# NGF - Norton Gold Fields



## Lucstar (27 October 2005)

Hi guys, man its been long since i've been here. To refresh your memory, im a 16 year old, yr 11 student with a passion for the stockmarket

Well anyways, since i've last posted, ive been so busy with school, but i've also managed to stay active in the market. Had a couple trades with HDR, MUL (dont ask y i got into it), UNI and most recently NGF (Norton Gold Fields)

NGF has just recently been floated and personally i believe it has great potential. Will hold through till at least christmas. What do you guys think of it (if you've heard of it that is)?

Thanks, Kevin 
BTW, its good to be back


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## RichKid (27 October 2005)

*Re: NGF*



			
				Lucstar said:
			
		

> Hi guys, man its been long since i've been here. To refresh your memory, im a 16 year old, yr 11 student with a passion for the stockmarket
> 
> Well anyways, since i've last posted, ive been so busy with school, but i've also managed to stay active in the market. Had a couple trades with HDR, MUL (dont ask y i got into it), UNI and most recently NGF (Norton Gold Fields)
> 
> ...




Welcome back Lucstar, been wondering where you were!! 
You've probably just missed out on the tipping comp or you could have entered a pick! I haven't been in HDR for awhile and don't know much about NGF, gold price is consolidating again so maybe a run up will help all gold stocks.

......actually, I think you do qualify for the comp, min 10 posts and .30 posts per day average look okay for you- note the new rule about not allowing stock below 1c for the comp. See the November comp entry thread for more!


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## Lucstar (27 October 2005)

*Re: NGF*

Thanks RichKid for welcoming me back
Its funny that u mentioned HDR
I still remember that stock. My first stock ever!
You guys still monitoring HDR? Im glad i got out at $2.39
Doesn't look too bright from here, i'd say 
HDR could be worth considering to get back into tho AFTER its bottomed out. I'll be keeping a close eye on that one


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## RichKid (27 October 2005)

*Re: NGF*



			
				Lucstar said:
			
		

> Thanks RichKid for welcoming me back
> Its funny that u mentioned HDR
> I still remember that stock. My first stock ever!
> You guys still monitoring HDR? Im glad i got out at $2.39
> ...




Hey Lucstar,

No sweat, good to have 'old' hands back in the fray! 

Yep, just keeping an eye on HDR atm, see the thread for a rough graph from last week, I've made some recent comments. 

I see you picked NGF for the comp next month- why do you think it stands out from the crowd?


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## Lucstar (28 October 2005)

*Re: NGF*

Lol! You're keeping an eye on my movements are you, RichKid? Good to see. Anyways, honestly i doubt that NGF will go anywhere, at least not until Christmas or the New Year. But i mean, im hitting my exam season now and i dont have time to research and find another quality stock. THerefore i just chose one that im most familiar with. Sorry to dissapoint you. Haha


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## stoxclimber (2 March 2007)

Stock is rocketing today on insider buying news


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## stoxclimber (2 March 2007)

Woah guys.

I just looked at their second Q activites report and ran some numbers based on their predictions of:
capital cost of 25MM to build the plant
180Koz per year 
average cash cost of $346US per oz over 4 years


and I've disregarded the expansion options.

Since they only have a 500K oz resource (excluding expansion potential), assume they produce 125Koz/yr and a gold price of $600US/oz

This gives a margin of $254US/oz

This gives pre-tax earnings, excluding fixed costs, of just under 40MM AUD!! What are the fixed costs on plants like this? It seems ridiculous for a $5mm market cap company to be pulling 40MM pretax revenue for 4 years


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## stoxclimber (3 March 2007)

Sorry guys, one thing I just thought of is that the company is going to have to raise some funds to pay 25MM to construct the plant...and some/most of that would probably be through an equity issue which would dilute the value of the existing shares quite heavily.

However I was also thinking that the $354US/oz cost may be inclusive of fixed costs (for a plant producing 180Koz/yr) - in which, case, on the companies assumptions and with a 600USD gold price, 80c AUD, tax paid at 30%, 12% discount rate (say 6% rf and 6% market premium, beta=1) assuming the company produces the full 180Koz for 4 years (it will need to get some gold from a place other than the 500Koz deposit for this), at a 12% discount rate the project has an NPV of 91.3M!! 

If we allow the company to raise say, $20M of the 25M from an equity issue at 12c per share thats ~170M shares issued, brinign the total number of shares to ~210MM. Then say they get a 5M financing from a bank a la INL, lets factor in say 500K interest cost per year..giving an NPV of roughly 90M.

At 210MM shares on issue this equates to a share price of 43c..! not including the expansion options

NB: Project is also subject to due dilligence and QLD Govt approval.

I'd love for someone to check over these figures... e.g., does one think the $350US/oz includes the fixed costs of the plant? 


