I find it interesting how "success" is measured for investments. For investments I make, capital gains and or dividends are what define the success of an investment. That success is usually sourced by an alignment of outcomes which come from sound operational, financial and strategic management initiatives.
I once traded IAU and exchanged a few emails with the then CEO. IAU have the largest gold resource in the world but I kept asking the CEO when they would have legal title to the resource(a pretty big problem I thought)? I was not happy with the BS responses so I exited that stock in the black rather than absorbing the huge sovereign risk associated with ownership of a resource in a dodgy country. Likewise, NWE have a big problem if they need to spend $15-20m to get Arrowsmith anywhere near close to production. Funding is actually just as important as the resource (assuming the resource is commercial?) and the company had not lined up any finance at this critical point in time.
It is now April. There have been no JV or farmouts achieved, the cash position will become a major issue shortly and there is no sign of any progress that will ignite the share price. I suppose that when the SP hits 1 cent that will present a good opportunity to average down or in plain English throw more good money after bad?
With the cash position being depleted, the next milestone will be a massive CR to fund PM's $400k pa allowance.
NWE Price at posting:
1.3¢ Sentiment: None Disclosure: Not Held
