AZK/DEZ/NXG - NXG Yahoo Posts
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Reality Check
by: mcmckee 02/24/06 03:41 pm
Msg: 34920 of 34975
I have seen, what I regard as, some fairly outrageous projected earnings and shares prices for 2006 posted on this board last night and today.
Northgate just finished providing 4th quarter results. The earnings from operations amounted to $0.11/share with an additional $0.07/share from a one time item for future tax recovery.
NXG produced 94,405 ounces of Au and 24.7 million pounds of Cu during the 4th quarter.
Projected production by quarter for 2006 is as follows:
1st Q
74,000 Au
21,300,000 Cu
2nd Q
74,000
18,800,000
3rd Q
83,000
21,700,000
4th Q
89,000
22,900,000
There is no quarter in 2006 where production meets or exceeds 4th quarter 2005 production numbers. So if NXG earned $0.11/share in the 4th quarter how are some of you coming up with earnings estimates in excess of $0.60/share.
Inquiring minds want to know.
IMO the PE ratios posted on this board border on lunacy.
Without substantial increases in the price of Au and Cu I fail to see how the proposed earnings estimates are possible.
Maybe some of you folks should read past the headlines and look at the detail.
Regards,
Mick
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Re: Reality Check (here is my math)
by: mcmckee 02/24/06 03:56 pm
Msg: 34929 of 34975
brpanthers99,
Did you take into account the hedged ounces of Au for the 2nd half of 2006? The hedge is at $307/oz on 43,500 ounces.
Regards,
Mick
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