Northgate Exploration Limited - TSX: NGX; AMEX: NXG Message Board

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Gold/Mining/Energy : Northgate Exploration Limited - TSX: NGX; AMEX: NXG

NXG 50.72

+1.3%

Nov 3 3:59 PM EST

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To: tyc:> who wrote (4)	3/1/2004 7:41:35 AM
From: Northern Marlin	of 148

The company has estimated capital costs to get Kemess North up and running as follows: 2005 $53 mil US 2006 $73 mil US According to the 2002 annual report 38,182,338 of those warrants don't expire until 12/28/06. If they were all exercised I believe the company could accomplish the startup of Kemess North from the proceeds and cash flow. It's interesting that Mr. Douglas didn't mention the warrants in his e-mail reply. As to whether the dilution of almost 40 million more shares is already built into the stock price I don't have a ready opinion. Since the company just turned profitable in 3Q 03 their trailing 12 month EBITDA, P/E, and cash flow numbers are much lower than they will be in a couple more quarters. Earnings estimates for 2004 range from .08 to .22, so there seems to be a lack of consensus even though management has shown they can estimate production quite well. Phil

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