Mainholm I agree that sentiment around NST is very strong. There...

Mainholm I agree that sentiment around NST is very strong. There is a fairly strong market consensus in my view that NST is a high quality story. With such a strong consensus, the base case has to be that its right. The question that some may like to debate is whether that sentiment has led to valuation which is too high based on current and expected performance.

Your comments on operating and cash flow and free cash flow are not that helpful without providing actual numbers. As meaningless as it is, I do agree that operating cash flow is positive although whether it is "very good" can only be judged versus other things like targets and valuation.

Actually, it so easy, even for an occasional visitor to the NST case that I will give the numbers at least. Op cash flow in the 6mths to Dec 13 was $24.5m. However, what is reported as ongoing capex drops that to $17.4m as free cash before exploration. After deducting another $9m for "development capex" (plenty of that to come I'm sure)and $2m for exploration, net cash was only $6.4m. So despite being in "reaping mode" with a relatively short mine life project, they still had to use financing to pay $10.6m "sustainable" dividend.

That was the good old days though is my guess. They have bought a number of assets that were sold with the stated objective of increasing cash flow. I expect cash flow, especially post the likely deluge of "development costs" to get a lot worse. Depending on POG movement of course.