For all (not only newbies) that are interested in investing in this company I would like to give the following advice again ( see my post  http://www.agoracom.com/ir/Noront/messages/644235 ):

this should be a quick summary of the situation and advice of what to do before investing:

1. DO YOUR OWN DD !

Read NR´s , MD&A´s , balance sheets, get information about management (people, credibility, reliability...).

2. INVESTMENT STRATEGY

There are basically two parties posting here on this board:

a) the (long term) INVESTOR who believes in the value of Noront and in further positive prospects. This type doesn´t care a lot about swings in SP because they believe ultimately it will go up and hold on to their shares.

b) the SPECULATOR / DAYTRADER who looks out for swings in market sentiment, trading patterns, chart analysis etc. This type tries to take advantage of SP moving in both directions and buys / sells on a daily / frequent basis.

3.  POSTING

Obviously both parties come up with arguments that support their investment strategy and will be biased (so be always aware of that fact when using either argument for your decision).

4. NORONT´S SITUATION

Everybody is talking about the Double Eagle find (this is solely driving the SP in the moment).

a) IN-SITU VALUE

With up-to-date drill results different people tried to estimate the actual value of DE and depending on their view you get the following scenarios:

aa) WORST CASE

5 m tonnes of ore with average value of $ 700/t = $ 3,5 b in-situ

ab) BEST CASE (up to date)

7 m tonnes of ore with average value of $ 800/t = $ 5,6 b in-situ

ac) OPTIMISTIC (FUTURE) CASE (ONLY FOR LONG TERM BELIEVERS)

100 m tonnes of ore with average value of $ 800/t = $ 80 b in-situ

ad) VERY OPTIMISTIC (DREAM) CASE (ONLY FOR VERY LONG TERM BELIEVERS, IBK seems to be one of them or was it really a mistake)

700 m tonnes of ore with average value of $ 800/t =  560 b in-situ

b) SHARE PRICE 

Based on 125 million shares fully diluted there are the following results for "fair value" depending on different views of how to transfer in-situe value to share price :

ba) WORST CASE

10% of in-situ value based on $ 3,5 b = $ 350 m = $ 2,80 / share

bb) BEST CASE

25 % of in-situ value based on $ 5,6 b = $ 1,4 b = $ 11,20 / share

bc) VERY OPTIMISTIC / DREAM CASE

25% of in-situ value based on $ 80 - 560 b = $ 20 b - 140 b = $ 160 - 1120 / share

(but as said before: THESE FIGURES ARE FOR LONG TERM BELIEVERS / DREAMERS ONLY)

3) FUTURE PROSPECTS

The above results have NOT taken into account that there:

- might be a (now very good) possibility of further tonnage at DE (expanding known ore body, new ore bodies)

- is WINDFALL, the other main project with high-grade gold results currently in development (and bringing it back into everyones focus soon, within the next 3-4 month)

- is a list of further very promising properties which could result into a mine within the years to come (probably month for some)

CONCLUSION:

If you have taken all this information into account and depending on your "investment style" and whether you are positive or negative about future results and development you should:

1. WORST CASE SCENARIO : don´t buy shares because Noront is and will be OVERVALUED ! Look out for better opportunities !

2. BEST CASE SCENARIO: Noront is not even at "fair value" at the moment (still the case) based on DE alone and has lots of upside potential because of further drill results from DE and the other properties ! This might  STILL be a good entry point !

Best Regards,

Fantomas