I wouldn't say it's struggling to find buyers, it seems to be in...

I wouldn't say it's struggling to find buyers, it seems to be in a healthy uptrend with some consolidation. As mentioned in my chart analysis the breakdown level of this trend is at 49cents currently and I can't see many signs of it wanting to test this level. Of course if the POG beaks its own sideways consolidation pattern that level may well be tested quickly.

From an FA basis a lot will ride on the Phase 2 drill results from EM. As mentioned in a previous post if the stock-work vein grades come back the same as the deeper phase 1 drilling then that should be very positive for the outlook at EM IMO. We were given a hint about this potentiality in this current March quarterly summary. Also as per my previous posts the Stage 3 cut back at EM has the potential to have the same scale as SAR's Thunderbox project and if those deeper grades carry through the grade and scale will be comparable. Personally I can't see why RMS couldn't emulate SAR. At the current production rate it is producing at well over the FY2018 guidance (of 200koz-210koz) so I couldn't see why with proper planning and a mill upgrade at Mt Magnet the company wouldn't aim for higher production at these two mining centres in the future. EM has unused capacity so they might be able to plan the new pit around that if the reserves allow.

I don't think this quarter was ever flagged as a shoot the lights out quarter. If the forecast strip ratio at EM comes to fruition in the June quarter then I think we will see the $100 million cash figure hit. What does that say? It says the company can deliver on its talk, a bit boring I know but quite uncommon amongst many of the gold producers that I follow.....and don't underestimate the value of a strong balance sheet. NST has had the luxury of strong balance sheet which allows them to do what they need to do. Companies that are constrained by cash tend to be far less reliable and rely on the jawbone not the backbone.

I personally can't see any imminent reason to sell. I'd wait to see what the June quarter brings with the decision on EM and see how the drilling at EM translates to reserves/resources (and watch to see what the global grade looks like (1.7g/t would be at the very positive end of the scale IMO, 1.4g/t -1.7g/t would also be good, between 1.0g/t and 1.4g/t I'd start to become a little shy going forward).

Shannon looks to be a third high grade UG mine in the making and is timely as Vivien looks to have a limited use by date. The company needs these high grade feed sources at Checkers. They seem to give flexibility and I think that's what helps the company meet guidance more easily than some of its peers.

SLR's quarterly stole the lime light this quarter, well done there . Esh

Eshmun