best gold stock 2011, page-22

Hi rumot, I guess the progress over the next two quarters will give us a clearer picture, but one of the stated aims of management is to reduce debt, and I hope that this becomes a very important objective. If we're hit with another (possibly worse) GFC, companies with strong cash balances and no debt will be in demand, and those with a debt burden will be put to the lash. We're likely to see sovereign defaults as well as company defaults if there's another GFC, and debt is going to become a very dirty word.

The Lehman hedging debacle and associated debt problem has held NGF back for far too long. Remove the debt and we see a company with excellent annual production, above-average resources and reserves for a junior/mid-tier miner, and great exploration potential, but the share price is languishing at about one third of where it should be because of the debt stigma.

The big thing in NGF's favour if we do get hit with another financial crisis is that the goldprice is likely to rise to new heights. Mike