best gold stock 2011, page-15

Hi rumot, I share your frustration that the loan is taking so long to be paid off, but the problem is that the production costs are high, leaving only about $500 per ounce gross profit, out of which the huge interest bill has to be paid, plus the administration and other overhead costs. With the receipt of the funds due from the sale of the coal assets, and with very tight control of costs, I'm hoping that the debt will be cleared in a little over 12 months, but this would require keeping costs to the absolute minimum, and getting the interest bill down as quickly as possible.

I'm also hoping that a predator company doesn't move in to take over NGF at a bargain price while they're still encumbered with this debt problem. Any significant drop in the gold price would be a major concern until they get the debt cleared and the production costs down to an acceptable level. Companies such as IGR and SAR have production costs below $700, and that's where NGF need to be. They will then compare favourably with those two companies because they have more gold in the ground. Mike