NESRF - Northern Star Resources: Too Cheap To Ignore

• Northern Star Resources is one of the worst-performing senior producers since December, falling 45% from its highs to its recent lows.
• Fundamentally, however, the business has only improved, with Northern Star 2.0 (post-merger) being a rare Tier-1 only jurisdiction producer with growth, and a relatively high-grade reserve base.
• Based on FY2022 guidance, Northern Star expects to produce ~1.60 million ounces at $1,142/oz, but costs should continue to improve materially as capex decreases and Pogo ramps up further.
• At a current valuation of 0.95x P/NAV, I see Northern Star as one of the most attractively priced million-ounce producers, and I would view any weakness below US$6.90 as a low-risk buying opportunity.

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