NB: Guys, please don't buy on this analysis...I'm figuring that there has to be something wrong with my analysis for the company to be so undervalued..


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## exberliner1 (3 March 2007)

Stoxclimber.....you forgot the coal.....this will produce a lot of money for NGF as well - that will help pay for the gold scenario.

I was a big buyer of NGF on Friday (mainly in the 9s)... I will do some analysis on this one over the weekend and try to factor in the coal to make a basic forward cashflow model which can be related back to the share price.

As it stands with only about 70mn shares in issue of which only 32mn are quoted with the top 20 holding about 70%  - there are not many shares out there to buy. On the face of it NGF should go well over 20c next week.

Did you see all those large bids on Friday afternoon in the 12 - 13.5 range...

The weather is good in Sydney today so I will not be sitting down with my calculator until tonight...

Watch this space...

EB


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## exberliner1 (4 March 2007)

I have been doing some research into NGF and I must admit I like what I see if you take into account the current tiny mkt cap of this company.

Basic details are:

Share price at close on Friday – 12.5c

Shares on issue - 69.8mn
Options 20c strike price maturity 08.10.10 - 27.94mn

Now the good bit

Shares Quoted - 32.35mn
Options quoted - 8.29mn

And the even better bit

In the last top 20 I could find we get the following:

Shares 72.2%  or 50.4mn
Options 76.44% or 21.35mn

So that means outside the top 20 there is an absolute maximum of

19.36mn shares available (about $2.4mn worth at Friday’s close)

and

6.58 mn options available

A recent announcement contained the good news that NGF is taking on the Mount Morgan Gold Project with its potential 500,000 ounces of gold. Of this 221,000ounces is a proven reserve. The other 300,000 ounces are of lower grade although 20,000 tones of copper is also known to be contained in these lower grade areas (see December 2006 quarterly for the full story).

NGF proposes to produce the first 180,000 ounces of gold at an average cost of US$346 per ounce over the first 4 years of the project.

Taking a gold price of US$600 this would give positive cash flow over the first 4 years of US$ 45,720,000 (or about $55mn)

Then there is also the 300,000 ounces of gold contained within the large slag heaps at Morgan which should also be available for recovery along with the 20,000 tonnes of copper mentioned earlier.

Approvals with the State of Queensland are well advanced by now.

Payment for the project will comprise
AU$175k + 10.49mn shares in NGF – so not very much dilution there then.

The processing plant to isolate the gold will cost about $25mn. But the cost of financing this is already included in the US$346 average cost of recovering the gold. So short term financing will be needed or maybe even a placement of some kind. All of which is good news bearing in mind the obvious profitability of the venture.

Don’t forget that NGF will also be able to run its produce from the Norton mine through the new processing plant as well giving in effect 2 revenue streams. The processing agreement at Gympie being suspended for the moment (old news from 31st October).

The whole thing hinges on the price of gold – obviously if you think that gold is heading down below US$346 per ounce then this one is not for you . Or if like me you think gold can only go up from here then the profits for NGF can only increase.


Coal.

This side of things id quite interesting.

NGF,s coal reserves are at Middlemount in the Bowen field - which is basically full of coal. 

Recently Bowen Resources went public and their tenements seem to be literally next door to NGF’s.

One of the NGF directors – Jack Tan, is also a director of RCI another public coal company. I am wondering if substantial cash could be raised from the Middlemount coal project by selling it….just an idea…. But it would help with the Morgan processing plant.

The coal reserve at Middlemount does look very good though and Mr Tan seems to have all the right contacts to maximize short term rewards on this front.


Copper

In addition the Copper at Morgan NGF also has the Many Peaks Copper Project – initial results from this project have graded in the 1.69% - 3.88% CU …although it is early days yet.


So if we include the 10.49mn new shares issued to pay for Morgan we get.

Shares in issue 69.8mn +10.49mn = 80.29mn shares

Mkt Cap therefore AU$10mn (including the 10.49mn shares not yet issued)

But only 32mn shares are actually quoted.

It is irrelevant to include the options and a diluted calculation in this post as the options mature in 3  ½ years and so have no relevance to today’s figures.

Numbers 19 and 20 of the last top 20 both hold 375,000 shares ( amazing that you can be in the top 20 with a $40k investment) so maybe that 375k sitting at 13c is from one of these two holders. $40k is hardly a cap after all…..if it stays it is good news as it allows some of those who want to buy a larger holding to get on board without chasing the price up – if it goes then there is hardly any sell depth left.

Fridays trading was interesting

Opened at 8.1 and steadily went up to 10c and then the following happened – shares traded at each level above 10c:

10c : 60,000
10.5c :33,901
11c : 138,000
11.5c : 231,038
12c : 65,000
12.5c : 285,900
13c : 329,000
13.5c : 232,996
14c : 23,004

Total volume for the day about 2.8mn

Conclusion

The Morgan project, the coal and NGF’s plan for the future means that this company is going places…. Not just drilling holes in the ground and burning shareholder’s money but actually getting to a stage where it will produce many 100s of thousand of ounces of gold.

