Just in case you have missed, there is a new presentation on NMG...

Just in case you have missed, there is a new presentation on NMG website which contains some new information. It also states “commissioning nearing completion”.

http://www.nobleminres.com.au/live/wp-content/uploads/2012/06/Noble-presentation_Earths-Resources_June2012.pdf

We know that mining commenced in November 2011 immediately after EPA approval granted. Process plant commissioning commenced in January 2012. The company said that commissioning process takes 6 months. And now commissioning is nearing completion, Amen!

Although we all aren’t happy about SP movement, I believe that NMG is fundamentally sound.

1. NMG has minimal sovereign risk because Ghana is one of the most Stable West African countries with English as the official language.

2. Altough NMG doesn't has great management it has great assets. NMG has 958,000oz Reserve @ 1.79/t and 2.26Moz Resource @ 1.71g/t. The new presentation showed some cross-sections of the deposits. They all relatively shallow and start from surface. NMG also has a 3mtpa processing plant nearing completion. The value of these assets is far greater than NMG’s current market capitalization. In any worst case, I bet NMG will be a TO target.

3. Although NMG doesn't treat us(small shareholders) nicely it has strong institutional support. The top 20 shareholders now hold 77.24% of the company which include Wei An Development 15.11%, Merrill Lynch (Aus) 11.52%, Global Gold holdings 11.32%, Wayne Norris 7.3%, plus 31.99% others.

4. The last 2 share placements average @ 37.6c. A $10m Placement @ 48C in February and a $20m Placement @ 34c in June average 79.1m shares @ 37.6c.

The only risk for NMG is that it runs out of cash again and need to raise more at current low SP. However, I don’t see this as likely because Wayne Norris still holds 7.3% of the company, I do not believe that he is willing to wipe out the net worth of his own investment. NMG can always go for a loan if needed. Well, I really hope it doesn’t.

Conclusion, I’m not saying that NMG is perfect but NMG is still fundamentally sound.

Amen!