BHThanks for summarising the 70,000 ounces a year hedge...

BH

Thanks for summarising the 70,000 ounces a year hedge situation, which will end on 30 June 2012. This is also my view.

In addition I expect production costs will have fallen again this quarter, which is why they plan to develop their new mine without raising extra cash. This will raise production by 60,000 ounces a year, so even if the hedge were not voided they will markedly increase their revenue (and if they gold price stays up and the $AUD down) their profits.

I expect NGF to rise to 22-25 cents/share by end June 2009 (all other things being constant). It looks a much better buy than SBM, which is more than double NGF's price.

loki