The company is totally undervalued at 12.5c

There are only about 20 mn shares quoted and outside the top 20 worth about AU$2.5mn at Friday’s close. I don’t think they will be at these levels for very long.

And finally…. Given the increase in trading volumes and the price rise on Friday NGF will be on a lot more watchlists once the market opens on Monday. Very few shares and a lot more people know about it now.

I would rate it a screaming buy

I do hold – Dyor…I would be interested in some feedback.

EB


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## stoxclimber (5 March 2007)

hey EB

good analysis

just a couple areas to comment on:

Firstly, the payment for the site also includes a deferred $3M per year over the first 3 operating years of the project (so another 9M off the cash flows) [although its also a tax deduction]

Secondly, I'm expecting that there will be a placement/equity raising to raise some of the 25MM which will, if the stock keeps trading at this level (which imo is substantially undervalued) shareholder value will be diluted in the equity issue (if e.g. it is at ~15c)...however still a lot of upside in my opinion.

Lastly, I'm only familiar with the gold project so can't comment on the goal. 

I personally hold a parcel I bought near the top on Friday using T+1 funds, so I may have to sell tomorrow (depending on NGF and the other stocks im holding..as I currently do not have cash to settle)..however I'm looking at acquiring a stake in this, long term.


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## exberliner1 (5 March 2007)

Stoxclimber - I read it slightly differently to you...

I took "and $3mn deferred payments over the first 3 opeerating years"

To mean $3mn over 3 years.....thus $3mn in total..

Surely they would have put $3mn per year over the first 3 ooperating years otherwise.

Re the coal.....look in the Ann of 14th November and scroll down to Middlemount.....look where it is  literally next door to Bowen Energy's tennements.

I think that we could be hearing something positive about the coal very soon and it might just raise more money than you expect...

Nice thing about NGF is that short term...today  - days there is good profits to be made.... and longer term there definitiely is as well...

My usual plan to build up a free carried holding and then sit on it should work just fine here..

EB


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## stoxclimber (5 March 2007)

Hey EB
In a rush at the moment, will read your post later.

Just quickly dropped by to say:

Noticed today in the letter to shareholders that they are now talking about a 50Koz/pa plant! Big drop off from the 180K previously discussed..


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## stoxclimber (6 March 2007)

Edit, just ran some numbers on the previous assumptions but with a 50Koz/yr plant...significant downwards movement in the valuation! I get a net project value of 38MM (assuming 10 years of mining at 50Koz/yr) and a NGF stock price of 24.5c (assuming 15M raised at 20c a share). Still undervalued but not nearly the same as before..wonder whats caused the company to shift from 180Koz->50koz plant! Some explanation would be nice!


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## stoxclimber (6 March 2007)

NB: The valuation of course is highly dependant on the gold price...if one sees gold being above 600 the estimated value goes up sharply..


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## stoxclimber (7 March 2007)

encouraging rise today EB (although low volume). the 375K at 13 is a speed bump which will obviously be important in the upside of the share imo


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## stoxclimber (7 March 2007)

just an addition since i cant edit..at 650 the valuation is instead 32c a share..if anyone wants the excel model which lets you input various scenarios, PM me your email


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## stoxclimber (12 March 2007)

nice rise today on some big buying.

anyone get on this when i was posting when it was ~9.5c?


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## stoxclimber (15 March 2007)

Feel like im talking to myself..


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## AJ_ (26 March 2007)

hello,

i don't hold NGF, but i know someone that does. I have noticed the accumulation over the past few days, so it is on my watchlist...


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## stoxclimber (27 March 2007)

For those who are following [i assume none based on the replies] I would consider NGF farely valued in the 20-24c range at the moment (depending on how highly you rate the management). personally I have sold since I don't see the point in holding when I consider the undervaluation to be small..


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## pacer (27 March 2007)

NGF.....it sorta sounds like coughing and spewing at the same time...NNNNGGGFFFFFFFFf  farrrr-rout that was a wicked spew...lol


All goldies will be goodies......enjoy...but get them on the radar..go to hotcopper or sharescene and ramp it there....lol...or post a graph and mention some news to get us excited.....

Go hard or go home....


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## dubiousinfo (27 March 2007)

This is up another 21% today on increased volume. Buying depth has looked empty all day but 1.3mil traded today. 

I hold


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## leigh_munro (1 August 2007)

Does any one have any thoughts on this stock at the moment.   

Buying into this as part of the initial offering was my first share purchase.  After Their recent purchase of the mt morgan site and with the purchase of the paddington gold mine due to be approved at the upcomming AGM, it looks like they will be in a position to start mining again soon....


