Nadagold (NG) down 20% at $1.49. Remember that little cryptic comment about Nadagold (NG) yesterday? (Is it possible to get working cap and screw your shareholders at the same time?) Have a look at this Reuters report for the first round of explanations. There’s worse to come for shareholders, but don’t worry ’bout the bossmen…they’ll keep getting their money no problem.
Minera Andes (MAI.to) now down 17% at $0.475. The stock market is a hard, hard place. This is the company that was the virtual pathfinder for Southern Argentina mining and for the longest time was the only thing out there. Now that it has its mine up and running it gets judged on its high cash costs and lack of positive cash flow. It’s quite right, of course, but goes to show that you don’t get to win just by being a good guy.
Rusoro (RML.v) up 10% at $0.325. I’ve had a lot of mail on this stock in the last 48 hours, most of it very intelligent and readable. Thanks for all correspondence of this sort. It seems to be on a full PR offensive, with PRs about its lower cash cost results and Pres Salamis on BNN and this and that and the other. Well, it’s still a mighty “avoid” of a stock. If it does eventually get to play in the Brisas/Las Cristinas sandpit with the Vzla gov’t it will need enormous chunk of capex to fund its part of the construction. And looking at today’s PR and tapping the keys of my Casio, it’s not bringing in more than $18m of free cash flow per quarter (and that’s being generous; it’s probably much less). Or in other words this stock is going to get diluted to merry hell soon, so if you like its gameplan Otto sez buy after the big dilution, not before. DYODD