NORTHERN SUN MINING CORP LBEFF

RE: With LBE, reality is a good thing.

[victor2009]

rocksolid47,

Everything is not about ISM with me, as you claim. I think ISM has a very weak future, and I'm not in the least interested in it. The only connection left, is that you insist on discussing LBE on the ISM forum, in an effort to deflect readers form the issues involved with ISM.

Your statement that LBE will not last the year is ludicrous. Do you think a company that is a month or two away from ramping up production to optimal levels is in dire financial condition, and will not last the year. Its possible your ignorance is at that level, but I think its probably just your frustration of seeing a company you detest moving towards success, at the same time your darling ISM (which you predicted would hit $64.40 a share in 2007) flounder around in confusion and disorganization.
 
You have no idea of the LBE potential, because you have no idea what cash flow will be when mill output reaches optimum, and if you don't know this you have no way of substantiating the amount available for debt service. If you are as ignorant of the determination of costs as your cohorts, you will base your claim on the costs indicated at low production volumes. Anyone making this claim is just broadcasting their ignorance of business - and the basic fact that fixed costs do not increase as volumes increase. I believe management when they forecast that repayment will be made on schedule. This information was passed on when Ni prices were lower than the present price, which should provide an extra cushion in meeting the commitments.

LBE has laid out a definite business plan and is on target to complete the current phase. Its longer term plan is to grow, that is to add to its mining properties - not ISM's strategy of breaking things down into smaller parts with inefficiencies in administration performance and costs.

There is a real possibility in my opinion that in the near term, LBE will be a profitable mid tier producer and that ISM as it is known today will consist of three inconsequential companies, one or more possibly insolvent, and the remaining ones dealing with listing problems.