Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi, apologies this is a little late. NST just downgraded again this morning with the operational update 13/03/26. I have a reasonably sized holding given I believe they are a quality blue chip gold company. I'd be interested in your views on the company. Thanks, Young
Hi Young,
A late but topical question.
NST was slammed ~17% at the time of answering this question after downgrading FY guidance for the second time in three months, significantly denting sentiment towards the gold miner. The commentary didn’t convey any confidence and selling accelerated through Friday morning:
It almost reads like “best guess” and if they don’t know, how investors are supposed value the gold miner – hence the big drop and no appetite (yet) from the market to buy the dip.
The good news is that the KCGM Mill Expansion Project remains on track, with commissioning expected in early FY27. That project should meaningfully lift processing capacity and improve operational flexibility at the asset, which remains one of the largest gold mines in Australia.
In the meantime, NST is undertaking an operational review at Jundee, aimed at improving efficiency and prioritising higher-margin ounces. As part of that process, management flagged the potential to redeploy surplus personnel and equipment to higher-margin operations, with changes expected to take place during the June quarter.
If we held the stock, and given the significant ~30% decline, we would be reticent to sell the position until we hear more in April, however, we have no plans to buy NST before then. We do have plans to increase our gold exposure if ongoing weakness in the sector prevails, but we will be looking at the companies such as Evolution (EVN) and Newmont (NEM) that have been delivering operationally.
Take a free trial.
No payment details required.
Forgot password? Request a One Time Password or reset your password
One Time Password
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
A link to create a new password will be sent to the email address you have registered to your account.
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.
