Their guidance is still around 500k oz for fy 17 and at current prices and AISC they make operating cashflow for the year of around $300m. Meanwhile they are developing two new mines and they have $350m in cash and bullion. 600m shares on issue, so at $4, they are running at a value of about 7 times operating cash flow. Note they are moving to 600k oz per year organically.
Factor in also their addition to resources and reserves in amongst all this.
Under those circumstances, 15 times operating cashflow would not be crazy. I seriously question whether many understand valuation.
Frankly, I think it's cheap but it does not bother me if it heads lower. I will keep accumulating. Glta
News: NST Northern star resources on track to meet fy17 production guidance, page-4
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