North American Gem Inc V.NAG

parity is Good

[krossfire]

Nag is raising the money to operate the US mines on the TSX in Canadian dollars, so if the Dollar is at par, we are getting equal value for our invesments, but if the Can $ drops we are having to make up the differance in exchange for operating expenses contractors equipment etc.  Correct me if I'm wrong

[wallywill]

I think that a lower Canadian dollar would be better since the mine are operating in Kentucky, they get paid in US dollars for the coal and pay the crew to mine it in US dollars. But the profits would mean a larger Canadian dollar amount if the US buck was stronger. Interesting debate.GLTAWallywill 

[donat50]

Canadian companies who operate and sell in the states win with a strong USD at par the profit that is moved into canadians is less .Having said that if there is enough profit then for now it won't hurt .NAG's investment dollars are in Canadian so it dose make it a little more expensive to operate in the states .In the long term we will still make big buck .GLTA

[NYRR]

     A par dllr is not good for anyone doing business in Canada... NAG will be hit by the par dllr only when they take money from US accounts to Canadian ... I would think they would only need to draw money out of US accounts to pay employees and expenses in Canada otherwise they can just leave it in the US accounts until the dllr is favorable to transfer... I feel alot of

[lucci2005]

I change my view.  The way I see it, parity is not good for NAG.  Here is the reason.  NAG pays the contractors/workers/equipment, etc. in US $.  They then sell the coal in US $.  See my two examples below:Example #1 (DOLLAR AT PAR)--selling price = $58 USD--expenses = $40 USD--profit = $18 USDat par, this is translated to $18 CDNExample #2 (let's say dollar is $1.03 -

[donat50]

WE will still make lots of money I do agree it could be more and may be in the future .For now keep the coal moving LOL.

[krossfire]

You are correct on the profits, In a perfect world right now when profits are low, and expenditures are high the high Canadian Dollar is good, but when we start making higher profits we would benifit from a lower Can $. Either way I see a very bright future for this stock,  I've been holding this for a long time, I bought my original at .47, and have averaged down to .173, so for the

[boomboom2]

I would think a weaker Canadian buck would be better for NAG, but It Is what It Is. Regardless I still think they they can make money In both environments.GLTA'BB2.