NORTHERN SUN MINING CORP LBEFF

All the really matters: The Facts!

[Nickel77]

Doingthejob or should I say Aatozz
,
These are the Facts. As we move into the next few quarters, the market will decide where to price LBE. 

 

From the McWatters Technical Report:

Life of Mine (2 Years) payable pounds is: 14,172,000 times .88 to get payable pounds from reserve 12,471.000. Ore from development to end of June was about 1,300,000 and guidance gives about 4,700,000 to balance in 2010 is 3,400,000 pounds. That means LBE will mine 7,800,000 pounds in 2011 having sublevel caving in full swing from January 1 and no development to do.

 

Since LBE are at $ 4.50 or so now as cost per pound and let’s assume average price of nickel to be $ 9.00. LBE should expect about 15 Million cash in the last half of 2010 (4.5 times 3.4 million) and in 2011 $ 34 million. This does not include $4-5 million that Redstone will make this year.

 

It is clear the debt is quite manageable and that the amount of the debt associated with the preferred shares that gets paid off, will be in the second half of 2011. If nickel is more than $ 9.00 on average over next year or if there is a few percent gain on Canadian/US exchange, all of the debt can be paid. If nickel is less than $ 9.00, less will be paid on the preferred shares.

 

Bringing on Hart will allow the revenue stream to continue, but will take about $ 7-8 million from 2011 cash flow which could delay full redemption of preferred shares into 2012. As far as I know, there is no time limit to redeem the shares.

Best
Nickel77

 

 

[doingthejob]

Nickel77,I could not agree more, THE FACTS!  Again, your "micro" view of this company still leaves it way behind the eight ball.  You have not factored in the massive dilution factor of legacy LBE shareholders or the conversion of the preferred shares.  Your view is very simplistic and clearly does not address the issues or risks at hand.  This company is managed by a

[Nickel77]

DoingthejobFirst off, thanks for confirming your Aatozz.   It won’t be me, you, or anyone on these boards that moves the stocks of LBE or ISM.  The market alone will decide, as it takes each company’s publicly available information and values the stocks accordingly.   ISM’s long awaited major news release on the Langmuir Property Resources was announced six months ago; and

[rocksolid47]

Nickel,Everery think is about ISM with you, even when it's not. And your sociopath leader is worse. Doingthejob is explaining why LBE is in the trouble it is. Facts you don't like to here.  LBE painted themselves into a corner and took what may have been a decent property into one which is slipping out of the long term shareholders hands. rocksolid

[rocksolid47]

Doingthejob,The trouble with the facts as these clowns like go on about is they rarely ever line up with what happened. Heck, Captain Sociopath (Millwright) even said the 51% takeover of by Jilin Jien was a "good" thing. Since then, things have only gotten worse for the shareholders. Debt piled on debt, quarterly losses, missed targets, not including all costs in the cost of production

[trailorparkboy]

Doing, Nickel was going on about the production cost per pound recently, but insisted the debt servicing be excluded from that figure, like it didn’t exist! Anything after the production costs are paid (although they continue to incur an operating loss) goes to the debt. A fine point but true. The question becomes can they pay it off in time to prevent JJ converting that debt to equity (major

[rocksolid47]

doingthejob,These guys have had far too much purple Kool-aid to accept reality. These buffoons pumped it all the way down to 4 cents and a trading halt.  LBE is on life support with recent infusions of cash to keep it afloat. Many people have no faith the debt can be paid of to prevent massive dilution. This little bump has gotten them all excited but it is a dead cat bounce. I

[victor2009]

Rockbottom,With that 74% collapse of your company of choice, you would likely be happy with a dead cat bounce - or a bounce of any kind.The facts that matter to LBE supporters is they have been provided with three independent NI43-101 reports setting out nickel reserves and potential for extending these reserves. They are currently mining two economically viable mines, they have a third one that

[doingthejob]

Rocksolid,Millright would like to isolate and personally attack those who simply want to stay focused on the facts.  I ,personally,  pity those that have to resort to personal attacks because they are in denial of the truth and, simply, can't either justify, or come to terms with, the dire situation minority LBE shareholders find themselves in.  Many posters on this forum have