The market expected an MRE of 500k ounces and they delivered...

The market expected an MRE of 500k ounces and they delivered 175k. It doesn't matter how it's explained with JORC reasons etc it's clear the market was disappointed.

Euroz Hartleys who follow the company very closely said in their updated report (April 27):

"The results are far lower than we expected"

"The Company has spent $15.4m on the Crusader-Templar project to date, which equates to a cost of $88/oz. An expensive exercise"

"The results have disappointed us and are significantly below our expectations..."

So where to from here?

The company has 3 projects: Wallbrook, Bethanga and the NSW/VIC Critical Minerals (Mega Peg)projects.

Each will require resources. According to the companies timetable, page 21 of the RIU presentation (8th May)

- A 5000m RC drilling program at Branches is in the final stages of planning, drilling in June

- Diamond drilling at Bethanga is being planned and to take place in September

- The "Mega Peg" which covers 15000 square KMs - ground truthing in NSW commencing July

All this will cost money. Cash at 31st March was $6m and with 2 months into the current quarter the cash could now be sub $5m.

At some point a CR will obviously be required, maybe very soon.

If a CR was done today say at a 20% discount to the last price being 7.3 the issue price would be close to 5.8 cents.

Monetisation of Crusader-Templar? How? When? No real indication as to how at this point.

Talk of a possible NST acquisition in the market has not materialised. There seems no apparent hurry on the part of NST for this to happen if ever. However if this was to occur it could reignite the share price.

How low can the share price go?

Hard to tell, but NXM trades at a 12 month low not helped by tax loss selling maybe for possibly another month and a possible CR.