|I only came back to this as I was looking for some gold recovery plays and realised that I already had some! Not with my normal online broker as they wouldn't do it at the time.|
|bionicdog. Thank you for barking today. It seemed as though I was alone on this board.
I have always had total faith in Bill Beament to achieve great things with his team and his company. However I still cannot believe that I am now up 11 times on this share (Yes a £20,000 investment then is worth £220,000 now.) If anyone goes back on this thread to 2011, they can clearly see that I originally bought at A38.5c and reported the price rising to over A$1 as early as 2012.
Having made a thunderous success of the original mine, Paulsens, by paying back the acquisition cost (A$40m) in just 7 months with gold already in the mine, NST has subsequently bought three Barrick mines and one Newmont mine in Western Australia without effectively raising anything other than short-term loans which have now been paid back. The NST management team then cut staffing and overheads on all the mines they took over by huge percentages and still increased ounces produced.
The company now produces some 700,000 ounces a year at a ASIC cost of some A$1,050 and a revenue of some A$1,700 per ounce. The co is completely debt-free, pays a great dividend and has an increasing mountain of cash to spend on extending mine-lives on all five mines, exploring and developing more mines and also indulge in further acquisitions.
I am certain my investment will continue to grow with the talented management team in control,located in what is probably the best mining jurisdiction in the world for a gold miner.
By the way, I invested in Gold Road (ASX:GOR) at about the same time as NST. This is now up 3.7 times for me. It hasn't done as well as NST as it is at an earlier stage and the grades are not so high.
At the moment I am most excited about Blackham (ASX:BLK) which is located in the same region of W Australia as NST, is restarting an existing high-grade mine with substantial additional exploration upside and is scheduled to commence production within the next three months.|
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|Forgot that I had some of these.|
|You can't complain about this performance.|
|Spread Betting Magazine November edition now online http://www.financial-spread-betting.com/magazine.html focus on Aim oilies|
|Has now hit $1.31 as a new high and is still climbing strongly on fundamentals not the gold price which is currently depressed at 1700 or so.
Just look at the stream of ASX announcements; it seems as though NST is finding more gold at a quicker rate and, very importantly, at a far higher grade than any other gold developer you could find anywhere in the world. But it's not just an explorer, it's a mid-sized producer targeting 200,000 oz in 2013!
NST's shareprice has trebled since my first purchase last year (at 38.5c) and virtually doubled on my second (at 66.5c). In addition to the capital gains, I've also had a very welcome dividend of some 3%. But at the rate it is adding to its gold resources and production, it should at least double from here in the next year or so. Any serious rise in the gold price will accelerate this. I'm still buying.|
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|Now up to A$1.14, a new all-time high.
But with lots of drilling results to come at its prolific mines in WA, production of 200,000 ozs a year on the plans for 2013, driven expert management and cash in the bank which can be used to acquire more projects, Northern Star looks like a candidate for continued financial success from here ahead.
And a true beneficiary if the gold price continues to rise as I expect.|
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|Back over a dollar today following the presentation at the Diggers conference in Perth.
This company is really run very well by its MD Bill Beament and is gunning for production of 200,000 ozs a year in 2013 from its current two mines with huge exploration upside in the high-grade Paulsens mine and the surrounding region. It needs no more funding, has driven cash costs (including royalties)down to the $650-level,is flush with cash and is even starting to pay a dividend.
It's certainly my favourite gold junior in the world!|
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|Aye , good stuff.|
|Closed at 0.995. Some trades towards the end of the session at A$1.|
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|Weds night UK. New intraday high now 97c just after the opening with 1.5m shares traded, rest of the Oz golds market in the red.
A dollar here we come!|
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|Or go to bed late! In the winter, the trades on the ASX open on ADVFN at about 23.30.
News announcements are available from ca 22.30 UK time. I use a Watchlist on the ASX site to follow all my Oz holdings and interests.