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## Col Lector (11 September 2007)

GOLD!! NGF mkt cap about 70mill; SP 26c. Has several advanced high grade deposits Au and also Cu.

ASX/Media Release
11 September 2007
Norton Gold Fields Announces Significant High Grade Drill
Intercepts on its Paddington Gold Tenements
Key Points
• Norton Gold Fields continues the exploration program previously
undertaken by Barrick at Norton’s recently-acquired Paddington Gold
Mine.
• The drilling program has confirmed high grade intercepts, including:
3.8 metres at 44.5 g/t,
6.9 metres at 29.6 g/t, and
0.6 metres at 813g/t.
• All holes intersected the ore zone.
• Assay results have been returned from five of the sixteen holes recently
drilled, with eleven holes outstanding.
• Visible gold found in six of the sixteen holes.
Following its acquisition of the Paddington Gold Mine, Norton Gold Fields (ASX
symbol: NGF) (“Norton”) has continued the exploration program previously
undertaken by Barrick on the tenements surrounding the Paddington Gold Mine.
Comprising some 1,000 km², the area surrounding the Paddington Gold Mine has
been assembled over many years, and has already produced over 3 Moz of
gold.
Norton’s strategy is to prove and develop a new underground mine to supply
300,000 tpa of high grade, free milling ore to supplement the existing bulk low
grade open cut mill feed. The same model has been used by Barrick at
Paddington over the past three years with the processing of the Raleigh and
Bullant ore bodies. Mining of such a resource could be expected to increase
substantially the present gold production at Paddington.
Recent exploration activity has been concentrated on the Homestead Project,
approximately 18 kilometres south-west of Paddington with an existing inferred
resource of 185,000 tonnes grading 23.8 g/t (142,000 oz) (Placer Dome 2005). The
project contains a high-grade, free milling underground resource that could
satisfy Norton’s objective.
The program has entailed diamond drilling into the northern part of the deposit,
originally drilled on a broad spacing by reverse circulation drilling. The current
program will provide an overall drill spacing of 40 metres x 40 metres, sufficient to
elevate this resource from inferred to a minimum indicated status and to expand
the resource along strike and down dip.
Page 2 of 5
The diamond drilling program has confirmed the high grade intercepts found with
the earlier reverse circulation drilling and has also provided further structural
information needed for initial mine planning work. Of the 16 holes recently drilled,
assay results have been returned from five, with eleven holes outstanding.
Details of the full diamond drilling programme are shown in the table below,
which includes 3.8 metres at 44.5 g/t, 6.9 metres at 29.6 g/t, and 0.6 metres at
813g/t.
From the recent drilling, all holes intersected the ore zone, with visible gold found
in six of the sixteen holes.
The Company has committed to a budget of $5 million for exploration in the
coming year.
“Norton is delighted with the current exploration program and expects to report
an increase in resources. It puts us in a position to commence mine design and
feasibility work and demonstrates the great exploration potential of the recently
acquired Paddington Gold Mine,” Norton’s Managing Director, Mr Tim Prowse,
said.
About Norton Gold Fields
Norton Gold Fields Limited is now the fourth-largest ASX-listed Australian gold
producer. In addition to the Paddington Gold Mine, Norton has advanced gold
and copper projects (Mt Morgan””currently under contract, Norton, and Many
Peaks) in central Queensland.
Further strategic acquisitions of new resource projects are planned in order to
build the company into a significant mining house.


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## Bushman (8 October 2007)

Anyone still on NGF? I bought some the week before last based on the last drill hole announcement in WA - 16 holes drilled, 6 returning gold with 11 to come. Was struck by the comment that there was visible gold in 6 of the drill holes and that it was next door to an existing operation.

Announcement out today that they have mined 18,000 ounces in the September quarter from the Paddington mine. Belive this to be the mining of old tailings in Qld and separate to WA drilling campaign? Do not have the facts in front of me because I am work. 

Anyway the market likes it and the price has shot up 50% today. It hit an intra day high of 52c. Happy days. Will keep an eye on it from now but a nice earner so far.


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## Gar (8 October 2007)

Ive been watching this one waiting for an entry, needless to say this morning was a bit of a piss off 

congrats to you though bushman :bier: !







chart data is delayed a bit though


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## Bushman (8 October 2007)

Price dropping back a bit now Gar. You might still get that entry point as people take profits. It does not have a massive volume of stock on sale so the price will fluctuate.  Personally I am hoping NGF can finish the day in the mid 30s and consolidate at that position in the lead up to the next series of drill results and production figures.

Good luck mate.


