Ann: Northern Star to Become the 2nd Largest ASX , page-13

re: Ann: Northern Star to Become the 2nd Larg... Kookaburra, the more efficiency argument went out the window this time with the mine to continue to by run by contractors. Good ones apparently.

I guess the low price is partly to do with the short mine life and the closure liabilities you refer to but NST still pump it as a first class mine in all respects. Well not in respect to reserves surely!

What they will make off it in cash terms if its life is not extended is not so clear to me. NST don't give cash flow targets for anything anymore and I'm suspicious of all in cost numbers. I see now NST cash has apparently gone down from $80m at quarter end to $60m now. That is in line with my own theory that NST generates limited cash on a net basis at current gold prices. (Unless their $60m cash number doesn't include bullion this time?). By my quick calculations, cash burn prior to acquisitions year to date is $22.2m.

NST's bet on rising prices just got bigger. At least this acquisition explains why they raised so much money at 86 cents. The risk profile here is becoming extremely high though in my view. As is the potential if this really is a cyclical low in the gold price.