Angus & Ross Share Discussion Threads

[moreforus] 23/7/2009 11:25

bush yes it has produced nothing to date.. the valuation is not mine but fox pits produced after the loan notes were issued, they will use the proceeds from the gold, scheduled to be producing before the end of 2009 to fund other developments before tapping any other financing mechanism.

Once it's up and running producing gold then the price will undergo a rerating upward. We'll start like ngl to get quarterly production numbers.

I think the price currently reflects the risk, dilution and uncertainty - however the management have now delivered on the purchase although clearly the jury is still out and thats reflected in the price- i'd rather buy at 2p for a potential 5-6 times return knowing the risks than other stories where there a few risks but thats reflected in the price and the upside is limited.

[eye2] 23/7/2009 11:11

bush thanks for thoughts

[bushtuckaman] 23/7/2009 11:03

Firstly to correct you agu is not a gold miner (or a miner of anything for that matter), it has produced nothing to date!

NGL's was a marginal producer when the share price went down to 2p and was caused by fear of the company going bust and/or a massively dilutive capital raising to save them. This was averted by the gold price spiking in oz dollar terms and so making them highly profitable again. Couple with this strong managment with a proven track record reducing cash costs and maintaining steady producing in the region of 20k oz per quarter etc.

The comparison is correct in that they were driven down to penny sp's. The difference is that AGU didnt avoid the massivly dilutive rescue and there are now loan notes (convertible at any time)into over 577 million share

Add to that the continued dilution of the SEDAR and the fact that to get BAM up and running they will need to raise alot more money through debt/equity ie more dilution.

This isnt a compelling buy imo, there are alot better plays about with much less risk.

[eye2] 23/7/2009 10:41

bush, if ya make a statment like that YOU have to back it up! what are your reasons why its not worth what foxy is saying?

[moreforus] 23/7/2009 10:35

why...6p plus 12-14 mill not me foxy..depends how you translate the 12-14 mill into a share price ..

ngl - gold miner..80k per anumn at a cost of 700 aud average cost..

agu - gold miner (plus zinc/lead) .. 33k per anumn at an initial cost of 600 usd (which will go down)

sorry am i missing something unless ngl make digital watched and agu make bananas....

[bushtuckaman] 23/7/2009 10:28

moreforus, you are in cloud cuckoo land if you think this is work 12p fella. As for comparisons with NGL - there are none!

[moreforus] 23/7/2009 10:12

well we have a support line on the chart ..okish volume yesterday so buyers come in at 2p offer...do we move forward well we've been held back because stock price hasnt risen so people sell out plus a stock overhang... if we do start to move forward people have a reason to buy....

[eye2] 23/7/2009 10:07

how many times have bounced of this mark!!!!!! i dont have enough fingers

[moreforus] 23/7/2009 10:07

yep..think another 100k and maybe we get a bid tick up...

[eye2] 23/7/2009 10:05

buyer at at 2.025

[moreforus] 23/7/2009 09:47

6 vs 6

cant buy 1,000,000 cant buy 500k

can buy max 150k at 2.025..

things are finally looking healthier...

double bottom on the chart..bet we start to get a 2p bid...soon

[moreforus] 23/7/2009 09:44

told you it was tight - checking limits...

[moreforus] 23/7/2009 09:36

foxy have given this a 12 month target of 6p not including the gold mine...so whats 12-14 million worth?

[moreforus] 23/7/2009 09:27

it doesnt but thats why we are down here and as those fears and risks recede then the price should move up...

[wow400] 23/7/2009 09:26

I bet though that NGL doesn't have the same sort of fears about financing/management & possible share numbers that AGU has!

[moreforus] 23/7/2009 09:26

yes...agree

[scotty1] 23/7/2009 09:20

Actually moreforus m/cap stands at around 20mill,all a bit misleading really.

[moreforus] 23/7/2009 09:17

bit odd... we had net 300k of buys yesterday so the overhang is still around... however as there is only mm on 2p i think that it;s his stock being taken 1st and he only has a 150k left...it's all smoke and mirrors down here to be honest .. mms are happy to buy stock at 1.75 and sell at 2 as it;s a profit, i think we are sitting on the next NGL - that went from 2p in jan to over 30p now....it produces 80k ounces a year (no zinc/lead mine....) and current mkt cap is 30 mill, ours is (according to advfn) 4.9 mill and we are going to produce 33k ounces a year so we should be worth, especially with a low cost production solution in the mine, 12 mill...that's using NGL as a reference, and strangely thats what foxy had slated for the value of the gold.. now if production costs are lower then that could be even more - say 10-15%...then add in black angel...

think we are worth 12p...potentially and currently 2p...

[wow400] 23/7/2009 09:06

Why do you think that is M4Us?

[moreforus] 23/7/2009 08:42

limits have just been cut...dramatically

can only buy a maximum of a 100k at 2p....

the 1,000,000 has gone....

