best gold stock 2011, page-16

Only two weeks to go before the first tranche of $14.5 million is due from the sale of the coal assets. That will see a substantial reduction in the debt figure, and a related drop in interest costs.

With prudent management, I'm hoping that once the next instalment of $10m comes in from the coal assets sale (due Feb next year), the debt will have been cleared. Much will depend on the gold price, of course, but it appears likely that the POG could average around $1,450 for 2011. If the Middle East really blows up, we could see the POG spike to well over $1,500.

Once the debt is cleared, I believe that NGF should be trading at 3 - 4 times its current shareprice.