Nustar (market capitalisation of $41.5mil) is a WA gold mining company 100% based in Australia with a mine recogised with a 540,000 ozs reserve of gold with further possible potential at depth. The company has just acquired the $30mil of capital from Westpac to ensure the development and production of its Paulsens gold field. The first gold pour is due in May 05. The current share price is $0.042cps coming up from a low of 0.029cps last year and has now established solid support at 4cps. The company has acquired some top rate management and has also shed the burden of its part ownership by St Barbara Miines.
The stock is also my pick in the Oct Tipping Comp. I see NMC trading next year between 15/16 cents to 24 cents dependent on the POG with the lower being based on the POG being around $400us an oz and the higher end being based at $450+.
Gold is about to test $430 and as you all probably know is predicted by some to be possibly around $450 per oz next year.
Does anyone else follow NMC? I have held for many years with a bit of a loss but have recently acquired a nice sized parcel with an expectation of a substantial share price move up.