chart is looking for a break out , page-13

New underground mine cash costs are predicted at 600 aud per ounce loki not $800.

Assuming hedge is continued next year profitable will be whatever the aud pog is less total cash cost forecast of $800 (underground mine will lower costs from current rate) x 120,000. At aud POG at $1100 then ebit nearly 40 million for the year.

If AUD POG goes down to say $1,000 company wont be that unhappy i think as they can then pay out hedge for some $25 million (210,000 ounces on hedge x $1000 - $875). Currently they have $45,000 in cash which is building each quarter.


Holders for NGF have a hedge in itself with the aud POG, if it goes higher then more profit if lower it can pay out hedge cheaply and reduce this current liability.

In three years hedge and convertable notes will be gone, coal assets close realising full value, production of 280,000, and with inflation likely to be abound in the world, there is much to like long-term with this company.