Northern Star Resources managing director Stuart Tonkin has signed off from goldminer, as it revealed its long-awaited production and cost guidance for this financial year.
The at-times beleaguered goldminer unveiled a net profit after tax of $1.7 billion – up 24 per cent year-on-year – for the 2026 financial year.
That was produced off earnings before interest, tax, depreciation and amortisation of $4.3 billion and revenue of $7.6 billion.
Mr Tonkin, who has worked in the Northern Star C-suite since 2013, will leave the company imminently following his retirement earlier this year, to be replaced by Suresh Vadnagra.
He used the call to farewell investors, acknowledging recent challenges at the goldminer, before handing over to recently promoted deputy CEO Ryan Gurner.
“There has been a lot of focus on the recent trading period, but for those that have been here with me on the journey for the past 13 years, we’ve been on an incredible journey and had some real fun along the way,” Mr Tonkin said.
“During that time we’ve seen annual gold production increase 20-fold and we’ve enjoyed a 30-times uplift in share price from 70c.
“Over the 13 years, gold resources have grown 40 times to 89 million ounces, and market capitalisation is up 100 times, to over $30 billion.”
Mr Tonkin said he had no doubt Northern Star was set for success “in the very near term”.
The focus at Northern Star in recent times has been performance, with pressure applied by activist American shareholder Elliott Investment Management for change at the top and a strategic review of assets.
Long-awaited FY27 guidance was revealed.
Northern Star expects to produce between 1.5 million and 1.65 million ounces of gold this financial year.
Production will be weighted to the second half of the financial year.
The production figure is short of the 1.7 million-to-1.85-million-ounce target that Northern Star set at the beginning of last financial year – a number it pulled back from twice as it grappled production issues at its assets.
It comes as Northern Star phases in the new mill at its Kalgoorlie flagship and revises its plan for the Jundee mine with a focus on optimising mining sequences.
Costs across the group are also expected to grow, with group guidance at a range of between $3,050-$3,450 per ounce this financial year.
Northern Star entered FY26 with a cost guidance range between $2,300-$2,700 per ounce but lifted that range to $2,600-$2,800 per ounce in January.
Northern Star deputy CEO Ryan Gurner said the cost increase was the result of inflation of around 5 per cent, higher royalties associated with gold price growth, drawdowns on lower grade stockpiles, and sustaining capital investment across the Kalgoorlie, Yandal and Pogo assets.
He defended Northern Star’s decision not to give medium-term guidance this financial year, noting that the new CEO would guide a view on that going forward.
The push by Elliott for a strategic review into the Northern Star portfolio has not led the company to revise its thinking around the company’s optimal asset mix, according to Mr Gurner.
“We’re always evaluating the strategic fit of our assets within the portfolio, and you’ve seen we’ve been active there in the past,” he said.
“So nothing has changed.”
Speculation has swirled that Northern Star could explore a sale of its Yandal mining hub – including Jundee – after the asset was not labelled a strategic asset in the company’s reserves and resources update released to the market in June.
Northern Star shares remained flat in early trade, at $22.54 per share.
