Northern Star Shares Fall After Miner Cuts Production Forecast

Northern Star Resources Ltd. shares dropped as much as 10% after the Australian gold miner cut its annual production guidance. The company cited a series of maintenance and operational problems in the December quarter as the cause for the adjustment.

The miner has revised its annual production guidance to 1.6 million to 1.7 million ounces from the previously stated range of 1.7 million to 1.8 million ounces. This move reflects a downward revision in sales expectations for the second half of the fiscal year.

Sales from its Kalgoorlie center were significantly impacted by a primary crusher failure, which disrupted production for four weeks. While the processing plant is expected to return to normal operations early this month, throughput is expected to remain variable during the second half.

Why Did This Happen?

Northern Star reported a series of operational setbacks during the December quarter. The company noted that a primary crusher failure at the Kalgoorlie processing plant impacted production and reduced throughput. This event was compounded by a structural failure in the crushing circuit at Jundee, which delayed repairs and pushed the return to normal operations to the March quarter.

In addition to these challenges, unplanned maintenance and operational issues at the company's three production centers further contributed to the decline in output. Northern Star said these issues impacted sales across its operations and forced it to revise its production guidance.

How Did Markets React?

The announcement led to a sharp decline in Northern Star shares, with the stock falling as much as 8.2% to its lowest level in nearly two months. This decline occurred despite a record-high price for gold in the final months of 2025.

Investors were particularly concerned about the company's revised cost outlook and the timing of the expected return to normal operations. Northern Star said it will provide updated cost guidance alongside its quarterly results, which are scheduled for release on January 22.

Analysts noted that the production issues have limited the company's ability to fully benefit from the strong gold price rally. While gold prices reached a record high of $4,529.10 in December, Northern Star has not been able to capitalize on the trend due to operational constraints.

What Are Analysts Watching Next?

The next key event for investors is the release of Northern Star's quarterly results on January 22. This report will provide a clearer picture of the company's performance in the December quarter and its updated guidance for the remainder of the year.

Analysts will be paying close attention to the company's ability to resolve its operational challenges and restore production to normal levels. Operations at Jundee and South Kalgoorlie are expected to return to normal in the March quarter, but the company warned that throughput could remain variable in the second half of the year.

In the long term, the company is transitioning to a new expanded mill at Kalgoorlie, which is expected to be commissioned in early fiscal 2027. Investors will be looking for updates on the progress of this project and its potential to boost output.

The market will also be watching for any further adjustments to production or cost guidance as the company continues to navigate operational challenges. Northern Star's ability to stabilize production and reduce costs will be key to restoring investor confidence in the near term.