Nevsun Resources (USA) (NSU)

Strong Sector Performance

ultra

Expected 2010 production of a gold, copper and zinc project in Eritrea with very low expected cash costs.

Forward Cash Flow Projections based on Au price of $700.00 along with forward spot contracts placed and, from mining stand point, size and strata accessibility of Au.

HT UL (Although his pitch is really convoluted)

Here is how you give yourself a brain aneurysm.

Find yourself a gold miner that will move higher everytime gold moves higher. However, gold, tending to work as a fantastic inflation play moves higher usually when the dollar is moving lower. The dollar moving lower hurts currency exchange rates against the South African Rand. Hurt exchange rates turns small profits into 1.2M dollar quarterly losses. So the higher your gold goes, the worse your loss gets *boom*.... your head explodes

Go find me a pharmaceutical company that has a drug to fix that....

UltraLong

Interesting Aug 5 commentary by Motley Fool's Rich Duprey, that Eritrea gov is partner in Bisha project. While Eritrea gov unsavory (Economist), hopefully over time it will reform. In the meantime it is tenacious enough to protect own interests from warlords. Although recently sold 20%, nsu is long owned by Renaissance Technologies. Bravobevo endorsement nice touch. Junior miners best way to play gold now, since majors & GLD already fully valued. Even if gold falls in the future, as juniors come of age and start producing, their value will hold, as long as production costs below market value, which seems to be the case for nsu. If gold rises, juniors will soar as they start producing. Co recently obtained financing to carry it to production in 2011.

NSU is a cheap stock sitting on some good cash, and very good projects.

Two things usually happen to a stock like this. It becomes big, or it gets bought out. We will have to wait and see. I am up over 200% on it so far.

Definitely a keeper.

From a valuation standpoint, Nevsun is among the top five most undervalued companies in ResourceStockGuide comparison tables based on proven and probable reserves.
Check it out for yourself: http://tinyurl.com/39bg9n

Fair value of Nevsun’s shares is between $4.50 and $5.00.
Substantial exploration potential remains at the Bisha property. The deposit remains open at depth and there are additional satellite deposits located on the territory covered by the mining license.

with rising costs of fuel, more shipping business is being push towards the rails..going long.

Gold and silver have taken a sudden drop during the past week. Many speculators are panicing and claiming that this is the end of the "commodity bubble". I don't think so. If you look at the fundamental reason behind the last 6 months rise in precious metals, you have to ask yourself....has anything changed? I don't think so. The Fed continues to pump liquidity into the market, the interest rate continues to decline, inflation continues to increase and the dollar continues to fall. That being said....if due to demand decreases oil drops sharply from here...there is a possibility that precious metals will follow. Precious metals will experience quite a bit of volatility and the gyrations may be tough to handle but I think due to the fundamentals that I mentioned above that a year from now precious metals will be much higher.

Great property, mining license, and gov't investment in Eritrea. Hammered over their mismanagement of marginal Mali mine (600/oz cost). At 1000 gold, one would think that even monkeys could turn this one around.

Now that the Chinese stock market is in tune again with New York and that it is going down, oil and gold won't be able to keep moving higher.

Very good managers and cash ok.

High CAPS rating, low performance.

"Marginal" mine in Mali (the company's OWN wording) that requires an 80 MILLION writedown?

Other "significant" mine is in Eritrea.

Me thinks that if this company ever DOES start to make money from these mines, the African warloads will seize them.

Not exactly where I'd want to have my money tied up, if you catch my drift.

NEW PICK TO GO

Metals play, pure and simple, well situated

Gold is in a bull market