aggressively expanding into a falling gold $, page-25

s.s.

for your information,after doing a full analysis comparison of NST and FML,i sold out of NST and plonked it all in FML at more than the shareprice is now at 51c a NST share,i think and then it dropped back to around 39c.I am still quite happy.Maybe not so with immediate cash in the ledger,but that is not my style of investment.

I am no gambler.From memory,NST started with around 3 months ore above ground and started mining prior to possession.It paid of it's debt quickly because it was set up this way to do so.Great for per ounce costs.Great operator,Bill Beaumont and make no mistake great company going places.Great for quick shareprice appreciation on the back of that as well and THAT WAS THE WAY THE PURCHASE OF PAULSENS WAS SET UP.

BUT NST has one mine.Strip down FML to it's underground only and you start comparing more similar operations.
NST didn't have to expand its resource base,the prior owner did that and pushed in the access to the new resource,but wanted it's money OUT FOR BIGGER DREAMS.All that expensive expenditure,down the drain,to NST at less than cost.

So all these non FML,BUT VERY NORMAL EXPENSES had already been met,by others.NST extensions are no more than FML have done at TINDALS U/G although i'm sure i know who did so cheaper.Now NST is moving to remnants upmine and other Cash cost per ounces has dropped,now the royalty has gone, making it NOT LOOK SO BAD as it would have done,if they'd mined it earlier.See what i'm getting at.NST cherry picked ore in a well managed public announcement way.Making great announcements,yet only utilising half it's mill.Makes great reading.

Pare down FML and you get closer to comparing apples with apples.I did and i jumped from one to the other and am happy FML's pipeline of growth.NST's nearterm isn't near the same.

NST's running in a survival mode mentality,maximising immediate profit and minimising per ounce costs,by managing ore delivery and running on reduced throughput.

The point is NST can't economise anymore,in a gold collapse,FML CAN and will very easily.In the meantime FML are scraping extra gold off the ground and making a few eatra bucks,it could easily have avoided and made FML look so much better on paper.

Both companies are well run,but in very different ways.You know my preference.

DYOR+DYODD