Mis-priced Stock, page-20

its actually a bit better than that. I find NSTs accounting to be very conservative with cashflow far outweighing net profit . From the annual report, excluding merger costs, NST made 1.1bn of operating cashflow. Minus 257m of investing cashflow, thats say 850m of free cashflow - and as you say, that only includes 5 months of SAR. If i roughly increase this by an additional 173m from your calc as an approximation, i get over 1bn free cashflow for a market cap of 10bn, with the entity has about $800m of debt.

If free cashflow roughly translates to "cash earnings" then 30% is about 300m in dividends a year as per the dividend policy. 300m / 10bn is a yield of about 3%, so not too bad as long as NST can maintain its numbers. The increase in AISC this year was a bit of a worry but we will see what they do this year.