Northern Star Resources Shares Jump on a Smarter Focus

What Happened to the Northern Star Resources Share Price?

Northern Star Resources [ASX:NST] closed the day higher, up by 4.87% to $2.37 per share.

Why Did This Happen to Northern Star Resources?

Northern Star forecasts that its breakeven costs come in at around the AU$1,050 per ounce mark. Given that the Aussie dollar has fallen back to US 77.63 cents, Aussie dollar gold gets a boost…and with it the share price of Northern Star Resources.

At the current Australia dollar gold price, Northern Star said ‘when our extremely low cost of discovery is compared with the fact that we make a A$500-A$600/oz margin, it is clear that our exploration program is generating outstanding returns on invested capital.’

Shareholders are loving it.

Northern Star is spending AU$20 million of its current AU$50 million exploration budget in the Kalgoorlie region as part of a strategy aimed at ensuring that this processing centre has a significant mine-life, whilst maintaining its current plus 180,000 ounces per annum production profile at high grades and low costs.

I must admit. I like Northern Star however…

What Now for Northern Star Resources?

Northern Star Resources is one of Australia’s leading gold producers. Its share price has performed quite well this year, on the back of a higher Australian dollar gold price. For this reason, it’s important to know where gold is going next.

Indeed, the gold price is heading to US$931 per ounce in 2015. And it’s possible that gold could fall to US$817 per ounce or below this year for many reasons.

I told you this when gold was trading at US$1,350 per ounce on 15 August 2014. I updated this analysis recently for Money Morning on the 6th of February 2015 when I warned that gold was about to crash that weekend. More recently, I updated my analysis for Resource Speculator readers…explaining when gold should peak this year.

NOTH

In my view, the share price has topped out…

If you’re interested in seeing more advanced research on gold, check out Resource Speculator here. I’ve detailed in the past two weeks, depending on when Greece will default, when the gold price should peak this year.

In Resource Speculator, I’ll give you analysis on resource sectors, macroeconomics, and geopolitics. You’ll know which sectors to buy and avoid. And when to buy and when not to buy.

Beware of the coming sovereign debt defaults that will ripple world financial markets in 2016/17. The next crash will be far worse than the GFC, sending the world into a Depression worse than experienced in the nineteen thirties. Resource Speculator is only a small price to pay to survive and profit from the future. You can check out the publication here.

Jason Stevenson
Resources Analyst, Money Morning

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Money Morning is Australia’s most outspoken financial news service. Your Money Morning editorial team are not afraid to tell it like it is. From calling out politicians to taking on the housing industry, our aim is to cut through the hype and BS to help you make sense of the stories that make a difference to your wealth. Whether you agree with us or not, you’ll find our common-sense, thought provoking arguments well worth a read. Money Morning Australia is published by Port Phillip Publishing, an independent financial publisher based in Melbourne, Australia. As an Australian financial services license holder we are subject to the regulations and laws of Corporations Act and Financial Services Act.


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