Jefferies reiterates 'buy on Northern Star Resources, page-32

Citi says buy Northern Star, neutral on Evolution Mining

Broker Citi says gold miner Northern Star’s June quarter was its best yet, with production of 450,700 ounces of gold at an average cost of $1459/oz. Quarter-on-quarter production jumped 23 per cent with costs down 9 per cent.

It has a “buy” rating on Northern Star and $12.90-per-share price target, versus today’s price of $10.11.

Citi said Northern Star’s deal to sell its Kundana assets to Evolution Mining for $400 million makes strategic sense.

“NST gets a good price for what (for NST) are relatively higher cost tonnes and is small production for NST,” the broker said. “EVN gets to build out the scale of its Mungari mill adding a potential ~60ktpa gold production giving a path to 200k oz pa for Mungari and extending its life to 13 years.”