Short Report, page-10

Cheers Decrisper,

I re-read your post after replying and saw my error.

I wouldn't be too keen to compare companies based on their revenue vs. MC as it is NPAT and free cash flow that are far more important for shareholders.

Just have a look at Amazon for example - per Q they have sales revenue of +$19 BILLION and still they can't make money !! (Loss of $126m).

If everything goes to plan BDR will have a lower AISC than NST but of course the numbers will move around depending upon performance. But I think we're splitting hairs

Regardless of which company has the better metric I think we're still looking at two of the better risk-reward propositions in the gold sector at present - provided they can both deliver on the well-known respective issues.

What I like about NST vs BDR is the strength in the operational management team - they know how to run mines efficiently and have extensive contractor experience working in the mines they just bought. Thus I am thinking that they will find more than enough oz to keep replacing mined oz for many years to come.

Unlike some other miners with fragile balance sheets NST (debt free) and BDR (should be net debt free by CY14) will have flexibility in their mining schedules to cope with volatile POG over the coming years and can adjust mining sources accordingly.

Even if POG flatlines from here both companies will make a lot of cash for a number of years and reward investors well as NST is a dividend payer and BDR has indicated they will be.

Cheers
John