Analysis The Australian PAD thing clay/tone announces 13.08.09...

Analysis
The Australian PAD thing clay/tone announces 13.08.09 Norton (course 0.195 A$, MKP 81.9 millions A$) mine a production of 35.021 oz (36,153 oz) for the June quarter (March quarter) from, which corresponds to an annual instalment of approximately 140,000 oz and which annual production desired between 150.000 and 160.000 misses oz further light. With net production costs of 554 $/oz (495 $/oz) and a selling price of 917 $/oz (914 $/oz) the gross profit breakdown of 419 to 363 dropped back $/oz. Norton might work thereby further in the profit area. In the 1st half-year of the financial year 2008/09 still another operational loss of 12,6 million A$ had to be accepted, which was to due to high writings-off, administrative and financing expenses. On the basis of an annual production of 150.000 oz the life span of the reserves reaches 8.3 years (7.0 years) and the life span of resources 26.0 years (26.0 years). With the start-up of the Homestead Untertagemine and the Mt Morgan mine Norton plans to expand production to at the end of of 2010 on an annual instalment from 230.000 to 250,000 oz. Further Norton a charring and pursues a copper project. Norton holds forward sales over 210.000 oz, which covers one production period of 1.4 years. The unrealisierten losses from the forward sales were to 31.12.08 about 103,3 millions A$ or 278 $/oz (176 $/oz), whereby the special problem exists that the forward sales with Lehman were locked and Lehman on it conversion loans spent. To 31.12.08 a cash existence of 22,8 millions A$ (26.9 millions A$) faced an entire credit load of 217,2 millions A$ (166.8 millions A$). To 30.06.09 the cash existence on 45,3 millions A$ could be developed. Evaluation: Norton presents itself as a medium sized Australian gold producer. Are positive the successful production, the extension of the reserves and resources as well as the qualification of the management. The extensive forward sales, those are problematic the profit potential substantially limit and the credit load risen strongly. If Norton should be able to realize a profit margin of 200 A$/oz with an annual production of 150.000 oz, the KGV would drop back to 2,9. The extensive forward sales and the credit load risen extremely make however also necessary with a positive development capital increases, which water the share capital. Norton remains a Purchase Recommendation. Recommendation: , Current course 0.195 A$, objective of the course buy 0.55 A$ to stops, under 0,30 A$. Norton is acted sporadically also in Frankfurt (see Purchase Recommendation of 26.05.09 with 0,225 A$).

from siegel investment / germany