Niko Resources Ltd NKRSF

RE:Good to go for 12 more...

[mining_pays_my_bills]

So, if that news release could be summed up in one statement it would be"business as usual". So, hopefully that allays some fear out there, and allows support of a higher share price.
While there was mention of selling some selected exploration properties and some production sharing contracts and other asstes to strengthen the balance sheet, there was no mention of selling the company as a whole- a move that would be taken if insolvency were inevitable. This shows that bankruptcy is not a likely scenario, and certainly not for the next 12 months, as they have enough cash to fulfill their commitments for at least that long. During that time there will be 2 stepped increases in gas price (every 6 months), so hopefully the time they've bought themselves will be enough for that gas price to make them profitable and to make development of other properties financially attractive. 
All of their producing assets in India will qualify for the higher price, 40% of which will start receieving it immediately, the other 60% of their properties are tied up in arbitration and so the differential $ will be put in escrow and be given to NKO if the outcome of arbitration is in their favor. So, as far as production of gas in India goes we are getting more money for our gas either way (be it only on 40% of properties, or the whole 100%). Our net loss will be smaller than it has been the last several quarters. I'd say that deserves a bump in sp. maybe after the mid-November financials come out.