Replies to post #210763 on Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

Dan, I expect you read the recent earnings report from NXG?

http://biz.yahoo.com/bw/040225/255986_1.html

The Kemess North feasibility study is due next month. I know, they still have a year's worth of gold hedged, but even still, as long as copper keeps doing what it's been doing, it's hard to make a bearish case for NXG...
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Hi Joe Bob,
That's only because sans the hedged position there isn't any bearish argument. <g>

NGX's negative is its 330K ounces (was 350K last qtr.) of forward sales. They have a plan in place to eliminate these hedges over the next 4 years, but it means that about one quarter of each year's production will be sold at around $307/ounce between now and 2007. That, imo, is what has kept it's shareprice in check.

NGX's biggest positive, as far as I'm concerned, is it's estimated multi million ounce Kemess North deposit because the market doesn't appear to be attributing any value to this deposit.

The Kemess North feasibility study is due to be completed in April and will probably confirm a gold reserve of around 3M ounces. Once this happens it will be difficult for the market NOT to factor the Kemess North into NGX's valuation.

Fwiw, I've had a GTC in the 2 dollar area for three weeks now......