Is Top ASX Stock Northern Star Still a Buy After the Plunge?
The market has reacted negatively to Northern Star’s December 2025 quarter update but can the execution in the second half reset confidence and drive the next phase of growth?
Northern Star Resources Limited (ASX: NST)
Northern Star Resources Limited (ASX: NST) reported a softer December 2025 quarter which placed pressure on the share price as it fell by 8.43% on Thursday.
During the quarter, the company sold 348,061 ounces of gold at an all-in sustaining cost of $2,937 per ounce as several one-off operational issues affected production across multiple sites.
Gold sales revenue for the quarter reached $1.709 billion but performance at Kalgoorlie was impacted by a primary crusher failure.
The group reported underlying free cash flow of $328 million and net mine cash of $129 million while FY26 capital expenditure was revised higher to $640–660 million from the previous $530–550 million range.
Normal operations at Kalgoorlie resumed in early January which should support a stronger performance in the second half of the financial year.
Yandal operations were disrupted due to extended recovery works at Jundee and unplanned downtime at Thunderbox during the period.
Pogo also faced challenges as lower grades were mined from new mining areas earlier in the quarter and as a result, the company revised its FY26 Group production guidance to 1,600 to 1,700 koz from the earlier range of 1,700 to 1,850 koz.
The company had previously indicated that weaker production would impact annual cost guidance and now has sufficient information to assess the scale of this impact.
FY26 all-in sustaining cost guidance has been lifted to $2,600 to $2,800 per ounce from the earlier range of $2,300 to $2,700 per ounce.
Despite these revisions, the balance sheet is strong with net cash of $293 million and total cash and bullion of $1.176 billion at quarter end.
Northern Star has a market capitalisation of $37.46 billion and trades at a P/E ratio of 23.5 while the outlook is supported by a stronger second half and exposure to higher gold prices.
(Source: Company Announcements)
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