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.
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.
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Resources Analyst, Money Morning