Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: ogi who wrote (33573)	12/24/2004 12:16:23 PM
From: russwinter	Read Replies (1) \| Respond to of 39344

<How much upside is there in Nevsun now compared to before they were sullied by the actions of the Eritrean Government.They have/had a deposit worth billions. Certainly the stock will never see the gains it would have even if they get the property back and I do believe they will develop the Bisha deposit eventually.> Gosh, Ogi you're coming up with my buy list. <g> Obviously the Eritrea situation is another classic, find a world class, very low cost deposit (amazing oxides, one of a kind), nevsun.com then without explanation get an order to quit activity (they haven't "lost it", but I get your point). nevsun.com Then they did the big underwriting at 6.50 Cdn in 12/03, and that's just dribbled on it. Then people were nuts enough to pay $8-9 Cdn for it, so the silly season crowd needed to get flushed out. Then they get removed from the TSX index, right in the midst of tax loss selling. But it will likely go to the AMEX next month, and if so I will buy it near it's base (1.60-1.70 US), no need to chase. stockcharts.com When I do the NSU analysis, I feel the valuation ($90 million enterprise value: subtracts cash of $42m from mkt cap) on Bisha is pretty close to zip. Tabakoto when it produces (mid-2005, supposedly) will generate $20 million cash flow @ 425. So if we add the $20 million or so (?) they need to get finished, NSU will sell at 5-6 X CF. The market ought to value that closer to 8-10 CF (not higher because it's $240 cash cost is a bit too high, and there's is a question on costs extending the mine life from Segala), and if they have more exploration success in Mali, even higher. Bisha is just big blue sky (perhaps a monster) from there if the news takes a positive turn. It's a good speculation by my criteria.