Northern Star doubles profit

Northern Star Resources (ASX: NST) reports a record-breaking FY25 marked by high gold prices, steady production and the acquisition of De Grey Mining’s (ASX: DEG) Hemi development project.

FY25 has seen several miners report record-breaking years, thanks largely to similarly remarkable gold prices. Gold has surged multiple times throughout the year, thanks in part to global uncertainty around aggressive tariffs driving investment into the industry.

Northern Star has reported $6.4b in revenue, up 30% from FY24’s $4.9b, as well as an underlying net profit of over $1.4b after tax, which has more than doubled from last year.

The miner has also reported a record group underlying free cash flow of $536m, with shareholders seeing fully franked dividends of 30c/share.

Whilst Northern Star faced productivity and cost challenges in FY25, the company met its revised production and revised cost guidance.

Total gold sold at Kalgoorlie Consolidated Gold Mines (KCGM) in FY25 of 418.8koz was down on the prior year with lower than planned productivity from the high-grade Golden Pike North area, driven by delayed access whilst the East Wall remediation works were completed.

Both lower mining productivity and delayed access were contributing factors in KCGM not achieving its original FY25 production and cost guidance.

This was buoyed by strong performances at WA’s Yandal mine and the Pogo mine in the US.

Northern Star managing director Stuart Tonkin says the company has delivered another record-breaking financial performance on the back of a dedicated team effort in a favourable gold price environment.

“Looking ahead, our focus remains on unlocking the full value of our production centres and advancing the newly acquired Hemi project, which aligns with both our portfolio and purpose to responsibly deliver returns for shareholders,” he said.

Northern Star acquired the Hemi development project from De Grey Mining for $4.8b in May 2025. Pending final approvals, the Pilbara region discovery is planned to be developed through large-scale, low-cost open pit mining. With $140-$150m planned expenditure on local engineering and design in FY26.

Looking ahead to FY26, the miner says its ambitious 2moz group target set in 2021 will not be met, primarily because KCGM is not yet able to deliver 650kozpa as planned. Northern Star is confident that the target can be met in subsequent years.

Development has been a priority throughout 2025. Planned shutdowns for the development of major sites has affected Northern Star’s production, with gold guidance reduced to 1.7-1.85moz for FY26.

Higher gold price related royalties and Pogo tariff assumptions have contributed to an increased FY26 all-in sustaining costs guidance.