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## Gar (8 October 2007)

Cheers Bushman

I'll see how it winds up, if I can get an entry a little closer to the 30c mark I might give it a go but anything higher and the Risk/Reward margin is getting a little low for me.  I know nothing of the fundamentals in this one.  I'm only playing the T/A role

its really shown some strength today though


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## Gar (10 October 2007)

well I took a position @ .335 with a .305 stop today, I'm hoping that this leg up will take us to around .385 before a bit of consolidation.

Gold is also looking very bullish to me ATM so that might help us out a bit


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## leigh_munro (11 October 2007)

I got in some time ago at 20c, pretty happy with how its been performing in the last week...........................................


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## Gar (11 October 2007)

just sold at .380

That doesnt mean I dont think the stock will go further as I'm sure it will in time

I'm just happy to make a quick buck now and then


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## Bushman (11 October 2007)

Gar said:


> just sold at .380
> 
> That doesnt mean I dont think the stock will go further as I'm sure it will in time
> 
> I'm just happy to make a quick buck now and then




Good work mate. 

I'll be holding for awhile. Further drilling results to come at Paddington, 2nd quarter production results and the POG pushing into past $750 an ounce makes this an exciting gold play. 

Each to their own regarding the various strategies too. Both have merit during this commodities frenzy.


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## Bushman (1 November 2007)

Bushman said:


> Good work mate.
> 
> I'll be holding for awhile. Further drilling results to come at Paddington, 2nd quarter production results and the POG pushing into past $750 an ounce makes this an exciting gold play.
> 
> Each to their own regarding the various strategies too. Both have merit during this commodities frenzy.




Hit 48c today with a large buyer at close. Now up 70% in a month. Good buy at 27c for me. Will keep holding and see where it takes me. Hoping for - 
1. 30000 oz to be confirmed for the 4th qrt; and
2. Further upside with Paddington drill results. 

Keep an eye on it is my recommendation. Once capper at 40c was removed this week it appreciated another 15% in a few days.


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## Synergy (1 November 2007)

Yeah a very strong close helped its cause today, it was muffling around a little until then. I got in on the low as a system trade. When i first saw the name i though it was NFG  

Lets hope it's a little better than that...


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## tigerboi (13 December 2007)

ive been watching ngf very closely the last 4 weeks,today the sellers thinned

out with the buyers about to pounce,the bollies are that close you wouldnt

get a tally ho between them & to top it off a director has bought $480k of

shares at 0.480,all it needs is the upgrade that has been expected before

xmas..


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## tigerboi (30 December 2007)

still watching ngf real close,highest volume on friday since 6th dec.with the

director buying $500,000 worth of shares recently also buyers lining up on 

friday,i am expecting anns.very soon.mondays action will be interesting to see

if fridays volume increase gathers speed...


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## maggie123 (8 January 2008)

Have held NGF for a while now and it was good to see it rise today after being stuck trying to break through 50c for quite some time.  Yesterday's announcement seemed positive.


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## Bushman (15 January 2008)

Great announcement today. 3m ounces (measured and inferred) with a further 1m oz indicated. Mkt cap is still low at 196m. 

Further drilling potential too. I sold these at 50 cps - thinking of buying back in mid 60's. Good 10 year plus proposition now.


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## hyperterminal (15 January 2008)

be interested to know what others take out of the latest announcement, dont know much about gold stocks so some advice would be appreciated, have i missed the  boat????? buying in the 60's too late? any comments or valuation would be appreciated from the goldies out there


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## tigerboi (2 March 2008)

Anyone got ideas about whats been going on at NGF,I did expect it

to kick on big time once the cappers at 0.50 where taken out which sent it to

its 0.675 high,i believe there may have been some buying up for the quarterly

report announcement with silly expectations of costs at under $400 per oz,

that being the case as the 4th biggest asx goldie NGF is really good value for

the longer term.Once mt morgan comes on line the position of the company

will look much healthier,especially costs wise as the mill they have at the wa

mine to be transported to the mt operation,when it gets the go ahead that is.

I understand in the market's present state punters want results ASAP from a

company otherwise the get smashed,however with the upsurge in mining

activity in recent years availibilty of services such as drill rigs,drivers & the

latest price of diesel around $1.50+,punters have to be evermore patient & be

prepared to ride out the bumpy waves in the short term to sit back on the

big baggers that will come but only if you hold your nerve,gold will only keep

going up as its a finite resource but coupled with the greenback nearly at 1/1

with our dollar gold companies that are well run will have good times ahead.


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## scuffler (3 March 2008)

nice post.

I like the fact that they have cash and are looking for more projects to buy....producers i hope..... 

This stock is a must this year with the current climate.
Is making money from gold...of which 40% is hedged in the high 800 hundreds and 60 % floating......Plenty of cash and no need to put their hands out for more!!

cheers.


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## urgalzmine (9 March 2008)

scuffler said:


> nice post.
> 
> I like the fact that they have cash and are looking for more projects to buy....producers i hope.....
> 
> ...




