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Rootman,
The company can prosper all it wants. The only thing that has been good for is paying slaries and bonuses. The amount they have is small in comparison to the cost of an acquisition. You were smart enough to get in and out. I have been unable even with averaging down to get below the share price. It has been a loss.
In mining I have learned cash means nothing and reserves are everything. AZK is in debt with more reserves hence the value.
The big example is SA. They do not even mine anything yet have managed to go from $2 plus to $37 in the same time NXG is losing. So keep the cash. How anyone can look at the performance of this company in a Gold and Copper bull market and think they are doing well is beyond me. This CC is my last unless they have made an acquisition and I will bet money they don't. I could have made more on SA in the last week to offset the loss I have with Northgate.
New investors may make out and just take the place of the old longs like me. There is no way even with an acquisition that they will even catch their peers. They have burned their investors and all the talk of acquisitions and other promises made has been merely talk.
Two years is a long time.
Root,
I have been sitting here and what I see is unbelievable.
Gold is up $170 over last year. Every CC I wait for news........an acquisition, joint venture, KN approval only to be disappointed time and time again.
The truth is YD has less Gold then KS, KN is over, and after three years of waiting NXG still can't find and did not have something in the wings pending KN. Each quarter will be worse. We lost big time on the hedging. Now we are lower then we were last year and it kills any deal involving shares.
I think they have been cut a lot of slack. Maybe you can point out what they did right. If I had gotten out like CBB and was buying back now I might feel differently but I supported Stowe and held. Stupid......stupid......stupid.
Give me SA any day. Read the new Mitchell reserves.
I can not beleive these guys still have a job. Increasing shareholder value.......that means your stock is going up. Is it??????????
CBB........what else can you say?????
Bill,
Totally respect your opinion and info. I have been wanting to sell but the price just keeps dropping. Anywhere above $3 would look good these days. I remember when we were posting last year. Would you have ever expected everything to be where it is today? I keep looking for the silver lining and wishing I was a brand new investor to this stock.
Well the question is?
Will AZK see $5 TGB $6 and SA $70 before NXG gets to $3. I used to like owning NXG......now it just hurts when I walk.
If management doesn't announce an acquisition this CC you guys can have the shares I hold no matter what the price.
You could own physical Gold here and be making more money.
I just can't believe this company. If I were Stowe I would be ashamed to even address shareholders at the CC.
Hypnowizard
But your talking Northgate here.
Micro,
I want to be as optimistic as the next guy but the chart reminds me every day of just how badly we are really doing. I think we will hear innuendo of an acquisition but nothing firm and a number of factors will level earnings. The smart thing is to sell before earnings and buy back afterwords yet I will not do that so that in itself explains why I am where I am.
Could be Stowe is just on vacation or maybe its where he plans on retiring to. Me, I have NO faith in management.
I feel like someone with a horse while everyone else has a car.
EZ, lets be real and try this for a better perspective.
http://finance.yahoo.com/charts#chart2:symbol=nxg;range=1y;compare=azk+tgb+sa;charttype=line;crossha...
From public statements by the company and e-mail it seems that with continuing to pursue KN we are flogging a dead horse.
The good news........and the bad news
The good news is Gold is moving up in a big way
The bad news is we invested in NXG so we can not take advantage of that at all.
Here comes the pathetic run up prior to earnings and then the share price plummet afterwords.
Micro,
Your right. For those entering now it is a good buy (maybe???????). I could have been somewhere else the last two years and now bought NXG cheaper.
NXG has dropped every quarter after earnings. It will be unbeleivable to see what happens this time given the loonie, Copper, KN, and no new mine.
All I can say is it hurts when I walk. It seems we can't even generate takeover interest.
Micro,
Tell me the idea of a joint venture doesn't sound better and better.
In the August Fraser Mackenzie report on SA, in the appendix regarding the KSM project it states that "the BC Ministry of Mines advised Seabridge that KSM does NOT lie within any of the currently defined traditional lands of Canada's native people."
The other idea is SA buys reserves and KN sure would be one to consider.
I'll refrain from making a deragatory regarding Stowe here.
Hypno
Just thought I would brighten yours.
They already post that.
Its called the share price, Micro.
While I have you here. I think I have to vacate posting for a while. It is just been to stressful watching NXG.
