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Northern Star Resources delivered A$7.62 billion in revenue, a figure that looks commanding on its face. The complication is the GAAP earnings per share print: A$0.11.
Top-line scale and bottom-line return are pulling in different directions, and that gap is what the market will price. The case for the company rests on the revenue figure.
A$7.62 billion reflects an operation running at real scale. But A$0.11 per share in GAAP earnings tells you that scale is not, at this reading, translating into the kind of margin the headline number implies.
The counterargument worth giving its due: GAAP accounting absorbs items that don't always reflect the operational picture.
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