Nordex Explosives Ltd V.NXX

Western Canadian Expansion

[AbNormAl]

With the sp flatlining, I am concerned about how they fund their western jv.

[AbNormAl]

Three reasons for not selling are that the building blocks appear to be in place for when mining activity in the gold sector becomes buoyant again, a growing diversity in revenue streams out of NXX mining super-dependance and lastly, a reasonably certain bet that the Pacific Group of Companies picked NXX as a jv partner due to the fact that BB is a "go to" product that will gain wide

[asnets]

Given the recent JV with Pacific Group....do you think this is Pacific's way to check NXX out for a possible full acquisition?  I know Pacific Group is a private company with many divisions, but I wonder what are their financials like...could they fully acquire and takeover NXX?

[Bean_and_Dunn]

You ask a good question. The short answer is a resounding yes. In the fall issue of Trade Talks Dale Bekar the president of Pacific Group of companies states that sales in that year were over $100 million. He mentions that over 300 employees of 375 were unionized. The company does mining, tunneling, demolition, roads, mountain resculpting. I really like this fit. Nordex can provide Buttbuster

[AbNormAl]

Well the business combination may well be a good fit, it would be a strange way to go about acquiring a company. With their background, Pacific could readily formulate this value proposition without going through this unneccesary middle step of forming a jv. As well, if Pacific had the dry powder (pardon the pun) and assessed that the present value of NXX was compelling, they would know that their

[Bean_and_Dunn]

The joint venture is a good fit for both companies. Nordex has developed some rather worthwhile technologies (the bulk emulsion delivery system for both surface and bulk underground loadings. Their Scorpion system is just in the beginning of getting the recognition it deserves and have aquired others principally the Buttbuster and Econotrim and the high quality electronic detonators. These

[AbNormAl]

Informative B&D, thanks. Holding on long; besides, no choice at these volume levels as there is no liquidity. Liquidity and sp will change with improved sales and cash flow(s). I think there is light in the story and if that proves correct, I will make out ok for this extended waiting period.