Northern Star’s Expanded Super Pit Mill Stumbles Through Commissioning, Pushing KCGM Toward the Bottom of Guidance

Northern Star Resources says commissioning of its expanded processing plant at the Kalgoorlie Super Pit has not gone as smoothly as hoped, with October production below plan and the operation now tracking toward the low end of its guidance range.

What happened

In an update to the ASX on Monday 9 November, Northern Star said plant performance at KCGM remained variable during October. Availability and throughput were affected by commissioning-related issues, including intermittent problems with the mill motor control systems, which it said have now been addressed, and minor rectification work on selected equipment, which is ongoing. Specialist technical support and equipment vendors are working with the KCGM team.

A planned 3.5-day maintenance shutdown was completed on 30 October. KCGM produced 15.3koz of gold in October from 766kt milled, below plan, and production is tracking toward the lower end of the previously announced 550–650koz range for FY27. The company said the final outcome will depend mainly on the timing and pace of the ramp-up over the rest of the year.

Performance in November so far is showing greater stability, with higher availability and throughput, Northern Star said, and mining at KCGM’s open pit and underground operations continues to perform to plan, building stockpiles of higher-grade ore for the second half.

The chief executive’s view

“While commissioning performance has not progressed as smoothly as we would have liked, we are focused on systematically resolving the remaining issues, which we do not consider to be fundamental, and establishing stable, reliable operating performance,” managing director and chief executive Suresh Vadnagra said.

“The issues identified to date do not change our confidence in the expanded plant or in the tremendous long-term value that KCGM will deliver,” he said.

Group guidance and Hemi

Northern Star said the rest of its portfolio was performing in line with plan and that group guidance remains unchanged at 1,500–1,650koz of gold sold, weighted to the second half. Separately, its Hemi gold project has received its primary federal and state environmental approvals, under the EPBC Act and Part IV of the Western Australian Environmental Protection Act, with secondary approvals, land access and other regulatory processes still to be completed.

The market’s reaction

Northern Star lagged its peers on Monday. Its shares rose 0.78% while rival Evolution Mining jumped 4.8% as gold and copper prices rebounded, The Sydney Morning Herald reported, and CommSec noted that Northern Star underperformed after its update on growth projects.

What’s next

The company plans further updates at its annual general meeting on 18 November and again in early December. “We understand the heightened interest of shareholders, and the market generally, in the progress at KCGM and we intend to provide regular progress updates during commissioning,” Mr Vadnagra said.

Sources: Northern Star Resources ASX announcement, “Major Growth Projects Update” (9 November 2026); The Sydney Morning Herald (9 November 2026); 7NEWS / CommSec market update (9 November 2026).