@specgoldbug thanks for your input on this thread...long time reader first time responder. I've already voiced my thoughts on NIU here so I won't rehash it. I just wanted to post my personal research on NIU for anyone thats interested, here it is verbatim:
Column 1 Column 2 0 ASX Share (Industry) NIU (Gold) (Papua New Guinea) 1 SP 0.007$ 2 SOI 1,475,000 3 Cash $150,000 (pre SPP - see below) 4 Cash burn/quarter ~$430,000 last quarter 5 Debt $150,000 CN issued 2/2016, 12.5% interest PA. Matures in 2 years 6 Options Nil
Column 1 Column 2 0 Market Cap 10.3million 1 Fully diluted MC (ideally ~35-150mill) - 2 EV 3 Misc Top 20 – 74%. Directors and management 15% (Plimer/Lake/Roberts/Arthur). FREE FLOAT ~360,000 shares
FY2016 Production: 689oz Au and 602oz Ag. Revenue last quarter ~500,000$AUD. Revenue last entire year ~1,086,000 (ie production was poor previous to the last quarter)
Their strategy: Use $$$ from Edie Creek upscale to fund exploration at Edie Creek+Bolobip+May River
Drill rigs (assets total) worth ~$750,000
CONC: Profit each year 1.2million$ once new equipment up and running. Upside from drilling.
SPP (16/9/16) – For ??? amount. Underwritten up to 750,000$ by Pattersons. Dispatch of offer 21/9/16, allotment of shares on 17/10/16. Funds used:
- Buy equipment to increase production rates at Edie Creek
- Orders currently being placed for larger 5t/h ball mill, roller crusher, vibrating feeders and conveyer belts to increase mining rates and processing throughput (cost ~$40,000 USD)
- Fund exploration+drilling at May River and Bolobip
Edie Creek
- Owns currently functioning gold and silver mine
- FY2016 Production: 689oz Au and 602oz Ag
- Recommenced production in 2/2014. Best production in a month was 281 Oz of Au in 6/2016 (via 400tonnes of ore)(new crusher and vibrator screen installed BUT also higher grade ore processed then too [12.9 g/t][?normally 2g/t])
- Total gold produced in June quarter ~323 Oz (Revenue $526,000. Cost $400,000.
- Break even production at Edie Creek is 76 Oz per month at current prices
- Edie Creek has high grade vein gold and low grade bulk gold ore
- Aiming gold production to >200 ounces each month and increasing ore thoroughput to 40-50 tonnes per day (single shift, 11hrs) (currently 6 tonnes per day)
- Lets say they pump out 600 ounce per quarter (?pessimistic) = Revenue ~1 mill, Cost lets say ~$600,000 = profit per quarter = $400,000 = yearly profit 1.2 million.
- NIU is currently also drilling around Edie Creek to further delineate resource extension and establish a JORC resource (around Enterprise and Karuka vein systems)
- Enterprise being drilled as per announcement 25/8/16 – HOPED DRILLING COMPLETED LATE SEP-EARLY OCT and results announced to market progressively
- Enterprise needs 10 holes and Karuka 20 holes drilled to establish JORC resource
- MODERATELY-VERY IMPRESSIVE GOLD RESULTS PREVIOUSLY at these two systems as per quarterly 12/2015
May River
- Exploration target for copper/gold porphyry – near 18MoZ Frieda River deposit owned by someone else
- 6mill already spent exploring May River. Historical intercepts between 0.89-1.83 g/t 54-109m in length.
- Company plans to drill 3 holes here 2H 2016
Bolobip
- Exploration target for copper/gold porphyry
- 1million already spent here working it up for exploration
- JV with Mincor
- 3 hole drill program planned
Aberfoyle Project
- Comprising the Aberfoyle/Lutwyche/Kookaburra/Storey’s Creek/Royal George and Great Pyramid tin and tungsten deposits
- Through its 72% holding in TNT Mines Limited also holds some land prospective for tin and tungsten in Tasmania AU (brownfield project)
- Aberfoyle is potential low Capex combined open cut and underground mine
- Royal George JORC 2012 Inferred Mineral Resource of 800,000 tonnes at 0.33% tin for 2,640 tonnes of contained tin.
- Great Pyramid Tin Project has a JORC 2012 inferred Mineral Resource of 5.2m tonnes @ 0.2% Sn for 10,400 tonnes contained tin.
- (Royal George and Great Pyramid look to me like a project that might have NPV of around 5-10mill – guestimating based off ANW.AX)
Misc
- Owns its own drill rigs and crew! ?value
Hopefully this helped someone. For others reading our posts the main difference in our income projections for the company was that SGB used 40t/day and the average ore grade of ~11g/t Au whereas I projected the company would produce 200 ounces of gold a month (taken straight from their preso where they said they were aiming for >200 ounces of Au a month) - perhaps I'm being pessimistic but anyway
DYOR etc
- Forums
- ASX - Short Term Trading
- Short Term Trading Week Starting: 19 Sept
Short Term Trading Week Starting: 19 Sept, page-148
-
- There are more pages in this discussion • 423 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
MND
Albemarle lithium downsize burns $200M hole in Monadelphous's pocket as latter's contracts terminated
TG1
TechGen Metals kicks off airborne geophys survey at Sally Downs copper play – a first for the permit