Gold mining giant Northern Star Resources has been forced to significantly reduce its full-year production target for 2026 following a series of mechanical failures and operational challenges at its key sites across Western Australia and the United States.
Production Forecast Slashed Amid Operational Woes
In a market update released on Friday, 2 January 2026 – the first trading day of the year – the Stuart Tonkin-led company advised the ASX of a major downgrade to its output guidance. The group now expects to produce between 1,600 and 1,700 thousand ounces (koz) of gold for the full year, down sharply from its previous forecast of 1,700 to 1,850 koz.
The announcement triggered an immediate sell-off, with Northern Star's share price plunging more than 8 per cent in early trade to $24.51. The company attributed the revision to a "number of isolated negative events coinciding" during the December quarter across its portfolio.
Key Setbacks at WA Operations
The problems are centred on Northern Star's cornerstone Kalgoorlie Consolidated Gold Mines (KCGM) operation, which manages the iconic Super Pit.
A fault with the primary crusher at the Super Pit has hampered plant throughput for the past four weeks, with a fix not expected until early January. Compounding the issue, the company warned that even after repairs, throughput is likely to remain unpredictable for the following six months. This period coincides with the critical final stages of a massive $1.5 billion mill expansion at the site, which aims to boost processing capacity to 27 million tonnes per annum.
Further issues at KCGM included a wall slip in the open pit at the South Kalgoorlie operation in October. Northern Star reported that the site had returned to normal underground mining by December.
Widespread Issues Across the Portfolio
The headaches extend beyond Kalgoorlie. At the Yandal operations, a structural failure in the crushing circuit at the Jundee mine from early October is not expected to be fully resolved until the March quarter. The production impact from this incident has doubled from an initially estimated 10 koz to 20 koz.
Meanwhile, at the Thunderbox operation, gold sales have been impacted by low-grade ore from the Orelia open pit and repairs to carbon-in-leach tank failures. The company's Pogo mine in Alaska has also faced headwinds due to grade issues.
The collective effect of these challenges across the three main production centres is expected to push up the group's operational costs. The financial extent of the hit will be detailed in the company's quarterly update scheduled for January 22.
Northern Star has scheduled an unplanned investor briefing for January 5 to discuss the guidance downgrade in more detail before the quarterly results.
