Summary of Northern Star Resources Conference Call Company Overview - **Company**: Northern Star Resources (OTCPK:NESR.F) - **Date of Call**: January 04, 2026 Key Points Production Guidance - Annual production guidance revised down to **1.6-1.7 million ounces** from **1.7-1.85 million ounces** due to operational issues in December quarter [2][11] - Second-half production expected to be between **871,000-971,000 ounces** [2] Operational Challenges - **Kalgoorlie Production Centre** faced lower-than-expected production due to: - Partial suspension of mining at South Kalgoorlie operation due to a pit wall slip after significant rainfall [4] - Underperformance in processing at KCGM due to faults in the Fimiston primary crusher, resulting in a throughput shortfall of approximately **650,000 tons** [4][5] - **Yandal Production Centre** also experienced challenges: - Jundee faced structural failures in the crushing circuit, impacting processing by around **15,000 ounces** [8] - Thunderbox had reduced throughput and lower mine grades, affecting recovery rates [9][10] Financial Position - As of December 31, preliminary cash and bullion holdings are expected to be approximately **AUD 1.17 billion**, with total liquidity around **AUD 2.7 billion** [13] - Negative free cash flow anticipated in Q2 due to lower production and a **AUD 250 million** tax balancing payment [13] - All-in Sustaining Cost (AISC) per ounce expected to be higher in Q2 compared to Q1 due to lower production and increased sustaining capital [14] Future Outlook - Confidence in the underlying asset portfolio remains strong, with plans to commission the new Fimiston plant in six months, which is expected to enhance production and cost efficiency [3] - KCGM and South Kalgoorlie operations have returned to normal, with a focus on managing risks and capitalizing on opportunities [11][12] - The company is optimistic about the second half of FY 2026, with expectations of improved throughput and production [56] Maintenance and Operational Strategy - Emphasis on balancing sustaining capital investment with operational efficiency, particularly for aging assets [30] - Proactive maintenance strategy is in place to mitigate risks associated with aging equipment [28] Key Risks - Ongoing risks related to mill throughput at KCGM, which is critical for achieving production targets [18][36] - Potential for further operational disruptions due to weather or equipment failures, although recent issues are considered one-off events [56] Additional Insights - The company is managing a significant stockpile of high-grade material, which is expected to support production in the second half [57] - The Jundee airstrip upgrade is expected to improve operational efficiency by reducing flight interruptions [9] Conclusion - Northern Star Resources is navigating through operational challenges while maintaining a strong financial position. The company is focused on improving production efficiency and managing risks as it moves into the second half of FY 2026. The commissioning of the new Fimiston plant is anticipated to be a significant driver of future growth.