Key Highlights

• On 21 October 2026, Northern Star reported that it sold 363,891 ounces of gold in the September quarter at an All-In Sustaining Cost (AISC) of A$3,217 per ounce.

• The average realised gold price was A$4,999 per ounce, producing gold sales Revenue of A$1,819 million.

• Group mine Operating Cash Flow was A$683 million, and net mine cash flow was A$210 million after growth capital.

• Underlying free cash flow was negative A$31 million, which included A$113 million of corporate tax payments.

What does Northern Star Resources (ASX:NST)' latest Quarterly Report say about its flagship Super Pit mill project? In short, the September 2026 quarter showed a gold producer selling about 364,000 ounces at healthy margins while the Kalgoorlie Consolidated Gold Mines (KCGM) mill expansion moved from construction into early commissioning, a step that will largely determine whether the company reaches its full-year targets.

The quarter in numbers

On 21 October 2026, Northern Star reported that it sold 363,891 ounces of gold in the September quarter at an all-in sustaining cost (AISC) of A$3,217 per ounce. The average realised gold price was A$4,999 per ounce, producing gold sales revenue of A$1,819 million. Group mine operating cash flow was A$683 million, and net mine cash flow was A$210 million after growth capital.

Underlying free cash flow was negative A$31 million, which included A$113 million of corporate tax payments. That is a reminder that encouraging margins at the mine level do not automatically translate into surplus cash while the company is spending heavily on growth.

Cash and bullion stood at A$1.2 billion at 30 September 2026, compared with A$1,235 million at June. After quarter-end, the company drew A$500 million from its bank facilities on 9 October, ahead of paying the A$0.30 per share final Dividend on 15 October.

What Northern Star does

Northern Star is an Australian gold producer with three operating centres. Kalgoorlie in Western Australia, which includes the KCGM Super Pit, sold 193,540 ounces in the quarter at an AISC of A$2,919 per ounce. Yandal, also in Western Australia, sold 117,631 ounces at A$3,687 per ounce. Pogo, in Alaska, sold 52,720 ounces at US$2,307 per ounce.

Revenue is therefore driven by two things: how many ounces the mills process and the gold price received, partly cushioned by hedging. At 30 September the company had 647,500 ounces committed to hedges at an average of A$3,423 per ounce, with 140,000 ounces delivered in the quarter at A$3,278. Those hedges sit well below the quarter's realised price, so they limit participation in higher prices on the hedged portion.

Why the KCGM mill matters

The central development is the KCGM Mill Expansion. The legacy plants were shut on 21 September and the Stage I tie-in was completed on 28 September, about two weeks later than planned. The integrated plant is in the early stages of commissioning, and management says its focus is stable, sustained performance.

KCGM sold 112,000 ounces at A$2,727 per ounce in the quarter, against 136,000 ounces at A$2,411 per ounce in the June quarter. The tie-in period affected grades and recoveries, which explains the softer result. Stage II, a single processing hub, is scheduled for commissioning in the early second half of FY27, with a targeted recovery improvement of one to two per cent and the removal of concentrate haulage between KCGM and Gidji.

Spending on the expansion was A$141 million in the quarter, taking cumulative spend since the first quarter of FY24 to A$1,746 million, against a forecast total of A$1.75 billion to A$1.81 billion. A further A$80 million went on KCGM readiness.

Results and guidance

Northern Star's FY26 result, reported on 20 August 2026, showed revenue of A$7.6 billion and underlying net profit after tax of A$1.79 billion of the release. The company declared a fully franked FY26 dividend of 55 cents per share, including the 30-cent final.

FY27 guidance, left unchanged in the October report, is for 1.50 to 1.65 million ounces sold at an AISC of A$3,050 to A$3,450 per ounce. KCGM is expected to contribute 550,000 to 650,000 ounces. Total Capital investment is guided at A$2.55 billion to A$2.935 billion, and exploration at A$230 million to A$250 million.

Production is weighted to the second half. With roughly 364,000 ounces sold in the first quarter, the company needs to lift output materially over the remaining three quarters to land inside the range, which places weight on the mill ramp-up.

Sector backdrop and competitive position

Gold producers have benefited from a sharply higher gold price, and Northern Star's realised price of nearly A$5,000 per ounce sits well above its AISC. The company's multi-asset scale in Western Australia, including access to the Super Pit, gives it a different profile from smaller single-mine producers, although that scale also brings large capital commitments.

Costs are the pressure point for the sector. Northern Star's quarterly AISC of A$3,217 per ounce sat inside its full-year guidance range, and management's guidance implies unit costs depend on higher second-half volumes from KCGM. A weaker gold price, or a more encouraging Australian dollar, would narrow margins.

Growth Options and governance

The Hemi project, acquired through the De Grey transaction, remains in studies, with a final investment decision targeted for late FY27. Hemi growth capital guidance for FY27 is A$200 million to A$250 million. Management estimates cash tax savings of A$300 million to A$350 million in FY27 and A$200 million to A$250 million in FY28 related to the acquisition.

Leadership is also changing. Suresh Vadnagra started as Managing Director and CEO on 5 October 2026, and the board has added four directors since July. A$500 million on-market buy-back was announced on 2 April, though no shares were bought in the September quarter. The Annual General Meeting is scheduled for 18 November 2026.

Risks and what to watch

Key uncertainties include the pace and stability of KCGM commissioning, given that the tie-in already ran late; because production is weighted to the second half, any further slippage would leave less time to recover. Cost inflation, gold price movements, exchange rates and Alaskan operating conditions also matter. Higher borrowing, with US$600 million of senior notes due 2033 and the recent A$500 million drawdown, adds financial obligations while free cash flow is negative.

Upcoming checkpoints are the AGM on 18 November 2026, the December quarter report, Stage II commissioning in early 2H FY27, and Hemi study progress.