RE: RE: NGG - MD & A - No further dilution this yeGrumpy: "trying to mislead new investors by hiding development costs? "
I am pointing out that the May 29th MD & A posted on SEDAR
https://www.sedar.com/search/search_form_pc_en.htm :
Page 3
CAPITAL RESOURCES AND LIQUIDITY ...
"The Company has budgeted for mine operations to fund liquidity requirements for at least the next 12 months."
Many posters indicate that the development costs for the long term mine at Sinivit and Noramby Island will cause a massive dilution as it will be a costly expansion -
I agree %100.
However I disagree that this dilution is imminent for many reasons; the company is actively drilling these sites on an exploration basis to prove up the resource, Sinivit is currently producing from the surface using leaching - hasn`t nearly exhausted this production source, management is under extreme pressure (to shareholders and institutional investors) to prove that they can deliver Sinivit production at the level that they said they could. IMHO if NGG suddenly announced that they were advancing on Noramby Island development - before they solve the Sinivit problems - they would have a very hard time attracting investors. Maybe I am wrong, I am taking NGG at their statement
"The Company has budgeted for mine operations to fund liquidity requirements for at least the next 12 months."
I agree that the dilution will come -
eventually, however IMHO there is a profitable investment opportunity in the short term - if NGG Management cab deliver on Sinivit production, and the price of gold appreciates. I do not advise anyone to hold this stock as anything but a speculation investment, and I definitely do not plan on holding my stock long term. IF I can get a
double from here ( anything wrong with doubling investment?), I am out, hopefully just before they announce the development dilution - maybe these clowns will find enough gold at Sinivit to pay for everything - haha. Maybe they will get bought-out ?
I take by your demeanour that you don`t trust them, due to missing targets or lies. However, these small time exploration companies are known to miss deadlines, and not deliver on promises - that is why they are cheap.