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Northern Star (NST) – The best in the space in our opinion
Why look at Northern Star?
With equity markets under pressure and gold a traditional safe-haven, it’s worth considering having some gold exposure in any portfolio.
We have taken a look at 5 major gold producers in Australia – EVN, NCM, NST, SAR and SBM – and judged Northern Star to offer the best opportunity, primarily because it ranks highest in terms of balance sheet quality and capital efficiency, i.e. return on equity.
The September quarter saw production slightly below estimates because of lower than expected output at the company’s Pogo operation. Productivity gains are expected however, as are costs reductions from the March quarter 2019.