norton the next big goldplayer, page-65

Hi hainholz, I'll be very happy to be surprised by early repayment of the debt. In fact, I was predicting six months ago that NGF could be debt-free by March 2012 if they worked at cutting costs and paying down the debt as quickly as possible. Maybe March was a bit optimistic, but I still think it could be done by June/July next year, particularly if the gold price goes even higher. Although the Aussie dollar is holding back profit-per-ounce in real terms, NGF will be operating very profitably when production costs are down to $800 or less (a realistic goal in the near term).

I realise that there are competing arguments for committing expenditure to further exploration and development, but NGF already has sufficient reserves to continue production at current levels for about three years before grades and ore volume would start to decline, so I would like to see them defer all non-essential expenditure to get the debt paid off.

Once they are debt-free, the market will start to accord them the status which their level of resources, reserves and production warrant. A share price of between 60 and 70 cents would probably be a fair price if they get the debt out of the way.