Buy bullion in preference to Northern Star Resources
John Robertson
PortfolioDirect
Buy bullion in preference to Northern Star Resources. NST made its name by getting more from an asset than its previous owner. Its first purchase got a big boost from higher gold prices after the vendor (Intrepid Mines) had stopped trying once it thought it had something better elsewhere. Now, NST is buying properties far older and managed by some of the best in the business. The market is fully valuing the NST business plan outlined by the company MD last week. On present plans, the underlying value is already near its peak and set to decline for the foreseeable future. The company would have to buy more highly profitable assets cheaply to keep the value where it is now. As always, long term (i.e. 7-10 years) investors should ask whether they are better off buying gold bullion than an equity proxy.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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