Northern Star Resources

(AI video summary)

This video was created on 5 January 2026 for IG audiences by ausbiz.

ASX code: NST

Northern Star steadies after production downgrade

Northern Star Resources traded higher, recouping part of last week’s losses after the gold miner downgraded its fiscal year (FY) 2026 production guidance due to equipment failures at its Super Pit operation in Western Australia. The stock fell around 10% on Friday after the company warned that the issues would cut output by up to 13%. Revised guidance now sits between 1.6 million and 1.7 million ounces.

The equipment failure occurred in December but was disclosed to investors last week. Importantly, the issue was described as operational rather than structural, with no change to reserve quality or long-term asset value.

Gold prices and sovereign risk supportive

Gold prices rose around 1.5% to 2% on the session, helping lift sentiment across the sector. Ongoing geopolitical uncertainty has also increased the appeal of Australian gold miners, which are seen as offering lower sovereign risk compared with offshore peers.

As one of the largest gold producers in the ASX 200, Northern Star remains well positioned to benefit from a strong gold price environment.

Investment outlook

Analysts described the sell-off as a buying opportunity. However, Northern Star’s partial hedging means it may offer less upside than fully unhedged peers such as Newmont.