1. There are only 45.7 million shares in issue. At the current £0.66p/share the M'Cap is just £30 million and is significantly discounted to the current NAV of £1.10 (Numis) and the NPV of £2.50p per share as per the PFS. Mark Child owns more than 9% of the company so has plenty of 'skin in the game' and Regent Pacific, an investment vehicle for renowned entrepreneurs Jim Mellon and Stephen Dattels have bought 10% of the company at £1.60p/share after conducting significant due diligence - a significant vote of confidence in the project. CNR recently received another major vote of confidence in the form of a maiden investment at 90p by the IFC, following considerable due diligence, as part of a successful fund raising which saw CNR raise $10 million, despite the current credit crunch. The IFC has made it clear that it intends to support CNR going forward and to be heavily involved in funding the CAPEX requirements for building the mine.
2. CNR has 2.33 million oz of high grade gold in one location at 3.9g/t, which is three times the industry average (1.08m oz of Indicated) and is one of very few resources of that size and grade in the world. The La India District has been increased in size by 44% to an impressive 280 km2 of highly prospective land (as shown by the geophysics results and the ongoing trenching programme). With funds in the bank a new drill programme is due to start soon with the aim of increasing the Indicated ounces in the three open pits and also to drill beneath the very encouraging trenches dug on the Real de la Cruz concession, which has the potential to be developed into another major open pit.
3. CNR already has the biggest resource in mining friendly Nicaragua, despite the presence of B2Gold, which is well established in the country and is also highly profitable. CNR's La India district holds at least 5 million ounces, but probably a lot more and the broker Ocean Equities has suggested that although CNR already has a 2.4 million oz resource, the company has just been 'chiselling at the tip of the (gold) iceberg at La India'.
4. The recent PFS highlighted three production scenarios which include the potential to produce over 1.2 Moz over a 12 year LOM with average annual production of 137,500 oz gold for initial 8 years. The economics detailed in the PFS are very robust:
• An IRR of 24% and a post-tax NPV of US$187 million at a discount rate of 5% and gold price of US$1,250/oz (equivalent to £2.50 per share). Exceptionally low all-in Sustaining Costs of US$697 per oz gold and low initial capital requirement of US$169 million (including contingency).
It is no wonder that CNR is now being talked about as a likely takeover target.
So the Swiss referendum on gold at the end of last year did prove to be a decisive point in the gold market cycle, after all. The fall to $1,138 on the ‘no’ vote marked the low of the cycle. However, for the rocket to send gold prices to the moon this was ‘the right country, just the wrong event,’ as Ross Norman of Sharps Pixley told ArabianMoney.
That event was the de-pegging or ‘pegxit’ of the Swiss franc from the euro last week. It send gold prices soaring $70 an ounce to above $1,280 an ounce. This is not the first time the Swiss National Bank has played an important role in the gold price.
Gold all-time high
It was on September 6th 2011 that the gold price hit its all-time high of $1,923 an ounce and on that date the SNB pegged the Swiss franc to the euro at 1.20. If the pegging was the event that sent gold prices into a long correction, then it will perhaps not be so surprising if this also works in reverse.
If so that may well not be as a direct but indirect consequence of the depegging. For we have to ask, why did the Swiss do it? Do they perhaps know something we don’t about the size of the European Central Bank’s QE money printing program coming up next week?
They may know that it is going to be so big that the Swiss peg would not have stood a chance of surviving, so it was a lot cheaper for them to kill it in advance. Money printing on a very large scale usually means only one thing for bullion prices and there is only so much manipulation that the central banks can hope to perform at the same time.
ECB QE tsunami?
Even the Fed ‘lost it’ as far as the gold price was concerned in the early years of its QE money printing. One thing is for certain, gold in euro terms will surge in value and that should make it a much more attractive asset class to the 500 million people who live in the European Union. Don’t be fooled this is not just about the eurozone, it is also about the countries around it for whom the bloc is an all-important trading partner.
So standby for another exciting week for gold coming up. The $70 price spike of last week may look nothing by comparison. Just as nobody correctly forecast the crash in oil prices last year probably nobody is going to get the rise of gold right this year. Volatile markets are very disturbing for crystal balls!http://news.goldseek.com/GoldSeek/1421597220.php?
Wonder, strider & all, we have had no communication via RNS for several weeks now, the longer the silence the more i think MC is in talks & maybe just maybe we are close to what MC considers acceptable to bring back to us share holders, ????, I don't think for 1 minute that MC & team have been doing NOWT, with gold moving in the right direction 2015 could be OUR year, GLA
don't get me wrong, I remain 100% confident that CNR is going to deliver very big things for us.
Despite what we've already got which could be valued at several times current sp, there's potentially much more to come with further exploration at La India.
I'm just annoyed by Numis and don't understand it, and frustrated that the Company is not telling the story very well or keeping us informed about whats going on (i.e. what they're doing with our money)
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