NMC - Nustar Mining Corporation

[brerwallabi]

Nustar (market capitalisation of $41.5mil) is a WA gold mining company 100% based in Australia with a mine recogised with a 540,000 ozs reserve of gold with further possible potential at depth. The company has just acquired the $30mil of capital from Westpac to ensure the development and production of its Paulsens gold field. The first gold pour is due in May 05. The current share price is $0.042cps coming up from a low of 0.029cps last year and has now established solid support at 4cps. The company has acquired some top rate management and has also shed the burden of its part ownership by St Barbara Miines.
The stock is also my pick in the Oct Tipping Comp. I see NMC trading next year between 15/16 cents to 24 cents dependent on the POG with the lower being based on the POG being around $400us an oz and the higher end being based at $450+.
Gold is about to test $430 and as you all probably know is predicted by some to be possibly around $450 per oz next year.
Does anyone else follow NMC? I have held for many years with a bit of a loss but have recently acquired a nice sized parcel with an expectation of a substantial share price move up.

 

[RichKid]

Re: NMC - A long wait

...The company has acquired some top rate management and has also shed the burden of its part ownership by St Barbara Miines.
The stock is also my pick in the Oct Tipping Comp. I see NMC trading next year between 15/16 cents to 24 cents dependent on the POG with the lower being based on the POG being around $400us an oz and the higher end being based at $450+.
Gold is about to test $430 and as you all probably know is predicted by some to be possibly around $450 per oz next year.
Does anyone else follow NMC? I have held for many years with a bit of a loss but have recently acquired a nice sized parcel with an expectation of a substantial share price move up.

I like NMC too but I'm not sure when it'll jump the current trading range. I expect gold to go to 500+ over the next year or two. Looks like a good gold stock for the medium to long term. Gold is now approaching $425/430 wonder if it'll break the yearly high, short term it might depend on the oil spike continuing though.

 

[brerwallabi]

Re: NMC - A long wait

Nustar has been steadily climbing over the last month and now sits at 4.5cents, I dont think I'll win the tipping comp with it, (it was my pick) as Croc and Bingo seem to have that wrapped up, I can only hope for the bronze. NMC is now definately trending up and is about to test resistance at just below 5cents I think once it breaks through it will climb up to 10 cents. A bit like Mul, it will be interesting to see who gets there first.

 

[brerwallabi]

Re: NMC - A long wait

Well its up by 9% today and 16.67% since the start of the month, the bronze medal might be looking good now I just hope its going keep going to double figures - I am suprised that no one here has any real interest in it. Each to their own I suppose.

 

[stefan]

Re: NMC - A long wait

I see NMC trading next year between 15/16 cents to 24 cents dependent on the POG with the lower being based on the POG being around $400us an oz and the higher end being based at $450+.

Brerwallabi, when you calculate a share price of 15/16 cents, what did you take into your calculation? Do you have any indications as to how high operational costs will be during the mining process? Has NMC released a report that would indicate how much profit they hope to get out of the 540,000 oz?

Happy trading

Stefan

 

[brerwallabi]

Re: NMC - A long wait

I am taking a figure of in Oz dollars after costs, based on similar operations and then multiplying by the reserve to arrive at an approximated profit. If the price of gold is $A580 which is where it is now take away 270 op costs leaves 310.
$310 x 541000 = $168m
Shares on issue are 989mil
$168m/989m eguates to a share price of 17cents.
NMC have not made specific announcements related to the expectation of profit to my knowledge.
Even if the costs were to blow out, the current 4.2cps would still be very cheap in my opinion.

 

[brerwallabi]

Re: NMC - A long wait

I hope I am not annoying carrying on about NMC, it doesn't seem to have much following here or on other sites. Just to keep you all posted its heading north as illustrated by the folllowing chart. The trend I expect to continue, unfortunately due my further investments in PEM,CBH,SMY,CMX and MUL I cannot support NMC much to my annoyance. I have stated elsewhere I am out of MUL however I am waiting for that next announcement hopefully tomorrow. If that happens straight into NMC. I am a firm believer that gold stocks will be the next big thing and that there are some amazing bargins around presently. A comment from the USA is also for your perusal.


