North Shore Uranium Ltd NSU

Kaiser research

[Lalli]

Fri Dec 11, 1998 Report Nov-Dec 1998: Nevsun Resources Ltd - 1999 Bottom-Fish 100 Publisher: Kaiser Research Online Author: Copyright 1998 John A Kaiser

Report Nov-Dec 1998: Nevsun Resources Ltd - 1999 Bottom-Fish 100 Nevsun Resources Ltd (NSU-T) Priority: Medium www.nevsun.com Tel: [phone] Issued: 23,475,410 Diluted: 27,475,410 Adj Working Capital: $8,000,000 Overhead Burn: $231,257/mth Cash Breakup: $0.34/sh Insider Stake: 14% People: Craig Angus/John Clarke Life Cycle Stage: Late Story: African Gold Sleeper TROCL Risk: 1+0+0+2+0 = 3 99 Bottom-Fish Range: $0.50-$0.75 Despite heavy brokerage research support Nevsun has been in a downtrend since its $15-$20 peak in early 1996, but did not break down until 1998 as gold hovered near a 20 year low, and the market began to spell POLITICAL RISK with capitals. Nevsun has two gold deposits: the Kubi in Ghana hosts 925,100 ounces at about 0.1 opt in primary & oxide ore, and the Tabakoto in Mali hosts 1,340,000 ounces at 0.2 opt in primary and oxide ore. Until gold prices improve and investor aversion to even politically stable African nations declines, these deposits will be sleeper assets for Nevsun. While the stock may rebound when the institutional dumping is done, bottom-fishers should buy Nevsun for the long term.