NXG..Anyone else following this canadian copper and gold miner?
Last quarter they earned 4c/ share and had a cash flow of 10c/share. In that quarter they produced 76,000 oz of gold and 16.9 Mil lbs of copper. Their net cash cost of gold was $194/ oz.
In the coming quarter, they expect a big increase in production. 94,000 oz of gold and 24.5 mil lbs of copper. They expected their net cash cost to drop to $75/ ounce (of gold). That is based on Copper at $1.65/lb. Copper prices have been substantially above that and continue to rise. Based on $1.95 average per ounce, it looks like their net cash cost drops clear to about zero. With higher gold prices as well, I'm coming up with about 22c in positive cash flow, and 12c in earnings for the current quarter alone. Not too shabby for a $1.54 stock.
