Nordex made over $317,000 in the first quarter. $0.0158 A cent and a half. Their first quarter is usually their worst. This year the winter was particularly cold. So you can figure that production suffered. I am optimistic that Q2 and Q3 and possibly Q4 will be some of the best this company has seen in a good long while.
How good you are probably asking? I will be disappointed if earnings are not above $600,000 in Q2 and at least that amount in Q3. I am looking for at least 9 cents per share this year.
I have tried to give some information about how much new mining is being done in Nordex' back yard. They have completed 2 sattelite expansions. These operations are in full swing in the summer and fall months. Nordex seems to not disclose who they are servicing, but I ask: Why would they build a sattelite plant on Manitoulin Island if they were not there to service the quarry on the west end of the island? (Production of about 3.5 million tonnes. Each tonne of ore requires somewhere around $0.39 of blasting powder for ANFO. Are they servicing the several mines in Sudbury these days? Where are they selling their Johnex products?
They built a sattelite site near Huntsville. Well once again it would seem to me that they would first have an invitation by an interested party before they built that expansion. I sincerely believe that the stock is dirt cheap and has hit rock bottom.
We have another couple of weeks to wait for the Q3 report. Any comments are certainly welcome.
B&D