How high will NSU stock price be in 1 year?
There's a "volcano" building underneath NSU stock price. The current phase of "disappointing" investors, is designed to let the biggies grab as much as they can, at current levels. Major shareholder's are holding, accumulating.
The 100 million shares issued for the Reservoir acquistion is slowly being gobbled up, as it comes back into the market.
Back to the "volcano"
Higher copper prices
Higher zinc prices
Higher gold prices
Higher silver prices
Can you hear, feel the "heat" being generated underneath?
Cash balances growing
We'll find out in a few weeks what the balance is, but a good guess would be in the $230 to $260 million range at the end of Qtr 2
Cash inflow to grow substantially in Q3, through the monetazion of gold equivalent - around 80,000 oz at over $1,300 an oz.
Cash inflows to grow from higher copper and zinc prices
Zinc Flotation Plant
The expansion has been completed and is currently being commissioned. It is projected that said commissioning would take about 90 days. It started early June.
The announcement of commercial operation ought to be coming within the next 45 days!
The key is margin! The costs?
That is a big catalyst. Will it disappoint the market? Obsiouly its not an easy transition, quite complex. It will be a test of the Operating team.
Will they be successful? Will they fail?
Thus far the operating team at Bisha has had a marvellous success record! which is not reflected in the stock prices.
At the very minimum, I expect cash inflows from operations to continue along the same lines as in previous years during this 1st phase. Higher zinc prices and a better understanding augur well for future inflows.
Exploration
Tremendous upside here. Lets stay tuned and see, how large the reserves will rise by year end
Reservoir acquisition
This acquistion is being undervalued by the market. Current rationale being used, is the share price of the old Reservoir. Nonsense. The valuation of the Timok project needs to be evaluated based on its worth, potential worth, reserves, expected profits. Based on NSU owning 100% of the North.
The value will rise as the NSU old and new team perform their due diligence, continue the exploration program, and issue confirming statements.
Over $20 million is projected to be spend on Timok South....within 1 year...
The Timok project is not the only project acquired during the acquisition. Working with strong partners.
Dividends
NSU management has committed itself to maintaing the current dividend, at least for the short forseeable future.
Obvioulsy the market expects a reduction going forward, to be reinvested in higher shareholder return through properties appreciation.
My guess is that NSU will trade between $6-7 CDN within 1 year
Takeover
Current NSU market cap is ridiculously cheap....wouldn't surprise me if a major decides to take a shot at it, now, or a little later when the Timok find is crystallized
All Aboard The New NSU Bull Express
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