OTCPK:NOXOF - Post by User
Comment by
alixx11on Aug 29, 2013 2:03pm
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Post# 21706967
RE:RE:Financials...
RE:RE:Financials...MM,
My comment about the unlikelihood of getting as sweet a deal as we had with ARZ is mostly based on a few key points. I think it’s unlikely that we’ll see the gold price highs of 2011 again. And even though I think the gold price will rise from where it is now, I don’t think we’ll see as much interest in funding juniors as before, or at the very least more caution and tougher negotiations will be more the norm... Basically, I just think it will be a tougher environment for juniors to negotiate good JVs than it was in near-past...
Having said that, you raise valid points which can’t be ignored. Since the ARZ deal (and we were only 2/3 complete), the ounces have doubled. And they do have reasonable cash in the bank (although, as I said, not enough to get real aggressive on their own). Matt Zylstra, the last real analyst to cover NOX, was concerned over the strip ratio (which he hoped could be reduced by proving out additional ounces with infill drilling).
Now even though we may disagree about how good a deal we can get, I want to make clear that I don’t believe we need as good a deal as we had. Even a deal 75% as good as we had, with a solid partner (not a Hecla, more an Osisko) would likely be enough to get us back up where we should be.
The key in my mind is finding a good partner soon, and getting a fair deal...
Ax.