Northern Star Resources (ASX:NST), a major Australian gold producer, has ceased its forward hedging policy to capitalise on rising gold prices. The company, listed on the ASX, is a significant player in gold mining and exploration, operating primarily in Australia and North America. Northern Star focuses on creating value for shareholders through disciplined capital allocation and operational excellence.
Despite the strategic shift in hedging, the company acknowledged ongoing difficulties at its Kalgoorlie Consolidated Gold Mines (KCGM) Super Pit mine, which will likely constrain overall production. Managing director Stuart Tonkin noted the challenges faced over the past year, particularly concerning productivity and costs at KCGM, its largest asset.
Earlier this year, Northern Star abandoned its previous goal of producing 1.8 million ounces in the 2025 financial year. On Thursday, the company confirmed it expects to sell only 1.63 million ounces in the current financial year, with slower output anticipated to persist into 2026.
Mr. Tonkin stated the company will not reach its previous target of a 2 million ounce per annum group target in 2026, “primarily because KCGM is not yet able to deliver the 650,000-ounce a year run rate.” The production issues at KCGM are therefore having a substantial impact on Northern Star’s overall output and strategic planning.
