thomast2

Northgate: Mid-Tier Gold Producer with Strong Cashflow

Thank you all for the comments. Some of you raised a few good points. Regarding ARS, I am cautiously optimistic. As bulletbob said, with JP, ML, C buying back at full price, likely NXG will get that deal too. Since NXG can borrow with ARS as collateral, so I don’t see liquidity is a big issue here. Plus they are generating cash from their productions, unlike many juniors.

The key for NXG is more for the future. They need to make up the declining revenue of Kemess South from Fosterville and Stawell in next 2-3 years, then 3 years from now, let Young-Davidson take over to replace both kemess South and Stawell. And they need to find another resource rich mining project soon in order to grow their business, top line and resources level. Once the whole PM industry is back on track with gold bull market resuming, NXG stock price will come back at much higher level than now.