One of the big things that got me was the way Stowe talked at the Denver presentation about now going after a merger or acquisition as if this were new. In one of my previous correspondence with IR they bold printed that M and A was their biggest priority and now talk as if they are just starting that process. So I don't have to say more about that.
I am proceeding with the BOD and if that is they do not respond I will read it at the next CC during the Q and A and ask why there is no response. I will keep you posted. I need to find out if the BOD meets before or after the next CC.
Hypno
Micro,
Was all the talk just hype?
Stowe has been saying things like after the AZK debacle that they had a short list and would be making another acquisition shortly. Then in a CC when pegged on an acquisition he commented that he would be disappointed if we didn't make an acquisition by the end of 2007. Now yesterday he makes it sound like they are just now going to start pursuing an acquisition. So was everything said before now just jive? I do not have faith in anything he says in this regard until we hear something real.
I do wish that someone would make an offer on NXG. It might push management into doing something. I too, would love to hear a take on asset value versus share price. I am not concerned about whether Stowe likes it or not. I think he would be hard pressed to stave off any takeover if shareholders were given an option.
It always amazes me how smug he sounds as if no really knows whats going on beside him.
My bet is we do not see an acquisition soon. I will comment on that logic later. I think in the back of his hand he is still trying to pressure the goverment for KN even though he says hes not.
Micro,
Currently with monies for YD subtracted it leaves about 135 mil left to pursue an acquisition. That also raises the issue of then no money left for development so I think a merger is what may be likely.
Once again no plan B. I am amazed by that fact after all this time, yet no suprise.
At least they are not going to chase KN.
I wish someone had challenged Stowe on the current share price versus his valuation or at at least questioned him about it. Unless, mentioning the infrastructure cost, the cash, value of YD was like putting up a sign saying "for sale"
at a bargin. If I were another company I might be viewing it that way.
The phone calls all week part reminded me of the statements he made about a short list after the AZK failure so I do not give it any credibility.
He always seems very nonplussed and matter of fact about things with such big implications.
Lastly linking his response to being at the conference instead of a seperate release which would have cost money may speak to how cheap Ken really is.
Big mistake number 5 coming up.
I for one, am in the column of being totally fed up with mistakes. This company needs to do something that they have been reluctant to do over all this time before everything gets much worse because of the Gold bull market.
If growing and expanding are Northgates aims.......then grow and expand. Quit whipping a dead horse.
Seabridge has numerous properties in Canada and is willing to sell the small ones outright or partner with someone to do the mining. Northgate would be perfect.
The reality in a Gold bull market for NY Bob
http://finance.yahoo.com/charts#chart2:symbol=nxg;range=1y;compare=azk+tgb+sa;charttype=line;crossha...
The phone number for NXG IR is.........
416-216-2781 Ask for Keren Yun
Averaging down.........
Managements new statagy to improve shareholder value is to get the share price so low that no matter where you bought in you can average down and lessen your loss. It also draws in new shareholders so that there might be a fresh crop of people to say how rosy Northgates future looks.
Micro,
I wrote Douglas yesterday. Keren Yun must have gotten tired of me writing and passed me off to Douglas. I always get the same answers. Last correspondence with Douglas was, "when KN is approved and the YD reserves updated there should be a significant increase in the share price". They never respond to the more difficult questions like the Copper hedging and they all maintain M and A is their highest priority.
Gold is up $146.50 for the year.
While NXG share price is falling below last years levels.
In all this time of waiting the fact that management does not have a secondary plan to unveil is beyond belief.
The share price is so low that an acquisition involving shares is out of the question. I fail to understand how Canadian companies like Seabridge are doing enormously well doing nothing but making acquisitions. I also fail to understand how a marginal company bolstered by rising Gold prices becomes more attractive as an acquisition. In reviewing the figures for development costs for either KN or YD it shows the development costs to be greater for either then the substantial funds the company currently holds.
Between the AZK failure, lack of an acquisition, Copper hedging, and now the non approval of KN management is 0 for 4.
YD while a fine project holds less reserves then the current KS mine. It is far better then nothing yet still a step down from NXG's current position.
I believe management are honest hard working people concerned about the company. I fail to see how any of this makes then shrewd or wise by any stretch of the imagination. I think the time has finally come for a more imaginative and less conservative approach. Management in my opinion has led us into a more precarious position.
EZ, long term investors remind me of telephone customers.
You have a service for a long time and pay. One day your listening to the radio and an ad for the same company offers some deal for anybody new way below what your paying. You ask yourself how come their rewarded.
