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 : Nora NXI on ME -- Ignore unavailable to you. Want to Upgrade?

To: salexa who wrote (190)	5/11/1998 4:06:00 PM
From: John Stella	Read Replies (2) \| Respond to of 420

Steve. I'm not to sure that we are talking about the same stock, you mention that it has been 8 years, we only signed the Otjua deal in November 1996. There is no doubt in our minds that our Otjua concession will be very profitable for the company and it's shareholders. Looking at last quarter don't forget the plant was "down" for about 6 weeks (christmas holidays and plant transfer). We are now up and running and the production plant is operating at between 40-45 t/hour. Our 90 t/hour "creepy crawler" is going through the final stages of "wet quarry" testing in Cape Town and should be on site by the second week in June. If all goes as planned diamond recovery will increase substantially. Is the company undervalued and is our stock a "buy"??? Let's look at numbers. (ONLY FOR THE OTJUA CONCESSION) There are 25,000,000 shares issued (13,000,000 held by insiders) at today's price of $0.80 = $20,000,000 market cap. Reports indicate that the inferred diamond resource on the land portion only (17% of the total concession area) is 3.0 - 3.5 million carats. By doing the math we can estimate that the potential inferred resource could amount to 17.6 million carats for the total concession (not taking into consideration that off-shore diamonds are more abundant and larger in size than those found on-shore). Since we own 47% of Otjua our portion amounts to 8.27 million carats (17.6/47%) 8.27 million carats/$20.0 million market cap = $2.41 cdn. or $1.73 USD per carat. The average selling price for diamonds is $110.00 USD per carat. Now, let's look at Namibian Minerals Corp. (Namco) As of may 31, 1997 they had 31,600,000 shares at todays price 4.90 = $154,840,000 market cap. Report indicate an inferred resource of 2.65 million carats. 2.65 million carats/154.8 million market cap = $58.43 cdn. or $41.73 USD per carat. By releasing news last week on their production, Namco has drawn attention to the area, this is a definite plus for Nora. We are confident that the situation concerning the confidentially clause in our contract with Namdeb will soon be rectified enabling us to make public more detailed information on our production. I have said it in the past and i will repeat again, if you are looking for a PROMO PLAY OR A PUMP AND DUMP play you have invested in the wrong stock, however if you are looking for a company with great FUNDAMENTALS, PROUVEN PRODUCTION WITH ENORMOUS UPSIDE POTENTIAL you have invested in the perfect stock. Best Regards, John P.S. The stock closed today at 0.84 up 0.08 on volume of 50200