Whilst there are always risks - particularly in times like this - with shares always the first casualty irrespective of share quality, all the company can do is to do what it is supposed to do. Improve production, reduce costs where possible, increase resource base where possible, look out for other possible opportunities (Goro) and carry on on a day by day basis. Despite critics, the QOQ figures show that management is doing their job and doing it well.
The share price whilst disappointing to holders whose average is somewhat higher than where it currently sits - nevertheless will in all probability be higher when inflows will inevitably be higher as zinc prices increase or at least stay at least current levels (a bit of a mouthful).
Would be nice for zinc to keep climbing and stay at higher levels for the foreseeable future and see that tide turning back in favour of commodity based companies - particularly for small to midcap. As sure as the tide goes out - at some point it has to turn and come back in - in this case we are waiting for that tsunami.
Don't know how a successful acquisition of Goro will affect share price in the short term - perhaps negatively due to more market perception re uncertainty and more risks - but if management can complete transaction and do with Goro what they have thus far done with the existing plant and zinc concentrate production then lets see how the sheer size of the project translates into the share price performance - I doubt it'll stay sub 20c for long. AIMHO.
NCZ Price at posting:
18.5¢ Sentiment: Hold Disclosure: Held
