Sydney, February 5, 2026, 16:49 AEDT — The market has closed.
- Northern Star slipped as bullion prices fell again, weighing on gold stocks.
- With a packed ASX reporting season ahead, investors are shifting their positions as cost concerns resurface.
- A broker upgrade sparked Wednesday’s rally, yet the metal remains in control.
Northern Star Resources Ltd (ASX: NST) shares dropped 4.6%, closing at A$27.24 on Thursday. This came after a 6.2% jump the previous day, as gold prices took another hit. The stock swung between A$26.95 and A$28.43, with roughly 7.5 million shares traded.
The pullback is significant now as gold prices have grown volatile once more, with miners acting more like stand-ins for bullion than responding to their own fundamentals. For Northern Star, this is a tricky moment—investors want clear proof costs are being managed after recent shifts in guidance.
February reporting season has kicked off on the ASX, with hundreds of companies set to release half-year results soon. Northern Star’s upcoming report next week stands out as a key near-term gauge for sentiment among gold producers.
Spot gold dropped 1.7% to $4,876 an ounce amid a stronger dollar and weakening risk appetite, Reuters reported. Tim Waterer, chief trade analyst at KCM Trade, noted that “traders are more circumspect now on gold,” while OCBC strategist Christopher Wong described the slide as “losses feeding into one another” with liquidity drying up. Spot silver plunged 12.4%. Reuters
Australian shares slipped, with the S&P/ASX 200 ending 0.43% lower. The decline was driven by weakness in gold, metals & mining, and resources sectors.
On Wednesday, Northern Star jumped following a JPMorgan upgrade from Hold to Buy, with the target price raised to A$33, MarketIndex reported. The All Ordinaries Gold index climbed 3.5% in early afternoon trading. Peers like Evolution Mining and Newmont also posted gains.
Northern Star is gearing up to drop its FY26 half-year results for the six months ending Dec. 31, 2025, before markets open on Feb. 12. A conference call will follow at 9 a.m. AEDT (6 a.m. AWST), featuring Managing Director Stuart Tonkin, CFO Ryan Gurner, and COO Simon Jessop.
The company has already signaled tougher operating conditions heading into FY26. It bumped up its all-in sustaining cost (AISC) guidance — which covers operating expenses plus sustaining capital — to A$2,600-A$2,800 an ounce, up from the previous A$2,300-A$2,700 range. The hike reflects lower gold sales and rising royalties. Northern Star also stuck with its sustaining capital forecast at around A$750 million.
Northern Star’s latest quarterly update showed it sold 348,061 ounces of gold in the December quarter, with an all-in sustaining cost (AISC) of A$2,937 per ounce. The average realised gold sales price came in at A$4,908. The company also revealed hedge commitments totalling 1.118 million ounces, locked in at an average price of A$3,333. Hedging involves forward sales contracts that secure prices ahead of delivery.
The next move in bullion might still overshadow everything else. If gold drops further, margins could tighten and execution concerns will grow. On the flip side, a rebound might not translate fully into cash earnings for a producer carrying a significant hedge book.
Traders on Friday will focus on whether gold holds under the US$5,000 level and if selling pressure in materials intensifies. Northern Star is set to release its FY26 half-year results on Feb. 12, followed by its next quarterly update due April 22.
