Replies to post #2412 on Northgate Minerals Corp (NXG)

[junctioncity]

One possible explanation for not closing the hedge:

This is pure conjecture on my part but I wonder if they have kept the hedge as a defense mechanism against an unsolicited takeover bid. If Northgate is truly undervalued at its current stock price, maybe they think the hedge acts as some kind of deterrent to any potential suitor.

Only my guess (and a weak one at that).

[specsingold]

Bluestar……I am not an apologist for NXG’s management team, but I do think they have done a commendable job in taking the company to where it is from where they started years ago. I have been in NXG for less than a year and during that time I have only seen them make one substantive screw-up and that was going hostile for AZK.

As to why they haven’t closed the entire hedge, I will give them the benefit of the doubt and trust they have good reasons. The bottom line in having a large investment in any one company is that you have to have confidence in management or you shouldn’t be in the stock. I believe Stowe and team know exactly what they are doing with respect to those factors they have control over. Unfortunately, the two biggest determinants of NXG’s future, KN approval and Au/Cu prices, are in the hands of fate……Spec