Positive Mention of NovaGold in Article
321gold.com
Excerpt:
Next is NovaGold - NG. Here is a company with world class properties. The management of this company has done a superb job of building wealth for its shareholders. Drilling to date, has shown results giving way to advancing work, on what could be at least two world class mines. Most mining companies can only "dream" of having a world class mine. NovaGold may not be far from proving up enough resources to have at least two world class mines. With no long term debt and $60,000,000 in the bank They have the resources to prove up the resources. I don't know about you, but this does excite me.
NovaGold's first mine will come into production in late 2005, early 2006. It's going to produce 100,000 oz./yr. with a cash cost of $200/oz. Let's see, 100,000 oz. at $175 [conservative] margins=$17,500,000 profit. Not bad!
NovaGold's annual report is very well done. They do an excellent job of laying out their plans for the future. I would much prefer to own NG vs a major. Personally, I feel the majors will take a shot at buying NG out. I hope I'm wrong. I don't know how I would replace it in my portfolio. This is my core holding and we own a lot of it.
To me, owning NG is like owning bullion. NG has found a lot of gold, (they have only scratched the surface with the drilling they have completed. This means more gold to be found). We know there will be mines developed. This means the gold is still in the ground. No storage costs, no high-grading, no declining reserves. I figure, about the time we finally get our mines ready to produce, gold prices will be substantially higher and world-wide reserves will be less. This will add increased value to our reserves and inevitably to the stock. Think of the earnings if gold happens to be at $500-$600 oz.
Someday, someone else will figure this out. Remember, research and knowledge. In the meantime I'll patiently wait and build my position. [NovaGold's website] |
