Ann: Application for quotation of securities - NMG, page-4

Ok... so if most of the options in the next month get converted, they will add perhaps $1.7m.
The company will sit on approx $22m (before costs.... my guess is 5%, so... take off $800k.
Leaves around $23-24m. Still not enough to fully fund the development.
Debt facility coming soon? Perhaps $10m? Hopefully they just buy some puts instead of a 1 ounce being hedged.... just not worth it in this enviroment.
Please... Alex, just look at what CMM is doing.

Company will have approx 9.7b share by mid April (options... raisings... blah blah).
At $0.017 that sees NMG sit with a market cap of around $165m, with an E/V around $142m.
In some ways, this is expensive at first glance, considering NMG only have 1 deposit, and they are tolling it to WGX, yet.. when I again look at NMGs neighbor, MEK, with it's $360m market cap and production profile of 60-70k p.a... well... It looks about 50% below what I think it will trade by years end (just a though exercise of course, no recommendation or advice being offered). $200-250m seems a good target, with the spot POG being a major driver (upside and down). NMG will have higher margins that MEK, with much less operationally risk, though MEK will produce more ounces.

I do feel on balance, a consolidation would be good, I expect it will happen in the next 30-60 days (it's in my name). 50:1 would be my preference.
Though of course... I realise that there are guilty pleasures around looking at nice big numbers (shares being held)....

Anyway, it may take a little while to churn through the new shares coming next week, but.... after that, I see NMG as a good play on near term production, with... a major difference being most explorers who are doing or aiming to do toll treatment deals, are small deals... just to pay the bills and enable a little drilling. NMGs deal with WGX is a level above and basically makes them a small cap producer in their own right.
My lack of picking up on this early does annoy me a little, but... I make mistakes all the time!
Well done to those who sleuthed it much earlier.

I am looking forward to when all the options are basically gone (not long to wait), then we can see true price discovery.

Good luck to all holders.