rodman and renshaw conference presentation

Best goldcompany going forward? I stick out my chin and say so.
Finally, the company has produced an exhaustive presentation. An investor tour has started in NY, with further presentations in europe. The presentation is adapted for world investors used to USD instead of AUD. Current FY, up until June 2010, 200 000 Oz production. From June 2010, the company has a projected runrate of 280 000 Oz/year.

Today, there's a cash cost of 576 USD/Oz, and the company has a realistic target of USD 520/Oz with the higher production.

In the 280 000oz/y the Mount Morgan project adds 35000oz per year, and in its phase two, with credits from the Pyrite production, it gives a cashcost of 32 USD/oz gold (will lower Norton's cashcost/oz even more). Norton earlier bought a mill from a discontinued nickelmine, which has been refurbished and is ready to be relocated to Mnt Morgan, which will give a low capex for the project.

There is a hedge for 210 000 oz, that is running until june 2012, i.e 70 000 oz/year, at 700 USD/oz. Since the counter party, Lehman Brothers, went into administration, Norton doesn't have to pay on the contract, and can meanwhile instead hoard cash.

Market capitalization USD 67MM
Shares outstanding 420.6MM
Listed and unlisted options 38.6MM
(Most at ca 0,25 AUD)
Average daily trading 1.2MM
Closing share price A$0.21

Cash 36,2 MUSD
Debt: Convertible notes for 30,4 MUSD, conversion August 2011 (conversion price 0,25 AUD).
Resources: 6,1 MOz (market cap/resource 10 USD/Oz)
Reserves: 1,2 MOz

Track record of management:
"Led by Jon Parker, ex-CEO of
Felix Resources, a $2.4 billion
Australian coal producer.

In 4 years, Jon transformed Felix
from a junior explorer with a
market capitalization of
$14MM to a $400MM producer"
From earlier production at Paddington one can draw some conclusions with regards to future cashcost(even if its not directly comparable) now when the Homestead project 7,4g/ton average grade) starts off in December, and increase the average grade in Paddington to ca 2,5g/ton. The company has also increased the capacity towards 3,3 Mt/year. 500 USD/oz cashcost from Paddington feels fully feasable, as I see it.


Historical gold production is summarised in the
following table:
2004
Ore treated (kt)3,029
Grade (g/t)2.6
Recovery (%)94
Cash cost (A$ per oz)478 (AUD-USD today 406USD)
Gold produced (koz)244

2005
Ore treated (kt)2,834
Grade (g/t)2.6
Recovery (%)94
Cash cost (A$ per oz)576(AUD-USD today 490USD)
Gold produced (koz)243

2006
Ore treated (kt)3,001
Grade (g/t)2.9
Recovery (%)94
Cash cost (A$ per oz)501(AUD-USD today 426USD)
Gold produced 259

2007
Ore treated (kt)3,011
Grade (g/t)2.2
Recovery (%)94
Cash cost (A$ per oz)N/A
Gold produced 214

2008
Ore treated (kt)3,135
Grade (g/t)1.5
Recovery (%)92*
Cash cost (A$ per oz)754(AUD-USD today 641USD)
Gold produced 126

* lower recovery reflects the successful carbonaceous trial in October