Member Info for Daisan

I have done some of the research you suggest but not quite all - you will find it amazingly difficult to assess the cash costs for each company as they tend to bury them when they are not that great! Also remember currency fluctuations influences this greatly. Believe it or not, it is even pretty difficult to find out resources/reserves for a lot of companies - something you would have thought was fundamental. The analysis I have done has details on resources, cash, shares in issue, actual or prospective production and share price for 63 different companies which enables me to rate them on market capitalisation and enterprise value per resource and production ounce. (I haven't updated this for a little while for the majority of the companies as I focused on a select few). On pretty much any measure Norseman comes out by far the highest of any actual producer and stands good comparison with the explorers! When it was 2p or thereabouts the comparison was laughable, with Norseman the best value of all producers and explorers (apart from Mercator which had just gone into administration). This is indicative of the fact that the market was pricing Norseman to fail. The management and, more importantly, the price of gold have saved it and it now looks very strong going forward. It should be at least 5 times this price on fundamentals.

The key factor is that the price of gold rises in Aus$ - whilst the headlines are all about US$ price of gold, ultimately it is the Aus$ price that will determine the value of NGL. At the moment that is very high but in times of rising commodity prices, the Aus$ tends to strengthen so the full rise is US$ would not be passed on to NGL. Still, at the moment it is doing very well out of the current trends and should produce considerably better results for this quarter compared with last quarter which, let's face it, was pretty stunning.

Exactly the reason I bought in January at approximately 2p!

A lot of selling today - a case of buy the rumour and sell the news, I think. I am very happy with the quarterly update so will be keeping hold of mine. This quarter will be even better provided the gold price remains firm (and I'm confident that this correction is just a healthy blow off of the speculative froth). If we clear the debt overhang in April (which we will with the cash this is generating currently) this share will be re-rated again. If the new sources materialise later in the year and the resources continue to be upgraded, it will be re-rated again. All caveated by that gold price though. Still, I am very happy with the current situation. What was the 450k trade at 11p after close about though?

If recent history is anything to go by, we should get a quarterly update either tomorrow or Monday. Financially, I'm hoping for pretty good things. Even more I am hoping for very positive noises about the current quarter and the future. The icing on the cake would be positive statements regarding exploration or updates to resources/reserves - they certainly should have had the financials to pump some money into exploration over the last few months and with gold above Aus$1500 currently, their profitability should be very respectable.

The only outstanding action that I know of is the gold royalty case in the amount of Aus$895,225.86. This is not enough to break NGL and anyway I believe it is one they should be able to win as it relates to royalties before the company that was purchased went into administration. Even if they lose the amount is equivalent to 664 ounces of gold at current gold prices.