re: Ann: Northern Star to Become the 2nd Larg... Good note...

re: Ann: Northern Star to Become the 2nd Larg... Good note thanks chuk and thumbs up from me. Its sets out the bull case pretty well. I'm just a bit skeptical about it. They do sound confident but they didn't buy a lot of shares at 86 cents after saying they would buy heaps. Certainly nothing like the number of shares they sold a couple of years ago. I'm not sure about comparing the success Paulson with these very mature mines they are buying now. Mostly though I just don't believe the pro forma $200m cash flow number you give will ever actually eventuate. I just don't think that they have been generating cash, even with Paulsons, that you can reconcile with the sustaining cost numbers.

Of course I can see what your saying though. If your bullish on gold in particular and could be a good trading stock all right. Even if I'm right, it will take some time before it becomes clear. They only report half yearly and the next couple of reports will be very complex with the acquisitions and one off costs.

Just on the cash flow, I'm not completely sure that their $60m excludes bulliion. I still think they may have used the term "cash" in its broader sense. I don't think they have talked about cash as just money in the bank before. Regardless, there's no sign of actual cash generation this year to me.