Northern Star Resources (ASX:NST) shares tumbled to start 2026 after the gold miner announced operational challenges that led to a revision of its full-year production guidance. The production cut has shaken market confidence in the near term.
The ASX 200 listed gold stock experienced a sharp sell-off, falling 8.61% to close at A$24.43 as the worst performer on the index today. While support emerged to lift the shares above A$24 near the close, the day’s trading reflected a pullback after a strong 2025.
Northern Star reported gold sales of approximately 348,000 ounces for the December quarter, bringing its first-half FY26 total to 729,000 ounces. The company cited a “number of isolated negative events” impacting production across multiple sites. These included a primary crusher failure at the Kalgoorlie processing plant, which disrupted operations for four weeks. Recovery efforts at Jundee from a structural failure have also taken longer than expected, impacting production by up to 20,000 ounces. South Kalgoorlie operations saw a temporary infrastructure impact from a wall slip, while Thunderbox was affected by lower mined grades and processing downtime. Pogo operations also experienced lower mined grades due to underground mining dilution.
As a result of these challenges, Northern Star has revised its FY26 production guidance downwards to a range of 1.6 million to 1.7 million ounces, a reduction from the initial forecast of 1.7 million to 1.85 million ounces. The company plans to provide detailed quarterly costs and revised annual cost guidance in its quarterly update on 22 January 2026.
UBS recently downgraded Northern Star’s stock rating from ‘Buy’ to ‘Neutral’, citing concerns over productivity levels at the Super Pit operation.
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Northern Star faces the immediate challenge of restoring sentiment, while longer term the commissioning of the Kalgoorlie expansion remains a key milestone. Starting the year off as the worst performer on the ASX 200 is not exactly what NST bulls would have been looking for, yet after a 2025 that saw gains of 73%, those with longer term hold periods may have a different view.
