I recently brought in after doing my research and cannot...

I recently brought in after doing my research and cannot understand why the share price is currently at 35 cents.

Apart from a general weakness in the gold sector while gold consolidates, it is however possible that RAB Special Situation Funds Ltd are still off loading their shares after the recent Notice of Change of Interest for Substantial Shareholder where they had sold about 16 mil of shares but still had about 34 mil left. Even if they are still offloading their share I would of though there would be good support at these levels.

I brought 30T more today at 33 cents and will keep buying if the price remains around this level.

I also have a reasonably sized investment in IGR and when I compare the 2 companies, I fail to comprehend why NGF are lagging behind.

IGR have an approximate market capitalization of about $240 mil with about 30 mil in cash but are still to become a producer, they have at this stage approx 1.6 mil oz of identified resources but need to relocate and refurbish a plant they have brought.

They will in all likely hood require another 30 mil in funding to achieve producer status.

Whereas NGF have

a plant which is producing about 150 T ozs per year.
even with Hedging at $A875 for approximately 75T ozs they will realize about 40 mil for 150 T ozs per year at current gold prices.
4.8 mil oz resource
underground operation at Homestead to start from March 09
and expected to be producing 100 T oz from 2010.
Mt Morgan to produce 50 T oz a year for 4 years.
Fully diluted market cap of 195 mil at .35 cents
approximately $600 an oz cash operating costs
Be a 300 T oz per year gold producer by 2010

The 40 mil profit from cash operating costs will of course fund ongoing exploration and resource upgrades as well as other costs and plant upgrades but I imagine they will still be improving their cash position currently at 34.6 mil.

I am very bullish on gold down the track and it is my view that gold will be back above $1000 in the near future.

Some on the people who's reports I read go a lot further than $1000 an oz with one respectable writer predicting $1200 by years end.

If this becomes fact and NGF deliver what they are promising, I can only imagine the share price of NGF when they are producing 300 T oz at a cash operating cost of $600 per Oz.


Regards

Discoveryman