I stopped by the NES office today to check up on our favorite investment. On my way down the hall to see Richard I was glad to run into Gillian, who was off property buried under some paperwork..lol..
Things are moving forward on many fronts and despite the shareprice i get the feeling there is much going on behind the scenes. This lull is not uncommon in the development of a deposit ive heard it called a saddle or valley or whatever. Between the excitement of the discovery and the tallying of ounces there is sometimes a break where some less exciting technical drilling needs to be done and many reports are tabulated and coallated. Luckily our technical drilling is mineralized as well!
Unfortunately for all of us the saddle coincided with a terrible market and the summer doldrums and a federal election to boot!. Despite all this the people at Newstrike are continuing doing what they do and discovering more gold and significantly de risking this project. We have ample cash on hand and will come out looking pretty when most others are scrambling and competing for financing dollars when things turn in the junior market. To quote a term coined in 08 there are many “green shoots” appearing in the junior market and in particular gold.
I feel that as confidence comes back to the markets the piles of money already printed will be competing for real assets and investment vehicles all at the same time causing some pretty lofty inflation. Guess who wins then, gold and gold companies. Newstrike is a gold company that actually HAS gold! Just as this seems to be the perfect storm of pain, those holding and taking advantage of the fire sale will be rewarded handsomely in the second half of this year.
Richard and all at NES are keenly aware of the share price as they all hold significant positions and are feeling the pain we all feel during these times. Due to all the information flow back and forth from the propety they are all in a blackout period and imho wish they could take advantage of the sales out there these days. They are committed to getting the share price back to where it should be.. the valuation gap between NES and TXG is laughable right now. Sometime soon someone with means will put the puzzle together and pull the trigger and make a lot of money.
If you look at Torex, before they did the update their valuation topped a billion dollars. Thats with the original 3 million ounces they bought. I will bet anyone out there NES will come in with 3 million or more ounces with a 125 million dollar market cap less cash today it is a no brainer, we will close the gap and in the process make a lot of people very much more wealthy that their accounts show today.
NES is committed to increasing news flow (they are drilling a bunch of shallow holes closing gaps in the resource) and to shining some light on the opportunities that exist with a valuation gap as large as is evident between us and Torex. There is absolutely no reason for the lack of love for our shares at the moment, as such they will be heading out on an East Coast US road trip mid month followed by meetings in Toronto to point out the opportunities we all see to some of the big boys.
keep the faith the gold is there we have lots of cash on hand to do what needs to be done..nothing ever happens fast enough.. finding a mine isnt an every day thing..we have the best people working long hours getting everything that needs to be done done!
we are right we are sitting tight