Northern Star (NST) show good momentum
Northern Star (NST) +6.46%
Jumped today after it followed St Barbara’s announcement yesterday and came out with a solid quarterly update of their own and managed to reinstate 7.5c their interim dividend. The gold miner pulled guidance in late March, at the peak of the crisis as a result of the added safety measures, and the complexity it brought to operations. With the year now complete, Norther Star managed 905koz mined, coming in marginally below the lower end of the withdrawn guidance of 920koz to 1,040koz.
Despite the miss, the market was just happy to see a figure close to expectations, with the company managing to generate around $218m of cash in the quarter alone. With many in the market expecting the gold price to trend higher on low or negative real rates, investors should also be pleased to see Northern Star reducing the size of the hedge book, opening it up to increased profits on a strong underlying commodity. Just 15% of production over the next 3 years has been locked in. We are looking to pick up some gold exposure on the back foot and NST is on the shortlist.
Northern Star (NST) Chart
