Management say Pogo is the “Jewel in the Crown” of NST

I’ve paraphrased important comments made by management today during their Analyst Call as follows:

This quarters lower Pogo production and grades and corresponding higher costs are temporary as they move from old mining areas into their new higher grade development areas. New access and infrastructure takes a little time but they are confident production and grades will increase significantly and forecasts will be met.

When Bill was asked whether they were looking to do more deals or focus on organic growth he stated Pogo is the Jewel in the crown for shareholders.

Pogo will end up being the best asset in NST portfolio.

It’s got 100% of management’s focus because it is the best opportunity before them.

He said they bought Pogo very cheap and if it had been performing like Jundee [believes it will in time] it wouldn’t have been for sale and if it was NST would have had to have paid 3 or 4 billion for it instead of 350 million!

Management are not going to get distracted on other acquisitions in US as there is too much value creation to be had at Pogo.

He finished off saying Pogo will become world class [like Jundee] and achieve leading sector returns

Also commented on increased dividends coming based on record high revenues being achieved.

I found their reasoning logical and believe that if they think Pogo will eventually be worth 3 or 4 billion then exciting and profitable times are ahead for us shareholders

Management have a proven track record of delivering exceptional results and returns and think they’re worth backing.

Patience is a virtue, but a fool and his money will soon be parted ;-)