NORTHERN SUN MINING CORP LBEFF

RE: Good to See

[victor2009]

ExSudburyGuy2,

Thanks for explaining your reasoning. You obviously are basing it on different information than I would. My assessment is based on:

 1. My understanding that Jilin Jien agreed to Nickel production being sold to Xstrata rather than applied on debt. I would highlight other parts of your reference to show that this is an option - "The amount may be paid in cash or nickel concentrate." . My recollection is that when this strategy was made public it was indicated the Xstrata route would allow LBE to achieve a higher revenue return on by product recoveries - not the action of a controlling shareholder that doesn't care if LBE makes money . 

 2. I also understood that the permit initially arranged for Jilin Jien to export concentrate was subject to a time limit which expires this month.  I find it hard to believe thatJilin Jien would risk multi millions of dollars in a company they don't care about, just to get the start up production involved for eleven months. These permits are not handed out routinely, I have been told it is unlikely a similar one will be issued under the circumstances.

3. I also believe that even if JJ hadn't agreed to point 1, and even if LBE were able to export concentrate to JJ, the nickel could not be sold at a price below competitive market value.

4. Finally, why would JJ risk multi millions of dollars in investment and related administration in order to get Ni they could buy for the same price - without the need of any capital outlay at risk? That's the basic that is ignored by those saying JJ invested only to get LBE nickel to China. It's like me buying a grocery store and not caring if I lose the investment, as long as I can buy groceries from my store at the same price I can get them at Safeway or Sobey's.

As for supporting LBE activities, by comparing them to ISM - most exchanges were with supporters of ISM hailing the ISM strategies as being superior to those of LBE. I don't think its overly difficult to understand comparing the two companies in that environment.

And as for being in favour of the Jilin Jien rescue versus the alternative, you're damned right I was. It gave minority shareholders the possibility of retaining potential value for their investment, versus losing everything in insolvency. Are you of the opinion, like JohnEStromJr that you'd rather lose everything, than retain some of your investment as a minority shareholder? I'm afraid I don't understand that reasoning - specially from someone whose stated purpose is to make money on his investment activities.

This company has been declared "toast" by a number of bashers on more occasions than this. Many who ignored these expert prognostications of doom have done very well by acting on their own instincts - not admitting errors in judgement for making money or in some cases reducing paper losses.

I'll admit to errors in judgement, or relying on inappropriate data, when someone shows that this has been the case.  I hadn't noticed that I was less exuberant in posts prior to Gary Nash's resignation. I will say that I'm less comfortable now that he has resigned, and I expect that feeling will continue after a permanent replacement is named.