Norseman wins Gold Medal for Australia - Unlucky for Some

PUBLISHED: Aug 02 2012 @ 06:22 | Comments (0) | More info about Tom Winnifrith

Back in Stratford, Australia has just picked up another gold medal in the “Missing quarterly targets men’s relay event” Barry Cahill held the baton for the first 12 quarters before passing it on to Kevin Maloney who stepped in with a blinding finish to ensure that for 13 quarters in a row the AIM and ASXlisted Norseman Gold (LSE:NGL) squad has missed its production targets. The question is whether Maloney will do a lap of honour and miss again?

13 quarters. That is quite a feat. It’s certainly unlucky for some (viz shareholders) but perhaps we have reached the bottom? The bad news is that the Harlequin decline is now to be shut for 2-3 months to address technical issues. Er… it was falling in on itself. The good news ( or rather promise, and a Norseman promise is pretty worthless) is that the company will flex capacity elsewhere (North Wall) to keep the mill running at capacity so that production targets can, for once, be met. Norseman still reckons that it will do 80,000 ounces this year (to June 30^th 2013) and be up at 100,000-120,000 next time. If so, then at 2.65p, it is one of the cheapest stocks on AIM as I explain HERE.

The problem is that Maloney will be punished by investors for a) the overly dilutive placing just completed and b) the dire track record of the Cahill regime. So until we see him deliver then the shares will not be re-rated fast. If he does deliver then this stock will be a multibagger.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @tomwinnifrith

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.