Why NST could be massively undervalued at current prices...., page-25

nifty49, would you have links to these research reports from analysts?

From high-level analysis, NST appears heavily undervalued:
- NST's market cap < $1b vs NCM's $8.5b with around a 1/3 of overall production at higher grades following an acquisition spree
- Costs appear to be more controlled by the quarter with the purchase of some very high grade low AISC deposits (NST seems to have more room for improvement)
- With the gold price rising and potentially more future strengthening of the USD relative to the AUD, NST's margins will grow faster than NCM's, which generally means free cash flows will grow at a faster rate

I expect another positive day of trading of Monday, following NST's retrace from $1.70 to $1.62. Punters expected gold to drop overnight, instead it increased slightly. NST has a long way to go, hopefully to a value of around $2.5b before it stops in my opinion (if we use NCM as a comparable company). That is a rough share price of $4 per share.

Please supplement with your own research. I am no investment advisor.