The CommSec P/E is based on NST Half Year Results.
Page 6Underlying NPAT of $108m impacted by increase in D&A post-Saracen merger.
Page 12
MERGER ACCOUNTINGBalance Sheet AdjustmentsUnder Australian Accounting Standards, the merger between Northern Star and Saracen completed 12Feb21 was deemed a "Business Combination" and is therefore accounted for using the "acquisition method".
- F22 depreciation and amortisation at A$600-700/oz sold
Bob, this is an accounting entry only. The CommSec do not make purposive analysis, they just monkey see, monkey do.
https://hotcopper.com.au/threads/ann-fy22-half-year-results-presentation.6576134/
Google NST share price and you will see the current P/E at 6.89, which is based on FY21. The FY22 result will be better (excluding non cash accounting adjustments).
https://www.google.com/search?q=nst+share+price&oq=nst+share+price&aqs=chrome.0.69i59j0i512l6j69i60.3138j1j7&sourceid=chrome&ie=UTF-8
Its important to remember that Australian residents get imputation credits on their dividends and 50% CGT discount. NST profitability is much more lucrative investment proposition to Aussies than non residents. The stated P/E does not reflect that.
NST is now debt free, $600m cash and FCF of $300mpq. Its making more than $1 FCF per share. If it wasn't in growth phase to increase production by 25% and reduce AISCs by 25% by 2027, PLUS an extra 200ozpa from the KCGM Optimisation plan, the dividends would be much higher.
The expansion plans justify a much higher P/E not withstanding the premium valuation a Top10 World Gold miner who is first to be the single owner of Australia's Golden Mile magic pudding. 130 years now.
The Powers that Be (the US Instos and Fundies) recognise the War machinations are driving the US$ higher. They don't want to be invested overseas until that changes.
Its interesting to note the US 10 Year Bond yield has fallen almost 20% just recently. Will the next FOMC interest rate raise be the last? Sentiment has changed with the recognition of stagflation and fall in business activity. Will they revert to QE? Their funding of the Ukraine War must be dragging on their finances.
In order for the DXY to rise, they have to raise interest rates. Can they? Will they?Every time the US Fed raises interest rates, 100 bps (1%) its US$300b in interest payments, or 9% of tax receipts. Business activity is falling since they began raising interest rates. How far can they go? When they began, Treasury spending was already at 100% of tax receipts. This isn't just the USA, its also the EU.
If the US Fed raise by 50bps next week, that will mean US$600b pa in additional interest payments obligations since they began. Plus interest on the $2.3t Reverse Repo A/C.
They've already gone too far.
Nobody wants to hold US or EU debt in a negative real interest rate environment. Only in the event of War.
"When all else fails they take you to War" - Celente
(20min delay)