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North American Tungsten Corporation Ltd NATUF

North American Tungsten Corp Ltd is a Canadian based exploration and development company. It is engaged in the exploration, development, and operation of mineral properties. The company produces, processes, and sells tungsten concentrate. Its project portfolio includes Cantung mine site and Mactung deposit projects.


GREY:NATUF - Post by User

Comment by ruminatingon Jun 18, 2012 6:41pm
189 Views
Post# 20027803

RE: RE: RE: RE: RE: June 12 knee jerk selling

RE: RE: RE: RE: RE: June 12 knee jerk selling

Early, I was looking at their MDA Summarized Financial Statements (pg 8 Sept'11 & pg 6 Mar'12).

 

Mar'12            Dec'11           Sep'11           Jun'`11           Mar'11              Dec'11 

Tonnes Milled:

83,912          88,460          96,813            101,873       76,980               78,943

W Conc Produced:

71,729          76,628          52,927            74,652          43,729              52,972

W Conc Sold:

82,861         70,989          55,927             69,834         50,834             36,383

Mine Site cost of Sales:

26,995        17,589           16,833            16,320        17476                19,489

Ave.Price of Sale per MTU (rounded to nearest dollar)

$378            $362               $317               $272           $228                  $201

 

I could understand if mine site cost of sales were amortized to the cost of production of the units sold. So one would see much higher costs in the last quarter because although they produced and milled less than some previous quarters, they sold more that qtr... and good one them for stockpiling it till they could get top dollar.... but that clearly wasn't done in Q1'12 vs Q4'11 since mine site costs were essentially  indentical in spite of dramatic differences in MTUs sold.

I, and many investors, have been drawn into investing in NTC based on the apparently strong fundementals and effective and efficient management of this company which allows good production results and focused strategy for marketing the production from the mine.... then it all appears to go south when the financial statements don't reflect the production and resource definition results. The write off's for TDI and balance sheet adjustments are a concern. Someone with better resources, insights and expertise will be able to investigate this and clarify why NTC either is fairly priced, is grossly undervalued, or.....

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