Northern Star Resources: Shareholder Value Safe On Bullish Gold

Summary

• We maintain a 'hold' rating on NESRF, as strong gold prices, solid margins, and robust financials support ongoing dividends and buybacks.
• Shares have outperformed the S&P 500, but current valuations are not attractive versus peers, and the stock remains illiquid on US markets.
• Operational performance is healthy; cost concerns from expansion are short-term, and the balance sheet is rock solid with ample liquidity.
• Investors should hold and look to add on significant dips, as the stock is not oversold and other gold stocks offer better buy opportunities.

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A “Hold” Rating for Shares of Northern Star Resources Limited

This article recommends a “Hold” rating for the U.S.-listed shares of Northern Star Resources Limited (OTCPK:NESRF) (OTCPK:NSTYY), a Subiaco, Australia-based gold producer with production and exploration

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.