Paul,
RIC looks to me like a pot of gold (no pun intended). Do you like Barrick Gold (NYSE: ABX) at the current price levels? The CEO being ousted could have been the catalyst that led to the continuing slide and you it seems that we know where we stand with Barrick.
Have you heard of Nevsun Resources (NYSE: NSU)? Financials look enticing - approximately 40% of the book value is in cash, profit is up in the first 3 months of the year although I am a bit suspicious of the level of the capital expenditures, seems awfully low compared to peers. Nevsun has diverse staff too: 751 full-time employees and 179 part-time in Eritrea (I admit I needed a map to find where Eritrea's location - it's between Ethiopia and Sudan) and a total of 8 employees in Canada - Berkshire Hathaway Omaha headquarters watch out, Nevsun runs efficient operations. And finally, a letter from Statman, Harris & Eyrich, LLC which among other things says:
"(i) Nevsun’s mining at the Bisha Mine resulted in a material amount of waste rock rather than gold ore; (ii) gold ore and gold from the Bisha Mine was materially less than the amount estimated by Nevsun’s model, and defendants knew or had reason to know this based on data routinely collected from the Bisha Mine throughout the Class Period; (iii) Nevsun was progressing through the ore body much more quickly than planned in order to maintain gold production at a rate that would not reveal to investors that the amount of gold at the Bisha Mine was materially less than the Company’s model; (iv) the Company was aware that its model was materially defective because the actual amounts of gold mines at Bisha did not reconcile with the Company’s model previously disseminated to the investing public; and (v) Nevsun materially overstated its gold reserves at the Bisha Mine.On February 7, 2012, Nevsun issued a press release disclosing: (i) that it had materially overstated gold reserves at the Bisha Mine by 30-35%; (ii) that the amount of gold to be produced in 2012 would be about half of what Nevsun previously represented to investors; and (iii) that it would restate its proven reserves. Following this news, Nevsun’s common shares fell from a closing price of $6.34 per share on February 6, 2012 to close at $4.40 per share on February 7, 20.12."
For full disclosure - prweb.com |