Looking ahead, John Stafford, editor of Strafford's Investment Strategy Letter, set out a short-term target range on gold at $450 to $500, "perhaps" setting the stage for a $1,000-an-ounce price by the early 2010s or sooner. "The U.S. dollar is bound to lose at least 90 percent of its PPV (purchasing power value) by 2042," he said. "This is set in cement, and is as a result of deliberate [Fed] policies," he said. Many analysts expect gold prices to continue their climb, but they warned traders to be wary of a high degree of volatility along the way. Elsewhere on the metals market Wednesday, the direction was lower. In equities, metals mining shares lost ground after ending Wednesday's session on a mixed note...

 

[brerwallabi]

Re: NMC - A long wait

Well the takeover bid is in from SED valuing NMC @ 7 cps, their offer is 2 SED shares for 9 NMC shares which equates to from the current SED share price to be a value of 7cps. The have gotta be kidding, expect some action here on the share price as possibly some other bidders come in.

Hostile Takeover Proposal from Sedimentary Holdings Ltd

Announced by: NMC
Announced on: 19/11/2004 16:25:05
Hostile takeover proposal
from Sedimentary Holdings Ltd
Sedimentary Holdings Ltd has today announced
an intention to make an off-market scrip takeover offer
for all of the ordinary shares in NuStar.
NuStar shareholders should be aware that Sedimentary
is a minority partner in the Cracow gold mine (managed
and owned 70 percent by Newcrest Mining Limited)
with their share of production forecast as being
up to 35,000 ounces per annum.
NuStar, from its 100 percent owned and managed Paulsens
Project, is scheduled to produce 80,000 ounces per annum
commencing May 2005.
Preliminary analysis of Sedimentary and its proposed
takeover indicates the offer to be inadequate. NuStar's
business would contribute approximately 70 percent
of resources and approximately 70 percent of planned
average gold production yet NuStar shareholder ownership
in the combined entity would be less than 50 percent.
Sedimentary has today served a copy of its Bidder's
Statement on NuStar. Shareholders are advised to take no
action in relation to Sedimentary's proposed offer pending
NuStar's consideration of the Bidder's Statement and until
they receive a formal recommendation from directors.
NuStar will keep shareholders fully informed of further
developments as they occur and will provide the formal
recommendation on the offer in ample time
for shareholders to make an informed decision.



Colin G. Jackson
Non-Executive Chairman

19 November 2004

 

[brerwallabi]

Re: NMC - A long wait

The following statement was issued by NMC to the ASX.
picked up some more @ 5cps looks very promising

"Construction of processing facilities at the Paulsens
Gold Mine has been successfully completed
and ore treatment has commenced
Initial commissioning of the 250,000 tonne per annum
plant has proceeded smoothly, although action is
currently being taken to rectify a malfunctioning seal
within the contract crushing plant
After building carbon gold loadings to optimum levels the
first gold pour is anticipated in approximately seven days
Underground development continues to progress well
with access to the orebody now established on six levels.
Over 30,000 tonnes of development ore have been
stockpiled at surface, representing approximately six
weeks of plant throughput
Paulsens has been brought into operation on budget
and with the plant forecast to achieve design capacity
by the end of June, the Company is positioned
for a strong operational performance in the September
2005 quarter"

 

[brerwallabi]

Nustar in new territory up again today 9.4% and sellers are at 11 cents. Now its trading above 10cents this will attract a lot more attention. Its worth a lot more in my book.

 

[nizar]

Yes after the 12:1 consolidation and the takeover is finalised, it will move even further..

I dont hold but in process of researching it now...

 

[ctp6360]

brerwallabi you have really done well to stand by this stock and watch your money double (I hope you had lots), thanks for drawing my attention to this one I'll be watching it closely.

 

[brerwallabi]

I must point out that my initial purchase is only now going to give me a return at the time it was not huge buy but I have sat on it for over 6 years. I have already doubled my money on the other entries looking to triple it now. Jeez someone just bought 22.5 million at 10,5 cps.