Hey Scuffer 

I am holding this stock, but they are heavily geared(forgot to check before i bought duh)

Any stock in this present climate that is highly geared is getting punished. THey dont really produce that much gold, off the top of my head arent they aiming for 150k oz ?

My theory is that we wont really see this stock go anywhere, gold prices has climbed quite high but the share price is stagnant. I think its trading lower than oct/dec 07


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## scuffler (10 March 2008)

well at what price do you think NGF will be when gold hits $1600 plus?
The recent presentation WILL bring extra attention and new backers to the register.
In these times i feel pretty confident of where this one is heading to.
I am sure you have read the presentation...but i just love reading it....over and over and over,lol.



"Norton Gold Fields is one of the largest ASX-listed Australian gold producers. Norton owns
the 150,000 oz pa Paddington Gold Mine, and plans to commence its 50,000 oz pa
Mount Morgan Gold Project as soon as approvals are received. It also has advanced
gold and copper projects, including Norton and Many Peaks in central Queensland.
Further strategic acquisitions of new resource projects are planned in order to build the
Company into a significant mining house."


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## scuffler (10 March 2008)

plus look at the top 20.
Not many floating shares knocking around for those investors wanting to get on board!!!

http://www.nortongoldfields.com.au/Investors_Top20.php

Could run pretty soon....dont forget i said COULD!!

happy hunting.:ald:


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## explod (10 March 2008)

scuffler said:


> plus look at the top 20.
> Not many floating shares knocking around for those investors wanting to get on board!!!
> 
> http://www.nortongoldfields.com.au/Investors_Top20.php
> ...




Yep, I'm a holder and think when the penny drops we will see exiting things.  Could we also be a takover target, good fields are scarce.


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## urgalzmine (10 March 2008)

scuffler said:


> plus look at the top 20.
> Not many floating shares knocking around for those investors wanting to get on board!!!
> 
> http://www.nortongoldfields.com.au/Investors_Top20.php
> ...





haha

Yeh reading the top 20 has restored some faith lol.

I hope your right, I hate seeing reds lol


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## derty (10 March 2008)

The hedging is going to cause NGF to miss some of the upside of the rising gold price which may depress prices a bit unless they can substantially increase output to dilute the hedging. 

Also it says they have $40M in convertible notes ( http://www.nortongoldfields.com.au/Investors_Hedging.php ), would this have any effect on the share price at all? I'm not really sure how a convertible note works.


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## scuffler (11 March 2008)

derty said:


> The hedging is going to cause NGF to miss some of the upside of the rising gold price which may depress prices a bit unless they can substantially increase output to dilute the hedging.
> 
> Also it says they have $40M in convertible notes ( http://www.nortongoldfields.com.au/Investors_Hedging.php ), would this have any effect on the share price at all? I'm not really sure how a convertible note works.




If 40% of their gold is done and dusted at i think $875 thats hardly low is it??
What was gold last year?? 

The way we approach NGF is that they are cashed up and looking for other gold   
plays which are producing or on the verge of.
Nortons imo are in the position to takeover other juniors where their share prices have come off big time.
40 cents seems to be the base ...and why not when you look at what they are doing and what they have!!!

The notes are so they can call on etra money at any time.

Convertible note is a debt instrument that can be converted into stock at the option of the holder or the issuer. More specifically, the investor can choose to convert the total amount of the note into equity when an institutional investor (such as a Venture Capitalist) makes an investment. 

The cost of borrowing is lower for the seller, with convertable notes, since the buyer has the option of converting it into stock. Convertable notes are tools used by large companies to raise capital for their projects and operations. This is known as a debt offering since the company literally goes into debt to the investors until the price of the note is paid back, plus interest, or until it is converted into stock.

The company must record this debt in their balance sheet. If bankruptcy occurs, the note holders are considered creditors and must be paid back by the companies remaining assets. Convertable notes are a way for companies to raise capital without having to use their assets or give up ownership in their company. This leaves their assets free to do other things to generate capital for the business.

If your business is looking for funding then we can help you find the right lender. We have over 4000 lenders in our directory that we have categorized and made searchable. Fill our a few forms telling us about your business and we will give you a free matched list of lenders whose criteria you meet 100%.

Hope this helps.:couch


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## lucifuge (22 April 2008)

Positive news released for NGF today.

"Paddington Gold Resource Increased to 4.8 Million Ounces"

Also on a technical note, since late March 2008,  the share price has been in an ascending triangle. Today, it appears as though it has broken that resistance.


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## tigerboi (9 May 2008)

Had some of these for awhile now just like HEG,very undervalued & the presentation just shows how undervalued they are...keep this in mind:they are cashed up & have 2 ex felix board members...reckon they gonna grab another coal project up qld way..gut feeling..


