Nevsun Resources Ltd

Growing high grade, low cost Gold producer - projects in Eritrea, East Africa

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Message: My opinion of Nevsun.

My opinion of Nevsun.

posted on Feb 11, 2008 04:26PM
Mercian, that is a very valid and proper question. Never be humble about asking such.

I first noticed Nevsun several years ago when it was priced at $0.34.
I am a gold bug by nature so it did not take much after looking at reports to see the potential.
I was mostly buying all along with eventually the highest price being $6.95 for 1000 shares. That was before the ceasing of operations by Eritrea. When that occured I never lost faith because I understood the reason and agreed that it was a reasonable precautionary measure.

When the rumours hit that Eritrea may want a larger share of the pie I was a bit disappointed but understand the situation and it turned up to be quite reasonable. I'm talking about the additional 30% buyout.

I had my hope flying about the Mali mine. It looked like the answer to one's prayers.
Small resource but an inexpensive mine that would produce much needed income to develop Bisha and reduce need for extensive share dillution.
The Tabakoto cost over-run was a disappointment, but it happens.
To find out that three grams of gold per ton turns out to be uneconomical is hard to swallow. That was a stab right to the heart.
Price of oil, lack of water and so on in the light of escalating gold price is not a good enough explanation. I think the management dropped the ball on this one and is unwilling to fess up as to just what happened.
As a result I sold some of my shares and replaced with slightly more warrants, pocketing some cash for other ventures.

By gones be bygones, I expect that the management has learned a hard lesson at the expense of the investor. I assume that they are reasonably knowledgable people and will be more dilligent with Bisha.

Bisha is a great resource, that I have no doubt. That is why I still remain and hope. I expect that things will work out this time and before the mine is complete someone will step up and buy it from under us. That in my opinion is a very likely outcome.

My opinion in a nut shell.
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