Northern Star Resources (ASX: NST) shares climb 59% over the past year: What’s fueling confidence in this gold heavyweight?

Northern Star Resources Limited (ASX: NST) has emerged as one of the top-performing stocks on the Australian Securities Exchange in 2025, delivering a one-year return of over 59 percent and capturing investor attention with a balanced strategy focused on organic exploration and near-mine expansion. As of the close on December 5, the stock was trading at A$26.33, up nearly 71 percent year-to-date and approaching the upper limit of its 52-week range, which spans from A$15.06 to A$27.99. The strong momentum positions Northern Star Resources Limited among the highest-ranked basic materials stocks on the ASX, currently holding the fourth spot in a field of more than 1,000 listed companies in the sector.

Aided by a sustained rise in gold prices, the company has also capitalised on its robust exploration pipeline across Australia and North America. With a market capitalisation of A$37.67 billion and more than 1.43 billion shares issued, the gold miner continues to show a commitment to long-term value creation, underpinned by consistent resource additions and efficient drilling spend.

How much is Northern Star investing in exploration across its production centres?

Northern Star Resources Limited has allocated A$225 million for its FY26 exploration program, maintaining the same guidance from the prior year. This disciplined approach reflects a focus on portfolio quality, prioritising targets that support both near-mine resource conversion and regional growth. Approximately 73 percent of this budget is earmarked for in-mine growth drilling, while the remaining 27 percent will be used for regional exploration across brownfield and emerging tenement packages.

Drill spend is geographically concentrated across the company’s three production centres in Australia and its Pogo operations in Alaska. Around 42 percent of the FY26 exploration budget is focused on Kalgoorlie, while 25 percent each is allocated to the Yandal and Pogo centres. The recently acquired Hemi Development Project in the Pilbara accounts for the remaining 8 percent, marking its first full year within Northern Star’s consolidated exploration portfolio.

What recent discoveries are redefining resource potential at Kalgoorlie?

The Kalgoorlie Production Centre continues to anchor Northern Star’s exploration success, with several new targets showing significant promise. At the Kalgoorlie Consolidated Gold Mines (KCGM) asset, the Fimiston South underground zone has returned high-grade intercepts up to 800 metres below the current Mineral Resource boundary. Recent surface and underground drilling confirmed strong down-dip continuity, with grades such as 2.8 metres at 11.2 grams per tonne and 1.8 metres at 19.3 grams per tonne reported in the latest updates.

At the nearby Mt Charlotte mine, a new prospect named Golden Goose has emerged as a high-priority infill target. Intersections of 73.1 metres at 1.9 grams per tonne and 25.6 metres at 4.0 grams per tonne, including ultra-high-grade intervals like 3.1 metres at 22.1 grams per tonne, are drawing attention. This zone is geologically analogous to the existing Mt Charlotte orebody, with quartz-carbonate vein arrays hosted in the Golden Mile Dolerite.

Kalgoorlie is also home to the Hercules discovery, a recent addition to the company’s portfolio of high-margin ore sources. Located approximately 35 kilometres southwest of the Fimiston mill, Hercules has already yielded a maiden Mineral Resource of 13.4 million tonnes at 2.1 grams per tonne for 0.9 million ounces, along with a Probable Ore Reserve of 0.25 million ounces at 3.1 grams per tonne. New drilling continues to extend mineralisation, with thick zones such as 21.3 metres at 6.1 grams per tonne and 12.9 metres at 9.7 grams per tonne reinforcing the deposit’s upside potential.

Further west, drilling at the Ballarat-Last Chance target near Kanowna Belle has confirmed additional mineralisation in quartz vein systems and porphyry contacts. This area, situated just 800 metres from the Red Hill deposit, has yielded promising assays including 5.0 metres at 14.7 grams per tonne and 41.9 metres at 2.8 grams per tonne, prompting further geological modelling and follow-up drilling.

How is the Yandal region contributing to near-term growth visibility?

The Yandal Production Centre, spanning over 180 kilometres from Jundee to Bannockburn, has become a focal point for resource growth adjacent to existing mining infrastructure. At Jundee, recent underground drilling has extended the Deakin and Barton zones, delivering extremely high-grade hits such as 0.7 metres at 159.2 grams per tonne and 0.6 metres at 277.2 grams per tonne. These intercepts were recorded outside the current Mineral Resource envelope and underscore the continued potential within the mine’s dolerite-hosted lode system.

At Thunderbox, the Wonder West deposit is shaping up as a future ore source, located only 500 metres from the existing Wonder underground development. Drill results from the area have been particularly encouraging, including 15.5 metres at 10.3 grams per tonne and 8.7 metres at 15.8 grams per tonne. These zones lie below previous drilling depths and outside of the currently modelled Mineral Resource, pointing to a strong case for future Reserve conversion.

Why is Alaska’s Pogo operation now a central growth engine?

