Oversold, do the math.
Yesterday, NSU was had a market cap. of $1,268 million and if you subtracted the cash of $347 million, you value the underlying assets at $921 million. Then the news comes out and reduces the oxide cap by 180,000 oz worth $310 million roughly less the costs associated with mining and processing it.
The market cap. today is $881 million, less cash of $347 million gives a value of $534 million for the other assets. A reduction of $387 million in value as a result of reducing the deposit by about 4% and the value of $310 million in gold less all the associated costs.
So for a 4% reduction in the size of the deposit, the underlying market price of the assets after deducting cash has been reduced from $921m to $534m or a 42% reduction. Over-reaction, I think so, I was a buyer today at average of $4.50 per share.