Gabelli Funds Comments on Northern Star Resources

- By Holly LaFon

Northern Star Resources (NST.AX) (1.7%) (NST - $3.57 | $4.66 AUD - Australian Stock Exchange) is a Western Australia based mining company with three primary operating mines in Western Australia. The company acquired operating mines in the region from Barrick Gold and Newmont Mining (3.6%) during the downturn in the cycle when these two companies were selling assets to pay down over-levered balance sheets. The company has been successful in reducing costs at these operations and extending mine lives through exploration. Northern Star is a meaningful free cash flow generative company at the current Aussie dollar gold price, and pays a dividend to shareholders.

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From the Gabelli Gold Fund third-quarter 2016 shareholder letter.

This article first appeared on GuruFocus.

• Warning! GuruFocus has detected 3 Warning Signs with ASX:NST. Click here to check it out.
• ASX:NST 15-Year Financial Data
• The intrinsic value of ASX:NST
• Peter Lynch Chart of ASX:NST