what some folks need to understand imo ... , page-9

Champ2003: "If they did arrive at group AISC of 1050 then on production of at least 400,000 ounces PA with a 2000 gold price would bring in 380 million EBITDA.

Not bad for a company with a current market cap of around 580 million."

My comments:

Suppose we get US$2000 gold over the next 12 months and the AUD is 80 cents. That is AUD$2500 an ounce. At 400,000 ounces PA that would bring in $580 million EBITDA.

What could NST's market cap be? Multiples of its current $574 million?

Now consider if gold gets to US$3000 or higher as many gold bull commentators are suggesting, and in such a scenario it is not unrealistic to suggest that gold stocks are the flavour of the month with the miners trading on huge PEs.

Now can we see how potentially astronomical share prices are possible, that makes my mention of $2.00 a share in an earlier post that someone kindly called a ramp look quite ridiculous.