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## leigh_munro (16 June 2008)

I am thinking of topping up with a few more of these...  Due to some ongoing power issues in WA the price has dropped from the high .30's down to .24c over the past week.  

With the planned merger with Bellamel Mining hopefully going through soon as well as the Mount Morgan project comming on line early next year it's looking like a good time to buy..


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## urgalzmine (16 June 2008)

leigh_munro said:


> I am thinking of topping up with a few more of these...  Due to some ongoing power issues in WA the price has dropped from the high .30's down to .24c over the past week.
> 
> With the planned merger with Bellamel Mining hopefully going through soon as well as the Mount Morgan project comming on line early next year it's looking like a good time to buy..




Dude have you read the most recent ann?

let me point out this :

 " Cost impact on purchased power (electricity) is estimated to be an increase of $1.6M per month over 3 months"

and also

"  Norton’s typical monthly charge prior to the supply interruption was around $600,000 which
equates to a rate of $90 per megawatt hour. Norton has modelled a number of different
cost rates and at an average rate of $400 per megawatt hour we expect to incur an
additional $1.6M in electricity costs per month. This estimate is subject a variance of +/- 50% based on possible spot prices. This equates to an additional $140-$160 per oz on our unit
operating costs of approximately $625/oz (150 koz annual rate of production). "

and lastly...

"
*Short-term impact on cash balances is estimated to result overall in a small operating surplus or at worst, break-even "*



and yes I know it says short term, but really... its a huge blow to NGF


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## lucifuge (17 June 2008)

Well said. I was also surprised to hear of the consideration to top-up with more. I have held this since March 2008, so not too long, but it hit my stop-loss today.  I had to dump them. I sincerely hope it pulls back for the faithful, maybe it's just getting more hammered because of the market in general and gold prices of late.




urgalzmine said:


> Dude have you read the most recent ann?
> 
> let me point out this :
> 
> ...


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## urgalzmine (17 June 2008)

lucifuge said:


> Well said. I was also surprised to hear of the consideration to top-up with more. I have held this since March 2008, so not too long, but it hit my stop-loss today.  I had to dump them. I sincerely hope it pulls back for the faithful, maybe it's just getting more hammered because of the market in general and gold prices of late.





yeh i had to dump my stock too, really hurt i bought when it was near its highs, wats really annoying is that we haven't heard anything about homestead mine. 

good luck with punters out there still holding these...


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## leigh_munro (3 July 2008)

I'm still tempted to by a few more of these while the price is down....

Good News in the last couple of days....



Initial drilling results from the Middlemount mine has indicated the an open cut coal operation is possible.


Normal power supply has been returned earlier than expected....impact has been limited to 10 days of lost production...

We also have the BMM merger comming up...


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## kkyyoo (1 August 2008)

So anything new with the Co nowadays ? 

only the BMM merger and the release of the June 2008 qtr report 

I guess we gotta wait till the merger being implemented on Aug too see any significant movement


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## kkyyoo (8 September 2008)

Share price going yo yo at the moment ... 

65% acceptance on the merger.... still 25% to go and deadline of 19 Sept... around 2 weeks ... anyone thing the merger will go on ahead ?


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## leigh_munro (24 September 2008)

Does any one have any idea whats going on at norton today? Price is up from .16c to .24c with no significant news other than they now have over 90% acceptance in the BMM takeover?


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## justiceotp (19 January 2009)

Has anyone recently taken a look at these guys? At under 10 cents a share they would have to be coming into some value now. I picked up a few today see how they go long term.


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## justiceotp (6 February 2009)

This thread is very quiet is anyone else holding or picked any of these up recently. Has gained a nice 20% for me so far since I bought these.


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## justiceotp (9 February 2009)

nice up to 12 cents each now and someone is buying in lots of 100,000 shares at a time for 12 cents each


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## justiceotp (12 February 2009)

Another good day here yesterday and with gold up last night again it looks set for another good day today.


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## arian (21 May 2009)

Hey guys any updates on this? Does anyone hold this? I have a small amount of this for awhile now. Tips and opinion would be great. Cheers guys
hope I'm not the only one holding this in forum


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## arian (21 May 2009)

looks like not many people holding this???
Anyone have any news or opinion about this stock would be great


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## darkside (1 June 2009)

I have no news , and nothing , but i bought this stock at .15 and thought it would be good value, at the moment its sitting next to my centro shares i bought at .06 i think they are also ones to hang onto , but then again , i am just guessing


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## skc (14 January 2010)

News out today that the MD and CFO are both ousted due to "disagreement with board on company direction". The shares fell sharply this morning against mostly stronger gold stocks. 

My wild guess is that someone approached NGF for a takeover (as rumoured a few months back) and one party or another rejected the offer without putting it to market. Judging by the placement shortly after the rumour, chances are the board won, and now the MD and CFO are shown the door.

