The 2 clear risks with NCM are: Is it possible that they may...

The 2 clear risks with NCM are: Is it possible that they may need to raise money in the foreseeable future? - And – Will the gold price sustainably tank to below US$100po?

The capital-raise question is the key one for me. Time and time again, badly managed businesses get into this sort of mess and then raise fresh equity at the worst possible time. Just look at ERA’s fall from grace for a fine example of what I mean. Once the dirty raising is done, it tends to reset the SP to lower levels for ever (well nearly), or worse still, it sets a knew high to fall from (in ERA’s case!

However, if NCM retains its current capital structure, I’d be quite confident that an investment at these levels could reward well. A management/Board clean-up and some credibility restoration could work wonders for us all, in that instance. Who knows where the right buy-in point is.

I’d be interested in your views as to the likelihood or possibility, of the need for NCM to raise fresh capital please.

If you think gold is going to tank anyway then investment in NCM is off the radar.

S