17c for breakout, page-11

Orion,

I can't see how a debt of 38m exceeds the cash at bank of 40m + 17.8m in enviro bonds. Add to this their operating assets including the mines, equipment, mill, processing plant etc etc. Also add a small value for the Sienna and Electra coal deposits. Maybe take into account a similar next quarter production of 36000oz of au at a possible profit of around $18m (allowing for same margin as last qrtr). I still can't see why this is trading below 40c.

The hedge is not dead, but neither is payment of the hedge enforceable while LB are in ch11. There is more than enough happening here to keep me interested, production increase from homestead early next year (funded from existing cash flow), further definition of coal project, possibility of production at Mt Morgan further down the track. They're starting to put some runs on the board and the next 2 or 3 years look good for NGF.

Cheers.