Credit Suisse believes Northern Star Resources will opt for the larger 22Mtpa (versus 17Mtpa) alternative when an expansion of the mill at KCGM is announced in coming weeks. It’s estimated this alternative has superior returns, production and cost metrics.
The analyst also believes the Super Pit could return to its best, producing in excess of 900kozpa from the current 480kozpa, which will drive a lower average all-in sustaining cost (AISC) of around $1,000/oz. The target rises to $11.50 from $11.00. Outperform.
Sector: Materials.
Target price is $11.50.Current Price is $9.07. Difference: $2.43 – (brackets indicate current price is over target). If NST meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
