nst - a positively geared investment

Hi all, for those who think NST is still over valued I would like to point you guys to the existing dividend of 2.5 cents fully franked and potentially for an interim dividend to be paid possibly up to a matching 2.5 cents bringing this to an annual rate of 5 cents per annum fully franked. I refer to the announcement of 12th December and quote "Rising Production and cashflow - underpinned by low total cost ($850-$950/oz) high grade (8.5gpt) and no bank debt - puts Northern Star on track for further dividends". A five cent per annum dividednd equates to 7.14 cents per share pre tax(30% Franking Credits). At $1.07 this is a pre tax yield of 6.67%. With Line of Credit rates of around 5.8% this well and truely makes NST a positively geared investment. I realise the market doesn't seem to be looking at fundamentals and this stock can easily become cheaper in the short term but at least I know I am likely to earn possibly 4 -5 cents per annum with a very likely scenario of this been maintained or increased over the coming years.

Looking forward to the upcoming December Half yearly report in which we have already had some indications of likely results from recent announcements.

At least if this company cannot trade at what I think is closer to fair value I can still comfortably hold this stock knowing that they are likely to pay a dividend rate higher then the cost of capital. An achievement very few mining companies can boast about.