RML 0.00% 0.3¢ resolution minerals ltd

Well as a longterm and very happy shareholder of NST since late...

  1. 523 Posts.
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    Well as a longterm and very happy shareholder of NST since late 2013 here is a short summary:

    Northern Star has mainly 4-5 mining centers, which are Jundee (300K ounces/year), Kalgoorlie (300K ounces/year), half of the Superpit (200K/year) and Pogo (200K/year). And additionally they bought out Echo (ASX:EAR) for over 200 Mio. last year with the Bronzewing plant.
    And i expect both Pogo and the Superpit will see increased production over the coming quarters/years.

    So essentially NST is the second biggest Australian gold miner after Newcrest, producing around 1 Mio ounces/year( and rising), had a free cash flow of 217 Mio. just this last quarter, and has more than 500 Mio. Cash on the balance sheet and reached this position by pure excellency.
    Simply put, they are one of the very best gold miners on a global scale and excel in exploration on their properties.
    When the current management took over, the share price was at 3 cents, yesterday they marked a new ATH over 16 AUD.
    Just in the last 6 years, that I was invested, NST was a twentybagger.

    So, sorry to ruin your calculations, but there is just no way to compare Northern Star with Resolution. Completely different level.
    That doesn't rule out however, that RML has a lot of upside potential, when they do find something similar to Pogo, or even better, in a best case scenario multiple Pogos. They do have a huge land package after all.
    But one step after another, let them hit gold first, before calculating the possible gains. I think the risk/reward ratio is very promising, but until they actually find some decent grades over a longer stretch of the drilling cores its still a speculation.
 
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