Northern Star Resources (NST AU) announced two major downgrades this year, hampered by old hardware, leading to a ~19% single-day share price fall on the second cut.
NST made some concessions, mollifying activist Elliott (and the market). For now. I discussed this situation in Stay The Course As Northern Star (NST AU) Extends Olive Branch To Elliott.
NST announced this morning that three days prior my note it received, and (has now) summarily rejected a cash/scrip Offer from Gold Fields (GFI SJ), or a A$27/share implied price.
The Trade:
I previously advocated the mantra of “stay the course and let the expanded mill re‑rate the stock.” I stand by that.
The pushback? Another (material) downgrade.