Northern Star Resources has responded to an ASX query regarding its recent operational update, specifically addressing the timing of its FY26 production downgrade. The company informed the ASX that it considered the production revision to be material, prompting the January 2 announcement. Northern Star Resources is a global-scale Australian gold producer with projects located in highly prospective regions. The company creates value for shareholders through operational effectiveness, exploration, and disciplined acquisitions.
In its detailed response, Northern Star stated that it only became aware on January 1 that weaker-than-expected December quarter performance across its Kalgoorlie, Yandal, and Pogo operations would likely result in a material change to annual production guidance. The gold miner asserted that prior to January 1, it lacked the necessary information to accurately assess the impact of reduced gold sales, crusher failures, and processing complications on its annual guidance.
Northern Star clarified that the impact on annual cost guidance remains uncertain, pending further operational data. The company confirmed that the primary crusher at KCGM experienced deterioration from late November, complete failure on December 23, and was rebuilt by January 5. However, it maintained that the materiality of this issue could not be determined until the end of the quarter.
The miner also reported that carbon-in-leach failures at Thunderbox and lower grades at Orelia reduced December quarter gold sales by 16,000 ounces, a figure confirmed on January 1. Northern Star stated that it classifies variations of 10 per cent or more to guidance as material and released its downgrade before trading commenced on January 2, which was the first trading day following data availability.
