Just got this in an email ...Mon, 26 June at 9:30 amNST -...

Just got this in an email ...


Mon, 26 June at 9:30 am

NST - NORTHERN STAR RESOURCES LIMITED

Macquarie rates NST as Outperform (1) - Northern Star Resources has approved the expansion of the KCGM plant. This will take process capacity to 27mtpa from the current 13mtpa. The project is expected to take three years to complete followed by a two-year ramp up.

Cost is expected to be around $1.5bn. Macquarie considers the expansion the key driver of growth for the company, in order to sustain production above the prior 2m ozpa target in FY26.

Moreover, further synergies could be realised at other deposits in the area given the strong cost improvement the expansion provides. Outperform rating and $15 target maintained.

Target price is $15.00 Current Price is $12.30 Difference: $2.7 If NST meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges). Current consensus price target is $13.39, suggesting upside of 8.9%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY23:

Macquarie forecasts a full year FY23 dividend of 28.40 cents and EPS of 29.50 cents . At the last closing share price the estimated dividend yield is 2.31%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.69. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.0, implying annual growth of -27.0%. Current consensus DPS estimate is 28.0, implying a prospective dividend yield of 2.3%. Current consensus EPS estimate suggests the PER is 45.6.

Forecast for FY24:

Macquarie forecasts a full year FY24 dividend of 35.80 cents and EPS of 52.60 cents . At the last closing share price the estimated dividend yield is 2.91%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.38. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.3, implying annual growth of 130.7%. Current consensus DPS estimate is 34.7, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 19.7.

Market Sentiment: 0.3All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources