NGF 0.00% 25.0¢ norton gold fields limited

gold article from the australian

  1. 19 Posts.
    for holders of ngf good article from the Australian yesterday


    THE other strategy is to own shares in a producer, rather than explorer.
    Our mind keeps going back to what happened to gold during the Great Depression. If you bought Homestake Mining shares from your Wall Street broker in October 1929 they cost $US80, but by 1935 Homestake stock was worth $US495 per share. Moreover, in those years, the miner paid out $US128 in dividends on each share.
    Norton Gold Fields struggled when it had to stop gold production in Queensland, but it is about to return to the role of producer. Earlier this year it bought the tailings of the old Mt Morgan mine in Queensland and believes it can recover 180,000oz of the yellow metal over the first four years.
    The company has raised $75 million to buy Barrick Gold's Paddington mine in WA. Norton is capitalised at just $18.2 million, but it has a potential resource remaining at Paddington of 2 million ounces. When it takes over the operation, by the end of next month, Norton will be a 150,000oz a year producer.
    The cash cost is about $600 an ounce, which is not all that flash given the ever-rising Aussie dollar (gold for August delivery closing in our currency on Friday at $769). Managing director Tim Prowse knows he can manage costs but not the price, so his focus will be getting those costs down, especially with the Aussie currency raging.
    Still, $18.2 million seems cheap for what will be about the fifth largest locally listed gold
 
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