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NORTHERN SUN MINING CORP LBEFF



GREY:LBEFF - Post by User

Comment by victor2009on Oct 19, 2010 11:31am
299 Views
Post# 17581990

RE: News In

RE: News InNiceGuyEddie,

You say we understand each other's points of view - I don't know how you come to that conclusion, so we will have to agree to disagree. You don't think LBE can pay down it's debt, I feel they have an excellent chance of paying it down earlier than I expected if recent Ni prices hold.

Sure there will be obstacles as they go along, but that's not some astounding revelation, it's a fact of life in any business. This company survived a formidable obstacle when it was far more vulnerable than it is now, and Thanks to Dr. Nash's tenacity it not only survived but is progressing towards its goals. Many other companies have either failed or are still trying to recover from the financial and commodity crisis. This is another demonstrated ability of the CEO, the ability to deal with obstacles, move them out of the way, and get on with the plan. Some companies are still fumbling around with dewatering permits and First Nations obstacles that were supposed to be out of the way three years ago. 

You say the mine life is four years, and that four years is nothing. Four years is something, when it's four years of significant cash flow.  In those four years LBE can pay existing debt and use remaining cash flow to continue exploration and development. A number of companies in this sector have zero mine life, they have yet to establish reserves, let alone develop to production. LBE not only has identified (as per SRK report) potential to extend the reserves in its present properties, it has a number of prospective targets and a tested ability to get done what they said would be done!

You say today's value is based on tomorrow's performance - another brilliant revelation. Isn't that the case in any company whose assets include mineral properties - whether unexplored, proven, or three years away from production?

You say debt is the enemy. Debt is only the enemy if it is not manageable.  If it is used to develop a profitable asset, capable of repaying the debt and returning an excess return, it is not the enemy it's the best strategic choice. All this bashing related to debt is coming from supporters of companies who have no prospect of generating cash flow for three years or more. Their companies can't justify borrowing, and apparently their supporters are hung up on the concept of debt repayment from operating cash flow.

Now on to your best kept secret. Let's keep it that way on this forum. Your investment of choice is not in the nickel business, it's not an adjoining property, and its success or failure has no impact on LBE -  and vice versa. If I decide to investigate that company and participate in discussion I'll do it on that forum, and I won't be over there to pump LBE. I believe the participants in this forum would appreciate the same consideration from you.
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