new year, new thread!!!, page-14

Good to see the improvement in NGF's operations.

One needs to keep in mind that NGF is paying 12% on its $97m loan taken up to clear its hedge (repayable in 2014). On production of 155,000 ounces this is an added cost of $75 per ounce of gold produced ($11.64m per annum fixed cost).

Current strong AUD not helping, except to the extent it lowers the costs of any imported inputs such as oil.

Perhaps they can get the Mount Morgan project going to give them some more free cashflow that could ultimately fund the repayment of the Lehman debt.

loki