Sydney, February 2, 2026, 16:46 AEDT — After-hours
- Northern Star shares fell sharply, dropping 8.1% to close at A$26.60, marking one of the steepest declines among large caps on Monday.
- The decline followed a steep sell-off in bullion as traders prepared for an increase in futures margin requirements.
- Attention shifts to Northern Star’s half-year results set for Feb. 12, following guidance cuts in January.
Northern Star Resources shares dropped 8.1% to A$26.60 on Monday, with roughly A$308 million changing hands. That made it one of the most actively traded stocks by value on the market. Newmont Corporation and Evolution Mining also tumbled, highlighting the pressure on gold-linked shares. (Australian Securities Exchange)
Gold prices took a sharp hit following last week’s record surge. Spot gold dropped 3.3% to $4,703.27 an ounce, after tumbling more than 5% earlier in the session. Traders are digesting the CME Group’s decision to raise margin requirements—the cash needed to hold futures positions—as well as the Fed outlook under Donald Trump’s pick, Kevin Warsh. Tim Waterer from KCM Trade pointed to “forced liquidations and margin increases” triggering “a cascading effect.” (Reuters)
For miners, these shifts are crucial since their profits hinge on the margin between gold prices and production costs. When bullion prices turn volatile, stocks often swing too far, both up and down.
Northern Star is facing timing challenges of its own. In a Jan. 2 operational update, it lowered its FY26 production forecast to 1.6–1.7 million ounces from the previous 1.7–1.85 million, blaming a weak December quarter marked by outages and maintenance problems across its operations. The company highlighted a primary crusher failure at Kalgoorlie Super Pit and warned throughput might remain inconsistent as it shifts to a new, expanded mill. Recovery efforts at Jundee are expected to extend into the March quarter, and grade issues at Pogo also weighed on the outlook. (NSR Limited)
Costs followed. On Jan. 20, the company bumped its FY26 all-in sustaining cost (AISC) forecast—a key metric covering operating costs, royalties, and ongoing capital—to A$2,600–A$2,800 per ounce, up from A$2,300–A$2,700. Northern Star pointed to softer gold sales and higher royalties, driven by elevated gold prices, as the reasons behind the hike. Sustaining capital guidance remained steady at about A$750 million. (NSR Limited)
Against this backdrop, investors are left sorting out two trades that often blur together on a red day: unwinding commodities positions and companies grappling with operational issues. Monday leaned heavily toward the former, though it doesn’t rule out the latter.
The risk is that selling in bullion could get messy. Rising margins might push leveraged traders to slash positions quickly, while a stronger U.S. dollar usually weighs on gold. If this dynamic continues, miners could remain under pressure, even without any shifts at the mine gate.
Northern Star’s next major update comes with the half-year results on Feb. 12. Investors will be watching closely for fresh details on production, costs, and capital expenditure following the January guidance revisions. How management positions the upcoming period will also be under scrutiny. (NSR Limited)
