first,,well done with SRK. Getting back to NGF, I suggested them to a friend who is very good at the fundamental side of analysis. This person works for one of the highly reputable accounting companies in Aust.
I would like to post his complete response to this but without his permission would not feel right doing so. However this was part of the response:-
"On a different matter, looked at the ngf accounts & wont be buying-they have just about decimated shareholder funds with the negative deferred value of the hedge position-while the gross losses of some $50m have been deferred into equity reserves, it will recycle into the P/L in the next year or 2-likely to have got much worse since year end & if they have any production hiccups they wont be able to deliver physical into the forwards"
There was more which I won't post however his ending note was "glad I waited until the accounts came out rather than rely on the investor presentation that came out last week"
hehehe..don't ask me what the above means...mumbo jumbo. Sounded good to me though...LOL.
TMR needs to bed down its existing "property"...then it can look for further opportunities. Who is to say where the prices of these resource stocks will be in 1, 2 or 3 years time. Once the US is declared "officially" that it is in recession, there could be severe repercussions, until it is proven that China/India will keep the big wheel turning.
TMR Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
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