Micro........everyones waiting.
I expected a least a little anticipated run up in speculative advance. A least in a few days the wait will all be over and we will all finally know for sure.
I read an interesting article in a Canadian paper saying whats at stake here for Northgate is continuing as a junior miner or going back to an exploration mining company status in the market.
By the way. Did you ever write Douglas? If so, did you get a response? They have been excellant about responding.
Good luck next week.
You too EZ.
Thanks for the info.
Without a doubt this one gets my attention and money. I look at all the other charts and then SA's. They have reserves without even developing. Just goes to show what reserves mean.
I still don't ubderstand why Gold keeps rising yet mining companies are not. Some articles iv'e read suggest miners will play catch up. I do not understand what would cause that other then at some point the market recognizing that owning the reserves at an undervalued price versus the metal makes miners the better deal.
I hope the last three months of the year are better with NXG then the previous nine. This company has promise..........if they would only do.......something.........anything. I will never understand why they waited for KN before acquiring something else.
Bill.....I going to start paying attention.
I had the same flash about SA resources and NXG. Do you think they have a big upside remaining? Are they continuing to purchase properties?
I have to say their chart looks great compared to everyone else.
EZ, CBB, NY Bob
What do you guys think about Seabridge (SA)? Heard about them last fall but didn't follow up. Know anything about them? I like where their holdings are.
Thanks for posting the news.
CBB,
The long awaited day of reckoning is at hand. I am in the same camp. If KN is approved I will hold. If not approved I will wait for the fallout and buy as much as possible.
It will be interesting to see what develops after the decision. I hope it is not just the end of one wait and the beginning of another.
Question: If approved will they get the credit for reserves? and will it end the idea of a short mine life?
Do you guys do different math then me?
In the last year Gold went from $585 to $700
Northgate is $.60 lower per share. Increases with Gold only possibly bring us up to a breakeven point so I am not seeing where we have done anything but lose here.
There has to be a move to between $4 to $5 to begin to show a profit here. Those who bought during recent lows will do well.
Myself I will not risk any more into something that may collapse after the decision.
Micro,
Cbb is right and short term real valuation is $.25. I expect a fairly decent jump but staying under $4. I think management is very stalwart and conservative. I see Northgate as moving into mid tier status in a few years with a lot of opportunities passing them by. As an investor, although things will work out in the end the amount of time invested will not be worth the outcome. When you think about it if we had dumped over a year ago we could have made money elsewhere and still come back as a gain now.
I am waiting over the limit of time I set for myself to decide just to get the KN decision.
Micro......I give up
Lets think a few things through here. There is no reason to not tip their hand to an acquisition possibility. It would get the share price up and they need the share price up. They have backed themselves into a corner where they can't acquire because the share price is too low for a share deal. I think thats why they have been talking a development property that they might acquire for cash.
What I said last year has come to pass. Gold is beginning to climb and we are losing out on the increase. Last year Gold was at $585, this year it is $685. Last year NXG was at $3.88, right now we are at $3.03. We are losing in two directions.
My worst fear is that they have no backup plan other then to grit their teeth and wait for YD. I think that is why they tried to get KS reserves boosted which backfired for investors with the Copper hedging.
Douglas said that the share price decline was due to the sector decline. He said that would hopefully turn around if they get KN approval.
I agree with you. I should have gotten out a year and a half ago. I think many posters give management far to much credit for behind the scenes moves. I think what you see is what you get.
Myself if the share price ever gets up to a recovery level i'm out. The other thing I really hope for is a buyout. Let NXG management run the mines get somebody else to run the business of the company.
Don't waste your time...........
Micro,
You will just get the party line.
Everybody has been lauding NXG making all this money. Money pays salaries and you don't see any insider buying of stock. Myself, I think thats telling.
If you read Carol Jones letter.
You get a sense they are continuing to input responses even at the last moment. This is getting way bigger then Northgate.
It is about legal precedent with FN being set. FN will also go after the goverment if they are not happy. I do not believe they can sue NXG. Another aspect is if FN files suit against BC and wins later all work that NXG does then gets shut down.
I still say approval but no Duncan Lake.
FN opposition is mounting
FN files unilateral support at the end of August and panel delays another 30 days.
The goverment is worried about running afoul of FN and lawsuits.
I now think its all over for Northgate.
