Thanks for tagging me Strauss,
I have had a look at NAE,
what I like about NAE are these:
1. strong cash position $1.06m on hand, with a tiny 5m MC,
2. it holds coking coal + tin tungsten projects, coking coal price is recovering noticablly and Tin price is heating up in the last 6 months, plus the company is evaluating gold projects, with the words that are being used by the company management, I think they are very close to announce something.
3, the JV with SML is a great arrangement to me as it DOES NOT dillute any of the current NAE shareholder's holding at all, in stead, The agreement with SML enables NAE shareholders to retain exposure to 50% of the Redmoor Project upside with the next stage of drilling to be fully funded by SML with the proceeds from the Option Payment upon its completion( non-refundable deposit of $186,000+2nd payment of $1,675,000)
meanwhile I think what Mr market is telling us are these:
1, NAE's $1m cash includes $809,000 as a cash payment made by UK gov for R&D, even though it is on NAE's hand, but it subjects to a 12 month enquiry window (ending in May 2017) , I dont think it would be taken back at all but since this note was pointed out by the company, I would not regard it as nothing.
2. The 2nd payment of $1,675,000 from SML to form Redmoor JV has a deadline of 31 Dec 2016,it has 4 monthes to go, therefore I believe the market is waiting too. Always keep in mind it is called Option Payment, which means even if it is highly unlikely, but SML could choose to not go ahead. It is an uncertanity
3, Unless the option payment from SML is made early and NAE starts to Drill its Tin-tugsten projects soon, (company says they expect to drill it in the beginning of 2017), I think in this quarter, either a new acquistion of gold project or some news from NAE's coking coal asset could start to wake up this stock.
so in my opinion Tin is relevant here, and Tin is what brings people to the stock maybe, but what may really move the stock price in the short term possibilly could be a new gold acquisition, then the advanced Tin Tugsten project + its coking coal license are great add-on.
Once it starts to move into Gold, and not much time later SML makes the option payment, with the coking coal asset on hand I think this could be a great story.
Certainly a lot of room to imagine given all the info on hand.
just my 2 cents thoughts Strauss.
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