NSU
I've been following Nevsun for a couple of years. I think there are a couple of things going on:
1) The company went from a crazy good balance sheet and a big dividend to a much smaller dividend and spending on the Timok project which is shrinking the cash balance.
2) The copper circuit at the Bisha mine has been having some big problems over the last couple of quarters and is hurting profitability (as in no copper coming out).
3) New CEO probably creates a little risk. Normally new CEOs like to come out and set the bar very low so they can beat it. However, things have been so bad for NSU that I can't figure out what else he could kitchen sink.
Supposedly this Timok project is one of the best copper projects in the world, but I think people are worried about the cash burn rate.
I own a small position in my natural resources account as well as a small one (only ~2%) in another, larger account. I've been thinking about adding some, but I keep running into other ideas that I'm interested in.
Just trying to make a few bucks.