The whole thing is around the bend.
Micro,
You may have read them already but I suggest going back and rereading Carol Jones explanation written a while ago. Then an update as to dates. THEN, the letter from the government saying take all the time you need. These people could care less about anything but their panel and report. The sad part is we are far from done. Then its off to the ministers to start all over again. I think we have to see this in the light its really in. This is a recommendation, not an approval.
We are so far from done with this it is a joke.
Micro,
Well somebody on another board wrote a letter to the panel and they confirmed, "sometime in the last two weeks.
EZ....haven't we been hearing that since January
Its really sad and funny going back and reading Northgates and the panels comments since 2006.
A ninty day extension...........
A forty five day exstension.............
Report in July............
(Go back to the file and reread Carol Jones statement about "no later then the end of July".)
Then there was August...............
A government response saying take all the time you want.
Now September?????????????????????????????? and not even a firm date.
Does anyone have any credibility anymore?
I can't wait to see what the ministers do or maybe we should more accurately say "don't do".
CCB,
Thanks for that information.
Also would be interested to hear what other companies you like?
I am unbelievably frustrated with this company. I have to get out and the only thing holding me is the KN decision. I have had some lengthy correspondence with Keren Young and Jon Douglas. It gave me absolutely no confidence in a decision or even the future. I am convinced the company itself will do well continuing to add to their cash value. The future for an investor here is not good unless KN is approved. I believe there is no acquisition of a developed property in the works due to the share price. Managements only recourse is to buy a development property and push into high gear on YD. They seem resigned to sit it out with KS until YD goes forward. This has become a very long term investment. Too long term in my view.
Bob,
I saw that too.
In reading it I was struck with thinking that they seem to know little of Northgate. Example - "the Americas". Did I miss something and NXG owns something besides Canadian property.
A question on another score for you as a Gold bug but for all others here also. Why buy miners. I am becoming more and more convinced Gold and not miners is the way to go to profit from Gold. Gold has increased a great deal in the last year. Miners are down over the same period in time. Mining companies are at best disappointing at worst a money pit in terms of investment.
Bill, its really difficult to tell.
I have been saying that for a while now yet it keeps dropping.
This is really getting hard to read or get a feel for. I would think we just passed some critical support level. If this goes much lower I would think they become a big target.
Its starting to get to the point where the way Stowe talks of companies to acquire is the way we are looking.
The other bad thing about this is even if KN is approved and we get say a $.50 pop........where are we? I really can not believe that things have gotten this bad.
EZ, CBB, Micro, etc.
Any idea where you think the bottom might be?
Also, has anyone heard if there is a timeframe in Sept. or whether this was a blanket statement covering all of Sept?
TIA
You have got to be kidding!!!!!!!!!!!!
Thats all there is to say.
fldoclawyer,
I have had a lot of correspondence with NXG as of late. Same sort of thing. Don't you love the fact they keep talking about value for the shareholders but will not address the issue of value of shares for 2007.
Myself, I have little faith in the KN decision and believe as I have said many times that I think it will come with NXG getting the decision but not access to Duncan Lake. While everyone on all the boards goes on ad nauseum regarding the pros and cons of every crumb regarding the KN decision of more concern is the fact that Gold rose $80 yet now drops $25 and share prices are below where they were before the original $80 increase.
NY Bob goes on about the coming rise in Gold yet what I am not seeing is with a declining mine, slowly depleting reserves, and higher production costs how exactly that helps.
The other issue there is, if that happens (and actually I believe it will) do you really think things to acquire will become cheaper?
At the end of 2007 when they haven't made an acquisition Stowe can follow up at another CC about how disappointed he is at not having found a value acquisition for shareholders.
With then $400 mil in the bank I bet you and I will be a lot more disappointed then he is.
We probably can count on NXG timing in getting a decision in the midst of all this (think about it....... we almost did).
My thoughts are. Average down, buy more cheap shares, and sit back for the long......long haul. Until we acquire something or are acquired as Micro said.
To early to tell.
PM's are suffering due to liquidity. It could get worse before it gets better. Or it could totally reverse which at some point soon it will. I would say further to drop yet.
NXG is holding better then most.
Will you look at that AZK dropping like a rock. Watching that alone makes my day.
You have to love it.
Bill, what ever happened to the compensation NXG was supposed to pay AZK? Haven't heard a word about it. My take is they are never going to pay them.