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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.
NGF - Norton Gold Fields
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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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Another good day here yesterday and with gold up last night again it looks set for another good day today.
skc
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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.
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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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?
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
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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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?????
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
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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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?
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?
skc
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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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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
Im going to do some further research on this stock, it may have some promiss
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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.
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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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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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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