can you value nst?, page-3

Like Plough it is very difficult to value NST with a degree of certainty at present. 1) the pending resource upgrade of Paulsens. 2) the economics of Ashburton 3) how revenue is reinvested.

My view is the existing resource at Paulsens will be doubled (if not more). This will extend current mine life and provide operational certainty for management and holders alike.

Ashburton will incur higher costs of production but is important as it provides derisking of a reliance upon a single operation/mine. NST is fortunate that costs at Paulsens are going reduce even further with a lift in grade so it will very much remain a low cost producer.

NST's existing operation will generate a lot of cash which generates both risks and opportunities depending upon it is utilised and allocated. Some on here are critical of the recent investment in VXR but I believe in the acumen of NST management and worthiness of this investmest will only be determined once the precusory studies are completed.

If in fact Paulsens existing resource is replicated in the new areas I think we could see the sp lift to 1.30 1.50 perhaps more but it depends on how much 'the market' is taken with the resource upgrade.

Noone should base any expectations or decisions on what is said on this topic because it is highly speculative in nature until we have a tangible resource released to the market.