re: Ann: Quarterly Production Report - Decemb... The NGF...

re: Ann: Quarterly Production Report - Decemb... The NGF quarterly result was only reasonable but then again this is now history.

The forward forecast has costs dropping by $200/ounce and a C3 cost of around $1300 which if gold holds around these prices should produce a CY2012 operational cash flow of $45+ million. As noted in reports the aim is to increase mill grade from 1.5g/tonne to around 2g/tonne to push production towards 200,000 ounces which will have a reduction in production costs - a double whammy for cash flow.

The new two year drilling plan started in January 2012 so no results would be expected and current results are related to near term production needs.

There are some good exploration plays - eg AZH, PIR but these are two years from production and will need funding for exploration, feasibility and plant build so one has to assess increased ounces against dilution/debt.

An unloved, debt free, unhedged, high cost producer with positive cashflow and exploration upside is not the worst place to keep some funds if you believe in the gold price.