Ann: Annual Report to shareholders-NIU.AX, page-2

This is a complex one. Was always going to look bad, as production uptick only in the last month.

Read, analyse and put the jigsaw puzzle together.

What we do know is that Australian Metals Group http://www.amgl.com.au/ took number 1 shareholding after choosing this business from a shortlist of a 100 businesses globally and they appointed 2 board directors and look an astute outfit.

We also know Paterson's are fully underwriting a capital raise. If there were any grave concerns, they wouldn't have participated.  

Also expect some news on tin.....

In Tasmania, through the Group’s 72.54% owned TNT Mines Ltd, Niuminco plans to commence a focused exploration program comprising 7 diamond core drill holes (to 1030 m total depth) on the Lutwyche deposit within the Aberfoyle Tin and Tungsten Project

If things were so bad I doubt the tin would be on the cards.....but it is....

Friday night - even though I want to numb my brain on the balance sheet....I will leave it for tonight and do over the weekend....they sure know how to load themselves with cheap stock though...

And yes.....we are waiting on 4 drill assays for the gold

I gave the report a thumbs up

Credit where it's due there sure is no sugar coating. It's a clear statement to shareholders that there is risk involved however..........

The plan anticipates that positive cash flows from Edie Creek mine through gold and silver sales in the order of $250,000 to $300,000 per month will be achieved consistently

Not all of the SPP will be used for equipment

The Directors note that a portion of the proceeds from the Share Purchase Plan will be directed to the repayment of the overdue balances

And they are set to take on some more debt...

To achieve the production rate of 5 to 6 ounces per day, the scaling up of the production at Edie Creek includes increasing the ore processing capacity with the purchase of a 5 tonne per hour ball mill, a roller crusher and also includes additional mining equipment which will need to be partly financed by external borrowings for an amount of approximately $220,000. The Group has started discussions with its current financier and believes that it will be successful in obtaining this level of funding.

I also note one of their largest shareholders....need to do more research here



The plan anticipates that positive cash flows from Edie Creek mine through gold and silver sales in the order of $250,000 to $300,000 per month will be achieved consistently

That's $3m-$3.6m positive cash annually.....consistently

And it's a statement from a management team who judging by this annual don't sugarcoat

Look....regardless is still high risk....and possibly extremely high reward....there's no question it'll be a bag-a-thon from this cap if it does those numbers

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DYOR............I will try crunch number and associations etc over weekend............

I am very bullish on this stock......a low SPP or fear selling will land even more cheap stock into the lap of management, their indirect holdings and the underwriter.....think and research before taking action...personally I am not buying into SPP and have been buying at market still confident the stock will trade higher during pricing period.....hopefully we can get a 1c+ average SPP.....news would help