I think the big news in this release to me is the additional 2 million tons of ore that will extend the supergene phase by 3 quarters. The rest was pretty much expected.
The big item for the year that still needs to be resolved soon is finding the right property(ies) because at this price deck for metals 2014 will be the peak earnings year for the Bisha mine. So it is necessary for the company to grow its project portfolio in order to maintain earnings momentum.
I hope the firm continues to decide upon with another very high IRR project(s) as opposed to what I hear in conference calls of taking most likely an average project in a safe jurisdiction.
If Randgold can maintain a high valuation with 100% high quality African production and most of it in Mali which carries even higher risk than Eritrea IMO. NSU can focus solely on quality also.
If these fools running the firm are sitting on their buttocks waiting for the home run. I suggest they earn their keep and accept a single in the meantime while the stink opportunity is there given the rumor the potential target company now has a minor cash shortfall to develop the property. I think it is prime time the company starts its mine diversification program that would cost it perhaps only a paltry 20 million in additional cash outlay to develop if they would use equity to acquire (which would make total sense here since the target now trades at a 41% discount to book value). Acquisition suggestion: Mawson West
It is very hopeful that at some later date the NW zone is in communication to Bisha and linked underground so the resource can grow much much larger.
They were great drill results but the company needs to still work on improving the recoveries of the PMs in concentrate for sulphide ore. I would really abhor to see 15 g/ton Au reported to the tailings after the flotation process . (Gold recoveries are currently in the upper 40% for sulphide ore). Another quirk here is the oxide ore reported a too high copper content to effectively use the CIL plant and the resource is still much too small for capex devoted to oxide copper recovery.
Great to see the expected copper production is now at 95% of their original expectation on a such short commissioning timeline.
Peter I share your optimism it is not all down and out for the base metals miners. I am seeing a turn albeit slow. Hard to believe but surprise surprise AA is now at a 52 week high!!! Zinc (the metal) also has been very strong in the last month and has great long term fundamentals given all miners are now so adverse to expand with the supply starting to dry up.
So far it appears NSU will probably time the zinc cycle perfectly when inventories are likely going to be tight.
I am pretty shocked this stock hasn't sold off more. Its official the 43-101 for Serra Pelada is out and the fact this company invested one dime to move forward with this project reflects very poorly on the due diligence this company has done on the project.