Went to the AGM yesterday and was very impressed by the...

Went to the AGM yesterday and was very impressed by the presentation given by Edd. He is very passionate about the success of the company and is working his guts off to make things happen.

If you haven't checked out the AGM presentation yet do yourself a favour and check it out. I was a believer in Nex prior to the meeting but came away thinking it is a no brainer. I haven't much more to add as the presentation says it all but pages 35 and 42 of the presentation sum it up;

- $7.8m profit pa from phase 1 at current gold price. Note - this is using a recovery rate of 58% - this is now at 64% and climbing which will increase profits. Talk of recovery hitting 80% if allowed to go to 120 days.
- $44m - 53m profit pa from phase 2

So we are looking at conservatively $50-60m profit pa from phases 1 and 2 alone. But wait there is more - Phase 3 not included in the figures (remember we know diamond drill hole 3 has shown visble gold in the core). Increased metalurgical rates not included in the figures. Increased resources not included in the figures. SO BEFORE ALL THIS THEY ARE GETTING 50-$60m PROFIT (YES PROFIT) EVERY YEAR. So imho there is huge upside in the future.

Their plan is to have 3 mines happening at once (hence the phases 1, 2 and 3), to blend the ore. They can mine the higher grade stuff if the gold price plummets in the future which ensures survival. Also they are not planning a massive mill which is hungry for dirt which keeps costs down and ensures continuity of production.

People don't realise the fact that this is a LOW COST OPERATION. They can mine low grade dirt (0.5gt) using heap leach which wouldn't be cost effective going through the mill. Most of the infrastructure is in place. There is little cost removing overburden so processing costs (strip ratio)are low.

So Nex are well on the way to becoming a mid tier low cost gold producer right when the gold price is at record highs. In my eyes Nex is a no brainer and has huge upside so DYOR.

Edd may want to clarify any points i make.

Thanks

Ako