[moreforus] 23/7/2009 07:32

HW - the potential here (and thats just the gold mine...) look at what happened to NGL over the last 6 months price wise..so not insane to have a multibagger on our hands ..went from a couple of p to over 30....

our costs (note theirs are AUD not USD)...seem similar - look at the cash they have....now imagine AGU 12-18 months down the road publishing their quarterly figures...

TIDMNGL

RNS Number : 1431W
Norseman Gold PLC
23 July 2009

?
Norseman Gold plc / Epic: NGL / Index: AIM / Sector: Mining & Exploration


NORSEMAN GOLD PLC
('Norseman Gold' or the 'Company')
Three Month Report On Activities For The Period Ended 30 June 2009

Norseman Gold, the AIM-listed and ASX-listed Australian gold production company,
is pleased to announce a three month progress report on its activities for the
period to 30 June 2009.
+----------------------------------+-------+----------------+----------------+
| Overview | | 3 Months to | 3 Months to |
| | | 30/06/09 | 31/03/09 |
+----------------------------------+-------+----------------+----------------+
| Production | oz | 22,013 | 19,902 |
+----------------------------------+-------+----------------+----------------+
| Average Realised Gold Price | A$/oz | 1,216 | 1,352 |
+----------------------------------+-------+----------------+----------------+
| Operating Cash Cost | A$/oz | 636 | 693 |
+----------------------------------+-------+----------------+----------------+
| Project EBIT | A$(m) | 8.5 | 9.9 |
+----------------------------------+-------+----------------+----------------+
| Capital Investment | A$(m) | 5.6 | 4.4 |
+----------------------------------+-------+----------------+----------------+
| Cash at Quarter End (incl. | A$(m) | 35.3 | 20.0 |
| bullion) | | | |
+----------------------------------+-------+----------------+----------------+


Gold production from the Norseman Mine during the three months to 30 June 2009
totalled 22,013 ounces at a cash operating cost of A$636 per ounce Au. The
production for the quarter is a record for the Company since taking over the
Norseman Project in May 2007.
The full year production was 80,753 ounces of gold produced at a cash operating
cost of A$715 per ounce, which was ahead of the forecast of between 75,000 to
80,000 ounces of gold produced at a cash operating cost of between A$720 and
A$780 per ounce.
The full year unaudited EBIT for the Norseman Project is A$23.0 million.
Operations remain un-hedged, and since the end of the quarter, the gold price
has decreased in A$ terms, and currently stands at A$1,170 per ounce. The cash
generated by the mine for the quarter totalled A$7.0 million before capital
investment, as the Company benefited from the high gold price that averaged
A$1,216 per ounce Au for the quarter.
Resource drilling and level development at Harlequin have discovered a potential
new reef called the Perch Reef. The currently developed ore zone is 30 metres of
strike at an average reef width of 0.8 metres at an average grade of 145.8 g/t
gold.
The Board was strengthened in the quarter with the appointment of an experienced
technical director.


Operating Review:
Gold production from the Norseman mine during the three month period to 30 June
2009 totalled 22,013 ounces bringing production for the 12 months to 30 June
2009 to 80,753 ounces. The quarterly production was the best quarterly result
that the Norseman project has achieved since the Company took control of the
operations in May 2007. For the quarter, the Bullen mine contributed
10,391 ounces, the Harlequin mine contributed 11,406 ounces and other sources
contributed 216 ounces.
The gold price received during the quarter ranged from A$1,165 to A$1,315 per
ounce, with an average price achieved of A$1,216 per ounce. The operations
remain un-hedged with a gold price of A$1,170 per ounce at the date hereof.

[moreforus] 22/7/2009 17:52

so even at the outset a 350 usd profit per ounce

[hard work] 22/7/2009 17:16

Think I've answered my own question...

Total capital expenditure anticipated in the first year of operations is $7.9
million, including estimated pre-production costs of $2.4 million. Preliminary
estimates by A&R suggest that total achievable cash costs of production will be approximately US$600 per ounce and this figure should reduce when the ore can be fully processed on site.

The finance for NGM will be partly through an equity placing supported by a gold loan, the details of which have not yet been finalised.

[moreforus] 22/7/2009 16:54

265k sells 560k buys... looks like we are eating into the overhanf..probably 1.5/6 mill left..

[moreforus] 22/7/2009 16:28

cant see an explicit mention but they cannot use SEDA...

Payment of the initial proportion of the consideration has been financed from a
$1.25 million three month loan provided by Cyrus Capital Partners LP ("Cyrus").
The loan is subject to an arrangement fee of $93,750 payable in cash and will
bear interest at 15% per annum. The loan must be repaid earlier if any new debt
financing is raised, if any funds are drawn down from the recently announced
Standby Equity Distribution Agreement entered into with Yorkville Advisors LLC
or from the net proceeds of any other equity raising.