Post $85m raise assuming conversion of notes - 1.45 billion shares (plus options most of which well out of money now) - no debt - written down value property plant and equipment $126m (150k oz pa plant) - net assets $200m - 2.8m oz resource @1.8g/t - 970k oz reserves @1.9 g/t
@8c per share fully converted market cap = $112m = $40 per resource oz = $115 per reserve oz and = 0.56x NTA = 0.89x value of plant and equipment
i.e. buy for less than written down value of plant and get all the gold in the ground for free.
This has been a monster stuff up by management, there is lots of uncertainty, notes are worth more than ordinary shares because they pay interest and rank first in a winding up, and more capital beyond the $85m may be required yet to get to sufficient cash generation to see things through - but this must be getting close to rock bottom now.
NMG Price at posting:
8.0¢ Sentiment: None Disclosure: Held
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