RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Lundin will acquire NSU and spin-out BishaThis stock will be in the penalty box alright; it has now become a "show me" story. Management has lost most of its credibility, which takes a lot of time and shareholder turn-over to regain trust and correct. The question that keeps coming to my mind is why the ore at Bisha wasn't properly characterised prior to mining the primary sulphides? Now the mine is stuck with trying to figure-out its metallurgical problems while trying to generate revenues. It's a bit like working to fix rocket engine AFTER lift-off. Nevsun has good assets that others covet. I'm hoping the duration of the pain will be relatively short and that an offer materialises soon.
Quinto5 wrote: Thanks Rob for being frank about how things are. I believe senior management's incompetence is finally showing. How can a world class deposit lose money?
A monkey can run a world class deposit and make money, but it takes bad management and ignorance to generate loses. This stock will be in the penalty box until things are made right.
rob926 wrote: A couple of years ago I was talking to a RMC employee at the vancouver Sprott mining conference. I asked him about what the value could be of the lower zone. He said it's potential is huge but will not help our share price because it will not come into production for 10 to 20 years. Freeport probably knew they were not getting any value from the Lundin sale so it was better to keep the lower zone and if it is a whale they would be the one to mine it. For those who have a very long term view the lower zone could really add to earnings if they keep their ownership. In the short term seems tlike there is no value being attributed. For that matter not much for Timok either, one of the biggest and best discoveries in many years.
I think management might have known of the potential zinc problem and really needed the RMC deal to have another mine of high value in a better jusistdiction. They have been selling stock piled gold ore to keep the earnings up but know I think that is running out and with an aggressive drill program were are losing cash. The reason they might have suspended the dividend could have been they really don't know how long or if ever they are going to solve their metalurgy and might need todays dividend money for Timok.
There are a lot of speculation going on but at the end of the day this really sucks. I keptd most of my shares through the deal and have bought more as well. Now I was positive when the deal came down because of the potential upside in Nevsun but now I'm wondering if a group know more than we do. Why I say that is the September options are only 35 cents. If we trade back to where we were in January those options will have a 200% gain. Options rarely give you that good of odds. I hope the other shoe is not about to drop.
Quinto5 wrote:
kkkrrrr, No doubt dividend investors are selling here...but have you stopped to considered that things could be (are) fundamentally different, such as: 1 - Bisha's no longer generating superior profits. I was surprised by the loss for the last quarter of -$0.05, and the expected earnings of $0.00 for the next two quarters. 2 - Timok UZ not being as valuable as the PEA suggests. It is, by all accounts just a PEA and subject to large uncertainties. For example, I was not aware that the contingency used for the capital estimate was a mere 25%. This is a far cry from an established mining company that typically would use 30 to 40% for contingency at a scoping level. 3- Finally, the LZ is a low margin ore body that needs to be block caved to generate a production profile suitable to pay for the tremendous capital requirements to bring it into production. Furthermore, caving operations take at least 10 to 20 years after feasibility to bring to commercial production. There is no value that can be attributed to this project at this time. Having said all of this, there is a discount to the current NSU share price...How much, is dependent on information we currently do not possess.