Q: What is the outlook for Northisle mining? Is now a good time to invest in it? Any other miners you could suggest?
Thank you
Thank you
5i Research Answer:
NCX is pre-revenue and tends to burn over $2 mln in operating cash flow a quarter. The company has $3.3 mln in cash as of the recent quarter but recently closed a $9.9 mln private placement. Shares have done well recently but we would view it as higher risk and speculative. Insiders own 13%. Its Island project on Vancouver Island is interesting and is attracting some attention. Recent drill results are impressive, and the preliminary economic assessment was good, but not spectacular (29% expected return and a long life, but a $1.1B capital budget).