I know what you mean re small co's popping up with some great results, share price rises strongly but then falls back to earth. Whilst a short term pullback in NXM's price would not surprise me, longer term I expect that NXM's price will rise further. IMO NXM's rise is sustainable because:
- they have reported numerous batches of excellent results (not just 1)
- these results come from 2 different areas now (Crusader and Templar) and it looks like the mineralisation between the 2 areas may join up. They also have other promising results in the area eg Paint as well as other promising projects
- the gold is high grade with significant gram metres Au
- most importantly, NXM are not a newbie co run mainly by spruikers and financiers chasing the metal of the month. Rather, the MD is a mining professional with a track record of success in looking for and finding minerals. As he has said numerous times in the videos, the geological team has been working on these prospects for years - they haven't just struck it lucky, it has been a methodical process which is now bearing fruit.
IMO, NXM is one of the best small cap gold exposures on a risk/reward basis currently listed on the ASX.
GLTA & DYOR
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