NST 0.08% $13.00 northern star resources ltd

"POGO was initially thought to be potentially the future star of...

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    "POGO was initially thought to be potentially the future star of NST. "

    I don't agree with that statement, and I think it's potentially damaging to the long term market perception of the company if false hopes are attached to a particular capital investment.

    Here is what NST said about Pogo at the acquisition stage in August 2018:

    ✓ Pogo represents another high grade, low cost, Tier-1 asset in another Tier-1 mining jurisdiction

    ✓ Strongly aligns to Northern Star’s stated and consistent acquisition criteria

    ✓ Northern Star believes Pogo has several parallels to Jundee when it was acquired in 2014, providing opportunity to leverage the Company’s underground mining expertise to optimise Pogo and target mine life extensions

    ✓ Immediately lifts Northern Star’s FY2019 gold production to 850,000-900,000oz at an AISC of A$1,050-1,150/oz, making Northern Star the second largest gold producer listed on the ASX

    ✓ Significantly elevates Northern Star’s standing within the global-mid tier gold sector

    ✓ Immediately accretive to Northern Star on a range of key metrics

    If anything, they may have 'oversold' the acquisition, but that's what happens in flash presentations. BB probably put it up with the gods in some of his mini-speeches too, but this is what he said officially at the time:

    “Pogo presents Northern Star with the same opportunity we encountered at Jundee four years ago. By investing in exploration and development, we are confident we can grow the resource,production and mine life for the benefit of the mine’s employees, contractors, the local community and our Shareholders.”– Northern Star Executive Chairman Bill Beament"

    I hope Pogo continues to make a valuable contribution, but I won't be wringing my hands and thinking of selling out if it has a bad quarter here and there.
 
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$13.00
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$13.01 3144 1
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