North American Tungsten Corporation Ltd NATUF

Sale of Company

[ruminating]

Not wanting to dominate the posting on this board I'll make this my last for a while, but one last comment to Early's post below.

I don't believe they are running with old equipment. I believe they have used past capital raises and loans and leases to upgrade mining equipment and power generating equipment. Their one infrastructure is surely dated but they were planning to decommission that in the next couple of years, although current resource defining and reprocessing plans may extend that target. I believe they are running a fairly efficient and effective mine.

A sale of assets like Mactung would be conter productive, but a sale of the entire company to a large established miner like Teck (who holds a royalty on some of their production) would likely make the whole operation more profitable. Instead of running all the overhead administration and sales and marketing departments and high priced staff required to have the expertise to do this as a stand alone operation, integration into a large firm would allow those functions and depts to processed through that company's existing depts. NTC would likely realize an annual boost in profitability of over $1M from such savings. Presumably further savings from personnel shift and the security of working for a larger organization might lower hiring/retention costs. Capital funding which is notoriously expensive for juniors would add a futher level of cost savings. So, yes, the sale of the company should bring out the value of this company, provided that it is done competitively to encourage maximum industry interest and participation. My fear always is that these small companies build out their operational plant and equipment then collapse under the weight of the high admin and capital costs to be bought out for a song by credit holders. That's why I get frustrated by unexpected financial accounting results. I don't think that's going to happen with NTC, but.....