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North Shore Uranium Ltd NSU


Primary Symbol: V.NSU

North Shore Uranium Ltd. is a Canada-based company, which is engaged in the exploration for uranium deposits at the eastern margin of Saskatchewan’s Athabasca Basin. The Company conducts its exploration programs on its two properties, the Falcon Property and the West Bear Property. The Falcon Property is located approximately 35-kilometer (km) east of the former Key Lake Mine and the active Key Lake uranium mill which processes ore from the McCarthur River Mine. The West Bear property consists of five mineral claims totaling 4,511 hectares located at the eastern edge of the Athabasca Basin which hosts two producing uranium mines.


TSXV:NSU - Post by User

Comment by bobvee15on Dec 16, 2015 1:50pm
80 Views
Post# 24389008

RE:RE:RE:RE:3/share here i come

RE:RE:RE:RE:3/share here i comeMy issue with the company and the entire industry for that matter is how they handle risk management or the lack thereof unless it is forced upon it.  In the case of NSU the dividend payment would have been guaranteed with no second after thought from after tax operating profits  with a simple copper hedge of 1/4 of the production when the copper phase started. Doing this would have confirmed their cautious outlook for the industry wasn't anything but just pure dumb luck.

Hopefully, you are aware if you extrapolate last quarter's performance  the company's break even all in cost is around a 3.5% Cu equivalent grade. Currently, the dividend including during the zinc phase at the current price deck for metals will have to be funded out of retained earnings going forward provided metals prices stay stagnant and not from  operating profit after all capex and the main reason for the stock's push to new interim lows and the reason why the Bisha operation is carrying such a low premium to enterprise value.

While I am in total agreement this is by far one of the best positioned companies in the sector  considering comparative mine quality and balance sheet risk if they can time an acquisition for expansion properly  patience can easily wear thin when the rest of the weaker players in the sector is allowed to hang on and continue to operate by high grading. For example zinc and nickel continue to be in a 8 and 9 year bear market respectively that is a very long time to exhibit  so called patience.





 
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