Powertool, it is good to see someone focusing on the fundamentals here instead of charts, trends and voodoo.
It is all very well to have a 40 year gold resource but what use or value is it if it costs more to get out of the ground than it can be sold for. It wouldn't matter so much if there was minimal debt to service but $4.7b is not to be ignored. It is quite possible that POG does not get back to the $1400 break-even point for years - or ever. Just how long can NCM keep servicing the debt in a negative cash-flow situation ? Financiers are quickly going to tighten up. A CR in the current circumsatnces would have to be at <$7.00 to get any real attention, certainly at the numbers needed to make any impact. Maybe the debt is worth more than the resource ? BHP might buy it out at $3/share ? I am out. Luckily I did not have a big holding but it hurts to take a 70% loss. GLTA
- Forums
- ASX - By Stock
- NCM
- capital raising coming?
capital raising coming?, page-68
-
- There are more pages in this discussion • 11 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)