Northern Star maintains FY26 production guidance on strong Q3 cashflow
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The news: Northern Star has reiterated its revised FY26 production guidance of above 1,500 million ounces, following improved operational performance in the March quarter.
The miner also expects total growth capital expenditure to rise to between $2.3 billion and $2.4 billion due to inflationary pressures at its KCGM mill expansion.
The numbers: In the three months ended March, Northern Star reported group underlying free cashflow of $301 million, with net mine cash of $426 million.
The company sold a total of 381,000 ounces of gold at an all-in sustaining cost (AISC) of $2.709 per ounce.
The context: The miner said the AISC for the quarter was higher than a year ago, driven by capital growth projects across the group, led by the KCGM Mill Expansion Project.
North Star has upgraded its FY26 group AISC guidance to $2,600- $2,800 per ounce, while keeping FY26 sustaining capital guidance unchanged at $750 million.
What they said: “The March quarter demonstrated improved operational performance, with the company forecast to deliver its revised FY26 production guidance of above 1.5 million ounces,” Northern Star managing director Stuart Tonkin said.
“As previously disclosed, this outlook remains particularly dependent on the mill throughput at KCGM, with downside and upside potential,” he added.
The source: ASX
