RE: Strengthened Position30 Aug 2025 17:09
As I've said before I have no hands on knowledge of gold mining, but since the change in direction it has sparked a more in depth interest. This has spawned an interest in both the physical aspects of mining for gold as well gold mining in Peru.
What NTVO is doing almost anyone could do. So why should you invest here? What do they have going for them? Is it really just because they are an AIM listed company with a bucket of shareholders?
What assets do they have? Are they really producing enough to warrant enough investment? On paper you would say yes. (leaving the debt out of the argument as it doesn't appear to have any relevance to the short or medium prospects)
The cost of sales has a big part to play in any young company. Salaries being the largest it would appear. There will be the costs for the mine survey and plans before any mining restarts. The cost of the extraction works may well be on pare with the BODs salaries. Ore processing and transport should be covered by ways of a percentage of the gold extracted after a minimum charge has been met. This will be for the mine that's already on the gold , the other still has prep works as I recall.
So as an investor it should be a fairly straight forward risk of do the extract enough gold? The other risk is the amount of shares steadily increasing so their stake gets smaller and smaller or the SP stagnates or reduces.
So that's my view of things if the company works with what assets it has. But there's the idea of a gold processing plant. This will cost money which I guess will mean more shares and longer before the get into profit. Adding more tailings or non producing mines just adds to costs and again a longer wait until there is a profit.
So there is the risk and reward in black and white. Leave the noise of the debt out of it, forget the history of the company and hope they don't start running before they can crawl.
Or look else where. For me I'm just intrigued as to where this will go. I can drown out the noise of the multi baggers and rockets to the moon.
It's a good read.