New high today- 94c. When will we break the $1 barrier?|
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|You have to get up bloody early to keep an eye on it though.|
Maybe you feel lonely on this board but I believe it's the right place to be.
I bought into Northern Star earlier this year at 38.5c and, after noticing the share price seemed to go up and then stay steady without ever falling during the autumn, added earlier this month at 66.5c.
Also I saw some interviews with the CEO which impressed me with his energy and determination to harness the potential at the company's various sites. According to the company, the bonanza grade just declared at Paulsens and to which you have referred is the highest ever recorded at any gold mine in Australia!!Hence the 90c price now.
The target for the end of next year is an annualised 200,000ozs of produced gold; with a present market cap of around A$300m, I reckon this is going over A$1 soon and will progress in 2012 aided of course by a gold price north of US$2,000.|
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|Drilling at Paulsens returns 12178gpt.
|We will see what tomorrow brings.|
November 16, 2011
Northern Star Gets Ready To Redefine The Word “Spectacular” With Drill Results From Paulsens Due Imminently
By Our Man in Oz
The word “spectacular” is about to be redefined, when it comes to gold intersections. Either that, or Northern Star Resources will be on the receiving end of a heavy dose of disappointment when its shares come back from suspension on Thursday 17th November. That’s because the company put itself into a trading halt on the ASX on Tuesday 15th “pending release of spectacular drill results from the Paulsens Gold Mine”.
But given that last week the company’s shares enjoyed a strong upward share price run from assays also described as “spectacular”, and given that the company used the same adjective in its September quarterly report, it had better be pretty good time round. After all, the company filed the mouth-watering assay of up to 638 grams a tonne (20.5 ounces a tonne) without a request for a trading suspension, which means tomorrow’s should be even better. Either that or Northern Star will be accused of gilding the drill results.
After all, that “spectacular” 638 gram intersection managed to move the shares up by A11 cents, or 17 per cent, to A75 cents. That price, the last trade before the ASX agreed to a halt, means that the shares have almost doubled over the past six weeks, and tripled over the last 12 months.
Most of the increased interest in Northern Star can be traced to the Paulsens mine, which it acquired in July last year after paying A$40 million to Intrepid Mines. At the time, Intrepid was seen as getting the better end of the transaction. Not today. Paulsens, under a management team led by Bill Beament, has been the subject of a classic makeover. Costs have been slashed after the company took full control of the mining process, expanded production, accelerated exploration, and acquired nearby assets. This calendar year alone should see Northern Star generate A$40 million in surplus cash from production of 75,000 ounces of gold at a cost of around A$682 an ounce. It will also push ahead with plans to grow the business to 200,000 ounces a year.
Impressive as the financial numbers are, the real interest in Australia today revolves around the straightforward question: what does it take to halt trading in a company because of potentially “spectacular” assays, when a previous spectacular result of 638 grams was not enough to stop trading?
One possibility is that word of the latest assay results has been leaked to the market, though given the tight-lipped nature of the management team a more reasonable explanation is that something ultra-special has been received back from the company’s primary assay laboratory. The initial result is now being re-checked by a second lab to avoid the embarrassment suffered by Venus Metals two weeks ago when it was forced to retract an assay of 4.12 grams per tonne over 82 metres when a check later found minimal gold. Mega oops, and a share price which crashed from A90 cents to A54 cents.
Northern Star, unless the stars are misaligned, will not repeat that mistake because it is in the middle of a busy promotional season, having hauled a tour group of stockbrokers and journalists to its Paulsens site in the iron ore rich Pilbara district of Western Australia last Friday. The first analyst reports from that inspection of the company’s assets have been enthusiastic. Argonaut Securities has describing the drilling results as the best so far – and that was before Tuesday’s suspension request.
