Buy, Sell, Hold: Northern Star, Peel and Mayur

THE verdict on Northern Star's acquisition; and coverage initiated on Peel and Mayur.

Buy, Sell, Hold: Northern Star, Peel and Mayur Buy, Sell, Hold: Northern Star, Peel and Mayur Buy, Sell, Hold: Northern Star, Peel and Mayur Buy, Sell, Hold: Northern Star, Peel and Mayur Buy, Sell, Hold: Northern Star, Peel and Mayur

Northern Star Resources (NST)

Analyst: Trent Allen, Citi

Recommendation: Neutral

Price target: A$6.60 (previously $6.30)

Thursday’s close: $6.72

Reason: NST acquires WGX’s South Kalgoorlie Operations for A$80M

Comments: NST has acquired the South Kalgoorlie Operations (SKO) from Westgold Resources (WGX) for a total of $80 million, including $60 million in NST shares (9.5 million shares at a 10-day VWAP of $6.30/share) and $20 million in cash. The purchase includes the 1.2Mtpa Jubilee Mill (CIP), HBJ underground mine and total reserves of 3.6Mt at 2.15gpt for 252,000oz gold included in a 4Moz resource (30-Jun-17). We’r...