NIU niuminco group limited

NIU - Fundamentals, page-7

  1. 725 Posts.
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    Great posts @specgoldbug

    Amazing how the 3 week suspension took the wind out of our sails after some monstrous days of volume flushing out stale holders. Unfortunately when a suspension in any stock occurs, retail and some others tend to get trigger happy on the sell button as they feel there is an underlying issue at hand, even after it has been clarified, and hence here we are again with around $50k worth of stock available @ .002

    What continues to amaze me (I apologise for sounding like a broken record here....)

    A) $5.4m market cap for f sake
    B) Producing gold/silver, infrastructure significantly improved along with equipment in the last 6 months, significant new discoveries, increasing sales and will be EXTREMELY UNLUCKY if it doesn’t have a cashflow positive period for the 4Q
    C) Directors have filled there pockets full of shares @ .002 as part of there salary sacrifice, to the point where Ian and Tracey now own around ~500m shares/18% of the company between them

    These are my favourite type of plays where patience is an absolute virtue ..... the ‘good guys’ are set, all the ducks are in a row with the company, bench lowering occurring in the previous quarter to ensure we get stuck straight into the high grade ore at the beginning of this quarter, zero waste dirt to be processed (meaning all high grade!) with 1.5g/t being the cut off point for break-even (easily achievable.. look at the grades)

    By my back of the envelope calculations on a conservative scale, $750,000 worth of sales would see NIU achieve a profit of roughly
    $250,000-$300,000 for the quarter with:

    A) Production costs being around $250-$300,000
    B) Admin, if they decide to finally take cash payments contrary to shares, around $100-$120,000
    C) Other costs / exploration costs around $30-$50,000

    Can’t find a cheaper gold/silver producer on the ASX with as much upside as this stock in the short/medium term IMO
 
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Currently unlisted public company.

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