Usually MD and CFO leaving in a sudden can be bad omen for a company - it things are going that well then why would they want to go right? But in this case I sense there's something else...anyway it should release the next quarterly reports in the next 2 weeks.

Discl: got in with a small long this morning.


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## hatemondays (31 December 2010)

Anyone have any clue on why the price for this stock remains stagnant? I expected that with the deal reached with lehman bros. the stock would have rebounded. Subsequent market releases regarding their 30 million sale of coal assets and the continuing rise of the price of gold have done little to excite investors. Is this purely market sentiment or are there underlying issues I may not know about? Have owned this stock for 14-18 months (25 cents). Am increasingly frustrated by the lack of sp movement given the favourable gold prices there at the moment... Any Ideas?


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## absolute1 (9 February 2011)

resource upgrade announcement

Key Points
 Mineral Resources increase to 104Mt at 1.73g/t Au containing 5.8Moz
 Ore Reserves of 19.0Mt at 1.90g/t Au containing 1.2Moz
 Homestead reserve grade up 80% from 5.60g/t Au to 10.1g/t Au and resource
grade up 58% from 9.97g/t Au to 15.8g/t Au with a 25% increase in resource


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## hatemondays (25 March 2011)

Really don't understand this stock. Have owned for 12-18 months, Gold price is near all time highs, ngf is an unhedged producer and their price contiunues to slide. On that basis does this mean that if we get into a gold hysteria, Norton will go into liquidation?????


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## gorm (25 March 2011)

the problem with nortons is their high level of debt ( lehmans deal ) and their 
high cost of production ( they need a high gold price to make some profit at all )
i would say given another 12-18 months with things going nortons way i.e.
gold price stays at this level or preferably higher and they reduce debt along 
with reduceing production costs then you will see a higher share price,
at this point in time they are quite high risk compared to a lot of other goldies

imo


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## investorpaul (15 April 2011)

There was an article today in the SMH:

http://www.smh.com.au/business/lehman-legacy-nobbles-goldminer-20110414-1dfzj.html

Basically just discusses NGF's high level of debt due to the Lehman issue and points to the sale of Coal assets in an attempt to reduce debt.

This is the first time I have come across this company but it has my interest and I will do further research.

The main question I am concerned about is how they will continue to reduce debt beyond the money they receive from the sale of their coal assets.

Anyone else following this stock/or have an interest in it?


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## skc (15 April 2011)

investorpaul said:


> There was an article today in the SMH:
> 
> http://www.smh.com.au/business/lehman-legacy-nobbles-goldminer-20110414-1dfzj.html
> 
> ...




Operating cash flow is ~+$60m every year... If I was the board I would just stop  exploration expenses for 12 months and slay that debt dragon. They have enough resources in the ground to mine for quite a few years so there is no pressing need for exploration. Once the debt is no longer an issue, the stock will get a re-rating and they can raise capital at a higher price and explore all they want. 

Sounds simple as long as they can maintain their opex margin, which is quite thin by the sound of it.


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## investorpaul (15 April 2011)

I agree SKC that would seem to be the way to go.

Im going to do some further research on this stock, it may have some promiss


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## investorpaul (19 April 2011)

Hi everyone,

I have been doing some research into NGF over the last couple of days and have come up with a conservative EPS of 2.9 cents per share for FY2011.

This is based on the following assumptions:

155,000 oz mined (The lower end of the company's estimates which range between 155-160,000 oz)

Gold Price of $1,300 (the figure contained in their roadshow presentation and less than the current trading price of Gold)

A mining cost of $924 per oz (as per the roadshow presenation).

This would give an income of: $201,500,000
Cost of mining: $143,220,000
I have then taken previous years costs (admin costs, etc) as a % of sales to work out a profit of $19,733,000.

Their half year profit before tax(as per the roadshow presentation) was $12.6m, so I think $19-$20m for a full year result after tax could be around the money.

The thing I would like to clarify to improve my modeling is:

1. Is their likely to be any hedging losses or impairments from the financial derivatives? Or would it be safe to say these have all been accounted for in FY 2010?

And on another note:

2. What P/E ratio do you think is appropriate for the company going forward?

and 3. Has anyone else done some projections, if so how do your figures compare.

Thanks for your feedback



Please Do Your Own Research, I am only an amateur so do not rely on my figures. As always please seek independent financial advice.


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## hatemondays (6 September 2011)

Great announcement to the market on this stock yesterday. With cash at hand and taking into account 19mill held in environmental bonds I estimate they are 4 million in debt. Massive turnaround from 12-18 months ago. Looking forward to the next 12 months with this one


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## System (8 July 2015)

On July 1st, 2015, Norton Gold Fields Limited (NGF) was removed from the ASX's official list following the implementation of the scheme of arrangement by which Zinjin Mining Group Limited acquired all of the Company's issued capital.


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