Northern Star Resources has reported a sharp rise in profit for the half year to December 31, 2025, buoyed by stronger gold prices despite lower production volumes and higher operating costs.
The ASX-listed gold producer recorded revenue of $3.41 billion, up 19 per cent on the prior corresponding period, while net profit after tax climbed 41 per cent to $714.4 million.
The result was largely driven by a surge in realised gold prices, which averaged $4670 per ounce during the half, compared with $3562/oz a year earlier.
Northern Star sold 729,116 ounces of gold across its operations, down from 804,140 ounces in the previous half, as a series of operational disruptions affected output across several sites.
These included crushing circuit failures at Jundee, unplanned downtime and lower grades at Thunderbox, and mining dilution at the Pogo operation in Alaska.
Despite these production challenges, the company maintained strong operational scale across its core production centres, including the Kalgoorlie, Yandal and Pogo hubs.
All-in sustaining costs rose to $2720/oz, reflecting increased mining activity, inflationary pressures across labour and contractor rates, and higher maintenance and royalty costs tied to elevated gold prices.
The company continued to invest heavily in growth and mine life extensions, allocating $102.5 million to exploration during the period.
A key focus remains the Hemi development project in Western Australia’s Pilbara region, acquired through the De Grey Mining transaction in 2025, with updated mineral resource and ore reserve estimates expected in 2026.
The company is also advancing the Kalgoorlie Consolidated Gold Mines (KCGM) mill expansion project, which is targeting an increase in processing capacity to 27 million tonnes per annum by the 2029 financial year (FY29).
Operational cash flow declined 18 per cent to $1.03 billion, largely due to higher tax payments and increased capital investment.
Likewise, investing cash outflows rose 40 per cent to $1.2 billion, driven by spending on plant, equipment, mine development and exploration.
Looking ahead, the company remains focused on strengthening production reliability and delivering organic growth projects, positioning its portfolio to capitalise on strong gold market fundamentals while extending asset life across its Western Australian and Alaskan operations.
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