NST No.1 holder (In a micro)?, page-43

Bill is a very smart operator. He picks up very good assets at very good prices.

Not only did they decide to pick up Hermes, but they also took a big position in ALY.

Why?

Here are my thoughts and welcome other opinions. Once Hermes is in full swing they will ramp up exploration and eventually production in the nearby JV territory. This will have an adverse impact on the ALY share price, also accounting for royalty from Hermes. So taking a big position is as much an investment strategy as it is a hedge, and all done at a low price.

NST got their holding for not a great deal less than what the stock is trading and still at historical lows.

If they sell Plutonic along with Hermes, they can take over ALY and keep the royalty and %.

Maybe they don't sell and keep the lot in this gold environment.

Its all very smoky and would absolutely love other peoples thoughts

http://www.smh.com.au/business/mini...-gold-mine-on-the-market-20160216-gmvk0p.html

17th Feb 2016

"For the past 12 months, Northern Star has been working to improve the mine's profitability and expand its life through a program of investment and development, including a scoping study on trucking in lower-cost ore from its Hermes deposit."

"Our [net present value] valuation of Plutonic is $43 million, with expectations of modest positive cash flow from the weaker Australian dollar and Hermes ore," Mr Allen said.

"Analysts have tipped the run of mergers and aquisitions in the gold space to continue in 2016. Cashed-up local miners are riding a rebound in the Australian-dollar gold price bid for projects promising quick growth, amid a broad decline in production profiles and development pipelines."