NGD (update) Q1/18 earnings were a disappointment. They lost 0.05/share and the AISC was 2447/oz. Mgmt assured investors that production and cost guidance will be met for the remainder of 18. Long-term debt will be a problem if results do not improve soon. The underlying problem is the grade. 1.1g/t with recover at 81% will not cut it. Feasibility projected 1.24g/t with 91% recovery.