Northern Star Resources (ASX:NST), Australia's largest listed gold miner, has cut its production guidance for the 2026 financial year, citing a series of equipment failures and operational challenges, sending its shares tumbling 9% on Jan. 2.
The company revealed it now expects to produce as few as 1.6 million ounces of gold, down from previous forecasts of up to 1.85 million ounces.
The downgrade follows a breakdown in the primary crusher at the miner's flagship Super Pit in Western Australia in early December 2025, a problem the company only disclosed to the market almost a month later.
Northern Star also reported a slip in the open-cut wall at its South Kalgoorlie mine in October and a more severe-than-expected failure at its Jundee crushing circuit, reducing output by an estimated 20,000 ounces.
Additional issues affected its Thunderbox mine near Leinster, WA, and its Pogo operations in Alaska, including lower-grade ore and unplanned downtime in processing facilities.
"The quarter was further affected by several unplanned maintenance and operational challenges," the company told the ASX.
Despite these setbacks, Northern Star continues major investment plans, including a $1.5 billion expansion of its Kalgoorlie mill and an additional $370 million for infrastructure projects.
The miner, which completed a $6 billion takeover of De Grey Mining last year, has benefited from a surge in gold prices, with bullion rising nearly 70% in 2025, boosting its shares by almost 60% over the past year and giving it a market value of $35 billion.