Why NST could be massively undervalued at current prices....

191,209 ounces was the June quarter production of all gold mines currently owned by NST.

Let's assume that equals 750,000 ounces of gold production for NST in the 2014-2015 financial year and the All In Sustaining Costs will be A$1050 an ounce.

Gold is currently AUD$1409.

At AUD$1400 an ounce free cash flow for NST is $262.5 million.

A market cap of just 5 times free cash flow is $1.312 billion.
NST has 587 million shares issued.
So that is $2.24 a share.
A market cap of 10 times free cash flow is $2.624 billion.
That is $4.48 a share.

Now let's assume gold rises to AUD$1650. (Gold did trade at AUD$1600 plus for most of August 2011 to March 2013.)

At AUD$1650 an ounce free cash flow for NST is $450 million.
NST has 587 million shares issued.
A market cap of just 5 times free cash flow is $2.25 billion.
That is $3.83 a share.
A market cap of 10 times free cash flow is $4.5 billion.
That is $7.66 a share.