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Posts: 578
Hi all, Newbie here so hello all round first. I started this thread because I've been looking at all the smallcap gold producers to try to find a gem amongst them whilst the gold price is doing so well. I've done as much research as I possibly can and have been really struck by Norseman gold (ngl) now they've had their fundraising and have paid off their debts. Has anyone else looked at these on here? They're a producer of nigh on 80,000 oz's of gold a year based in Australia with costs of U.S$470 per ounce, no debts, reserves of 3.6m ounces and plans to up production to 100,000 oz's/year by year end. All this sounded good especially as I like producers rather than explorers but then I saw the marketcap and its only £13.6 million at the 9.5p level its at today. Seems that the co. had A$15million in debts, A$5 million of which had to be paid off next month and their ability to repay it was doubted even with such a high gold price so they had a placing last month raising £5million to pay off the lot at an A$5 million discount. This sorted they're now a producer of 80,000 ounces a year with immediate ambitions to get to 100,000 oz and then 130,000 and beyond with no debts, cheap production costs, a large reserve plus a mine friendly and politically safe country to work in. Looks to me like this one could be quite an amazing turnaround play now with its peers being valued so very much higher (allied gold 80,000 oz/year, reserves 3.4 million ounces, marketcap £80 million for instance) and wondered what others think? It would be great if not only is this is as good as it looks (which it does appear to be)but that the small private investor's got into the action at this level too rather than buying in when the marketcap more rightly reflects the changes in the companies fortunes. Enough from me anyway if there are any views on this one I'd love to hear them but will understand if no one wants to post before they've had chance to invest Monday morning first. All the very best with your investing all, panman.
Posts: 445
panman, each company has its own BB including NGL, try posting there.
Posts: 578
Thanks Heno614, I hadn't realised. It hasn't done the stock any harm though. Its started to move and has now broken out of its 200 day moving average which has to be really bullish for future sp movements. I have them on a market cap of around £17 million at this 11.75p level which still seems much too low for what they are. Looks like the market agrees as well which is nice and I'm hoping the stock will reach at least the 30p mark before their next set of numbers. That would give them a market cap of £42 million which doesn't sound outrageous for an 80k/annum gold producer with no debts and good prospects for the future. Will have to wait and see I guess but judging by the sp of their peers I don't see why not and believe I'm actually being quite conservative I just don't want to be thought of as a ramper seeing they're so much lower than that now. Definitely one to research if peeps haven't already done so.