Northern Star’s Pogo operations, located in Alaska’s Tintina Gold Province, have delivered some of the most visually compelling results in the group’s FY26 exploration campaign. At the Central Link zone, located between the Central Lodes and Goodpaster systems, surface drilling has returned exceptional widths and grades, including 25.2 metres at 24.9 grams per tonne and 25.1 metres at 17.9 grams per tonne. The geological setting features a mix of stacked shear veins and extensional vein arrays, many of which have yet to be incorporated into the official Mineral Resource model.

The East Deep zone has been a major focus of underground infill work, benefiting from new drill platforms opened in 2023. High-grade results such as 6.5 metres at 8.5 grams per tonne and 3.7 metres at 9.2 grams per tonne confirm continuity along the northwest-dipping structures.

Meanwhile, the Star prospect, located 1.3 kilometres south of the main Pogo mine, is emerging as a new high-grade opportunity. Infill drilling returned standout intervals including 9.2 metres at 33.1 grams per tonne and 5.1 metres at 33.9 grams per tonne. Given the system’s similarities to the prolific Liese and Goodpaster veins, analysts are watching closely for updates on Star’s integration into future mine plans.

What is the outlook for the Hemi Development Project in the Pilbara?

Since acquiring the Hemi Development Project in May 2025, Northern Star has begun incorporating the tier-1 scale gold asset into its production strategy. The project includes six key zones—Aquila, Crow, Brolga, Diucon, Eagle, and Falcon—within the highly prospective Mallina Basin. Recent exploration between the Diucon and Crow deposits uncovered thick mineralised zones such as 3.6 metres at 19.4 grams per tonne and 2.2 metres at 37.5 grams per tonne, alongside broader intercepts like 30 metres at 1.2 grams per tonne.

Just northwest of Hemi, the Mt Berghaus target is generating early momentum, with intercepts such as 12.0 metres at 5.6 grams per tonne and 11.0 metres at 4.9 grams per tonne reported from recent RC drilling. This area is seen as a priority satellite growth project, with additional infill drilling planned to test lateral and vertical continuity.

Northern Star plans to formally include Hemi’s Mineral Resource and Ore Reserve estimates in its 2026 Annual Statement, which will be released in May 2026 following technical model reviews.

What is Northern Star’s cost efficiency for resource additions?

One of the standout features of Northern Star’s exploration model is its cost discipline. The company reported an industry-leading average cost of A$19 per ounce for Resources added in the 12 months ending March 2025. This figure is among the lowest globally and reflects a strategy focused on near-mine brownfield targets, robust geological modelling, and multi-year drilling programs that maximise return on capital employed.

Such efficiency has enabled the gold miner to sustain its dividend while reinvesting in long-life assets and exploration corridors. The combination of low-cost ounces, strong cash flows, and minimal capital dilution has bolstered institutional interest.

How has the stock performed relative to peers and the broader ASX?

Over the past year, shares of Northern Star Resources Limited have gained 59.29 percent, outperforming the Basic Materials sector by over 38 percentage points and the ASX 200 by more than 57 percent. Despite a modest pullback of 2.34 percent in the past week, the stock has posted a gain of 10.12 percent over the past month alone.

With a PE ratio of 23.59, the stock trades at a reasonable multiple given its forward growth prospects and sector positioning. The dividend yield stands at 2.09 percent, and turnover for the December 5 trading session topped A$101 million on nearly 3.85 million shares traded.

Brokerage sentiment remains broadly constructive, with most analysts maintaining positive coverage in light of the company’s consistent exploration results, disciplined cost structure, and predictable shareholder returns.

What are the key takeaways from Northern Star Resources Limited’s FY26 exploration update and stock performance?

• Northern Star Resources Limited (ASX: NST) delivered a 59.29 percent share price increase over the past year, significantly outperforming the Basic Materials sector and the ASX 200 benchmark.

• The company has maintained a strong exploration spend of A$225 million for FY26, with 73 percent of the budget directed toward near-mine growth and the remainder allocated to regional expansion.

• Kalgoorlie remains the largest area of focus, with high-grade results from Golden Goose, Hercules, and Fimiston South driving future resource conversion and mine life extensions.

• The Yandal Production Centre is also showing upside, with extensions at Deakin, Barton, and Wonder West adding high-grade intercepts near existing infrastructure.

• At the Pogo mine in Alaska, recent drilling at Central Link, East Deep, and Star has revealed thick, ultra-high-grade gold zones, positioning the operation as a key growth engine.

• The newly acquired Hemi Development Project is advancing rapidly, with strong intercepts between the Diucon and Crow deposits and new discoveries at Mt Berghaus supporting long-term growth potential.

• Northern Star’s cost of resource addition remains industry-leading at A$19 per ounce, supporting sustainable growth without excessive capital intensity.

• The company ranks 4th out of 1,093 Basic Materials stocks and 15th overall on the ASX, with a PE ratio of 23.59 and a dividend yield of 2.09 percent.

• Investors are closely watching the integration of Hemi’s resource estimates, expected in the May 2026 Annual Statement, as well as continued exploration success across the portfolio.

• Institutional sentiment remains positive, with the company’s balance of low-cost growth, high-margin ore, and dividend stability reinforcing its appeal as a core gold equity.