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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: tyc:> who wrote (2482)	3/17/2002 10:34:52 AM
From: Elizabeth Andrews	Read Replies (2) \| Respond to of 39344

After all the recent restructuring NGX has 144 million shares out fully diluted. You should check your math. That works out to 1.8 oz Au per $1000. The head grade in Q4-01 was 0.79 g/tn Au which is 12.2% above the average grade of the deposit. Expected life of mine production is 260,000 oz of gold per year, not 275,000. 2001 production may have been the most gold produced in one year by the mine ever. The leverage for NGX is more in copper prices not gold. If copper moves to 95 cents it creates more net revenue per $1000 invested than if gold moves to $350. Which do you think is more likely? Actual revenue by metal content was $32.3 million yet NGX only reported revenue of $21.9 for Q4-01. The difference is accounted for by transportation, recovery loss and smelting charges. The mine produces a sulfide concentrate. It is by definition at a leverage disadvantage to conventional CIP type mines that produce a finished product (dore). The property does have exploration potential and management may try some other properties. But by and large, the cash flow will be managed by the insiders who, based on the other companies they control, will find a way to get the most value for them.