Club Mulgoa

Wednesday, October 30, 2013

NST

An idiot jettisoned the mine that NST now owns.  It found more and more gold and is a producer.  In spite of having a good set of managers, the market has been pounding NST because POG has fallen.

http://www.asx.com.au/asxpdf/20131030/pdf/42kgrkjsz4dqxf.pdf

Yesterday, when the big coal discovery was announced, the share price hardly moved!  Yet in The Australian today, an article appeared to inform the readers how valuable this huge find is.  RIO sold its 51% share in a thermal coal site for $1 billion.  That deposit is less than half the size of NST's projected size.  Of course, more exploration is needed to confirm the resource size.  The thermal coal is not high quality but it is like most others in Australia and Indonesia.

So today, because a business journalist has picked up on the story and analyzed it, you will find the share price will perk up.  I am hoping all my parcels will be profitable!  But I often wonder how those big investors choose where to park their money.

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