Argonaut told clients that the latest drilling confirmed high-grade mineralisation 150 metres down plunge and 50 metres east of the resource envelope reported in March, and that it suggests that two mineralised lodes, Voyager 1 and Voyager 2, might merge at depth. Argonaut wrote that the drill results were a good pointer to the next resource upgrade and represented steady progress in the company’s “two-stage journey from 75,000oz a year to 200,000oz a year.” The company’s plan is to lift output to 100,000 ounces by December next year, and then to add another 100,000 ounces through the construction of a stand-alone plant at the recently acquired, nearby Ashburton project.
At Paulsens is Northern Star has picked up where Intrepid left off, extracting most of its ore from the Voyager 1 orebody while making brisk progress drilling the look-alike Voyager 2 structure. It’s also seeking a third target which it describes as a potential “structural repeat” of the Paulsens quartz host vein on the other side of a gabbro rock intrusion. The theory is that the series of lodes which make up the Voyager system will be repeated in mirror image.
Meanwhile, the production numbers continue to look good. In the September quarter the company produced 17,043 ounces of gold from 84,735 tonnes milled at a recovery grade of 6.74 grams per tonne. But the new material, from the first “spectacular” drill result from intersections in the Voyager 1 lode, compares very well to that. The “spectacular” intersection rang in at 13 metres at 45.1 grams per tonne, with an internal slice in that intercept of 6.6 metres at 82.2 grams, and 0.6 metres at the top assay of 638 grams per tonne.
The super-rich, but narrow assay result is what makes headlines, but the real meat in the Northern Star sandwich lies in thicker and lower grade assays which are following on from earlier results. For instance, on October 13th the company reported 18.8 metres at 62.7 grams per tonne and 6.4 metres at 120.2 grams, assays which have encouraged Bill and his team to locate a third underground drilling rig at Paulsens, and to start designing a new mine plan which will incorporate more ore from Paulsens, and possibly ore hauled from Ashburton too, before it gets its own processing plant. All that is in the future. For now, investors want to see the real meaning of spectacular.|
|Renamed Henderson Financial Opps Tst [HFO]. Will start new thread when I've time.|
|Yes, just spotted this. Interesting. Will put the Company back on my watch list!|
|Comment on yesterday's RNS, change of investment policy:
|Yes, suspect change may be on the way. Could be linked with the Numis appointment I suppose.|
|Topvest - fair point, though they have a new manager, and their last figures said they wouldn't chase income (divi was reduced).
The gearing was meant to enhance capital returns, of course!
Possibly a change of emphasis coming up?|
|I've been looking at these. Whilst I like the portfolio, I don't think this is a prudently managed trust i.e. all the costs get charged against capital and the revenue account takes all the income. High yield; yes? But, it's inevitable that this is at the expense of capital depletion. There's no point getting a 10% yield if your capital is reducing at a similar percentage!|
Guy de Blonay to run New Star Financial Opportunities investment trust
By Drazen Jorgic | 17:58:41 | 15 April 2009
Guy de Blonay (above) has replaced Nick Brind as manager of the New Star Financial Opportunities trust following Henderson's acquisition of New Star Asset Management.
The trust's chairman, Julian Tregoning, said the change will take effect immediately and he was delighted to bring such a renown financials fund manager on board.
A company statement said: 'The board wishes to thank Nick Brind, the outgoing investment manager, for all he has done for the company since taking over the company's portfolio in 2003, and they wish him success in his future career.'
At the market close on 15 April shares in the trust stood at 25p and were trading on a 22.5% discount.
Over the last 12 months the net asset value of the trust has fallen by 37.44% versus an FTA financials loss 46.97%. Its shares have fallen 50% over the same period.
In the same period de Blonay has kept losses on his open-ended New Star Global Financials fund down to 36.7% while the MSCI World Financials TR has fallen by 43.3%.|
|Ten largest holdings at 29 Feb 2008:
Chaucer Holdings, 8.5% CULS
Personal Group Holdings
Dartmoor, preference shares
Legal & General Group
Liontrust Asset Management|