NGD
I just purchased a 3.5% position in NGD at $3.20 (USD) in my resources account. NGD is getting whacked today because they said they had to raise the capex requirements for their Rainy River project by ~$245 MM. This will result in a $100 MM cash shortfall. They will need to raise some cash in some form to fund the last of the development. They have several non-core assets that they could sell, but I think the stock is overreacting.
While they will need to raise $100 MM, the stock has lost $387 MM in market cap. They have also announced some management changes as well (Chairman stepping down, another board member moving to chairman, and president getting moved to CEO). As long as the technical report is somewhere close to right on the cash costs for Rainy River, I think the stock will bounce back.
NGD is guiding for cash costs of $395-$435/oz and AISC of $825-$865/oz. Those are some very low costs and I think NGD will be a cash flow generation machine once RR is completed.
Just trying to make a few bucks.
