 cents per share (fully franked)
The board declared a fully franked interim dividend of A$358 million, payable on 26 March 2026. The distribution aligns with Northern Star’s policy of returning 20–30% of full-year cash earnings and signals confidence in near-term cash generation.
Group gold sales totalled 729,116 ounces during the half, with an average realised gold price of A$4,670 per ounce, materially higher than historical averages.
Portfolio Strength and FY26 Outlook
Northern Star remains a pure-play gold producer with assets in Western Australia and Alaska. The company reaffirmed revised FY26 guidance of 1.60–1.70 million ounces of gold sold.
Group all-in sustaining costs (AISC) are expected to range between A$2,600 and A$2,800 per ounce, positioning the portfolio within the first half of the global cost curve. Management noted that scale, operational discipline and portfolio quality underpin resilience across commodity price cycles.
KCGM Mill Expansion Nearing Completion
The KCGM mill expansion in Kalgoorlie remains a key growth catalyst. The project will increase processing capacity from 13Mtpa to 27Mtpa and was 86% complete as at 31 January 2026.
Construction at the KCGM mill expansion project, reported 86% complete as at January 2026. [Mining.com ]
Production from the expanded facility is forecast to rise to:
- 750,000–800,000 ounces in FY27
- 800,000–850,000 ounces in FY28
- 850,000–900,000 ounces in FY29
Management indicated the expansion will prioritise higher-grade feed and accelerate stockpile monetisation, supporting margin expansion over the medium term.
Hemi Development Advances
Northern Star also progressed the Hemi development project, acquired through the De Grey Mining takeover completed in May 2025.
Exploration and engineering work continue at the Hemi development project in Western Australia. [Proactive Investors]
Permitting at both state and federal levels is advancing, with a final investment decision targeted during FY27, subject to approvals. Construction is expected to take approximately 2.5 years post-FID. Engineering design, process flowsheet optimisation and mining sequence planning are ongoing, with Hemi resources and reserves to be incorporated into the group’s annual statement in May 2026.
Resources and Exploration
As at 31 March 2025, Northern Star reported:
- Mineral Resources:7 million ounces
- Ore Reserves:3 million ounces
These figures exclude Hemi and provide more than a decade of reserve-backed production visibility.
Exploration continues to deliver capital-efficient growth, with a reported resource addition cost of approximately A$37 per ounce, well below many industry benchmarks.
Market and Strategic Context
Northern Star’s results were well received by the market. Shares in NST closed at A$29.23, up A$0.969 or 3.43% for the session, with trading volume of approximately 3.77 million shares. The stock traded within a tight bid–offer range of A$29.22 to A$29.23, reflecting strong liquidity consistent with its ASX 50 status. The Company maintains a market capitalisation of approximately A$40.43 billion.
Northern Star Resources Share Price [ASX]
The positive price movement follows sustained strength in global gold markets, driven by geopolitical uncertainty, central bank buying and continued investor demand for defensive assets. As a large-cap, liquid gold exposure on the ASX, Northern Star remains a key vehicle for institutional and offshore capital seeking leverage to gold prices within a tier-one jurisdiction framework.
Chief executive Stuart Tonkin said the company remains focused on operational effectiveness, disciplined capital allocation and organic growth. With a net cash balance sheet, substantial liquidity and visible production growth from KCGM and Hemi, Northern Star continues to position itself as a high-margin, scalable gold producer.
For investors and analysts, the 1H FY26 update reinforces operational stability, balance sheet strength and a clear pathway to higher production and sustained free cash flow generation.
FAQs
- What does Northern Star Resources do?
Ans. Northern Star Resources Ltd (ASX: NST) is an Australian gold mining company focused on the exploration, development and production of gold. It operates major production centres in Kalgoorlie and Yandal in Western Australia, as well as the Pogo mine in Alaska, United States.
- What were Northern Star’s 1H FY26 financial results?
Ans. For the half year ended 31 December 2025, Northern Star reported revenue of A$3.41 billion and underlying EBITDA of A$1.88 billion. Underlying net profit after tax rose 49% year-on-year to A$760 million. Cash earnings were A$1.10 billion, and the company declared a fully franked interim dividend of 25.0 cents per share.
- Why did NST shares rise after the earnings announcement?
Ans. NST shares increased 3.43% to A$29.23 following the results release. The rise was supported by strong profit growth, improved margins, a net cash balance sheet and continued progress on the KCGM mill expansion and Hemi development project.
- What is the KCGM mill expansion project?
Ans. The KCGM mill expansion is a major growth initiative at Northern Star’s Kalgoorlie operations. It will increase processing capacity from 13 million tonnes per annum to 27Mtpa. The expansion is expected to lift annual production significantly from FY27, with output projected to reach up to 900,000 ounces by FY29.
- What is the Hemi gold project?
Ans. The Hemi project is a large-scale gold development in Western Australia acquired through Northern Star’s takeover of De Grey Mining. It is considered a high-quality project in a tier-one jurisdiction. A final investment decision is targeted for FY27, subject to regulatory approvals.
- What are Northern Star’s current mineral resources and ore reserves?
Ans. As at 31 March 2025, excluding the Hemi project, Northern Star reported mineral resources of 70.7 million ounces and ore reserves of 22.3 million ounces. This reserve base supports more than a decade of production visibility.
- Does Northern Star pay dividends?
Ans. Yes. Northern Star has a dividend policy of distributing 20 to 30% of full-year cash earnings. For 1H FY26, the company declared a fully franked interim dividend of 25.0 cents per share.
- What is Northern Star’s FY26 production guidance?
Ans. Northern Star reaffirmed FY26 gold sales guidance of 1.60 to 1.70 million ounces. Group all-in sustaining costs are expected to range between A$2,600 and A$2,800 per ounce.
