JR, thanks for the valuable infor. Just unbelievable that still nobody buys the 11K at $0.015. I am waiting to buy when the shares for ASK at 0.015 become larger (11K is too small for me to buy). Thanks again, JR.
JR12 wrote:
NFE Financial Results Ending March 31st 2015,
Assets
Cash - $1,142,743 – 1.2c a share in cash
Receivable - $11,007
Prepaid Amounts - $14,685
Deposits - $200,000
Property & Equipment - $212,288
Exploration & Evaluation Assets - $9,677,864
Total Assets: $11,258,587
Total Debt/Liabilities - $53,595 (Accounts Payables)
True Net Asset Value Of Company: $11,258,587 - $53,595 / 95,727,875(common shares) = $0.11.7c
At 1.5c, NFE is trading at a 90% discount to its NAV. This does not even include the partnerships created with Danieli and OMC Investments which can easily yield new clients for their HBI product and financing to increase the 43-101. HBI is still very desirable business as it was stated by CEO Basil Botha.
Video: https://www.youtube.com/watch?v=jKkdLO_vOeI
May 2015 Presentation: https://media.wix.com/ugd/f57d32_e0b59b95e74a4eb7a67d204dc567fa78.pdf
Cash burn is roughly $200,000 per quarter, but the company states in the MD&A that they can easily keep going well into 2016 and even 2017. Please see the MD&A Highlights below for more comments:
NFE MD&A Highlights:
Northern Iron is a mineral exploration company focused on developing high quality iron ore opportunities in the Red Lake Mining Division of Ontario, Canada, which is a past-producing iron ore district. The Company is a 100% owner of five iron ore properties in the Red Lake district containing significant historical resources with grades ranging from 22% to 31% Fe2O3. Northern Iron is listed on the TSX Venture Exchange and commenced trading on 26 August 2011.
The Company is focusing the majority of its efforts in introducing the Griffith mine project to prospective industry partners in North America. It is the intention of management to attract a large industry partner into the project to provide expertise and capital to advance the project.
Future Outlook
The resource definition drilling program at the Griffith Mine commenced in August of 2012 and 11 holes totalling 3730m were completed by 21 September 2012. The holes were drilled around the perimeter of the North Pit. Past production indicated the higher grades and larger resource are located towards the South end of the pit. This should be the priority area for delineation drilling. It is estimated that a minimum of 10,000 metres will be required on the south-west and north-east. Fence drilling can be carried out from the East side, and fan drilling farther South. For the Company to continue to operate as a going concern it must continue to obtain additional financing to maintain operations; although the Company has been successful in the past at raising funds, there can be no assurance that this will continue in the future. In an effort to preserve capital, the Company has ceased all field activity and deep cost cutting measures have been adopted. In addition to the reduction in field work, these cost cutting measures include significant reductions in consulting, travel, and shareholder relation expenditures. At the current burn rate the Company has sufficient cash reserves until mid-2016. There were additional cost cutting measures that came about in May 2014 that will provide the Company with additional cash into January 2017.
Significant Events During the Period
On 3 February 2015, the Company announced the appointment of Alberto Hassan as Chairman of the Board of Directors. On 16 October 2014, the Company announced that it has entered into an investment agreement with OMC Investments Limited (“OMC”), of Hong Kong. The transaction closed on 28 November 2014, and the Company issued 19,048,000 units of the Company (“Units”) by way of private placement at a price of $0.05 per unit, for aggregate proceeds of $952,400. OMC now holds approximately 19.9% of the issued and outstanding shares of the Company. Each Unit consists of one common share in the capital of Northern Iron and one common share purchase warrant (a “Warrant”). Each Warrant is exercisable for a period of three years from the date of closing of the Private Placement at an exercise price of $0.05. The Company also issued 15 common shares of its subsidiary Canadian Iron Metallics Inc. (Canadian Iron) to OMC, reducing its ownership share from 100% to 85%. Canadian Iron holds the Company’s interests in the Karas and Griffith’s properties. The value attributed to the noncontrolling interest in CIM on the closing date is nil. In addition, the shareholders’ agreement with OMC will allow OMC to progressively earn additional equity in CIM, up to a total of 70% of CIM’s issued and outstanding shares, as follows:
· an additional 30% for $8.2 million in funding from OMC for dewatering, resource drilling and environmental permitting (“Resource Definition Funding”);
· an additional 5% for $2 million in total funding for a preliminary economic assessment, funded 70% by OMC and 30% by Northern Iron; and
· an additional 20% for $20 million in total funding for a feasibility study, funded 70% by OMC and 30% by Northern Iron, and assuming the feasibility study establishes technical and economic viability. Should either party not fully contribute its share of funding to both the preliminary economic assessment and feasibility study, it may face dilution. In connection with this transaction, Northern Iron has also agreed to enter into an option agreement with OMC on its other mineral properties. Should OMC fund the full $8.2 million Resource Definition Funding, it has the right to acquire an 80% interest in either the El Sol, Whitemud and Papaonga properties. This may be increased to 90%, if within a five year period after earning 80%, OMC funds an additional $1.5 million in expenditures on the property chosen.